How to use HRMS to identify your organization's future leaders

An HRMS is a valuable tool for succession planning. It provides a competitive advantage by giving you insight into how your company’s staffing may look in the future. It enables you to take proactive steps to identify gaps and make plans to alleviate them. Here are top tips on how to use your HRMS to identify your organization’s future leaders.

1. Build career paths

Many companies store job profiles or titles in their HRMS but it’s merely a data element on a list. There is no insight into how the job hierarchy is built or what jobs one would need to pass through to start as an intern and finish as the CEO. Many HRMS allow you to show a logical progression of roles and how an HR Generalist requires fewer skills than an HR Manager. If you do not have this type of information in your HRMS then you are missing one of the key components of succession planning.

2. Track employee skills, competencies, and training

An HRMS can track so many data elements these days. Employee skills and competencies are building blocks to create an employee profile. When you track employee training and courses using HR analytics it helps to complete the picture.

Check out our free guide to HRMS and talent management to improve your existing succession planning strategies

3. Utilize 9-box grid functionality

A 9-box grid is a classification tool for talent review and many HRMS include the functionality. Managers rate employees against performance on one axis and against potential or engagement on the other axis. It allows you to see where you have employees who are continuing to increase in their performance and potential.

4. Perform ‘what-if’ modeling

Many HRMS allow you to model scenarios that will help you to plan for the future. What if the CEO decides to retire early? What if key leaders leave unexpectedly at the same time? HR departments had to perform this analysis previously on paper. It will help you to define where you have gaps that will need to be filled by future leaders.

5. Identify backup options

Once you have completed the above steps it is helpful to always look at backup options. You may think that top-level career paths are charted and you have plans to develop the appointed employees. After you perform your ‘what-if’ modeling you may find gaps. It is necessary to consider the worst case scenario of how you will fill top positions if you have too many employees leaving or retiring at the same time. While you might not want to devote extensive budget towards training back up options it is still worth consideration to avoid an expensive outside recruitment drive.