Linking Succession planning to Skills development

Benjamin Franklin: “If you fail to plan, you are planning to fail!”

A succession plan is a strategy which determines the best way for a critical employee to exit the business while ensuring that the business continues. The plan should determine who will take leadership of the business when a critical employee leaves or retires. Succession planning is a complex task that requires constant attention and ongoing resources.

Part of successful succession planning requires companies to devote considerable time and resources to mapping out skills development and competencies, so that they can hire and train appropriately, and achieve a distinct competitive edge. Best-practice organizations also prepare for unforeseen events and the potential loss of key executives .These organizations view succession planning as an ongoing process, rather than an event that must be addressed every year or two.

In terms of B-BBEE, Skills Development is a priority element of which the target is 6% of your payroll. The 2019 codes introduced a “fees must fall clause” that specifically includes tertiary education spend. To ensure successful succession planning that includes members of the designated group, it is critical that companies have a plan to “grow their own timber” through a Workplace Skills Plan which identifies their skills gaps and plan training for the year.

SETA submissions for ATR(Annual Training Report) and WSP (Workplace Skills Plan) open on the 1st of February. Does your company have a strategy and workplace skills plan in place to make the most of 2020 in terms of skills development for your organization and positively impact your succession planning for the future?

Contact us on 011 483 1190 or info@econobee.co.za for assistance and guidance on succession & skills development planning, and all your companies BEE needs.

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