Succession Planning & the Great Resignation

The September McKinsey Quarterly reported “more than 15 million US workers – and counting – have quit their jobs since April 2021, a record pace disrupting businesses everywhere.” McKinsey’s data shows that employees are leaving because they “prioritize relational factors, whereas employers were more likely to focus on transactional ones.”

Employers often think of retention in terms of salary and benefits. While employees do value salary and benefits they want more from their jobs. It is the job of the employer to develop relationships with employees, to learn about their employees and figure out how to meet their needs. One way is to give them a path forward within the organization and the capabilities necessary to walk that path.

I recently completed a large succession planning project. I interviewed nearly 100 employees at all levels to learn about their desires for professional development and advancement. Nearly three quarters of those interviewed were interested in advancing within the organization. But, the majority of those employees did not know how to make that happen. Meaning, they did not know what positions they can aspire to and they did not know what new skills they need to secure that position.

In the McKinsey data, employees prioritize being valued, belonging, and potential for advancement as most important at work. Employers can increase employee advancement and show employees they are valued by investing in succession planning. According to SHRM,

Organizations with formal succession planning are more likely than those with informal planning to (1) be more proactive in identifying and developing their leadership talent; (2) be more attuned to diversity issues; and (3) have a more transparent succession planning process.

In addition to identifying pathways of advancement, employers must identify employees who have the ability and interest in advancing in the organization. Employers should invest in interested employees by providing individualized learning and development opportunities needed for them to advance.

The development of career pathways and professional development for employees to advance is one clear way to show that employees are sincerely valued and belong. The relationships that will grow from succession planning are an investment not only in that employee but the organization. Creating a succession plan for the future of the organization and its employees is a significant step any organization can take to positively impact employees and culture.