Why Your Succession Planning Strategy Should Include Interim Executives

It’s no secret that many of Canada’s business leaders are rapidly reaching retirement age. The Baby Boomer generation (born between 1945 and 1964) is one of Canada’s largest. By 2030, the last ‘Boomers,’ born in 1965, will turn 65. According to StatCan, the country is already feeling the impact–in 2021, 2022 and 2023, the labour force participation rate was at its lowest level in two decades, 65%.

However, just because these mature workers are reaching retirement age, doesn’t mean they’re ready to walk away. In fact, a study by the Transamerica Center for Retirement Studies® found that 49% of Baby Boomers are already working past age 70 or expect to. Is this decision financially driven? In many cases, yes—82% said their reasons are finance-related—however, many (78%) simply feel that they are in good enough health to keep contributing to the workforce. These workers may not be ready to retire, but they also may not want to work 80-hour weeks anymore either. They just want to do something challenging, interesting, and that allows them to feel like they're contributing to the success of an organization.

On the other hand, Canadian businesses may not be doing enough to prepare for this exodus of leadership talent when it inevitably happens. According to a recent report from The Conference Board of Canada in which they surveyed decision-makers from both public and private sector organizations, a mere 31% said that their organization puts a high priority on leadership development, while only 39% have a leadership development program.

So, how can your organization leverage the expertise of mature executives who aren’t ready to retire? Empower them, as interim executives, to train your next generation of leaders as part of your succession planning strategy.

Hire mature interim executives to mentor next-generation leaders

Experienced interim executives possess unmatched industry and organizational knowledge. If your organization has potential leaders who may not be quite ready to move into executive roles, tap into the expertise of interim executives to help your next generation of leaders to develop their abilities.

Include your interim executives in a mentorship program that pairs these mature leaders with your high-potential employees to work through real business challenges together. In recent surveys, 86% of CEOs said that mentors played a crucial part in their career accomplishments and 90% of employees who have a mentor said they are happy at work. Through a mentorship program, mentors can guide and support successors with a consultative approach, imparting the skills required for growth while continuing to drive change and deliver results.

In addition to communicating the ins and outs of the business, ask the interim executives to also share the importance of soft leadership skills such as how to navigate ambiguity, how to take calculated risks, and how to communicate empathetically.

A mentorship can be a major boost to the confidence of the future leaders. It gives them a valuable resource to get positive feedback and advice, and to share ideas and frustrations.

Experienced interim leaders can offer valuable and objective insights

Interim executives typically have the ability to quickly adapt to their roles and deliver immediate value, especially during a time of transition for your company. They can offer fresh, outside perspectives on strategies, policies, and talent needs. Their impartial viewpoints can provide a catalyst for change and innovation.

Additionally, they often have a specialized skill set to help you with a specific need, such as reshaping strategies, restructuring functions, managing M&As, or undergoing a significant business transformation. There are many leaders who are not quite ready to retire who may prefer an interim executive role that allows them to focus on the business challenges that energize them the most.

Think differently about succession planning: include interim executives in your strategy

Even as the Boomers in the Canadian workforce continue to reach retirement age en masse, many still have the desire to use their skills, knowledge, and experience to make a significant contribution. Through effective succession planning, mentorship programs, and interim executive opportunities, you can leverage their valuable attributes to not only navigate present-day challenges, but to also develop your next generation of business leaders.

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