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Succession planning is the power to developing the strengths and performance of their people and maximizes production capacity. We provide businesses with a broad range of highly effective tools, methodology and processes, proven to dramatically improve the contribution made by individuals and organizations at all levels.
Role of Succession Planning in Organization:
Prepares current employees to undertake key positions
Develops ability and long-term development
Improves employees abilities and performance
Improves workforce loyalty and as a result retention
Assemble the career improvement requirements of existing employees
Improves support to workforce throughout their tenure
Counters the increasing complexity of hiring employees externally
Focuses on leadership stability and better knowledge distribution
Provides more effective monitoring and tracking of employee ability levels and skill gaps.
Succession planning is a core part of an organization's ability to decrease risk, create a verified leadership model, smooth organization continuity and improve staff self-confidence.
Succession planning has become really important for managers and executives in the current business world because, now they have begun to realize the importance of securing their companies over time by selecting future leaders.
Succession planning considered to the higher concern to make the right decisions. They must put their self into strategic and planning form to choose the best leader.
When it comes down to the decision about the succession plan an executive should recognize the needs and requirements of the company that what would be the strengths and weaknesses so an executive will know what kind of person they would need on the considerable situation which will lead the company on the succession path.
The basic element in transition is well transparency as it applies on every company the employer should take step to communicate the employees to decrease the gap between the company and the employee which effects better with the reflection of succession.
Succession Plan- There are four stages to developing an effective succession plan:
Identifying jobs for succession;
Developing a obvious understanding of the capabilities required to carry out those roles;
Identifying workforces who could potentially fill and do highly in such roles; and
Preparing workforces to be ready for development into each identified role.
Without the execution of a succession plan, there can be significant impacts on a business including;
Lack of expertise and business knowledge
Lack of business stability
Damaged customer relationships
Time and effort to recruit and train potential employees
Organization succession planning is highly dependent on the competent employee the company highly depends on its employee which can make the path and accelerate the company's business which will play a major role for an organization to become profitable or reciprocal. One major concern which often makes difference for succession if the leader pr key person leaves the organization- either by choice or other circumstances.
What is likely to happen to the company when a key leader is eliminated without succession planning? There are some things to expect. First, there would be either no competent successor or where there is, the successor is often not ready to hold the heavy responsibilities positioned upon them or he/she simply does not have the ability to manage the business in the way it used to be. Whatever the case might turn out to be, the situation can be terrible for the company. Earnings may be lost. Business can become unsustainable to carry on. In the case of the unexpected loss of an owner, the remaining co-owners and the heirs may be mixed up in a relationship crisis that threatens to destroy the company.
In an unexpected situation, unproductive quick-fixed solutions are the only answers left. If no able successor can be set up, a temporary substitute is often the only choice left, and the decisive result may still be the downfall of the business. It is difficult enough to run an business with experience and skill. Without the necessary qualities in the new leader, the rot of the business is almost likely to set in straight away; unless it is lucky to have a substitute that happens to be suitable and motivated. If not, an uninterested successor is equally bad news for the set-up. Without the drive, the business will stay dull and more than expected, to go down.
Without succession planning, a company that has become successful can just as easily fail. The company grows because there is a leader with experience, drive and ability. Without suitable succession planning, the future growth of the business is left to chance once that leader is gone. Under such a situation, if it succeeds at all, it is by default rather than intended. That is not all. The passing of the crop from one generation to the next is often fogged up by the stakeholders' differing views and agendas. Without proper planning, the clashes of views and agendas can pull the company in several directions and this may wreck an otherwise feasible business.
Succession planning enables your business to identify brilliant employees and provide education to develop them for future higher level and broader tasks. Succession planning helps you "build worktable strength." Succession planning helps you decide where public belong on the bus.
Through your succession planning procedure, you also save superior employees because they value the time, attention, and development that you are investing in them. To efficiently do succession planning in your business, you must identify the organization's long term goals. You must hire better staff.
