Whether it's through greater worker engagement, or job perks like generous salary and employee benefits, a key component of a business owner's position is to retain as many workers as possible, provided they're producing a quality product. Based on a recent analysis, organizations that practice smart succession management tend to have the most retention success.
As noted by consulting firm Deloitte, the organization that released the study "High-Impact Succession Management," this type of program has for the most part been associated with planning for workers who are filling more prominent positions within a company, like head of operations or executive job posts. However, a growing number of firms are implementing succession planning in other openings within a business. In the process, companies have seen improvements with retention.
"The top two benefits of effective succession management in these high-performing organizations are improvement in employee engagement and improvement in career development opportunities," said Kim Lamoreux, vice president of succession research at Deloitte. "This is good news, because it means that sophisticated succession management programs address the number two priority – after leadership gaps – previously cited by HR leaders in Deloitte's Global Human Capital Trends 2014 report: retention and engagement."
Retention comes through employee engagement
She added that employees who get feedback and given information on what opportunities for growth may be available tend to be more likely to remain highly engaged with their work. Because they take interest in the importance of what it is they're doing, they're more likely to stay with an organization rather than see what other opportunities may be out there.
Lamoreux also pointed out that high-achieving employees who don't feel like there's an opportunity for growth are perhaps the most likely of all workers to see what other options they have. But by informing them of how valued they are and reassuring them of what they bring to the table, they'll be more inclined to remain loyal.
Some of the key attributes of strong succession management programs, Deloitte revealed, based on a survey of 260 organizational heads, include effective communication with workers who perform well, accurately identifying what positions within a company are most in need of succession management and an ability to recognize what job posts require the smartest, most highly qualified workers, such as those who can think critically and problem solve.
"The most important activity for succession management is the ability to identify a supply of available talent to fill key positions, as indicated by 72 percent of organizations in the study," the report stated. "Yet only 32 percent of organizations believe that they are ready to employ this capability effectively today."
In a poll performed earlier this year, roughly 20 percent of workers in the U.S. planned to change jobs in 2014, according to CareerBuilder. More than one-third of respondents said that being overlooked for a promotion factored into this decision. Additionally, 45 percent said dissatisfaction with opportunities for advancement also played a role.
