IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 1

Impacts of talent management and succession plan to employees

Student’s name

Institution of affiliation

Date
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 2

Executive summary
The success or failure of an organization relays more on whether the company can full

strategies better means to stay relevant, retain employees and ensure maximum revenue return to

the business. This report looks at what talent management entails and how it relates to succession

planning. It further elaborates on the association of the two aspect activities and how the two

links to better employees engagement. The defining the relative terms, the article looks at what

an organization need to do to be termed as ‘Effective Company’ that allows for skill

development. Employees retaining is also vital to the success of any business (Das and Baruah,

2013). The article will look at how succession activities and persuade employees to stay in the

organization and actively engage in profit maximization. The report will highlight the

recommendations that are needed to improve both talent management and succession planning to

ensure that employees are sufficiently motivated to organizational goals and objectives.
 IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 3

Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Role and linkage of talent management activities and succession planning activities in an organization....5
Talent management and its role...............................................................................................................5
Talent management activities..............................................................................................................5
Succession plan.......................................................................................................................................6
Succession planning activities.............................................................................................................7
Linking talent management to succession planning management............................................................7
Impact of talent management activities and succession planning activities on employee engagement levels
.................................................................................................................................................................... 8
Conclusion...................................................................................................................................................9
Recommendation.......................................................................................................................................10
References list...........................................................................................................................................11
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 4

Introduction

Talent management is defined as the process of attracting, developing and retaining the

employees that give the organization a competitive advantage (Berger & Berger, 2004). Based

on research conducted by various scholars, highly skilled employees are vital for the continuity

and the fruition of the organization as a whole hence more often the most organization will want

to prioritize such employees during the recruitment process. According to Stadler (2011),

integration of both talent management and succession planning allows an organization to gain a

competitive advantage on aspects such as skills, talent mapping and retention of employees. The

two elements are not only essential in the sourcing of employees but also in the overall

organizational activities. As a result, we can define talent management as a succession plan that

allows skilful employees to fill the vital roles left vacant by employees who have retired, passed

away or step down. Talent development entails all the strategic measure that an organization

adopts to improve talents in the working environment. Therefore, the feedback from the

organization on issues like care development, motivation, performance management and learning

plays a huge role in talent management and development. As a result of talent management

changes are visible over time. The employees with chances of succession probability start to

show competence features like leadership skills, strategic thinking, technological manipulation,

learning abilities, proficiency in task execution and better performance (Sambrook, 2005). The

two succession planning and talent management are vital in the development of the human

resource. While succession plan involves identifying and development of skills to ensure talent

availability in the organization, talent management seeks to create a talent pipeline that joins the

employees with the talent and the organization which needs the talents. According to Rothwell,
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 5

succession planning entails molding talents and measuring the extent to which the nurtured talent

can change to the different title role

Role and linkage of talent management activities and succession planning activities

in an organization

Talent management and its role

The process of organization human capital expectation as well as planning on talent to

ensure the company’s overall goal achievement is known as Talent management. According to

Sparrow and Makram (2015), talent management becomes popular in the year 1997 due to a

talent initiative research by McKinsey. Over the years, other scholars have modified McKinsey’s

definition. Carriere, Muise, Cummings and Newburn-Cook (2009), suggested that talent

management is a systematic identification of vacated posts, hiring the right persons, improving

the skills of these people to match the position requirement and retain them for long-term goal

attaining. One of the roles of talent management is that it allows the organization to achieve

overall goals. With controlled management that is in charge or sourcing the best skills, the

organization can maximize the available talent and attain their profit goals at ease. Furthermore,

with the proper talent management system, human resource managers are at a better place to

manage a huge workforce (Macey and Schneider, 2008).

Talent management activities

Development of a clear job description- In any organization, having the correct set

of skill needed to ensure the fruition of the organization is critical (Garrow and Hirsh, 2008). The

talent management highlights what it considers to be the vital set skills needed any job vacancy
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 6

in the organization. Thus employees are vetted based on the established job description

requirements.

They are also tasked with the role of negotiating, outcomes, accomplished-based

performance standards and measure the recital development planning system (Colling and

Mellahi, 2009).

Lastly, based on Garrow and Hirsh, (2008) the talent management team is tasked with

coming up with a compensation scheme as well as recognition process that reward employees

duet to their contribution to the organization. Though all the organizational process is employee-

oriented, there is a need to also focus on paying the talented employees above market pay to

ensure that other organizations do not snatch them.

