Succession Planning Belongs Below the C-Suite, Too

When people hear succession planning, they usually picture a board choosing the next chief executive. For most employers, the bigger risk sits much lower in the organization. The maintenance technician who knows every quirk of an aging production line, the charge nurse who holds a unit together, the payroll manager who understands a decade of exceptions. When those people leave without a successor, the gap can take months or years to close.

Retirements are reshaping many skilled occupations. Deloitte and The Manufacturing Institute estimate that about 2.8 million manufacturing jobs will need to be filled from 2024 to 2033 because of retirements, as part of a total need of up to 3.8 million workers. We cover that research in our manufacturing workforce report.

The trades face the same pressure. Associated Builders and Contractors has noted that nearly one in five electricians is 55 or older, and union data shows a large share of electricians nearing retirement, as described in our report on the electrician shortage. Police departments, utilities and public works agencies report similar patterns.

Identify critical roles

Start by listing the roles where an unexpected departure would cause the most damage. Consider how hard the role is to fill from outside, how long it takes a new person to become fully effective, how much specialized knowledge it requires and what happens to operations if it sits vacant.

Critical roles are often not the highest paid. A plant may be able to replace a department director faster than a senior controls technician. Ask frontline managers which roles keep them up at night.

Single points of failure deserve special attention. If only one person knows how to run a particular system, calibrate a key machine or manage a major customer relationship, that role belongs on the list regardless of title.

Assess the bench

For each critical role, identify who could step in now and who could be ready in one to three years. Be honest. A plan that lists the same high performer as the successor for five different roles is not a plan.

Look beyond the obvious candidates. Employees in other departments, recent hires with relevant experience and people who have been passed over before may have the potential to grow into a role. Skills-based evaluation, discussed in our report on degree requirements, helps avoid overlooking capable people because they lack a particular credential.

Develop successors deliberately

Naming a successor is only the beginning. Give potential successors real exposure to the work through job shadowing, stretch assignments, temporary coverage during vacations and formal training. Pair them with the incumbent for structured knowledge transfer.

Apprenticeships can build successors for skilled roles over several years, as explained in our apprenticeship guide. Internal mobility programs, covered in our report on promoting from within, make it easier for employees to move into roles where they are needed.

Capture what people know

Much critical knowledge lives in people's heads. Ask experienced employees to document key procedures, contacts, recurring problems and workarounds. Record short videos of complex tasks. Hold regular sessions where senior staff walk through decisions and explain their reasoning.

Phased retirement can help. Allowing experienced workers to reduce hours gradually, mentor successors and remain available for questions extends the transfer period. Many retirees welcome the chance to stay involved part time.

Talk about it openly

Many managers avoid succession conversations because they worry about upsetting employees or signaling that someone is being pushed out. In practice, most experienced workers appreciate being asked about their plans and being involved in preparing the next generation. Stay interviews, described in our guide to stay and exit interviews, are a natural place to ask about timelines.

Be careful to avoid assumptions based on age. Succession conversations should focus on career plans and knowledge transfer, not on pressuring anyone to retire, which can raise age discrimination concerns.

Keep it simple and current

A succession plan does not need to be elaborate. A spreadsheet listing critical roles, current incumbents, ready-now and future successors and development steps is enough for many organizations. The key is to review it at least once a year and update it as people move.

Employers that plan ahead fill critical roles faster and lose less knowledge when experienced people leave. Those that wait often learn how critical a role was only after it is empty.