Friday, December 26, 2008

The Benefits of Talent-Pool Succession Plans

In most organizations, HR professionals and executives readily admit they need to better understand the potential talent in their companies and do a better job of rewarding competent, loyal leaders. Succession planning, when integrated into the overall employee performance and talent management strategy, can provide organizations with valuable insight into their leadership pipelines. But a well-managed succession planning process should seek to not only prime leaders for the future, but reward them today as part of a bigger drive for retention.

There are many approaches to succession planning. One of the more common has been the org-chart replacement model in which employees are groomed for a specific position. Ideally, however, succession planning should focus on developing people rather than merely naming them as replacements.

With this premise at its core, the talent-pool approach to succession planning recently has emerged as a best practice that establishes a larger number of employees for promotion. This larger group is more likely to stay loyal and possess skills that are easily aligned with the organization's strategic plan.

In this model, high-potential candidates are placed in talent pools and then receive development -which may include specific types of training and education - in preparation for possible promotion. The organization commits to helping these individuals prepare to qualify for greater responsibilities, but ultimately, it is up to the individuals to perform well in their jobs while simultaneously equipping themselves to meet the new challenges of more senior positions.

The talent-pool approach to succession planning can be a great first step in rewarding loyal leaders, as they are not promised a specific position, but rather are recognized over time for their skills development, day-to-day performance and ongoing achievements. This approach provides a powerful tool set talent managers can use to recognize key leadership candidates and plan long-term bench strength.

Further, with talent pool-based succession planning, organizations are better able to get an ongoing snapshot of their workforces' potential and areas of retention risk while creating a larger pool of capable employees poised to take on leadership positions.

Capital District Physicians Health Plan (CDPHP) - an Albany-based, nonprofit, individual practice association HMO - introduced talent pool - based succession planning linked to its employee performance management to better address its strategic plans. With this approach, CDPHP can cultivate the necessary skills and competencies in high-potential employees by focusing on career and development planning.

The organization began the process by asking five questions to gauge which of their managers were at high risk to leave the organization and which were high potential. Of the organization's 100 managers, approximately 77 were rated as high potential. From there, three talent pools within management levels - entry, mid and executive - were identified. CDPHP is taking steps to reward the 77 high potentials by building a customized development plan for each manager.

As in the CDPHP example, by moving beyond the org-chart replacement methodology and working closely with high-potential leaders, talent managers can take development and succession planning to the next level. Organizations also are better equipped to manage retention risk and build employee loyalty.

For future leaders and the organizations that need them, opportunities that go beyond regular succession planning processes - such as highly individualized leadership training geared to their specific competencies or interests - will go a long way to build a robust, long-term talent pipeline.
Ref: Sean Conrad

1 comment:

xpertprofile said...

Talent Pool is very advantageous and prosperous for fresher candidates who are in search of high profile job, this training will help them in brushing up their knowledge with the skills they have so that they can apply their skill for the growth of the company.