You need to spot and recognize the developmental needs of your employees. You must guarantee that all key employees understand their career paths and the roles they are being developed to fill. You need to spotlight resources on key employee retention. You need to be alert of employment trends in your area to be familiar with the roles you will have a difficult time filling externally.
SUCCESSION PLANNING IN CORPORATE SECTOR
With the passage of time organizations become institutions which need continued leadership reachable only by following a realistic succession plan. It is a very serious issue which deals with human being, the most random element.
It is a complex process and a successful plan is based on management formation, regular evaluation through evaluations and integrated management development system. Only one tenth of the know-how of professional managers consists of formal education and training and the result is attained through on the job development. Management structure has to be clearly understood by all and frequently reviewed for future planning. One of the reasons for the gradual and slow abolition of business groups of yesterday is that they failed in managing the change. The plan does not mean recognition of an individual to replace his/her ancestor. It means identifying a group of individuals to be trained and groomed for the place of CEO.
The organizations offer employee development opportunities through: on the job learning, better training and counseling, formal training programmers and job orientation. All these facilities not only help in employees' development but also help in preparing the incumbents probable to fill key positions.
The companies have to decide today for tomorrow through a complex assessment system for the human development, which is most uncertain. Business environment is getting increasingly vibrant, corporate growth, rate and size is critical, and values are changing which offer superior business opportunities for head hunters.
To achieve the aim the process begins from staffing needs periodic appraisal and an elastic plan. Promotions are common and job rotation is a must to expose the incumbents to a diversity of experience, i.e. Marketing, sales, finance and even manufacturing. The basic criteria remains performance but potential also play a very key role.
To commence such a complex process it is necessary to understand the challenge well in advance and act with obligation. Focus should be on performance as well as potential keeping in view the convenient challenges. The organizations must differentiate between spending on personnel and investment in employees' development. It is a fact that a number of of the corporate look after their senior executive very well but hardly invests in budding leaders.
One of the factors which have been a major obstacle in succession planning is hardly any division of management from ownership. Some of the leading groups vanished because they failed to interpret the change and to educate professional managers. People often presume that a manager by profession and a professional manager are one and the same. To face the emerging challenges corporate need more flexible managers.
Strengths-Based Performance Management
Imagine for a moment a workplace in which the employees eagerly estimated their performance reviews. Picture your staff telling each other how much they look forward to meeting with their manager and bragging about what an empowering experience these meetings are.
The role of managers and workers in the process
A strengths-based approach to performance management can be divided into two easy categories:
1. Employees: The individual worker's appointment with this concept includes taking strengths-based assessments, getting coaching and otherwise trying to develop individual strengths.
2. Managers: Managers play a vital role in the process. Managers intending to use this approach need to build up the habit of looking for strengths in their employees. They can use the hallmark features of strengths - positive emotions and high energy - to view strengths in action. Whether it is in emails or watching interactions among people in the break room, managers can develop the ability to see when and where staff members are using their strengths. This is a critical skill because it allows managers to give real-time feedback. One of the biggest problems with the conventional quarterly performance review is that they are display and present feedback too late for the timeliest growth to occur. Strengths-based performance meetings, by contrast, are potential focused and present learning that can be incorporated and used immediately.
1. Do not use a strengths-based performance meeting in isolation
There is a attraction to treat these types of meetings as one-off workplace interventions. We have found that the most effective way of approaching performance meetings is to contain them as part of a more holistic approach to building a strengths-based organization. This can include using strengths as an essential part of recruitment, spotlighting on strengths as a team building strategy and managing strengths on a day-to-day basis.
2. As a manager, develop your own ability to spot and label strengths
It is true that using a strengths-based approach to management is easier said than done. For managers who choose this very worthwhile path there is the condition that they learn new skills. The most important of these are the twin abilities of developing a strengths vocabulary and being capable to spot strengths in action.