Succession plan

According to Hills (2009), succession planning is the process or identifying and

developing employees in terms of skill and talents to replace leaders who have retired, left the

company of dying. Therefore, the process is vital since it aids in filling the gaps such as

individual performance that help in running the activities in an organization. The process is

meant to recruit and train employees to improve knowledge, skills and abilities. Success

planning helps an organization to maintain a brand identity through teaching and emphasizing on

the need to adhere to the mission, vision and the statement of the organization (Wallin, Cameron

and Sharples, 2005). Secondly, through a succession plan, the organizations able to establish a

structural system for the development and training of employees. Lastly, it helps the company

plan for the long-term by creating a systematic process where the old employees pass-on their

years of experience to new talents (Galbraith, Smith and Walker, 2012).

IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 7

Succession planning activities

I. One of the critical activities involves the overall reviewing of the past succession plans

and enforcing necessary changes to the current plan (Project management concepts, 2019).

II. They are also in charge of training and development of employees. The training

activity is done either to the skills of the employees or management training which aims to equip

some personals with the right skills for succession purposes (Project management concepts,

2019)

IV. The process also involves the actual compensation of the employees whose

performance has generally improved over a certain period of times. This is done by identifying

top players in every organizational department and ensuring that the company retains them for as

long as the company needs them (Project management concepts, 2019).

Linking talent management to succession planning management

As identified, talent management can be defined as the process of enacting better

succession planning activities that ensure the overall attainment of the organizational goals

(Cannon and McGee, 2007). This means that a better succession plan activities will ensure that

talent is well managed. For instance, reviewing the past succession planning will play a critical

role in ensuring that talents are well coordinated for improved company returns. Furthermore,

through proper compensation of the skilled employees, the organization can manage the high

workforces that exist in the organization.

IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 8

Impact of talent management activities and succession planning activities on

employee engagement levels

By definition employees, engagement is the degree to which employees in a company

appreciate the job they do in an organization. Also, the process entails an employee’s

commitment and the unrestricted efforts applied (Macey and Schneider, 2008). Employees are

expected to be enthusiastic about the task assigned to them. When employees feel that they are

appreciated and valued, there is an overall improvement on the employee’s contribution to the

organizational objectives and goals. Talented employees who are recognized by the organization

feel motivated and valued. They also feel that they belong in the environment work setting and

most cases, they fully commit themselves to organizational objectives without the need for

supervision (Thunnissen et al., 2013). Furthermore, talent management also acts as a guide that

improves employees focus on revenue generation. Consequently, the result of this is better

employee engagement, improved performance, customer’s satisfaction, reduced absenteeism

which enforce success in an organization. Notably, the most organization has adopted talent

management as a tool that improves employee’s engagement. This has had a positive impact on

employees in that they feel rewarded; hence, most want to stay longer in the organization and

oversee the overall growth of the organization (Kunerth and Mosley, 2011).

On the other hand, succession planning has a positive impact on employee engagement

and development (Sharma et al., 2003). According to scholars, employees can be loyal, devoted

and respectful to the supervisors and managers if the managers contribute positively to the

overall development employees skills. The overall role of succession planning is to mould talents

intending to ensure that the organization maximally benefit from the skills developed. According

to Brown (2003), career development is a vital factor in succession planning. Through various
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 9

scholars’ research, it has been concluded that offering professional skill training to employees

will increase their urge to remain loyal to the organization. Furthermore, 90% of the employees

between the ages of 18-40; therefore, performance activities will improve when the organization

employs succession planning to them. On the other hand, employees between the ages of 56-65

will also improve employee’s engagement since they are vital in a succession plan (Mishra et al.,

2005). The process of creating, implementing and communicating a succession plan enables the

organization to gain a competitive advantage for retention, development and employees

engagement. Groves (2007) concluded that having a succession plan helps the organization

incorporate all the aspect needed in the running of a successful business.

Conclusion

There is a need for any organization to have both efficient talent management and a

succession plan. The overall aim of any company is t increases its returns and maximizes on the

employee's human resources. The initiative to attain overall profit can only be attained if the

organization can be able to link, talent management activities and succession planning activities

with employees engagement. The succession planning will act as a guide that develops skills and

talents to the employees. It also selects the most suitable compensation schedule that will attract

and ensure that employees want to stay in the company for a longer duration of time. On the

other hand, talent management directs the skilled employees to maximally benefiting the

organization. This is done by providing better compensation schemes that will trigger the

employees to commit themselves to the organization fully. The result of both talent management

and succession plan will help the employees engage more in the activities of the organization. It

is therefore vital that talent management activities and succession planning relate well with
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 10

employees engagement to ensure both the effectiveness of the company and the overall benefits

of the employees in the duration through which employees are in the company.

