Succession planning is about developing a strategy and a plan to identify and prepare future leaders for the business. When gaps emerge through promotions or attrition, as an organization we want to ensure we have internal successors and or an external pipeline ready to fill the role. This initiative feeds into our business strategy and ensures we have the leadership and bench strength to allow the business to perform at a high level and continue to deliver strong results.
Why do we need Succession Planning?
Convo currently has no formal process for systematically determining bench strength.
Of the five voluntary resignations in 2023, three of them were director level and above.
Losing employees at this level has a direct impact on our leadership continuity and creates a significant gap for our bench.
Compensation continues to be an issue, as most of our Admin employees are below the 50th percentile
We need to embrace a culture of employee engagement. When our employees know there are opportunities for growth and advancement with Convo, it can boost employee morale and increase retention rates.
The job market continues to be aggressive.
The independent (contingent) worker is on the rise. Companies aren’t just competing against other companies for talent; they’re competing against entrepreneurship: consultants, contractors, freelancers.
According to a recent survey, 67% of candidates are focused on total compensation, benefits and meaningful work.
The pandemic has accelerated the transformation from a knowledge economy to a skills economy. A skills economy is a landscape where a worker’s skill is more valuable than their formal education in the same field. For example, “Can your developer role be filled by a candidate who taught themselves code during the pandemic and can pass a screening test or do you require a candidate with formal education?”
Candidates want workplace flexibility, a greater emphasis on diversity, and impartial hiring processes that allow them to showcase their talents and compete on a level playing field.
How will we measure for success?
Year over year decreased attrition at the Director and above level.
Early identification of prospective leaders.
Decreased number of key positions.
Development plans in place for key talent.
What is our role in the Succession Planning process?
Provide a vision and knowledge of the strategic direction of the business and an understanding of the type of key talent that will be needed (functional skills, knowledge, experiences and traits).
Share an assessment of the performance and potential of likely successors based on direct observations and feedback from others.
Working with your employees in creating relevant development opportunities for identified successor and devoting time for one-on-one coaching and mentoring of potential successors.
We can discuss the timing of succession planning, but suggest we are done by the end of October.
I will meet with each of you to talk through the process, forms and actions.