Every business today needs to prepare for a key employee leaving. If an essential member of a business leaving comes as a surprise, it can easily turn into a bad situation. In some instances, the departing key employee has been met with legal threats, angry words and more. This could easily be avoided when a business has a succession plan for every key employee in the company. In order for such a plan to be effective, it must contain certain elements and be agreed upon by all those involved.
According to an article in Entrepreneur Magazine, “Whether or not the candidates for the top job are family or not, the process for choosing your successor is basically the same: Find the best person for the job.”
This type of plan has to be designed to meet the individual needs of a business. In some cases, this may involve everything from switching employees into different positions, starting the hiring process and more. The needs of the business should always be the focus. All key issues involved with a departing employee need to be understood. The goal is to maintain the same level of customer satisfaction when the departing key employee is gone.
Having a succession plan in place provides a business with a number of advantages. It can be designed to have access to well-trained and experienced individuals who can fill key positions. The plan can list resources to be utilized during the time a company adapts to any changes it may experience. It can also be a regular source of ideas for adapting the procedures of a business, when specific personnel are gone.
A successful business is never finished with their succession planning. A company will regularly change. New technology will be introduced, there will be certain levels of turnover, businesses grow and even change direction. The needs and goals of a company can become different over time. A succession plan needs to be regularly reviewed and changed, to meet a company’s changing requirements.
A succession plan should clearly state its goals and be in writing. This will provide other key personnel in the business with knowledge of what happens when someone leaves. They will understand how the practice intends to continue being successful for the long term. A practice should be open to input from all those impacted by the succession plan. In many companies, this has provided a sense of security for employees and reduced turnover rates.
There are benefits to a business when their succession plan is transparent. This is an opportunity for a company to understand its future. It will enable positions to be developed for future company goals. A framework can be established to meet its needs under a variety of circumstances. It should take into consideration filling important positions from external sources as well as within the business.
In every company there will be retirements and key employees who move on. A business may regularly meet goals for growth. Succession planning will ensure a business is available in the future. It is an effective way to avoid angry departures and have smooth transitions.