Succession Planning Management to Reduce Organizational Risks Associated with the Loss of Valuable Employee A case study in a Joint Venture Insurance Company

• Main Author: Ismail, Agus
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/34086
• Institution: Institut Teknologi Bandung

The Indonesian market attracts many overseas insurance companies coming into the market. This situation is becoming the thread for the Joint Venture Insurance Company (JVIC). The competitors’ strategy to hire experience staffs make JVIC losing some employees in executive and managerial level. The only strategy to retention the employee is by increasing employee grade and salary above the market. At the same time, JVIC does not have a system to identify critical positions and prepare the replacements for the incumbent. This condition disrupts the business continuity of JVIC and impact to the decreasing on sales performance and employee productivity. The objective of this research are to identify the main reasons the employee leaving the JVIC, to identify critical positions, and to define succession planning. The research begin with conducting literature review relate with succession planning management. The second step is assessing current succession planning in JVIC and conduct gap analysis between them. The last steps is to propose the design of succession planning in JVIC. As a result, it is identified that the main reasons of the employee leaving the JVIC was because of the better growth opportunity outside the company. Critical positions in JVIC were determined based on the subjectivity of the executive level. There is no replacement planning mechanism to anticipate resign employee in critical positions. Therefore, the reseach recommends JVIC to build a systematic succession planning management in order to reduce potential risk relate with the loss of valuable employee in JVIC.