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SUCCESSION PLANNINGAlabama Department of Labor Approach
OBJECTIVES
At the end of this session, you will be able to:• Understand what is meant by succession planning• Recognize why succession planning is critical to an organization• Identify different methods for succession planning
WORKFORCE TRENDS
• For years, organizations have been preparing for the mass exodus of the baby boomers.• As a result of the recent recession, many baby boomers have
delayed their retirement. However as the economy continues to recover, retirements are on the rise.• Baby boomers represent a significant portion of the workforce,
and the loss of their collective knowledge and experience could be devastating for unprepared organizations.
WORKFORCE TRENDS (CONTINUED)
• An American Management Association Enterprise survey in 2011 found that 71% of senior and mid-level leaders in the U.S. and Canada believed that succession planning is more important than ever before. However, only 14% of respondents said they were well prepared to deal with a sudden loss of key positions. Nearly one-quarter (22%) admitted they were not at all prepared to deal with such a loss.*
*Reported by the Gallup organization.
ALWAYS GIVE 100% AT WORK
12% Monday
23%Tuesday
40%Wednesd
ay
20%Thursday
5%Friday
2013 ALABAMA SKILLS GAP STUDY RESULTS
• The sample selected for the study included 6,926 Alabama employers in the Utilities, Construction and Manufacturing industries.
• Nearly 5,000 employers responded, providing information on recruiting challenges they face, skill gaps that they have identified, and their future training needs.
2013 ALABAMA SKILLS GAP STUDY RESULTS
(CONTINUED)Key Findings: Soft Skills Gaps• Employers were more likely to identify gaps in soft skills (41%)
than in technical skills (38%).
• Across all industries and areas, ATTENDANCE was the most commonly selected soft skill (65%).
• FOLLOWING DIRECTIONS (39%) and TIME MANAGEMENT (36%).
2013 ALABAMA SKILLS GAP STUDY RESULTS
SUCCESSION PLANNING ALABAMA DEPARTMENT OF LABOR
GOAL
Identify “KEY STAFF PERSONNEL” to develop next generation leadership
EMPLOYEE TRAINING AND DEVELOPMENT – SUCCESSION PLANNING
• Succession planning is one of the most important areas of training and development on which an organization should focus.
• Succession planning should be given consideration for numerous reasons. One of the most important of these is that, as managers and leaders in our organization, we need to be able to rely on our staff to: • Carry out our department’s mission, • Ensure the continuous and uninterrupted delivery of services, and • Meet organizational goals.
• Succession planning is our footpath to ensuring our staff is adequately prepared for these responsibilities.
WHO IS RESPONSIBLE FOR SUCCESSION PLANNING?
• Traditionally, the role of succession planning has fallen to Human Resources and top leadership in the organization.
• As the idea of succession planning has evolved, the concept of succession management has become a hot topic among businesses.
WHO IS RESPONSIBLE FOR SUCCESSION PLANNING? (CONTINUED)
• Succession management is a different way of thinking about succession planning.• This is a systematic process of conducting an organizational talent review and
assessing gaps in leadership.• It involves input from all levels of managers and leaders.• Even if you are not currently a senior-,mid-, or even junior-level manager,
chances are, one day you will be in a supervisory/leadership position.• As a supervisor or leader, it is your responsibility to ensure that your staff is
prepared for future vacancies. It can involve many steps, including cross-training, on-the-job training, off-site training, interactive workshops, etc.
(In other words, YOU are responsible for succession planning!)
SUCCESSION PLANNING – HOW TO BEGIN
• Consider how many people are currently eligible to retire in your unit/section/division/department and how many people will be eligible to retire in the next five years.
• Remember, however, that you should not focus solely on those individuals who are eligible to retire. People leave for a variety of reasons, not simply due to retirement.
SUCCESSION PLANNING – CONTINUED
• Identify all key positions in your unit/section/division/department.
• Consider what will happen to this knowledge when the position is vacated.• We need to move away from an environment of “Knowledge is power,
sharing is not” and work to create an environment of shared knowledge.
