Identifying and developing internal employees with the potential to fill key or critical organizational positions is the essence of succession planning. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available. Without the implementation of a succession plan, there can be significant negative impact on an organization including loss of expertise and business knowledge, loss of business continuity, damaged client relationships, and time and effort to recruit and train newly recruited replacement employees.
Succession planning accelerates the transition of qualified employees from individual contributors to managers and leaders. For employees, succession planning prepares current employees to undertake key roles, develops talent and long-term growth, and meets the career development requirements of existing employees. For the organization, it ameliorates the increasing difficulty and cost of recruiting externally and improves retention of key employees.