U.S. Rings in New Year with Stable Hiring Plans

“How do you anticipate total employment at your location to change in the three months ending March 2007 as compared to the current quarter?” This was asked of more than 14,000 employers across the U.S.* The outcome:

• 23% foresee an increase in hiring activity
• 11% expect a decline in staff
• 60% expect no change in their hiring

According to the results, some HR departments might not be spending as much time recruiting and hiring for new positions. This could be an opportunity for you to develop a succession plan—evaluating your current staff’s capabilities and potential, and how individuals can be identified, prepared and groomed for other positions.

A Pepperdine University Graduate School of Business and Management Study identified the following succession planning best practices among large firms:

• Keep the process simple
• Use technology to integrate data
• Align succession plan with overall business strategy
• Monitor and assess the process

Simple Process. A succession plan is developed through monitoring the future needs of your organization and assessing the talent of your organization. As you align the needs and talent, there is a tendency to create a complex and complicated plan. The study found that the more logical and simple the process is, the easier it is for executives buy–in and support. The goal is to make the process non–bureaucratic and non–burdensome.

Technology. An essential feature of any succession plan is to give managers the ability to monitor and update the developmental needs and activities of their employees. The study found that a web–based system offers the greatest potential to access and integrate data. It is important that technology serves to facilitate the process—making it shorter, simpler, and more flexible—rather than becoming the focus of the process or inhibiting it in any way.

Aligning the Plan. When managers and executives can see how the succession plan works with corporate goals and objectives they are more likely to support a system and maintain the process.

Monitor and Assess. Just as your organization’s needs, goals and talent are changing and evolving, so should a succession plan. It should be assessed and updated at least once a year or with the same frequency as the business plan. One of the clearest insights the study revealed is that effective succession management is a journey, not a destination.

Spectrum can provide the technology for your succession plan journey with its web–based HR system. iVantage^® has the core functionality to capture the information you need for goal development, performance reviews, training and development, succession planning and more. For additional information call 800.477.3287.

*Manpower Employment Outlook Survey Q1/2007