The market has changed rapidly in the last twelve months, particularly in Tax, and we’ve seen a number of clients, past and present, making more hires with succession planning in mind.
This mindset of consciously hiring is a great practice to adopt, and we’re going to break down the benefits and how succession planning can work, regardless of organisation size or resource allocation.
What Is Succession Planning?
Succession planning is defined as:
“The process of identifying the critical positions within your organisation and developing action plans for individuals to assume those positions. Taking a holistic view of current and future goals, this type of preparation ensures that you have the right people in the right jobs today and in the years to come.”
What Are the Benefits?
Measured Risk
Hiring simply because someone leaves, or because someone is overloaded with work, is not the best environment to find the right talent. Succession planning enables you to look ahead and analyse previous hiring and retention patterns to measure potential risk.
For example, if you have an individual who is due to go on maternity leave in six months, what parameters have you put in place for:
Cover while that individual is away
A return-to-work or phased return plan
Situations like this can require up to 18 months of succession planning. Done well, it enables you to retain the employee going on maternity leave, protect the health of your organisation, ensure workloads are managed effectively, and maintain quality throughout the period.
Another example is when someone may be a flight risk for leaving within the next six months. While no one has a crystal ball and unexpected departures do happen, hiring managers and leaders usually recognise when someone is unhappy or considering a move.
Succession planning allows organisations to prepare proactively rather than reactively.
Clear Visibility for Management and Senior Roles
Progression paths should be clearly defined within any organisation. Not only does this help employees understand how their careers can develop, it also allows businesses to forecast performance more accurately.
Succession planning provides visibility on:
Which management and senior positions will become available
The likely timeframe for progression
The development steps required to reach those roles
Without this clarity, employees can enter a state of career limbo, unsure what they need to do to move forward.
Budget Forecasting
The cost of a bad hire can be financially damaging if recruitment is managed poorly.
Succession planning allows organisations to understand and forecast recruitment costs across:
Job boards
Internal recruiters
Recruitment agencies
Hiring events
This creates a more structured and controlled approach to hiring budgets.
It also allows businesses to understand:
The cost of reaching headcount goals for the year or quarter
The performance levels required to support hiring plans
Recruitment budgets should not be viewed as separate from the organisation’s finances. Instead, they should be seen as a contributor to the overall financial health of the business.
Talent Pooling
Whether you have an internal recruitment team or work with an external agency, talent pooling is a powerful tool.
If you know when you’re likely to hire and what the profile will look like, recruitment teams can begin identifying and engaging relevant candidates early. This means when the hiring process begins, you already have a pool of qualified candidates ready to interview.
Externally, this also strengthens your employer brand, as talent partners can build relationships with high-quality candidates based on credible future opportunities.
Talent pooling also helps ensure hiring decisions are deliberate and well considered, rather than rushed or reactive.
How to Take the Right Steps Towards a Succession Plan
1. Review Your Current Organisational Structure
Look closely at every level of the organisation:
C-suite
Leadership and management teams
Mid-level professionals
Junior teams
Ask key questions:
Does each team have the right level of resource?
Who are the strongest performers?
Where are the skills gaps?
Understanding your current structure provides the foundation for effective succession planning.
2. Assess Internal Progression
As highlighted by TBS, organisations should:
Determine who has the interest and potential to fill key roles
Discuss career plans and development ambitions with employees
Identify positions that may become vulnerable or vacant
Assess which individuals could be ready to advance or develop within a required timeframe
Ensure a sufficient pipeline of candidates for key positions
Once you have this insight, you can build a realistic view of what your organisational and leadership structure may look like 6–12 months ahead.
3. Create Talent Pools and Partner with the Right Agency
If your internal recruitment team has the capacity, this is the ideal time to begin developing talent pools.
If not, partnering with a specialist recruitment agency can provide significant value. The right partner will:
Understand your business goals
Have visibility of your succession plans
Help identify and engage the right talent in advance
4. Consider All Hiring Options
Succession planning should never rely on only one type of hire, particularly permanent roles.
Depending on the market and the project requirements, organisations may need to consider a combination of:
Permanent hires
Contract professionals
Freelance specialists
Interim leadership
Adopting a holistic hiring strategy ensures that projects continue moving forward even when permanent talent is difficult to secure.
Final Thoughts
Succession planning enables organisations to move from reactive hiring to strategic workforce planning.
By understanding future leadership needs, building talent pipelines, and adopting flexible hiring models, businesses can protect operational continuity while positioning themselves for growth.
If you have questions about succession planning solutions across tax specialisms, from Corporate Tax Compliance and Reporting to Indirect Tax and Transfer Pricing, feel free to get in touch. We’d be happy to offer guidance and support where we can.
