Succession planning in talent management

Imagine: your CFO announces his departure in two weeks. Your sales manager is retiring without sufficient retirement.
Result? Months of paralysis, disoriented teams and a financial hemorrhage that can reach 200% of the annual salary of the vacancy.

This disastrous scenario occurs in the majority of French companies that did not anticipate their successions. However, the solution exists and it transforms this vulnerability into a competitive advantage: the succession plan.

What is a succession plan and why is it essential?

A succession plan is a strategic process that identifies and prepares future leaders for key positions. It guarantees operational continuity, reduces external recruitment costs (savings of up to 50%) and secures critical skills. Without a succession plan, a company risks 3 to 6 months of vacancy and a loss of productivity estimated at 200% of the annual salary of the vacancy.

Succession planning: a little-known pillar of talent management

While HR managers invest heavily in recruitment and training, only 35% of companies have a real succession plan. This neglect is costly: each unfilled strategic position generates a cascade of dysfunctions that weakens the entire organization.

A succession plan is more than just a replacement flowchart. It is a living system that detects, develops, and deploys your internal talents to create organizational resilience. It transforms your talent management from a reactive approach - chasing resignations - to a proactive strategy that anticipates and prepares for the future.

The steps of succession planning

In addition, the prospects for internal development are appreciated by employees who will feel valued, and will remain in the company: a great loyalty tool to seize in order to optimize talent retention actions. ‍

How to build an effective succession plan in 5 steps?

1. Map critical stations : identify 10-15% of strategic positions
2. Define target competencies for each key position
3. Evaluate the internal pool via People Reviews and Assessments
4. Create development paths individualized (70% field, 20% coaching, 10% training)
5. Reviewing the succession plan every 6 months to adjust

A well-structured succession plan reduces time-to-fill by 60% and increases the retention of high potentials by 40%.

Talent Management and Strategic Human Resources Planning

Unexpected departure of the CFO, unanticipated retirement of the Sales Director... Two examples of failures that have negative consequences in the short term:

• A workload passed on to unprepared employees ;
• The lack of management of the activity, resulting in the demotivation of employees;
• A loss of productivity which will lead to a drop in turnover and affect the economic health of the company.

Talent management at the service of “Succession Planning”

There are 3 levers that are still too little exploited within companies:

1. Les professional interviews : this privileged meeting allows the employee to express himself on his wishes for development. A great opportunity, which will fuel your thinking about matching needs and resources.
2. Evaluation interviews : these interviews make it possible to determine the skills mastered by the employee, as well as the training courses that will allow him to acquire new ones. Use this data to put in place the right development plans.
3. A policy of adapted training : build a training plan that will enhance the talent pool and allow them to integrate even more quickly into the new position.

What are the real risks and costs of not having a succession plan?

Without a succession plan, a company is exposed to critical risks: loss of unique know-how, cascading demotivation of teams, delayed strategic decisions and overload of remaining employees. The financial cost is brutal: 3 to 6 months to fill the position, 150 to 200% of the annual salary in direct and indirect costs, not to mention the loss of customers or projects.

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Neobrain is one of the most prominent international solution publishers, here is the evaluation grid of the main players according to G2:

Talent Management and Organizational Agility:

The main improvements made by our HR contacts concern the pace of succession review. Once individuals are identified, an HR platform supports the development of each potential successor: transmission of knowledge, mentoring, coaching, etc. Other reflections can also be carried out in order to directly incorporate emerging skills related to key positions:

• Can the tasks associated with this position be distributed differently?
• Will new skills be required?

Ask yourself these questions to evolve your organization and implement agile talent management.

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