What is "succession planning" in HR?

Succession planning in HR is fundamentally about identifying and developing future leaders for key positions within an organization. This strategic approach ensures that there is a talent pipeline ready to fill critical roles as they become vacant due to retirement, promotion, or other factors. By investing in development programs and mentorship for high-potential employees, organizations can maintain continuity and stability, thereby securing their future leadership needs.

Focusing on future leadership is important because it allows organizations to proactively manage talent and minimize disruptions that may arise from sudden departures. This practice helps mitigate risks associated with talent shortages and aids in aligning career development with the organization's long-term strategic goals.

The other options, while related to HR functions, do not encapsulate the essence of succession planning. Creating new positions pertains more to organizational restructuring than to preparing individuals for existing key roles. Evaluating employee performance is a critical component of human resource management but does not specifically address the proactive development of future leaders. Lastly, designing employee training programs is a broader HR activity that might support succession planning, but it does not inherently focus on leadership development for key positions.