3. Use an established strengths assessment
There are many strengths assessments in the market. We, of course, favor our own tool, the Realize 2. The Realize 2 uses 180 items to place 60 diverse strengths into four theoretical categories: realized and unrealized strengths; and educated behaviors and weaknesses. Regardless of which tool you eventually use, a formal assessment has the benefit of delivering a shared vocabulary for a business, providing extra insight on individual staff and helping to develop a positive workplace culture.
The length of time an employee has worked for his or her current employer.
Leadership is the skill of getting someone else to do something you want done because he wants to do it.
Leadership is a process by which a human being influences others to accomplish an objective and directs the business in a way that makes it more unified and logical. Leadership is a process whereby an person influences a group of individuals to achieve a common goal.
Self-esteem is a term used in psychology to imitate a person's overall assessment or evaluation of his or her own worth. Self-esteem encompasses viewpoints (for example, "I am competent" or "I am incompetent") and emotions such as triumph, despair, pride and disgrace. A person's self-esteem may be reflected in their performance, such as in assertiveness, shyness, confidence or caution. Self-esteem can apply specifically to a exacting dimension (for example, "I believe I am a good writer, and feel proud of that in particular") or have global scope (for example, "I believe I am a good person, and feel proud of myself in general").
To understand self-esteem, it helps to split the term into two words. Let's catch a look at the word esteem (say: ess-teem) first. Esteem is a fancy word for viewing that someone or something is important or valuing that person or thing. For example, if you really respect your friend's dad because he volunteers at the fire department, it means you hold him in high esteem. And the special trophy for the most precious player on a team is often called an esteemed trophy. This means the trophy stands for an significant accomplishment.
And self means, well, you! So put the two words mutually and it's easier to see what self-esteem is. It's how much you worth yourself and how important you think you are. It's how you see yourself and how you sense about your achievements.
Self-esteem isn't proud about how great you are. It's more like quietly knowing that you're important a lot (priceless, in fact!). It's not about thinking you're ideal - because nobody is - but knowing that you're valuable of being loved and accepted.
Self-esteem means knowledge of self; the worth one puts on self, and the value one attaches to self.Â Self-esteem is the essential belief about self.Â If one has a positive belief structure about one's self, they will have a positive self-esteem.Â On the other hand, if one views oneself as useless, one will have a negative self-esteem.Â Self-esteem is learned.Â Self-worth and self-esteem are frequently used interchangeably.
Importance of self-esteem:
Without self-esteem one can be so distressed for love that they do not see the red flags, and usually deny that there are problems. Usually we draw another with the same level of self-esteem and when the other does not have our support or love, they resort to putting us down in order to feel good about themselves. And so the cycle starts, then we place the other down and around and around we go, trying to be on top, yet at the same time we are putting the other down, we grind down any self-esteem we might have had and a downward twist begins for the relationship and the individuals involved.
Besides relationships, drugs and alcohol, material possessions can temporarily make us feel better.Â These provide a brief high and we need these things or activities to feel better. These traps are only momentary external fixes to an internal problem, and divert us from acknowledging our shortcomings and getting in touch with and working on curing past hurts that contribute to low self-esteem.
To have self-esteem we do not need to be self-centered, we do not have to be the good looking or create the most money.
In order to have good self-esteem we need to act in accord to our conscience and our beliefs about what is good in a human being. This often comes from a spiritual model.Â People do not need to feel good than another to feel good about them.
Self esteem is one of the most important components of a human being's personality. It is basically the image you have of yourself in your own view. You have a good view of yourself, you have high self-esteem, you have a bad opinion of yourself, and you have low self-esteem.Â It is the establishment of our life and something that helps us greatly in living a life that is worthwhile. Until and unless you believe in yourself and your abilities it is almost impossible to attain success in any walk of life. In other words, we simply need to value ourselves for what we are and what we are talented of rather than wanting to be what we are not.
