Human resources expert shares effective, actionable tips for how you can start succession planning
Research shows that most business owners are not as concerned with succession planning as they should be. Only a small minority of businesses have a succession plan for when their CEOs retire or switch companies, and this can be a very costly mistake.
“Scrambling for a CEO has been shown to cost upwards of $1.8 billion in shareholder value for public companies,” says Rob Wilson, employment trends expert and President of Employco USA, a national employment solutions firm. “Another issue with lack of preparedness around successions is that companies end up hiring ineffective CEOs, which again harms a company’s bottom line and employee performance. Indeed, 27 percent of companies have been negatively impacted by poor succession planning.”
Wilson also points out that C-level employees are not the only ones who pose a serious loss to the company when they leave. “Whether it’s a key person in your I.T. department or your marketing department, losing long-term, highly-skilled and experienced staff is going to be a blow to your company.”
So, what should employers do to ensure that these successions are as smooth and seamless as possible?
“First, look at your key personnel on every level of your staff,” says Wilson. “How deep is your bench? Don’t presume that just because an employee is young and not near retirement that you don’t need to worry about their successor at some point. Be prepared for all possible scenarios, including family emergencies, health crises and leaving the state for spouse’s employment changes or other reasons.”
A recent survey found that two-thirds of organizations feel that their performance reviews are not effective. Described as ‘subjective and highly ambiguous,’ performance reviews can be a very impactful tool when used appropriately, but as this research shows, most companies say that they are falling short of the mark.
Last week the House Oversight and Reform Committee passed a bill which would effectively “ban the box” that would keep federal agencies and contractors from asking potential employees’ about their past criminal history, until after these applicants had been offered a conditional employment offer.
Two-thirds of Americans have smartphones, and nearly half of us use our phones for work purposes. That number is only continuing to increase, and 95 percent of organizations allow employees to use their phones for business tasks.
The Department of Labor (DOL) has just released their proposed changes related to the federal overtime regulations.
The Defense Department has just announced that President Trump’s ban against transgender military members will go into effect in April. With just a matter of weeks until the ban is implemented, many transgender people in a variety of industries are feeling frightened about their own job status, even if they do not work in the armed forces.
Recent statistics reveal that March Madness has become more popular than ever before, thanks in large part to the worldwide betting that takes place. Over 60 million people are expected to fill out brackets this year, with an estimated $10 million being put on the table. However, there is another cost which people may not expect: A downturn in employee productivity.
A new study found that over 20 percent of people quit their new positions within the first 6 weeks of joining a company. Furthermore, the new research from Robert Half found that 93 percent of new employees consider leaving their jobs before the end of their probationary period.
The polar vortex is freezing more than just Lake Michigan…experts say that we should expect the cold weather to freeze our profits as well.