Succession planning is a vital part of any organization or business that wants to decrease costs and increase efficiency. However, only 30% of hospital executives, among others, consider succession planning procedures in their organization to be effective. Thus, the Board should make succession planning and implementation as a prioritized function of its organization.
Studies have been done and without succession planning, bad hiring decisions cost $2.4 million for a $100,000-per-year employee and $12 million for a $500,000-per-year executive. Even if it costs only $3 million for a $500,000-per-year executive, bad executive planning succession will cost a company dollars that could be spent elsewhere to boost and in some cases save their market share.
Therefore, every New Jersey business that is looking out for their bottom line should consider New Jersey succession planning methodologies for executives or it may cost the business, shareholders and other stakeholders much more than the cost of the succession planning itself. New Jersey succession planning attorneys can help make the process simple and easy and let you worry about the things that pertain to your business that you have control over.
Benefits of New Jersey succession planning
- Better human resource allocation
- Improved competitive positioning
- Better hiring image
- Decreased expenses from poor decision due to mishired executives
In addition, poor New Jersey succession planning could leave a company vulnerable to making poor decisions in areas that could have a very negative impact on the company as a whole. These negative impacts can include acquisition or sharpened competition. Thus, New Jersey succession planning attorneys can help the Board align succession planning with strategic priorities in order to help the business grow and become more profitable.
Most healthcare organizations are not ready when it comes succession planning
Based on a survey by the Association for Healthcare Executives, 68% of hospital CEOs are concerned with the lack of succession planning processes for selecting a person to replace them. Only 32% of the CEOs surveyed said that the succession planning procedures in their organization were effective or very effective. In addition, only 16% of the CEOs surveyed said that their hospital’s communication approach to succession planning was effective or very effective. This means that over 80% of hospitals may not have very good or any succession planning procedures in place in order to protect the assets and future health of their organization.