Times are desperate and with wave after wave of layoffs, most people are simply thankful to have a job.

But the recession won't last forever, and when the economy picks up again employers may find that top talent is looking for new opportunities. When that time comes, businesses that have clear succession plans will thrive.

Thus, a recession may be the ideal time to put a succession plan in motion as there is not much movement of personnel, experts say. Additionally, when employers groom successors they send a signal to staff that their employer sees and is actively carving out a future for the employee at the company.

"One of the advantages of this bad economy is that some folks that would be succession risks are not moving right now, [which is a] great reprieve for organizations," says Seymour Adler, Ph.D., consulting senior vice president at Aon Talent Solutions, headquartered in Chicago.

Before the financial crash, companies were very concerned with retention, explains Brigitte Morel-Curran, a senior partner with Korn/Ferry's leadership and talent consulting group.

Now, people are more risk-obsessed. Nevertheless, in her experience, employers have a keen eye on boosting employees up the succession ladder, especially large businesses.

"This recession will end, and when that happens those organizations that have been most strategic with their talent and that have been most steady in the development of and support for their best people will be the ones that have the most engaged workforce and will suffer least when the [talent] war starts again," says Morel-Curran.

Experts say that integrating a succession plan in their company culture will engage workers by having them forge new skills and increasing employees' sense of worth in the organization.

Lessons learned

The fact that employers are compiling a long-term plan for talent suggests that employers have learned their lesson from the 2002 economic dip, Morel-Curran notes. In 2002, she recalls that many businesses cut leadership development and training costs.

In her experience, those who were the most committed to the development of their leaders had the highest retention rates.

A lot has changed in recent years, including the focus of succession planning. No longer are senior executives the sole targets of personnel investment. In fact, stemming from his firm's research, Adler estimates that 20% to 25% of senior positions ought to have clear succession plans.

By expanding the scope of succession planning to include all critical positions, not only do benefits pros aid the company, but also send a clear signal to employees that the organization takes a great interest in their personal success and wants them to be a vital part of that company's success, says Doug Thomas, national practice leader of compensation and benefits practice at SMART in Pennsylvania.

"Employers can send a very positive signal to the employee population, [saying] that, 'Not only are we as a company going to survive this economic difficulty, we're going to thrive once the economy gets better, and we consider you employees as being vital to that success. So stick with us; you've got a career,'" he says.

Pinpointing talent to someday fill key positions can be taxing, which is why Morel-Curran recommends that upper management meet every six months, or at a least every year, to discuss the leadership pipeline.

"Talent management should not be the exclusive realm of HR; talent management should be something that leaders are educated into so that when they make promotion decisions they understand the implications," she says. "By educating leaders at assessing and evaluating talent and supporting the careers of the people reporting to them while promoting people appropriately, businesses are a lot healthier. HR is a support for that, HR is an expert, HR provides tools and the methodologies and the processes."

Ultimately, decisions regarding succession lie with senior leaders, who should utilize the HR department as a support system.

One way the two can symbiotically contribute is by examining competency metrics, which Morel-Curran defines as performance over time, potential or the ability to adjust in a new and different role, readiness, and motivation.

To meet all these conditions, heavy investment in an individual is imperative, concurs Adler, who sees this as an extended and active process that could entail a six-month, two-year or multiyear plan.

"A development plan would specify the competencies and the knowledge that need to be developed to take somebody who is the high-potential successor and get them ready to assume that position," says Adler.

Morel-Curran sees talent as a strategic activity, and views succession planning and development as a 10-year journey. Employers should identify potential individuals at a director level when they are in the middle of their careers and ease them through the transition, she says.

"[Employers should have a] career management process for the organization that is visible and transparent, and is facilitating the movement of your talent in the organization through differentiating between what it is people are good at and what is their potential to grow and develop," Morel-Curran explains.

A smooth passing of the torch will ensure that relationships with clients, vendors and suppliers remain in tact. Further, companies should begin to fill any holes in experience; for example, by exposing their talent to the international scene if they lack global experience. The current economic state provides an ideal training ground before assuming control of the battlefield.

"In a bad economy there are numerous opportunities for people to gain experience facing tough business challenges, which may not exist if the economy [is] humming along," suggests Adler.

Development should be an active process by which the individual experiences their upward climb at a speed where they can still absorb lessons at every rung, the experts note. Further, employers should beware promoting their employees too high too fast - rather, making the ascension linear and gradual.

"You need to calibrate talent, and then you need to define differentiated development strategies for the individuals depending on where they are on the calibration map, and then you need to implement those strategies through mentoring, through on the job training, through rotational opportunities, through expert programs, through whatever is needed to accelerate the development of that person in order to get them ready for stretch jobs," advises Morel-Curran.

This is especially the case for lower-level positions where an employee who is not fully functional can learn the skills needed on the job, whereas for top positions more preparation is required. "It will be a living process; it won't be a static process," says Thomas.

If an organization does not have the luxury to groom someone over a prolonged period of time, then they may have to look outside the office.

"Especially for higher-level positions, where you can't afford to have those positions vacant for any extended period of time, you need to ensure that you have the appropriate bench strength that you will be able to fill that position with the minimum amount of lag time," Thomas advises.

"If you find that you do not have that particular expertise internally, you had better have done your appropriate networking, either with individuals in your industry or within your region, to at least have some names or some areas in mind that if you can't tap someone internally, you can fairly easily tap some external resources to get some candidates for consideration."

Nevertheless, experts recommend beginning the search internally, not only for the convenience for the company, but also to boost morale and to stimulate engagement.

Implanting a succession plan can be instrumental in improving the office mood, especially during a recession, which in turn can ensure that talent remains loyal to the company once the economy improves.

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