• We need to avoid identifying an “heir apparent” and ensure we are developing all of our employees.
SUCCESSION PLANNING – CONTINUED
• Consider diversity issues: We should avoid “like-me” approaches when handling succession planning. The most successful organizations are those that rely on diverse workforces and leadership.
• Ask important questions to assess what the business may look like in the future.• Do you expect positions or roles to be consolidated?
• How will these changes impact the needed knowledge, skills, and abilities of our staff?
SUCCESSION PLANNING – CONTINUED• Partner with Human Resources – Take advantage of the knowledge your HR staff
has available. Talk to them to discuss training opportunities for your employees. Use their expertise to identify competency and skill requirements for key positions.
• Learn the interests and abilities of your staff members. • What motivates them?• In what areas do they excel?• What are their desires/expectations for the future?
• Develop and encourage mentoring programs that allow more experienced staff to team up and work with other staff members.
CHALLENGES TO EFFECTIVE SUCCESSION PLANNING
• Financial considerations – Faced with ever-increasing budget cuts, many organizations feel they simply do not have the resources available to allocate to training and development.
CHALLENGES TO EFFECTIVE SUCCESSION PLANNING (CONTINUED)
• Time Constraints – The process of succession management requires a significant commitment of time from management.
• Faced with shrinking budgets and reduced staff sizes, many agencies feel that this simply isn’t a high enough priority to which they can dedicate precious man hours.
• This is why it is critical to have top-down buy-in from management.
CHALLENGES TO EFFECTIVE SUCCESSION PLANNING (CONTINUED)
• Legal Considerations – Succession planning must be done in a way that does not discriminate against unlawful factors such as age, race, gender, national origin, religion, and disability.
• For example, when evaluating available talent pools, do not exclude an employee who is the same age as the individual preparing to retire simply because you assume the potential successor is also near retirement.
SUCCESSION PLANNING:
ALABAMA DEPARTMENT OF LABOR’S
APPROACH
KNOWING YOUR PEOPLE
ADOL’S APPROACH…• The Alabama Department of Labor’s “Performance Improvement Training” (PIT) Team
• In January 2015, the PIT Team was created in ADOL. The PIT Team’s mission is to ensure continued excellence in customer service, equal job and career development opportunities for all levels of employees, and enhanced succession planning through formal, systematic training.
• The PIT Team is composed of supervisors and leaders from all divisions in the department.
• Meetings are held on a quarterly basis to identify training needs in the department, discuss options for meeting these needs, and monitor developmental progress after training plans are implemented.
MAJOR OBJECTIVES OF THE PIT TEAM
• Determine appropriate training needs
• Identify target audience
• Identify training gaps within trainer’s assigned areas
• Identify existing training that is available to employees
• Identify the trainers for technical training
THE PIT TEAM’S ROLE IN TRAINING
• Each member of the PIT Team is responsible for:• Communicating types of training available to the employees in
his/her division.
• Determining the target audience for each type of training.
• Identifying gaps in training
• Tracking attendance
BENEFITS OF THE PIT TEAM
• Boosts the skill level of our employees, supervisors and managers
• Develops productive employees
• Tailors training to each area’s specific needs
• Enables employees to keep pace with changes within the division
BENEFITS OF THE PIT TEAM (CONTINUED)
• Prepares employees for possible job advancements
• Prepares the department for succession planning
• Mitigates risk by protecting department, management and supervision from the threat of a lawsuit
BENEFITS OF THE PIT TEAM (CONTINUED)
• ENGAGES EMPLOYEES• Engages workers and gives them organizational buy-in
• An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work
• Highly engaged workers are, on average, three times more productive than disengaged workers
FINAL THOUGHTS…
• Employee training and development takes time, effort and commitment from organizations.
• Training and development also offers a significant return on investment for organizations.
• Succession planning is a critical component of employee training and development.
“We put good people in big jobs before they are ready.”
Pepsico
ALABAMA DEPARTMENT OF LABOR
Alabama Department of LaborCommissioner Fitzgerald Washington
Thank you for your time.