I think self esteem is central part to everything you do. It affects your actions and thoughts. It changes how you feel about and worth yourself.
Can you imagine something else so important?
Why must self esteem matter to you?
Self esteem can be the difference between success and failure
Esteem can affect your thinking, causing your outlook to be positive or negative
Esteem affects your confidence
It affects your self image
If you do not value yourself how will you be able to value others?
Self esteem enables you to have the right attitude to succeed at work
It affects your happiness
I'm sure you understand the importance of positive thinking. Increase your esteem and you will turn out to be more positive. This will benefit you in every part of your life.
Employee retention is a process in which the employees are encouraged to remain with the group for the maximum period of time or until the conclusion of the project. Employee retention is useful for the organization as well as the employee.
Employees nowadays are different. They are not the ones who don't have better opportunities in hand. As soon as they feel dissatisfied with the present employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their greatest employees. If they don't, they would be left with no superior employees. A good employer should know how to attract and keep its employees. Retention involves five key things:
One of the most vital and key part is to retain the employee of the organization its as important as you understand you need you have got to intact and retain your potential employee because your employee is your asset which will highway the organization on success.
IMPORTANCE OF EMPLOYEE RETENTION
Why employee retention so important? Is it just to cut the turnover costs? It's not only the cost incurred by a organization that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.
The processÂ of employee retention will advantage an organization in the following ways
1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of money to a organization's expenses. While it is hard to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conventional estimate.
Loss of Company Knowledge: When an employee leaves, he takes with him valuable facts about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in anticipation of a future return. After the employee leaves, the investment is not realized.
Interruption of Customer Service: Customers and clients do business with a organization in part because of the people. Relationships are developed that support continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are disengaged, which could lead to probable customer loss.
Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee
Employee retention refers to policies and practices companies use to avoid valuable employees from leaving their jobs. How to retain important employees is one of the biggest problems that plague companies in the competitive marketplace. Not too long ago, companies accepted the "rotating door policy" as part of doing business and were quick to fill a vacant job with an additional eager candidate. Nowadays, companies often find that they spend substantial time, effort, and money to train an employee only to have them build up into a valuable commodity and leave the company for greener pastures. In order to generate a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a need to leave in the future.
Many people love their job, and there are a huge number of reasons as to why this is the case. They may like the company environment, their boss, and their co-workers. A thrilling position, with plenty of opportunity for growth, learning, and advancement, is always desirable, as is a meaningful job that has the possible to make a difference in the lives of others. Dissatisfaction with one or more of these things could force the employee to think about leaving.
A rather obvious way for a company to better retain their employees is by offering competitive salaries and bonuses. Everyone likes to be recognized for a job well done, and nothing makes someone feel more appreciated than cold hard cash. It also shows the employee that the company has some degree of loyalty towards them, which could in turn influence them to repay their employers with some loyalty of their own. Increased benefits, stock options, more vacation time, company cars, child care, and other perks don't hurt either. Financial support for employees who wish to continue their education would also most likely be appreciated and rewarded with employee loyalty.
In many instances, employee retention starts just as soon as an employee is hired. If a company sees an unusual amount of potential in a new hire, management could make them feel appreciated right off the bat. Interest free loans to help pay off their college bills or other debts is one way for an employer to do this. In order to keep the employee from jumping ship before the loan is paid off, the employer can do several things, including staggering payments or making the loan contingent on certain performance goals. In a way, this practice can be considered a combination of recruitment and retention tools. Similar programs could also be implemented for employees that already have tenure built up with the company.
There are times when an employee wants to leave a company not for a better job opportunity, but for the chance to relocate. Usually if this is a case, the employee's needs are strictly personal ones. If possible, a business can offer a relocation allowance to the employee and still try to keep them in the company in the same or a different capacity. Again, the details would have to be worked out on an individual basis so that the employee does not abuse this privilege.
