Challenges in HR Succession Planning: From Retention Bonuses to System Solutions

In recent years, businesses have faced a perfect storm of challenges, including the COVID pandemic, Return to Office (RTO) transitions, and equity grants that seemed to lose their value overnight. In response to these tumultuous times, many companies turned to unconventional retention bonuses as a desperate attempt to hold onto their most valuable employees. However, while these cash incentives may have provided short-term relief, it became apparent that they were merely putting a band-aid on a deeper issue. 

Amidst the chaos, the once-vital HR succession planning tools within these organizations remained largely neglected, collecting virtual dust in the digital archives. But what's needed to revitalize these systems and ensure a sustainable solution for the future?The answer lies in a systematic approach that addresses both short-term concerns and long-term talent management. It starts with defining new grant types, establishing calculations, and initiating a manual process to identify top talent – often relying on performance reviews as a guiding light.This initial step solves the immediate problem by putting cash in employees' pockets and making them feel appreciated. But is that enough? How can organizations effectively manage these valuable assets from a holistic system perspective?The good news is that these key individuals have been identified, but additional processes must be integrated to maximize their potential. Many HR systems offer features such as skip-level manager feedback and alert mechanisms to trigger custom actions. These tools not only provide managers with insights but also help them avoid being blindsided if an employee decides to leave.At a minimum, one of the most valuable sources of information can be found during exit interviews. Unfortunately, many systems are not configured to allow employees to provide feedback or indicate whether they would recommend the organization. This feedback is crucial for leadership as it reveals trends and potential problem areas that demand immediate attention.Consider this scenario: An employee on an Improvement Performance Agreement (IPA) is managing a team of tenured resources responsible for areas deemed single points of failure. The executive team recognizes this individual as critical talent. Fortunately, the controls implemented in the HR system flag this situation, ensuring transparency beyond the struggling department.In this case, one of the original executives who identified the resource as critical talent was instrumental in resolving the issue and retaining the key talent within the organization.In conclusion, HR succession planning goes far beyond retention bonuses and quick fixes. It involves the strategic utilization of HR systems to identify, nurture, and retain talent while keeping an eye on potential pitfalls. By embracing a comprehensive approach, organizations can weather the storms of uncertainty and secure their future success.