• Barnett Waddingham
    Barnett Waddingham
  • Firms risk losing talent through poor succession

    Businesses are putting jobs at risk by failing to plan for succession and in-house movement of talent, according to new research.

    Politicnico di Milano School of Management believe that too many endorse the traditional career ladder model, encouraging vertical movement of talent rather than encouraging multi-talented professionals to broaden their horizons.

    Without application of a ‘matrix’ or ‘lattice’ model, many employees consider new career paths rather than staying within their current company.

    Nearly a third of HR executives surveyed saw management commitments as the main barrier stopping HR process that can allow for more free lattice models.

    “Top talent can lose engagement and motivation fast when not managed correctly and some may leave the organisation to seek out more varied professional experiences,” said Professor Mariano Corso, scientific officer of the HR Innovation Practices Observatory and member of Politecnico di Milano, adding “Yet with huge amounts of relevant data at their fingertips, HR departments have all the tools needed to do this.”

    A constantly changing workforce can have a negative effect on employees, warned the Professor, and management has to act if they don’t want to risk more workers lost.

    “The costs of hiring and replacing employees – combined with the effect of losing a top employee – can dramatically impact a company’s profits and morale,” he explained, “part of the solution lies within good career and succession planning procedures to avoid these situations altogether.”

    AUTHOR

    Stuart O'Brien

    All stories by: Stuart O'Brien

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