The implementation of company policies like flextime, job-sharing, and part-time work may also prove useful in retaining an employee who wishes to leave their job for personal reasons. By doing so, a company could gain a reputation as a family-friendly environment and therefore make itself more attractive to future potential employees.
Another thing that employees seem to enjoy are casual days (or even a company-wide casual dress policy). This allows employees the chance to better express themselves and creates a more comfortable work environment. In most cases, the dress code should be clearly defined so that the employees do not abuse the privilege and promote an unprofessional image about the company.
A company may also want to spend some time to get to know their employees better. A thorough understanding of an employee's goals, concerns, skill level, values, health, and job satisfaction are just a few of the areas that can be addressed. By doing so, the employee could be made to feel more like a prized individual and less like a cog in a corporate machine. At the same time the company will educate itself as to which employees are the most valuable in both a business and personal sense.
When a valued employee leaves, the company can use information gathered in an exit-interview to find out the reasons for the employee's decision and the changes that can be made within the company to keep others from following suit. This data can be gathered into a formal report and distributed to management, members of the human resource team, and other pertinent employees to be used for this purpose.
Finally, upper-level employees can be trained as retention managers to help in the seemingly never-ending battle to keep talent. A successful retention manager must be aware of their strengths and weaknesses and have a talent for listening, respecting, and understanding their employees' concerns. Retention managers should be individuals who have already proven their loyalty to the company. Honesty, creativity, and patience are other virtues that can help in this type of position.
The Benefits of Employee Retention
Every company should understand that people are their best commodity. Without qualified people who are good at what they do, any company would be in serious trouble. In the long run, the retention of existing employees saves companies money. As Beverly Kaye and Sharon Jordan-Evans stated in Training and Development: "Studies have found that the cost of replacing lost talent is 70 to 200 percent of that employee's annual salary. There are advertising and recruiting expenses, orientation and training of the new employee, decreased productivity until the new employee is up to speed, and loss of customers who were loyal to the departing employee. Finding, recruiting, and training the best employees represents a major investment. Once a company has captured talented people, the return-on-investment requires closing the back door to prevent them from walking out."
When an employee leaves a company for a direct competitor, there is always a chance that they will take important business strategies and secrets with them to be exploited by the competition. This is yet another reason why the retention of employees is so crucial to some businesses. While this practice seems a bit unscrupulous, it stills happens quite frequently. As Bill Leonard stated in HR Magazine: "Because employers know that the best-qualified applicants will come directly from competitors, recruiting and hiring employees away from the competition becomes a necessity in an ultra-tight labor market. And necessity is the mother of inventive and sometimes controversial business practices. Recruiting and hiring from your competitors is probably as old as business itself. But what is new-and a hot topic among employers-is how to attract and retain qualified candidates in a highly competitive labor market while also preventing their own intellectual capital from winding up in the hands of competitors."
One way for a company to prevent employees from giving valuable information to competitors is to make it a policy to enforce strict noncompeting and confidentiality agreements amongst its employees. The existence of such agreements could in fact deter a competitor from hiring a valuable employ because they might not want to risk possible legal entanglements with the other company. Of course, all this could possibly lead to animosity with the employee who could feel that his or her options are being limited. Many employees don't always remember signing such a document, so a copy of it should always be kept on file for the employee to refer to. This area could prove to be a highly sensitive one between employer and employee, so extreme caution is suggested in all instances.
Employee Retention and Small Business
Employee retention is an issue in just about every business sector. The technology field seems to see the most movement amongst employees, but other markets like education and sales also see more than their fair share of turnover.
The effects of this trend are somewhat different for small businesses. Since the employee base at a small business is fairly low, a stronger sense of loyalty may be a bit more prevalent. One possible reason for this trend would be the generally low number of layoffs that occur in the small business sector. Many small businesses even have no-layoff policies that can be used as a valuable recruiting and retention tool to secure employees. These types of policies are not for all small businesses, especially those with erratic sales trends or those that employ a large number of non skilled workers who are often easy to replace.
