Millennials and Generation Z employees tend to be more mobile than senior employees. According to Sierra-Cedar, the average duration of a worker between 20 and 35 years old is four years. As sad as it may be sometimes, no employee lasts forever. People retire or move on to other career opportunities and leave a gap in the form of a person in their workforce.
You have to close that hole quickly. With succession management, you can be ready to cover that space in the blink of an eye by creating succession plans for key personnel. These plans identify workers who are immediately ready to fill positions that are not currently vacant and who can develop the necessary skills. Succession planning is a comprehensive approach that helps create a competent and qualified workforce to perform sufficient leadership and other crucial functions as the company develops, changes or evolves.
Succession planning ensures that employee productivity and confidence are not affected during business growth or management turnover. In a highly volatile market, increasing and retaining a pool of talented resources is one of the immediate business objectives for sustainability. Employee turnover costs are high, which has a negative impact on final results. The cost of employee turnover also includes soft expenses, such as reduced productivity, decreased engagement, training fees, and cultural influence.
If turnover is unavoidable, it also includes succession planning for business continuity. Internal coherence in talent management practices; in other words, the way in which a company's talent management practices fit together is key, as recognized by companies like Siemens. Human resources can help ensure that talent management strategies support overall strategic planning, business objectives, and company culture. Talent management processes can use specific personality tests when hiring employees, helping to improve communication, teamwork, and productivity in the workplace.
Talent leaders aim to provide employees with a reason to stay, rather than going from one company to another to achieve their career goals. One of the biggest challenges faced by companies around the world is creating and maintaining a strong talent portfolio. The talent review process is structured around one or more talent review meetings to assess strengths and address the organization's areas of risk. Sparrow, “The role of the corporate human resources function in global talent management,” Journal of World Business 45, no.
Fortunately, the best talent management techniques and a benchmark for success help companies find the right people and grow them for future success. This article is based on a multi-year collaborative research project on global talent management practices and principles conducted by an international team of researchers from INSEAD, Cornell, Cambridge and Tilburg universities. Participants review worker profiles, performance, goals, and compensation data at a talent assessment meeting. The case study interviews were semi-structured and covered questions about the business context, talent management practices, and the human resources function.