HRM FPX 5310 Assessment 2 Succession Plan Strategy Report

Student Name

Capella University

HRM-FPX5310 Strategic Human Resource Management

Prof. Name

Date

Executive Summary

Fleet, Farm, & Home (FFH) currently employs 18 store managers over the age of 65, many of whom are contemplating retirement. This situation poses a significant challenge for FFH in a dynamic economic landscape. Consequently, there is an urgent need to implement a succession plan strategy that identifies job progressions within the company, addresses specific internal policies and implementations, and establishes training programs, followed by actionable recommendations. A well-structured succession plan will highlight employment opportunities that facilitate promotions, development, and training for internal employees. The benefits of succession planning include increased availability of capable individuals, easier filling of leadership roles, reduced risk of losing experienced leaders, minimized time and resources required to recruit external candidates, and the establishment of procedures by HR to support the management selection process (“The 4 Key Benefits of a Succession Planning in 2022,” 2022).

Career Development Plan

A career development plan is essential for retaining internal talent. According to the University of California, Berkeley, effective career planning and development clarify the alignment between organizational goals and individual employee aspirations. Utilizing existing staff talent for career development opportunities is cost-effective, and such initiatives can enhance employee motivation and productivity (“For Career Development | People & Culture,” 2022). At FFH, we aim to create a career development plan that fosters internal talent and facilitates promotional opportunities. The development plan will encompass the following components:

1. Implementation of a Career Ladder
2. Creation of Training Opportunities
3. Focus on Diversity, Equity, and Inclusion

The following sections will delve into these three critical elements necessary for preparing employees for long-term employment with FFH.

Implementation of a Career Ladder

Career development begins with identifying essential career paths that align with both organizational and employee goals. FFH should adopt a traditional career ladder model, where internal employees are promoted based on a combination of work experience, education, and available opportunities. This traditional ladder progression allows for career advancements until an employee either chooses to pursue opportunities elsewhere, retires, reaches a level with no further promotional prospects, or faces termination. The succession plan will incorporate a tier and level system that determines an employee’s pay grade, the number of direct reports, and pay type. Recognizing the challenge posed by having 18 managers over the age of 65 nearing retirement, the new career ladder will enable internal employees to advance through various roles continuously. Offering career growth opportunities is the most effective way to mitigate future attrition.

Creation of Training Opportunities

To promote continuous development among employees, it is crucial to establish training opportunities. Numerous training programs can enhance employees’ skill sets. FFH should implement initiatives such as Fleet, Farm, Home University (FFH University), educational advancement programs, and short-term assignments (STA).

Fleet, Farm, Home University (FFH University) is an online training platform that offers a variety of learning modules, videos, and virtual training sessions. While this resource does not preclude in-person job shadowing, it serves as a tool for ongoing learning and development. The training site includes job-specific training, enhancement of both soft and hard skills, and knowledge acquisition in relevant systems and software. Each position within FFH has mandatory training requirements that must be completed to ensure compliance with company standards and legal regulations. For instance, FFH is hiring 20 internal manager positions, and these managers must be well-versed in day-to-day operations, ethics, HR policies, employment and labor laws, and other training that will equip them to be effective leaders. By providing a regularly utilized training platform, FFH can enhance job performance and expand employees’ success within the organization.

Educational Advancement

Many companies are now offering to assist with employees’ tuition costs, demonstrating their commitment to individual growth. Educational advancement opportunities can also benefit the company. FFH plans to partner with local colleges and universities to provide tuition reimbursement, two-year college degrees, and trade certificate programs. The skills acquired through these programs will increase employees’ eligibility for promotions and contribute to a larger pool of highly skilled employees, ultimately leading to higher retention rates. Some educational advancement opportunities may include Commercial Driver’s License programs, nursing programs, information technology certifications, and business certifications in leadership, entrepreneurship, retail management, and HR.

Short-term Assignments (STA)

A short-term assignment is a program lasting four to six weeks, allowing employees to support another job location while receiving hands-on training for a smooth transition into their new role. As FFH continues to grow rapidly, each store location will develop its own methods to operate efficiently. Store managers have the authority to tailor their stores to meet customer needs. During a short-term assignment, the employee will be paired with a mentor who will serve as their point of contact throughout the duration of the assignment. This mentor will have been with the company for at least two years, demonstrating strong leadership skills, expertise in their role, and extensive knowledge and connections within the organization. Upon completing a short-term assignment, employees will feel emotionally supported, proficient in their job responsibilities, and experience increased job satisfaction, along with a network of connections within the company.

