How Succession Management Can Improve Retention
succession-management

How Succession Management Can Improve Retention

Succession management, especially with unemployment at an all-time low, is critical to long-term workforce planning. Not only does it offer employers a way to identify and develop top performers for future internal positions, but it can impact engagement by showing employees they’re a valued member of your organization. In fact, a Software Advice study found that 62% of employees would be more significantly engaged at work if their employer instituted a succession plan. Utilizing your human resources metrics can help the succession planning process.

Succession Management Defined

Succession Management is the process of recruiting talented employees, developing their knowledge, skills and abilities while preparing them for future leadership roles.

What if you don’t have a succession plan in place?

While some only think of executive-level positions for succession planning, your entire organization can feel the effect. What if a trusted software coder with 20+ years of experience and intricate product knowledge suddenly retires, where do you turn? Or what if you lose a growing, talented performer because the individual lacked a clear understanding of future opportunities within your company.

Without a plan in place to keep talented people or utilize their knowledge, you could experience a setback that will impact productivity and performance, ultimately hurting your bottom line.
Here are actionable steps to enhance engagement and improve retention across your organization.

3 Areas of Focus

Succession management isn’t something that can be easily wished into existence, it’s a process that requires you to develop, communicate and execute a plan that should apply to everyone within your organization.

Here are three strategies to build a successful succession strategy:

  • Performance management
  • Ongoing coaching and development
  • Learning management

Performance management is changing.

For years, performance management and counseling consisted of a yearly assessment designed to track progress against goals. But times are changing. Instead of waiting for the obligatory review, employers are offering their people more frequent opportunities to discuss what’s working, understand problem areas and identify future career opportunities.

Implementing regularly scheduled check-ins are a critical communication tool to ensure employees are accomplishing their goals and happy with their current role. Plus, understanding your employees’ aspirations can help identify their future career path while taking into account other areas of the business where they can make a difference. For example, you may have an employee who started in sales but has a passion for supporting clients and resolving issues. While they may be contributing in their current role, taking the time to introduce them to a colleague in client service shows that you're invested in their development and willing to help them find the right opportunity.

succession-planning-report

It’s essential that businesses have a system in place to identify, recognize and reward top performers. The right HR solution can offer customizable employee performance reviews, peer-to-peer performance feedback and goal management and tracking. Measuring performance and providing a detailed record is a critical first step in identifying top internal employees and matching their interests with business needs.

Put me in coach!

Another important piece of the succession management puzzle is providing employees with ongoing training and development. Training does not stop a few months after an employee is hired. It should be part of a continuous plan that provides specific skills and knowledge employees need to excel in their role and advance in their career. This career development guide can help HR teams form a plan. Helping employees improve both personally and professionally is a key driver of engagement and ultimately retention.

Management Development

According to a Gallup study, more than 50% of managers feel disconnected from both their responsibilities and their organization’s mission. Because this group is trusted to engage and motivate their teams, it’s mission-critical for the C-Suite to develop a strong foundation to support and develop future company leaders.

Management development programs should focus on increasing foundational management skills across throughout the organization, no matter the department or function. Creating consistent practices and setting the same expectation for managers should be the goal. To enhance managerial skills, many organizations offer formal management development training opportunities.

performance-management

Combat Job Hopping

Gone are the days when one employee stayed in the same role or even the same company for the duration of their career. According to Forbes, nearly 60% of Millennials are entertaining the idea of a new job opportunity as you read this article. In addition, 21% reported changing jobs within the past year, compared to only 7% of employees who make up Gen X. If you don’t promote growth opportunities for a multi-generational workforce, your retention rates will feel the impact.

To prevent job hopping, employers are investing in learning management tools that deliver personalized content to educate and engage employees. It’s no secret that untrained employees are far less productive, lack motivation and quickly grow disengaged with their role and their employer. The more continuous learning opportunities you can offer your people to develop their knowledge, skills and abilities, the more prepared they will be to take on expanded roles across your organization.

How Paycor Can Help

Paycor specializes in helping businesses of all sizes retain top performers with HR and learning management solutions. If you’re looking to optimize your performance management programs, better track training and employee development and offer structured learning opportunities, contact our team.


Ellie Elder, PaycorEllie Elder, Paycor's Director of HR Business Partners.






Paycor product demo

More to Discover

Creating a Coronavirus 2nd Wave Contingency Plan

Creating a Coronavirus 2nd Wave Contingency Plan

While we’re all doing our best to keep ourselves, our businesses and our communities safe, there’s still a lot we don’t know about Coronavirus. The sudden shift to remote work and everyone’s efforts to maintain social distancing have made a big difference, but another wave may be inevitable, according to scientists. And if re-opening isn’t done right, scientists worry a second wave could come soon. Put Long Term Business Continuity Plans In Place Many businesses are in a fight for their lives and though focus will understandably be on short-term survival, it’s also crucial to plan for the future. A study by Gartner found that 42% of CFOs have no contingency plan for a second wave of COVID-19. However, even as America recovers there may...

Shawnee Health Service Discovers a More Reliable and Accurate HR & Payroll Solution with Paycor

Shawnee Health Service Discovers a More Reliable and Accurate HR & Payroll Solution with Paycor

“When we decided to switch providers, Paycor was the only one that offered to come on site and provide a demo. They brought a team of implementation and healthcare experts to answer our questions and review our needs.” - Derek Olsen, Employee Services Coordinator Why Shawnee Health Service Left Their HR & Payroll Provider Shawnee Health Service is a Federally Qualified Health Center providing comprehensive primary and preventive care, including health, oral and mental health/substance abuse services to persons of all ages throughout southern Illinois. When implementation errors and setup issues created several software problems, they immediately began searching for a new solution that would have the knowledge and expertise to handle...

Webinar: Unified Solutions for Healthcare:  How OnShift and Paycor can Support Your Employee Lifecycle

Webinar: Unified Solutions for Healthcare: How OnShift and Paycor can Support Your Employee Lifecycle

The healthcare industry is facing unprecedented challenges. However, with the right partners healthcare leaders can come out of this crisis stronger than ever. OnShift and Paycor will showcase how a unified solution can help improve how you manage your employee lifecycle and how technology can help you navigate the changing healthcare landscape.This webinar will provide a Post-Acute Healthcare focused demonstration showcasing the value of the proven unified partnership between Paycor and OnShift. We will kick it off with Post Acute industry Human Resources leader, Peter Corless, speaking to his experiences in the industry and the benefits of two best of breed products working as one for the ultimate customer experience. The webinar will...

Webinar: How People Analytics can Impact your Retention Strategies

Webinar: How People Analytics can Impact your Retention Strategies

Is employee retention and the competitive job market keeping you and your CEO up at night? As soon as your employee feels dissatisfied with their job, there’s another company lying in wait, promising them a better future (and more money). What if you could get ahead of job dissatisfaction and spot these red flags before your best employees are even considering their job search?Join Donal Murhpy as we discuss: - What people analytics is, and how it differs from HR reporting - How to get started with analytics - Best practices for solving critical business problems like retentionSpeaker: Donal MurphyDonal is the Director of Partner Enablement at Visier and manages Go-to-Market planning and operations for Visier’s Embedded Analytics...