In a study conducted by Gartner, it was revealed that 64% of heads of recruiting find it challenging to acquire talent to support a change in strategy. In fact, 20% report that the requisitions are for roles they are unfamiliar with. As a result, these roles take 38% longer to fill.
No doubt, workforce planning and succession management have become critical aspects of strategic HR. As organizations strive to optimize their human capital and ensure a seamless transition of leadership, CHROs play a pivotal role in guiding and implementing effective workforce planning and succession management strategies.
By recognizing the significance of these strategies and understanding the unique position of CHROs in driving strategic HR initiatives, organizations can proactively address talent gaps, nurture leadership potential, and cultivate a high-performing workforce.
This article serves as a comprehensive guide for CHROs, highlighting the importance of workforce planning and succession management while shedding light on the strategic responsibilities and decisions they should undertake to propel their organizations toward sustainable success.
Workforce analysis, the first step in workforce planning, is the act of gathering information about the current talent pool within an organization. Data regarding workforce size, demographics, compensation levels, and performance of employees helps CHROs understand the existing talent pool and identify areas that need to be proactively addressed.
Workforce analysis also provides critical insights into the gaps that may exist in terms of knowledge, skillsets, and experience required for leadership positions across various functions to enable organizations to recruit new talent appropriately.
Once an organization has identified its potential talent gaps, it is crucial to thoroughly assess the current skill set and knowledge required for leadership positions across various functions. To help CHROs identify where they stand regarding the organization’s talent pool, an evaluation should be done based on three key aspects:
CHROs need to draft a comprehensive plan for recruiting and retaining talent across various functions. For instance, they might need to devise a robust succession plan that enables key leadership positions to be filled by internal talent whenever possible. They might also consider outsourcing some areas of HR, such as employee benefits or payroll services, to reduce the time requirement and cost associated with continuous training.
Since CHROs cannot always rely on external hiring to fill critical leadership positions, they need to devise retention and engagement strategies that enable them to retain current employees. This can be done by re-evaluating the compensation structure and providing a competitive pay scale for various levels across the organization.
In addition, they can address areas of low employee engagement by conducting a comprehensive analysis of organizational culture and benchmarking against industry leaders.
Effective workforce planning offers the following advantages:
Based on a survey conducted by SHRM, it was found that only 21% of HR professionals reported having a structured succession plan within their organization, while an additional 24% mentioned having an informal plan.
Succession planning is identifying and developing future leaders within an organization to ensure a smooth transition of key roles and responsibilities.
By implementing effective succession planning, organizations can:
To effectively implement succession planning, the HR department needs to collaborate with senior leadership and other department heads to identify critical positions, assess talent, create development plans, and establish processes for tracking and evaluating the progress of potential successors.
Planning provides direction, while succession offers power. Together, they drive the organization forward smoothly and efficiently. While workforce planning focuses on the overall quantity and skills of the workforce, succession planning addresses specific critical roles. It involves systematically identifying future job openings and potential successors. The combination aims to manage and retain talent for operational success while emphasizing competency development.
Workforce planning and succession management, guided by CHROs, ensure organizations have the right talent in the right positions.
At Pierian, we understand the importance of workforce planning and succession management in creating a strong and capable workforce. With our expertise as a trusted managed service provider, we can assist organizations in implementing effective HR strategies and solutions.
Our comprehensive understanding of various workforce management areas like onboarding, employee lifecycle management, performance management, policy formulation, etc., enables us to provide tailored HR solutions that drive value across the organization. Get in touch to learn more.