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Why is succession planning important?
Why is succession planning important? - Trends
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Statistics reveal that the projected growth of the U.S. labor force will be seriously affected by the aging baby-boom generation. Consider the following projections from the U.S. Department of Labor: By 2010, the U.S. labor force will have a shortage of 10 million workers By 2012, 162.3 million people will be in the workforce By 2012, the 55-and-older segment of the workforce (many in management positions) will have increased to 19.1%, due to an annual growth rate of 4.1%, almost four times the rate of growth of the overall labor force. Bracing for the eventual swell in retirements, companies are turning to succession planning ...
The purpose of this report is to highlight a problem faced by the CEO of a company in deciding who will be the next person as his successor to take up the role as the next CEO of the company. This is an important issue that most of the companies in not only developing economies but also in developed economies face due to lack of future planning. Many companies spend huge amount of money and investments in order to research for the market conditions in the future. They conduct market analysis; make strategic policies and plans in order to drive the company smoothly over the years to its ... Read More
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