Ask HR: Is it ethical to tell someone that they’ve been earmarked for a new role?

I am the owner of a company in the finance industry. When planning for succession should we clearly tell those who have been identified for certain leadership positions that they have been earmarked for them?

Succession planning is a critical component of long-term sustainability and growth for any organisation, particularly in the complex and evolving world of business. The issue you raise remains a quandary for many organisations. Communicating to individuals who have been earmarked as successors requires a delicate balance between transparency and discretion.

On one hand, transparency can motivate and inspire employees, showing them that the organisation recognises their potential and is willing to invest in their growth. It can foster a sense of commitment and dedication, encouraging them to develop the skills necessary for leadership roles. Moreover, it can serve as a retention tool, as employees who feel invested in an organisation’s future are likely to remain loyal. On the other hand, announcing succession plans prematurely can create unnecessary pressure and competition among employees who consider themselves potential successors. This could lead to discouragement, resentment and internal conflict which could jeopardise team stability and precipitate talent drain.

A more balanced approach is to communicate succession plans discreetly within the management team, while also providing development opportunities for potential leaders. This allows for focused mentoring, skill enhancement, and performance evaluation. Once fully prepared for a role, the organisation could consider disclosing its intentions to a potential successor. Such communication should emphasise that being earmarked as a successor is contingent upon continuous growth and achievement, besides availability of opportunities for appointment. Further, consider whether an individual can cope maturely with early disclosure. If not, a gradual introduction to future roles might be more suitable. Importantly, employees need to understand their organisation’s commitment to talent development, even if they are not immediate successors.

Transparency in succession planning is a double-edged sword. Wielded judiciously, it can be a powerful tool for nurturing talent and ensuring smooth leadership transitions. It however requires careful consideration of individual circumstances and a well-crafted communication strategy to avoid potential pitfalls. Therefore, mind the context, considering to whom, when and how you communicate.

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