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Succession Planning - Essay Example
Succession is an important activity in any company. With the average age of the employees going up, it is quite normal to find a larger percentage of people nearing the retirement age. The succession and succession planning is different from the way replacement plan is done normally…
While aging of the staff is major contributor to the commencement of the issue, it is also true that a lack of skill levels in the staff also makes succession planning a major issue.
This is particularly true in the case of public sector. Nearly 50% of the people employed by the US government is eligible to retire, says Douglas Braddock (1999). One in five senior executives of Fortune 500 companies will have to retire before the year end. All this mean that succession planning is becoming more meaningful to government offices as much as it is for private enterprises. He further says that man power requirement due to replacements (34.7 million) in organisations will far outstrip the requirements due to increase in business (20.3 million). While on one side there is a vacancy coming up, on the other side there is no talented and qualified people to hire from. According to Manpower (Jan 2006), nearly 44% of employers find difficulty in getting the right kind of person with the required skill level to fill the vacancy that is existing in the company.
The succession planning is different from the replacement planning in the sense that while replacement planning will look for one single person and find a replacement for him from the market. ...