Baker Tilly ranks fourth on Construction Executive’s list of the Top 50 Construction Accounting Firms in the U.S. 

There is increased pressure to retain key talent, as there are just not enough people in the workforce to fill positions. Succession planning can be a critical tool in retaining talent. The promise of succession is a golden carrot that incentivizes strong employees to stay with the organization for future leadership and/or ownership opportunity. An effective succession plan focuses on both the financial transaction of ownership (if applicable) and the personnel issues of management succession that require a clear understanding of the competencies required for success, allowing the organization to evaluate readiness of future leaders, define development needs and identify where gaps in talent exist. If transition of ownership is likely, now is the time to put the right incentive compensation plans in place to help fund that purchase. Non-qualified deferred compensation plans are powerful retention tools because they often require a vesting schedule. Even if ownership succession is not in your organization’s future, retention of key employees and management succession is critical. Key leaders are your greatest asset and responsible for your business success. If you do not provide growth opportunities, employees will leave for more growth potential. Historically, employee development was a topic limited to human resource discussions, but today it is a critical component of business strategy. Having clearly defined position descriptions, understanding the competencies necessary for success and assessing development needs are critical steps in management succession. Effective succession plans do not begin when a leader/owner exits the business. It’s a process of proactively focusing on developing and retaining key personnel who demonstrate the competencies, capabilities and potential necessary for future success. Succession can be the powerful carrot that both retains your key employees and incentivizes your business results.