Succession planning identifies which roles are critical to the business and who internally could step into them if the current incumbent leaves, retires, or is promoted, then invests in developing those candidates ahead of the need.
What it means
Without succession planning, a key departure becomes a scramble; with it, the organisation has a known, developing pipeline of internal candidates, reducing both the risk and the cost of an unplanned vacancy at a critical level.
Where it fits in
Succession planning has no direct payroll effect, but a successful internal succession - a promotion rather than an external hire - typically changes the employee's position, pay grade and pay, which payroll then has to implement.
Key rules
- Identifies critical roles and develops internal candidates for them.
- Reduces the risk and cost of an unplanned key vacancy.
- A subset of broader workforce and talent management planning.
- A successful succession changes position and pay grade, which payroll implements.
