Importance of Talent Management for Succession Planning - Research Proposal Example

Importance of Talent Management for Succession Planning Abstract This research intends to find out the importance of talent management for developing a successful succession planning program. The researcher proposes to use secondary data search and qualitative research methodology to support his/her thesis hypothesis. The secondary data search would help the researcher in gathering information about the existing practices in developing succession planning and finding out whether talent management is a part of these succession planning programs, whereas, the qualitative research survey would help the researcher in identifying whether his/her thesis hypothesis is correct. Although, initial research reveals that talent management is an integral part in developing a comprehensive succession planning program, the applicability of the same needs to be measured. Thus, the researcher through this paper intends to find out whether corporates implement succession planning effectively or just use it as a strategy for the purpose of employee engagement. Introduction The contemporary corporate world is facing the daunting problem of high volume of outbound talent and the low level availability of skilled labour, which has resulted in the need for developing succession plans through a comprehensive talent management program. In this research paper, I would be highlighting on the importance of talent management for succession planning. I would also discuss whether organisations can really benefit from workforce planning and if identifying planned turnover, attrition and retirement planning at an early stage, can help in implementing succession planning successfully. My research would also identify if corporates implement succession planning as a part of their company policy or just use it as a strategy for employee engagement. Furthermore, my research would also try to analyse whether in this current job environment of skills shortages and globalisation, talent management and succession planning can help in retaining or providing business continuity programs in counties such as Australia. A recent report, ‘Growing Global Executive Talent’, published by Development Dimensions International and Economist Intelligence Unit, highlights that talent awareness is not enough and business performance is likely suffer due to a lack of talent. This concept has been further strengthened by Aberdeen’s recent study of more than 9,000 organisations –The Looming Leadership Void: Identifying, Developing, and Retaining Your Top Talent – which reveals that less than 50 per cent of the organisations surveyed have a succession planning strategy in place. These research reports further indicates that companies around the world are aware of the fact that they need to improve their workforce and manage their talents to safeguard their companies against talent crisis and ensure business continuity. However, this awareness is not resulting into concrete steps or formulation of actual succession plans. It has also been found that although most companies rank talent management high in their business priorities, they do not translate this claim with concrete action plans. Therefore, many organisations do not have talent strategies to retain their workforce. Thus, my research would study these reports to understand why the corporates lack a proper succession planning and how managing talents can help in building a robust succession plan for the companies. I would also discuss how effective talent management system can help in developing a successful succession planning module, which would in turn ensure that business does not suffer from talent crunch. Furthermore, my research would also try to find out whether a talent management plan based on succession planning would help companies to retain their staff and increase the efficiency of the staff in the long run. Rationale Research indicates that there is a growing talent crisis because of two distinct reasons i.e. the impending retirement of baby boomers and availability of limited number of skilled workers entering the workforce. These two are the driving forces which are urging organisations to plan and prepare for this anticipated talent gap, as well as retain and develop top talent. Therefore, succession planning, which was once reserved for the most senior positions at organisations are now considered an essential component for developing leadership and retaining qualified talent. This theory has been reflected in the survey data collected by Aberdeen from more than 2,000 distinct organisations worldwide that reflects the need to use succession planning as a tool to drive performance. Research indicate that there is a need to undertake talent management to develop succession planning programs for preparing corporates for predictable scenarios such as the loss of key employees to retirement and loss of high potential talent to competitors. Furthermore, such a program would also help the company to strengthen the pipeline in terms of quantity and quality of successors (The Looming Leadership 2007). Experts believe that in order to create a successful succession planning program, companies need to strengthen their talent management strategies. A better talent management would ensure that the core competency of the company’s employees are leveraged at the maximum, with the experienced staff guiding the new members about company policies and business continuity, which would in the long-run help the new employees take up the responsibilities of their seniors. Furthermore, recruiting new talent requires added expense and manpower allocation for training new recruits. Therefore, even before finding new talents outside, a company should consider developing the potential of internal candidates. In order to make a succession planning module work, organisations needs to identify the potential gaps and start developing talent within the organisation. Additionally, to make the plan a success, the human resources department should first ensure executive-level and companywide support for the program by involving top level executives and line management in selection, mentoring and evaluating the performance of potential candidates. The succession planning program should also be designed in tune with the company strategy, culture, and goals (Apartoglou 2005). However, the criteria for selecting candidates for the succession planning