Succession planning is a procedure used in Human Resource Management. It is a process to find out and develop new leaders who can come in the place of old leaders when they leave the company in the form of retirement or voluntarily quitting the organization or die due to unforeseen circumstances.
Succession planning is usually a closed-door procedure and there is no public involvement in the process, as in people who are selected will not even know if they are being discussed to be ranked in the succession list or not. Succession planning is a strategy adopted by many companies to not only identify and develop future leaders for the top management but in fact for positions at all levels and departments. It is a plan to ensure that the business is prepared for all types of contingencies that may arise in the coming future by having a pool of high-skilled workers or employees on their list.
A succession plan is usually developed by the HR officials to focus on the training programs for the employees who can be advanced within an organization. It is essential for the company’s growth in the most cost-effective manner and promoting trustworthy and experienced employees to important positions is a good idea to go ahead rather than hiring new employees for key positions.
There can be even unexpected events in the company for which the management needs a talented pool of employees to take up leadership positions in the absence of the current leaders and hence, succession planning comes in handy if planned in advance. For example, during the coronavirus pandemic, things went haywire in many organizations because people had to work from home and there were many people who were falling sick in top levels, thus if such companies had a succession plan in place then they could have managed without the key people by having these talented employees taking their place in such a crisis time.