Slayton Search Partners conducted research to better help HR professionals engage in their organization’s succession planning.
With only 40% of Baby Boomers left in the workforce, while Millennials are on target to become the largest generation the U.S. has ever seen, many companies are blindsided when key leaders make the transition to retirement. According to Slayton's research, The Society for Human Resource Management discovered that at least 40% of organizations don’t have a succession plan for their retiring executives. As a result, large public companies have shown losses up to $1.8 billion in shareholder value while they scrambled for a new CEO. It’s also estimated that up to 40% of new CEOs fall short of performance expectations.
While succession planning is typically the priority and responsibility of the CEO and board members, Slayton believess that HR should be playing a more integral role in responding to the growing number of retiring Baby Boomer executives.
Here are a few things HR pros should consider:
- Coordinating knowledge transfer
- Formalizing leadership development
- Focusing on Baby Boomer retention
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