We recently hosted a webcast with the Human Capital Institute (HCI) that featured research on the market drivers of succession planning, and how progressive organizations are leveraging talent pools for comprehensive talent development and performance management. It’s an ever-important issue, even in this challenging economy. As the market for skilled talent becomes more competitive, succession planning is a critical differentiator for strategic organizations, and particularly for mid-sized companies who rely on quality talent pools.

The presentation highlighted some case studies of how to execute deep talent pools – ones capable of sustaining business, giving competitive advantage with a deep bench of talent. The presenters – Frank Horvath, President of Integrated Group Synergy, and David Anderson, Global Human Resources Manager for Double-Take Software – also discussed how to leverage quantitative talent tools and technology to enable a talent solution with a financial business impact (ROI!)

They outlined a very practical set of best practice guidelines for planning and executing a successful talent pool program, including:

• Identify the skills and competencies required to support your 3-5 year strategic plans and cultivate these in your high-potential employees
• Establish and develop a large number of promotable employees for all key areas in your organization, not just for leadership and executive positions.
• Increase employee engagement and retain key talent -employees who are part of a talent pool are more likely to stay with an organization.
• Be ready at any point to fill key roles throughout the organization

The webcast also highlighted some quantifiable benefits of strategic, focused succession planning:

• Reducing organizational risk of talent turnover and business interruption
• Increasing workforce
• Improving employee morale and engagement
• Enhancing employee development
• Expediting goal achievement
• Improving earnings

One basic element of succession planning that we didn’t have time to touch on is an interesting debate that we are featuring in our Raging Debates Forum – that is, Should you tell an employee that they are part of a talent pool for succession?

Seems simple enough, right? As Kris Dunn says:

I think you need to tell talent they’re included in the succession plan if you have one. One of the big benefits to succession planning is retention if people know they’re the list.

Most of our contributors agreed with this sentiment. Josh Bersin added:

Our research shows that high performing companies do tell high-potentials that they are in fact in such a pool. While this is not something which should be disclosed publically, it is often disclosed to high performers to give them an incentive to stay, an incentive to work harder, and an incentive to think about their role in leadership.

But it’s not always that easy. Laurie Ruettimann takes a counterpoint and notes:

No, you should not tell an employee that they are part of a talent pool for succession. I can’t think of a more scary or suffocating thing to hear. Your employees’ careers are in their own hands.

So, despite all the best practices and ROI advice we can offer, we are still looking at the impact of the human factor. We can’t always predict how an employee may or may not react to information about how his boss sees his future within the organization. This is where great HR leaders shine – to enhance and bring a personal touch to the functional best practices of major initiative such as succession planning. Real people working closely with an organization to figure out what the best approach for that company’s unique challenges, opportunities and culture.

What do you think? I encourage you to check out the webinar recast – if you are considering succession planning, or already have it in place but want to improve it; the case studies of successful organizations will help.

And please, share with us your thoughts on best practices!