Recommendation

As identified, there is a great need to incorporate the three aspects (succession plan, talent

management and employee engagement) in the running of the business activities. Hence there is

a various initiative that should be developed to ensure full organization benefit from threes

mention aspects. First, the organization should establish a well-drafted talent management

system that can track and recruit employees with a hunger to succeed and the willingness to go

extra miles in ensuring the organization attain its overall goals. Secondly, an organization needs

to develop an effective succession plan that will enhance a smooth transition of talents and skills

from the old retiring employees to the new employees. The succession plan should be well

designed to give ample time for the new employees to the full understand their roles.

Furthermore, there should be better methods of employee’s interaction that would facilitate

employee engagement and motivate them in becoming more productive and more involved in the

overall operation of the organization. Lastly, as a company’s initiative, there should be better

transitional and relationship between succession planning and talent management. According to

scholars, the association of these two elements should yield to a more refined operational system

geared at ensuring that employee’s engagement is fluent and beneficial to the organization.
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 11

References list
Berger, L.A. and Berger, D.R., 2004. The talent management handbook (p. xi). New York, NY:

McGraw-Hill.

Brown, D., 2003. Career information, career counseling, and career development. Allyn &

Bacon

Cannon, J.A. and McGee, R., 2007. Talent management and succession planning. Chartered

Institute of Personnel and Development.

Carriere, B.K., Muise, M., Cummings, G. and Newburn-Cook, C., 2009. Healthcare succession

planning: an integrative review. JONA: The Journal of Nursing Administration, 39(12),

pp.548-555.

Collings, D.G. and Mellahi, K., 2009. Strategic talent management: A review and research

agenda. Human resource management review, 19(4), pp.304-313.

Das, B.L. and Baruah, M., 2013. Employee retention: A review of literature. Journal of Business

and Management, 14(2), pp.8-16.

Galbraith, Q., Smith, S.D. and Walker, B., 2012. A case for succession planning: How academic

libraries are responding to the need to prepare future leaders. Library

management, 33(4/5), pp.221-240.

Garrow, V. and Hirsh, W., 2008. Talent management: Issues of focus and fit. Public Personnel

Management, 37(4), pp.389-402.

Groves, K.S., 2007. Integrating leadership development and succession planning best practices.

Journal of management development, 26(3), pp.239-260.

Hills, A., 2009. Succession planning–or smart talent management?. Industrial and commercial

Training, 41(1), pp.3-8.

IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 12

Kunerth, B. and Mosley, R., 2011. Applying employer brand management to employee

engagement. Strategic HR Review, 10(3), pp.19-26.

Macey, W.H. and Schneider, B., 2008. The meaning of employee engagement. Industrial and

organizational Psychology, 1(1), pp.3-30

Mishra, A.K., Durst, R.L. and El-Osta, H.S., 2005. How do US farmers plan for retirement? (No.

1490-2016-127836, pp. 12-18)

Project management concepts, 2019. [Online]. Retrieved from.

https://www.tutorialspoint.com/management_concepts/succession_planning.htm

Rothwell, W., 2010. Effective succession planning: Ensuring leadership continuity and building

talent from within. Amacom.

Sambrook, S., 2005. Exploring succession planning in small, growing firms. Journal of small

business and enterprise development, 12(4), pp.579-594

Sharma, P., Chrisman, J.J. and Chua, J.H., 2003. Succession planning as planned behavior: Some

empirical results. Family Business Review, 16(1), pp.1-15

Sparrow, P.R. and Makram, H., 2015. What is the value of talent management? Building value-

driven processes within a talent management architecture. Human resource management

review, 25(3), pp.249-263.

Stadler, K., 2011. Talent reviews: the key to effective succession management. Business Strategy

Series, 12(5), pp.264-271

Thunnissen, M., Boselie, P. and Fruytier, B., 2013. A review of talent management:‘infancy or

adolescence?’. The international journal of human resource management, 24(9), pp.1744-

1761.
IMPACTS OF TALENT MANAGEMENT AND SUCCESSION PLAN TO EMPLOYEES 13

Wallin, D., Cameron, D.W. and Sharples, K., 2005. Succession planning and targeted leadership

development. Community College Journal, 76(1), p.24.