Do I Need a Succession Plan?

As every business owner or lead manager knows, finding a good team to work with that is efficient and well educated about their job can be quite difficult. With succession planning, you find the employees on your current payroll that you feel are qualified, can handle the duties and responsibilities of a higher up position, and have them be the next in line for positions should something come up .

Pros of Succession Planning

When you have a succession plan, if for some reason or another one of your “higher ups” in your business can no longer work, is going to retire, or has to go on leave you will already have someone to quickly and easily fill the position.  Very little training will need to be involved since they will already be acclimated to the company, and most likely it’s procedures. Employees that are aware of the plan may feel better about working with a company that has opportunities to advance. Always promote from the inside, it will be easier to hire new employees for the less experienced positions.

Cons of Succession Planning

There are a few things to take into consideration on the opposite side of the spectrum if you decide to go with a succession plan.  If you decide to go with the plan, you need to make sure that your business’s mission and ideals will remain consistent over the years. If not, there will need to be retraining done, which depending on how responsive the successor is may or may not go smoothly. There’s also the possibility that the successor may not be as good of a choice as you previously thought.

The Bottom Line

There may some drawbacks to creating a succession plan in your company, but like with any choice in a business there are always options that need to be weighed out to best fit your company’s needs and expectations. Be honest with your employees when they are hired. If you are implementing a succession plan, let them know, this will help you find out which employees are only looking for a paycheck and which are looking for a career.

Contact Waitz & Downer for Your Succession Plan

If you would like help with succession planning for your business, contact the expert business lawyers at Waitz & Downer today for a complimentary consultation!