In any event, just about every business will have to live with the fact that valued employees will leave at some point. While certain strategies can be practiced to slow this trend, it most likely can never be stopped completely. Successful businesses that are built on a strong foundation should have less trouble dealing with this situation than their weaker counterparts. At the same time, the company's strengths will enable them to promote an image to help recruit and ultimately retain the best employees out there.
Seven Steps to Increase Employee Retention:
When I consult with companies, the subject of identifying and retaining top talent is always one of the critical items executives tell me they'd like to improve upon. However, when I ask what their strategy is in that regard they either mention that they've found this great recruiting firm that is going to do nothing but send them top-level talent, or they look at me and tell me the people that have left were no good to begin with, basically rationalizing the cause of the turnover.
Conduct job analysis audits to provide realistic job previews. Conduct job analysis audits with behavioral assessments, cognitive reasoning assessments, job simulations, and hard skills assessments (e.g., computer skills, etc.) to objectively define the core competencies required for success in each role (competency modeling). This helps in providing a realistic job preview for candidates and managers. Oftentimes what managers think they need for a certain role is different from that they actually need.
Implement a well-designed assessment and selection process. Include behavioral assessments and structured behavioral interviewing techniques to increase the likelihood of hiring people that can, and will, do the job at a high level in your environment and for your managers (job fit assessment).
Provide good employee orientation. The people you hire today are potentially your greatest resource for corporate success in the years ahead. As a senior leader, your participation in new employee orientation sends a vital cultural and leadership message: "We're all involved here in the drive toward what we want to be in the future." Everyone-even the newest employee-has value.
Implement programs for employee training and development. Provide ongoing professional development to show your willingness as an organization to develop your greatest asset-your people.
Improve manager and employee relationships. Concentrate on the people that stay with you to learn what makes them happy â€¦ then give them more of it! "People leave managers, not companies. If you have a turnover problem, look first at your managers," Marcus Buckingham and Curt Coffman write in First, Break All the Rules.
Provide an equitable or fair pay system. Be competitive!
Encourage succession planning. Identify roles for which employees may be suited in the future and work with them on designing their succession plan within the organization. Invest in cross-training, job shadowing, coaching, mentoring, and cross-experience.
Strength of the feeling of responsibility that an employee has towards the mission of the organization.
The degree to which your position is protected from dismissal or retrenchment.
Factors affecting Job Security
Job security is dependent on economy, prevailing business conditions, and the individual's personal skills. It has been found that people have more job security in times of economic expansion and less in times of a recession. Also, some laws (such as the Civil Rights Act of 1964) bolster job security by making it illegal to fire employees for certain reasons. Unemployment rate is a good indicator of job security and the state of the economy and is tracked by economists, government officials, and banks.
Typically, government jobs and jobs in education, healthcare and law enforcement are considered very secure while private sector jobs are generally believed to offer lower job security and it usually varies by industry, location, occupation and other factors.
Personal factors such as education, work experience, job functional area, work industry, work location, etc, play an important role in determining the need for an individual's services, and impacts their personal job security. Since job security depends on having the necessary skills and experience that are in demand by employers, which in turn depend on the prevailing economic condition and business environment, individuals whose services are in needed by employers tend will enjoy higher job security.
To some extent, job security also varies by employment laws of each country. A worker in Continental Europe, if asked about his job security, would reply by naming the type of statutory employment contract he has, ranging from temporary (no job security) to indefinite (virtually equivalent to 'tenure' in US universities but across the whole economy). However, people's job security eventually depends on whether they are employable or not, and if businesses have a need for their skills or not, so although employment laws can offer some relief and hedge from unemployment risk, they only have a marginal contribution to job security of individuals. Fact is, individuals need to have the right skill set to have good job security.
Job Content Skills" refers to the breakdown of competences as they relate to activities associated with a certain job.