The Importance of Succession Planning
An integral part of succession planning is ensuring talent is being recruited and developed with the ultimate goal of filling key roles in the company. A good succession plan will involve recruitment of promising employees as well as the development of their skills and natural abilities. These employees can later be transferred to different positions or departments so they have the opportunity to become familiar with various aspects of the business. In this way, business owners and managers ensure junior employees will be prepared for advancement into key roles.
Succession planning is critical for all businesses. If you own your own company and have questions about establishing your own succession plan, feel free to call one of our experienced business succession planning attorneys for an explanation of your options.
When is Succession Planning Necessary?
All organizations need to have a succession plan in place. It is especially important, however, for small, family-owned businesses where it is more likely that succession for key roles is informally or verbally planned. This type of planning often leaves too much to chance, and a business could end up falling apart soon after an important position is vacated because the person slated to take over was not actually prepared to do so. Formalized systems, on the other hand, are often more successful. They require organizations to commit to mentoring and developing employees for future roles in the company and ensure family businesses end up in the right hands.
Advantages of Succession Planning
An effectively implemented succession plan is advantageous for both employers and employees. For example, knowing a company has plans for an employee’s future can reinforce their desire for career development, while also ensuring they hone the skills necessary to fulfill more important duties. Succession planning is advantageous for employers who will not have to struggle to accomplish business goals after the loss of key employees. Preparing employees to step into roles as a company expands ensures it will continue to grow even after the owner retires while providing both heirs and successors with a sense of security. With the mass exodus of the baby boomer generation (which makes up a large portion of the workforce), implementation of a well-thought-out succession plan ensures their hard-won success will not be in vain.
Call a Business Succession Planning Attorney Today
To speak with an attorney about the future of your own family business and the process of implementing a succession plan, please contact MendenFreiman LLP in Atlanta by calling 770-379-1450 or by completing one of our brief online contact forms.