What keeps top talent from walking out the door? The answer might not be perks or pay—but a visible path to growth opportunities or leadership. In India, 76% of professionals aspire to lead or manage a company, reveals Amrop’s ‘Meaning of Work’ Study report. This data highlights the quest for people to grow in their job roles. Hence, succession planning isn’t just about leadership pipelines—it’s a powerful retention lever.

Talent retention is one of the prominent focus areas for HR professionals. Hence, developing and executing employee retention strategies is the most vexing aspect of their work. For some, hiring and retaining key talent is their function’s biggest challenge. There are surveys where HR leaders identified improving the ability to retain talent as their main priority, followed closely by their ability to attract talent.

HR leaders have realised that workforce skill development remains a key reason employees join a company in today’s environment. Survey report backs it up, iHire Talent Retention Report 2024, highlights that access to professional development opportunities (60.6%) and clear paths to advancement or promotion (56.3%) are some of the top priorities for employees. This is followed by  a meaningful recognition (53.4%) and cross-training opportunities to learn skills outside their typical role or department by 47.2%.

HR leaders are of the view that succession planning is the key to retaining talent in the organisation.

Nivedita Nanda, Country Director of People & Culture ISS India, earlier in an interview with People Matters, emphasized that people leaders need to identify the specific skills and competencies that employees need to succeed in their roles and contribute effectively to the organisation. She suggested creating clear career paths and advancement opportunities within the organisation to motivate employees and provide them with a sense of direction and purpose. 

To retain the talent, leaders must start preparing for the leaders of tomorrow. Succession planning isn’t optional—it’s a strategic imperative.

Safeguarding an organisation’s future is just as important. It has a wider role to ensure a company’s longevity by analysing and anticipating future leadership requirements.

What is succession planning?

To identify the right talent and groom them as future leaders to fill the vacant jobs in an organisation. A solid succession plan helps organisations stay agile in the face of unexpected situations. It is also beneficial for employees’ motivation and morale. Seeing people rising within the organisation keeps employees motivated and boosts their morale.

Significance of succession planning 

To ensure the smooth flow of an organisation, succession planning is a must to have. Hence, it is important to understand why succession planning must be a top priority for organisations.

Grooming tomorrow’s talent

To stay ahead in a competitive talent market, HR leaders need to recognise and groom the available talent and prepare them for future roles. Survival without succession planning may bring a dent to the future of an organisation. Hence, to safeguard the future of the organization, succession planning cannot be overlooked. Giving people sufficient learning and development opportunities keeps the talent intact and future-proofs the organisation.

Unlock cross-functional collaboration

Cross-functional learning is essential to cultivating a collaborative workplace. It helps employees to understand the nuances of running the business. Allowing people to work in multiple areas of the business prepares them to navigate the challenges of tomorrow.

Creating an internal talent pool

Organisations with a robust succession plan always have a rich internal talent pool ready. Investing on internal talent keeps the organisation ready to navigate a turbulent time and developing a culture of inclusivity wherein everyone feels like they have the opportunity to grow if they want to, and they work towards it.

Keep the organisational Knowledge

At the time of leadership exit who have led the organization for years get away with all the valuable knowledge, insights, and know-how. But a succession plan keeps the organisation ready with a successor and keeps the organisational knowledge intact.

Brings a sense of being valued 

Succession planning is a morale booster for employees. Seeing organisations investing in them brings a sense of being valued at work. This strengthens loyalty and encourages employees to perform well with hunger and dedication. 

A well-developed succession plan focuses on developing internal talent and preparing them for future leadership opportunities within the organization, and significantly reduces the hiring cost.