Solution

Succession planning

Succession planning involves identifying and developing future leaders, managers and individuals to take up critical roles (Ritchie, 2020). George (2021) classifies approaches to succession planning as traditional and modern approach. Traditional approach focused on identifying internal successors and the training them to occupy future roles. Modern approach is about continuous development. Organisations are embracing learning methods such as lateral moves, secondments, formal learning and coaching and mentoring to ensure their people are updated with new skills and knowledge. George noted that leaders developed from within tends to be more successful that those brought in. Hence, BMG can promote a culture of continuous learning in modern succession planning.

Contingency planning

Contingency planning is anticipating what might happen in the future and then create a plan to minimise impacts or risks (Al Amiri and Abu Shawali, 2021). For example, BMG may anticipate tightness in the labour market and then consider introducing better pay and competitive benefits to attract and retain talents.

Mitigating risks

Succession and contingency planning have proved to mitigate risk associated with workforce and organisation. These risk include labour shortage, higher costs of recruitment, turnover rate and declining performance when some talents leave. Succession planning links to talent management where talents are identified and developed. Employees would like staying at BMG to enjoy growth opportunities that this can mitigate labour shortage risks. Contingency plans features a set of actions such as upskilling existing workforce and building a talent pool.

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