A study done by the consulting firm Bersin by Deloitte, found that only 60% of the managerial and director positions in companies are assigned internally. The figure is not favorable if two factors of utmost importance are taken into account: cost and efficiency.
This phenomenon affects large and small corporations alike, as well as medium sized or family businesses, and is a symptom of poor strategic planning for when and where the need for a successor leader has been ignored.
The costs of hiring external elements for new managerial and directive vacancies are much higher than promoting the position internally. To hire externally it is necessary to use filters and services to pinpoint candidates and/or investing in classified ads or recruiters. More importantly, adaptation times for new employees, can take several months, impacting productivity at all levels.
A Question Of Strategy
Every effective leadership administration considers from the beginning a training plan for future successors. Having a plan of action for the assignment of a successor leader is an important element that allows a company to continue a cycle of guidance, essential in maintaining consistent growth over the years. This strategy considers the training and development of a specific member of the organization, with a vision for their professional and personal advancement.
For companies of a different nature, including small to medium businesses, finding a successor leader represents a long-term investment that will impact performance and scope for years to come. Not only does it represent substantial savings in contracting costs, but it also offers a natural transition within the work environment.
How To Prepare A Successor Leader
Leadership is one of the central tools critical to the success of a company. Having a central figure with the ability to guide and mentor is vital. Once established and functional, the natural progression is to ensure the same model continues over time.
To achieve the effective development of a successor leader or administrator, the company must take into account several important factors:
1. Election Of The Candidate
The team member must previously have the necessary skills and experience within the company. He or she should be someone who knows the brand and goals well and also possesses the ability to adapt to training plans. It is important that they understand in depth the essence of leadership and its importance in the business environment.
As a successor, the candidate must have clear objectives. It is necessary to analyze the training that they must undergo and to determine in which areas they perhaps lack experience or practice. More importantly, it must be established who within the company will be the guiding mentor to the successor. Enacting this strategic training plan is essential to ensure the final leadership position.
Determining the compensation, monetary or otherwise, that the successor may obtain in their new position is crucial to ensuring their degree of commitment. This position cannot be seen only as a job promotion, since it is a strategic position that greatly impacts the business as a whole. A fair compensation plan with attractive benefits can help to ensure the commitment and motivation required to secure internally this new leader.
The election of a successor is a complex process that requires the participation of multiple areas within the organization. However, the benefits could potentially guarantee the good health of the company and a solid foundation necessary for growth going forward.