Diversity, Equity, and Inclusion (DEI)

At FFH, diversity, equity, and inclusion are fundamental aspects of the company culture. As previously mentioned, retaining employees is crucial, and clear career advancement objectives can enhance DEI and strengthen retention efforts. Clearly defined career paths are especially important for diverse and underrepresented workers, who often feel more isolated and uncertain in the workplace. When an organization documents its career paths and the skills required for advancement, and makes this information transparent, it reduces the potential for racial or gender bias to influence promotion decisions (“How Clear Career Paths Strengthen Retention—and Diversity,” 2022). To support career development, DEI affinity groups should be established, including initiatives such as Women @FFH, FFH Pride, and StrongNAble.

Internal Policy Review/Implementation

To foster the development of a succession plan that promotes growth, FFH must review and implement internal policies to ensure ethical practices and compliance with labor laws. These policies will focus on internal growth and identify methods to support employee retention and professional development. Below are three vital policies for FFH:

Code of Conduct Policy

It is essential for FFH to have a Code of Conduct policy that outlines behavioral expectations for both managers and employees. Managers are expected to lead by example and uphold ethical practices. The company’s Code of Conduct should establish managerial limitations to ensure that all employees are provided with equal employment opportunities for advancement. It is crucial for managers to recognize that unethical behaviors, such as favoritism, obstructing someone’s advancement for personal reasons, and misusing managerial authority, are unacceptable. The HR department should collaborate closely with managers to minimize conflicts of interest in the hiring process. Additionally, HR can provide training to managers focused on eliminating biases and ensuring equal opportunities for all employees, thereby supporting diversity initiatives.

Performance Management PolicyPerformance management is the process of achieving high organizational performance through effective management of individuals and teams. This involves setting clear expectations for employees and managers, agreeing on targets, and measuring and reviewing performance (“Performance Management Policy | HR Expert,” 2022). By adopting a performance management policy, FFH can evaluate the performance of internal candidates, identify development opportunities, and assess readiness for new roles. Implementing a mechanism to evaluate performance and areas for improvement will increase the likelihood of internal candidates being promoted based on their achievements and contributions to the company’s success.

Employee Tenure Policy

In addition to the performance management policy, an employee tenure policy can help reduce attrition rates, indicating that employees are being retained. This policy would require a minimum length of tenure to be considered for a promotion, ensuring that employees have sufficient time to develop their skills and job security. Many roles within the succession plan will recognize that knowledge gained in a position can meet qualifications for advancement, thereby increasing opportunities for job growth. It would be beneficial for FFH to implement a policy requiring a minimum of one year in a role before being eligible for promotion. However, exceptions to this policy may apply; for instance, if an employee earns a degree within one year of starting, they may be considered for promotion, provided they meet performance expectations and any additional training requirements.

Succession Plan

Fleet, Farm, & Home (FFH) has identified the need to hire for several key roles, including one store manager, two assistant store managers, four shift supervisors, twelve department supervisors, and assistant department supervisors. As the company continues to grow and evolve, a succession plan will be implemented to identify available positions and the action plans necessary for individuals to secure these roles. It is essential that the succession plan emphasizes employee development in alignment with business needs, ensuring that the right individuals occupy the right positions. The staffing requirements outlined in the succession plan will detail the skills, qualifications, and job descriptions for each position. Below are the roles that FFH aims to fill.

Store Manager (Level 5)

Job Description

• Conduct interviews, train assistant store managers, and recruit employees.
• Develop strategic plans to increase store traffic and drive sales by identifying target goals.
• Provide one-on-one managerial and supervisory training to develop employees.
• Oversee daily operations, including measuring store performance, budgeting and forecasting, inventory management, and marketing strategies.
• Facilitate monthly meetings among team members to recognize achievements, review store performance, and implement training for continuous development.

Job Qualifications

• College degree.
• Knowledge of at least six FFH store departments.
• Five years of supervisory experience.

Succession Plan

• Assistant Store Manager (2)
• Store Manager
• Department Supervisor (12)
• Assistant Department Supervisor
• Shift Supervisor (4)

All Level 5 positions and above are salaried and located in an office setting at a corporate location, designated store location, or remotely. To be promoted to a Level 5+ position within FFH, applicants must meet the following criteria as part of the succession plan:

• Completion of required training as tracked by the FFH University system.
• Completion of a mandatory six-week managerial training program, which includes job shadowing and learning all relevant systems and HR policies.
• A minimum of eight years of management experience.

Assistant Store Manager 1 & 2 (Level 4)

Assistant Store Manager 1

Job Description/Responsibilities

• Responsible for inventory control.
• Order supplies and manage inventory.
• Ensure store appearance meets company standards.
• Assume Store Manager responsibilities in their absence.

