Written by Paul Glatzhofer, VP of Talent Solutions
Previously published by PSI Talent Management or Cubiks, prior to becoming Talogy.
This article on the benefits of succession planning was originally published in August 2018. All relevant information has been updated as of July 2021.
Most organizations have realized the importance of hiring, developing, engaging, and retaining their leadership talent – no surprises there. They have also found value in using an objective and reliable measurement method to identify leadership and high potential talent. However, some organizations still struggle to get buy-in from senior executives (those who hold the purse strings) and lack budget approval for one of the most important drivers of organizational success. If you are renewing your leadership assessment budget or trying to get executive support for the first time, these seven facts will help you get budget approval.
These circumstances could have proven to be problematic even pre-pandemic, but given the current hiring climate, this could put you at an ever bigger disadvantage in the competitive talent market. Not having a documented succession planning strategy could be the deciding factor when it comes to securing top talent. Candidates want to know that as they invest their career with you, that you are in turn investing your time and resources into them.
This isn’t a one-way street, though. By building out a thoughtful succession plan, you are taking practical steps toward developing a reliable leadership funnel. This can be one of the most important drivers of organizational success and the results produced are tangible.
If you are in the process of renewing your leadership assessment budget or trying to get executive support for the first time, use these below statistics to build your case for succession planning within your organization. The research over the last 50 years in the area of leadership selection and development is clear. Focusing on your high potentials within the organization is not only important, but imperative in order to compete in today’s environment. You will find the long-term success and budget savings makes it well worth the upfront investment.