program are the most difficult part of the plan. The selection of high potential candidates should be specific and applied across the company. Once identified, the human resources department should announce the names of the candidates officially. Furthermore, these candidates should be provided with sufficient growth opportunities and stretch assignments to prove their mettle, as well as to prepare them for the next management level. The HR should also look into developing soft skills through mentoring and coaching. Furthermore, these potential candidates should also be given real-time, continuous feedback on their progress. They should also be assigned to develop and manage new business opportunities that would encourage them to take up challenges (Growing Global Executive 2008). The established rationale of the existing research indicates that talent management is an integral part in developing a successful succession planning program. Talent management not just include tools to identify the right candidate, but also to develop them for taking up responsibilities at the next level. Furthermore, it also boosts the morale of the employees, who are provided with the vision to look forward to climbing up the corporate ladder, and thereby, increases retention in the company. Such a succession planning based on talent management can help the company to save money and time in looking for talents outside the firm and thereafter, providing them with training. Therefore, in my research, I would analyse these rationale and identify their applicability in my surveyed companies. Aim and Objective The aim of undertaking this research is to understand the correlation between talent management and succession planning; study the current trends in formulating succession planning; and identify the reasons to include or exclude talent management in developing a succession plan. The objective of this research paper is to study the current trends in preparing succession planning programs; to analyse the methods used to prepare the current programs; to identify the gap areas in these programs; to understand the need to include talent management in these programs; to examine the correlation between talent management and succession planning; to gather data and analyse the findings in relation with the thesis hypothesis; and finally, to correlate the findings with the current financial crisis that are affecting the companies globally. Methodology I propose to use qualitative research and secondary research methodology for undertaking this study, as I believe that these research methodologies would help in investigating this complex issue of finding a correlation between talent management and succession planning. A qualitative methodology is the best fit for this topic as it provides an initial understanding of the underlying reasons for the lack of succession planning in major corporations, while also providing a base for further research. This kind of research helps a researcher to understand how and why people feel in a certain way, as qualitative research deals with collecting in-depth information about why people behave or think in a certain collective manner (Denzin 2005). In order to conduct the initial research for my paper, I would undertake a secondary search of available literature on the topic. Most of my data that I propose to take for this research would be from secondary sources, published media reports and published research reports on the subject line. There are several advantages of collecting data through secondary research, which includes collecting a large database and saving time. However, the major disadvantage of relying on secondary research is that the researcher could not personally check the reliability of the data. For this particular report, I would use a combination of secondary data collection and qualitative research as it would allow me to analyse the current scenario in talent management and its utility in succession planning; identify the gap areas; formulate the thesis hypothesis; and utilise the same for conducting the qualitative research survey. Some of the major secondary data that I would analyse for my research include data from the report “Growing Global Executive Talent” published by Development Dimensions International with the Economist Intelligence Unit; Aberdeen’s recent study “ The Looming Leadership Void: Identifying, Developing, and Retaining Your Top Talent,” and various media reporting. The next step for my research would include conducting a qualitative research survey with the staff within my own organisation – Solar Turbines/Caterpillar – to identify the considerations that have been addressed internally on this subject. I would use the findings of the survey to support my thesis hypothesis. Furthermore, in order to achieve greater understanding on the subject, I would also like to survey other industries to identify their thoughts and actions on this particular topic, which would help me in making a comparative study of various practices within a particular industry or across industries globally. I would like to discuss the various initiatives undertaken by organisations in the USA, the UK and Australia for a presenting a global perspective. This would also help me in understanding the steps taken by global companies to ensure talent retention in the face of the current instability in economies and financial climate in the world. Conclusion My research intends to discuss whether organisations can benefit from talent management and workforce planning, while preparing their succession plan programs. Furthermore, the research would also intend to find out if there is a comprehensive succession plan can help the company in restricting attrition, generate work satisfaction and ensure business continuity. Sources ‘Growing Global Executive Talent: High Priority, Limited Progress’, 2008, Development Dimensions International, Inc, viewed 20 November 2008, . ‘The Looming Leadership Void: Identifying, Developing, and Retaining Your Top Talent’, November 2007, Aberdeen Group, pp. 2-16. Apartoglou, Christos 2005, ‘Leadership Succession Planning: Building Bench Strength Through Integrative Talent Management’, Spring 2005, HARRT Quarterly, The University of California, pp. 1-5. Denzin, Norman K. & Lincoln, Yvonna S. (2005). Introduction: The discipline and practice of qualitative research”. In N. K. Denzin & Y. S. Lincoln (Eds.), The Sage Handbook of Qualitative Research (3rd ed.), 1-32. Read More