Assistant Store Manager 2

• Job Description/Responsibilities
• Manage hiring and promotion processes.
• Address employee concerns, including salary issues and staff reviews.
• Assume Store Manager responsibilities in their absence.

Job Qualifications

• College degree or completion within one year.
• Three years of supervisory experience.
• Knowledge of at least three FFH departments.

Succession Plan

This position is salaried with a designated work area at a store location. To be promoted to a Level 4 position, applicants must meet the following criteria as part of FFH:

• Four years of management experience.
• Completion of required training in FFH University.
• Completion of 80 hours of job shadowing with the Store Manager.
• If applicable, completion of training on “Making High Judgment Decisions—Hiring the Perfect Employee for FFH” to participate in the hiring and promotion process.

Shift Supervisor (Tier 3)

Job Description

• Reports directly to the Store Manager.
• Responsible for managing daily operations on the sales floor.

Job Qualifications

• Associate’s degree.
• Knowledge of at least three FFH store departments.
• Two years of supervisory experience.

Succession Plan

This position is hourly and has a designated work area at a store location. To be promoted to a Tier 3 position, applicants must meet the following criteria as part of FFH:

• Four years of management experience.
• Completion of 80 hours of job shadowing with the Store Manager.
• Completion of required training in FFH University.

Department Supervisor (Tier 2)

Job Description

• Reports directly to the two Assistant Managers based on twelve functional areas (e.g., hardware, agricultural supplies, clothing).
• Directly supervises Assistant Supervisors.

Job Qualifications

• Associate’s degree.
• Completion of corporate supervisory training (web-based program).
• At least two years of experience in the selected FFH department.

Succession Plan

This position is hourly and has a designated work area at a store location. As a Department Supervisor, you will provide exceptional hands-on training and knowledge to employees. To be promoted to a Tier 2 position, applicants must meet the following criteria as part of FFH:

• Three years of management experience.
• Completion of 80 hours of job shadowing with the Store Manager.
• Completion of required training in FFH University.
• Cross-training in at least two FFH store departments and working knowledge of at least three departments.
• Currently pursuing a college degree.

Assistant Department Supervisor (Tier 1)

Job Description

• Reports directly to the Department Supervisor.
• Prepares weekly employee schedules according to departmental needs.
• Assists in managing daily operations.

Job Qualifications

• One year of college, with progress toward a two-year degree.
• At least one year of experience in the selected FFH department.

Succession Plan

This position is hourly and involves working directly with employees on the sales floor, without a designated desk area. The Assistant Department Supervisor collaborates closely with employees and provides support to the assigned department.

For promotion to a Tier 2 position, applicants must meet the following criteria as part of FFH:

• A minimum of two years of experience working in the designated FFH department.
• Cross-training in three FFH store departments.

Conclusion

In light of the challenges posed by a changing economy and the impending retirement of numerous leaders, FFH’s succession plan serves as a proactive measure to create opportunities for internal employees. This plan provides promotional guidance and facilitates the execution of career development initiatives, which can lead to improved internal growth, better retention rates, and enhanced talent retention. Research conducted by WorldatWork indicates that organizations that fail to invest in the training and development of their workforce risk losing valuable employees to competitors. By prioritizing employee career development, employers can effectively distinguish themselves from their rivals (“Developing Employee Career Paths and Ladders,” 2022).

References

Developing Employee Career Paths and Ladders. (2022). Retrieved September 5, 2022, from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/developingemployeecareerpathsandladders.aspx

For Career Development | People & Culture. (2022). Retrieved September 4, 2022, from https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-successfully/development/career#:~:text=Career%20planning%20and%20development%20clarifies,increases%20employee%20motivation%20and%20productivity

How Clear Career Paths Strengthen Retention—and Diversity. (2022). Retrieved September 5, 2022, from https://www.bain.com/insights/how-clear-career-paths-strengthen-retention-and-diversity/

Performance Management Policy | HR Expert. (2022). Retrieved September 5, 2022, from https://hrexpert.com.au/resources/performance-management/performance-management-policy/#:~:text=The%20performance%20management%20policy%20helps%20managers%20in%20identifying,skills%2C%20and%20competence.%20Significance%20of%20performance%20management%20policy

HRM FPX 5310 Assessment 2 Succession Plan Strategy Report

The 4 Key Benefits of a Succession Planning in 2022. (2022). Retrieved September 3, 2022, from https://www.imd.org/imd-reflections/reflection-page/benefits-of-succession-planning/