When it comes time for a senior employee to retire from the company, many managers scramble to fill the open position since they don’t have a clear candidate in mind. Their lack of planning forces them to open the position on public job boards and start their search externally. This can harm the company since actions like this can make morale and employee engagement nosedive.

Hiring internally may be the most effective option for a company because it boosts engagement, retention and performance as well as improves the bottom line. It does require significant planning and effort from managers long term, but the payoff is worth it. In order to successfully plan for succession, managers must develop leaders on their team in advance so they can stick to those plans and employees can quickly adjust to their new roles when they do step in to fill the place of a retiring employee.

What is Leadership?

Leadership isn’t necessarily the person up front telling everyone what to do, nor is it the person with a title. Leadership is a set of behaviors that inspire people to be loyal to the mission and values of the company and aspire to instill them in others. Leaders don’t just order people around. They empower people to make smart business choices and find dynamic solutions to problems the team encounters. They are often the people encouraging and advising from within the team and are not afraid to collaborate and give credit where it is due. The bottom line: leaders empower, they never order. Seek individuals with these traits when beginning to develop future leaders within the company.

Where to Start

Take a long-term look at the future of the workforce. Are there knowledge gaps that are going to appear once employees leave? Make not of them and look for high performing employees to train as the older members of the workforce begin to retire. Are there employees who have shown interest in developing the skillsets the company needs to fill the gaps? Definitely start working with them as soon as possible to build their knowledge and strengthen the company for the long run. In larger companies, have conversations with managers to find talent that may go unnoticed. Invest in relationships with managers and team members to ensure that the workforce is developed to its highest potential.

Training Experience Matters

Training can look different for every company and every employee, but that can be tough for managers to keep track of. Opt for a learning management system (LMS) that allows users to record all types of training for a more holistic training experience. Aside from the more formal classroom training, there are endless options for development. Set high-potential employees up with a mentor so they can gain hands-on experience from someone with years in the field. Conferences and events are another great way to help employees understand the industry trends and topics that will help them manage their teams more effectively in the future. Even industry-specific books can be counted as training, and the results will pay off with a workforce led by well-rounded, highly trained individuals.

Measuring Effective Training

Leadership training will pay off most clearly in performance measurements. Employees with more training will perform at higher levels simply because they have more knowledge and understand where to apply it. These employees are also highly engaged because they feel their company cares about them and their professional development, which makes them want to give back to their company. This engagement also breeds company loyalty, meaning employees will stick around and lead the company, instead of leaving to lead somewhere else. All of these measurements will also save the company significant money in hiring and onboarding costs since it won’t have to hire for upper-level positions externally.

The company likely has piles of untapped talent in its hardworking employees. Take the time to understand the unique style of these high-potential employees and develop them into the leadership the workforce needs. While leadership might not always look traditional, it’s absolutely necessary for the sustainability of an organization. Start developing leaders today in order to ensure the future of the company.