A Better Approach to Succession Planning Using Assessment Data

A Better Approach to Succession Planning Using Assessment Data
October 3, 2025 10 mins

A Better Approach to Succession Planning Using Assessment Data

Young woman helping a female trainee

Succession planning is evolving. By gathering comprehensive data and adopting predictive approaches, organizations can better anticipate workforce needs and build deeper benches of future leaders.

Key Takeaways
  1. Given the rapid pace of change in job roles and skill requirements, among other influencing factors, succession planning should evolve. This change will allow organizations to prepare for what roles look like today and what they will demand tomorrow.
  2. Identifying future leaders should extend across the entire workforce. This will unlock hidden leadership potential and bolster career development opportunities.
  3. Use objective, data-driven assessments instead of intuition to evaluate talent, identify potential and benchmark effectively.

Table of contents

  1. Introduction

  2. How Traditional Succession Planning Should Evolve

  3. How Evolving Leadership Skills Impacts Succession Planning

  4. Steps to Implement Successful Succession Planning

  5. As AI Slows Entry-Level Hiring, What’s the Impact on Succession Planning?

  6. Measuring and Maintaining Effective Succession Planning

Introduction

As job roles and skills shift at lightning speed, employers can’t afford to rely on yesterday’s succession planning. Effective succession planning begins with market data-informed critical role profiles, ensuring that organizations identify and define the essential positions that will drive future success. By leveraging advanced talent assessment tools and robust data, organizations can then expand succession planning beyond the executive suite to the entire workforce.

“Succession planning should evolve to less guesswork and potential bias, instead letting data do the heavy lifting,” says Rhys Connolly, Commercial Director of Assessment in Aon's Talent Solutions practice in the United Kingdom. “Rather than treating succession planning as a tick-box initiative, organizations can turn it into a competitive advantage.”

How Traditional Succession Planning Should Evolve

The rapid advancement of AI and other forms of technology make it increasingly difficult to predict exactly what expertise will be needed and which roles will exist in the future. While defining critical roles remains fundamental to effective succession planning, organizations must avoid limiting their focus to a narrow set of individuals. Instead, the goal is to cultivate a broader and deeper leadership bench that can step into these roles as needed. By identifying the key positions that will drive future success and then expanding the talent pool through objective, data-driven assessments, employers can ensure that succession strategies are robust and adaptable.

Traditional succession planning prioritizes senior roles and risk management. Forward-thinking organizations can broaden their focus, building a skills database and a deeper bench of talent. "Classic succession planning focuses on ready successors for critical roles to avoid disruption,” says David Morgenstern, Global Relationship Executive in Aon's Talent Solutions team in Europe, the Middle East and Africa. “However, it often overlooks the need for advanced technical skills like AI expertise.”

As data becomes more readily available, it also needs to play a bigger role in succession planning decisions. In the past, business leaders may have relied heavily on their intuition to determine successors. As organizations look deeper into their workforce for succession planning, objective measurement and data-driven decisions mitigate bias and provide a more accurate picture of skills and potential among employees.

It’s important to recognize, however, that casting a wider net means some individuals considered for moving into new roles may not have had the opportunity to fully demonstrate their capabilities. Not every high-potential employee will have been in roles designed to showcase their leadership or technical strengths. This is where the concept of identifying potential becomes especially powerful: It enables organizations to see beyond current experience and performance, and to surface talent that might otherwise go unnoticed or untapped. By leveraging robust assessment tools and predictive data, organizations can more equitably identify those with the drive, learning agility and capacity for growth. This process then enables pathways for advancement to individuals who have not historically been given the same chances as others. 

Examples of Data-Driven Insights for Succession Planning

85%

Leadership assessments rose 85% from 2019 to 2022, while focus on leadership development increased from 9% in 2020 to 33% by 2024, indicating heightened interest in assessing for new leaders.

Source: Aon’s 2025 Leadership in Transition Guide

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Example of the types of data-driven insights Aon’s assessments and other tools can bring to succession planning
Example of the types of data-driven insights Aon’s assessments and other tools can bring to succession planning

How Evolving Leadership Skills Impacts Succession Planning

This type of in-depth data gathering for succession planning is particularly critical because the skills needed by future leaders are changing. Core leadership principles like driving results and setting direction remain constant. But successful leaders must also balance performance with relationship building. Additionally, leaders need to have some measure of digital expertise even if they are not the specialists. Being able to manage technology and how teams use technology is now non-negotiable. 

“What leaders do — like driving results — remains consistent. It’s the ‘how’ of what they do that is evolving,” says John McLaughlin, Partner in Aon's Talent Solutions team in Europe, the Middle East and Africa. “Emotional intelligence and similar qualities are increasingly emphasized in leadership research, but the core expectations for leaders are stable. This means we can be quite accurate in developing our leadership bench to meet these needs,” he explains.

Most Assessed and Sought-After Leadership Skills

 Drives results  56%
 Provides direction  49%
 Communicates with impact  47%
 Coaches for performance  47%
 Builds relationships  44%
 Collaborates  40%
 Makes sound decisions  39%
 Champions change  39%
 Manages pressure  38%
 Holds self and others accountable  38%

Source: Aon’s 2025 Leadership in Transition Guide

By integrating a future-oriented perspective that identifies the skills and competencies likely to be required for upcoming challenges, organizations can evaluate their leadership pipeline. This approach allows for the assessment of current leaders’ readiness, highlights areas for development and facilitates preparation of successors who are positioned to guide the organization through future transitions.

Quote icon

Succession planning is not just about ensuring business continuity — it’s about having the courage to ask what kind of leaders our future demands and then preparing them to shape that future.

David Morgenstern
Global Relationship Executive, Talent Solutions, Europe, the Middle East and Africa

Steps to Implement Successful Succession Planning

Succession planning requires a thorough, multi-step approach. Here are some practical steps for implementation:

  1. Identify and define critical roles. Begin succession planning by pinpointing key positions that are vital for organizational growth. Assess current and future needs, prioritize essential roles, and use workshops or interviews to confirm their importance. Compare internal opinions with external market data for accuracy.
  2. Move beyond traditional, subjective assessments. Many organizations still focus on individuals over roles and rely too heavily on their internal perspectives. Effective succession planning isn't just about who's ready — it's about who's right for what's next. "Organizations often fall into the trap of creating roles around favored individuals rather than focusing on objective, role-based criteria, which can undermine fairness and effectiveness," says Aon’s McLaughlin. Assessing whether employees are ready to take the next step is best done using objective data obtained from a thorough evaluation. An unbiased focus on talent potential and capability has the added benefit of helping to identify hidden or emerging leadership talent who may not be visible through traditional performance reviews.
  3. Keep future talent in mind. Aon's 2025 Employee Sentiment Study shows that 64% of entry-level employees are unsure about AI’s impact as technology transforms roles. AI may threaten traditional entry-level positions, but employers can address this by upskilling, reskilling and cultivating resilience. Businesses should have a clear skills strategy to support employees across all levels in the transition to a more AI-enabled future of work.
  4. Differentiate between high performance and high potential. A high-potential employee is not always a high performer in their current role, as their capabilities may not be fully utilized or aligned with their present responsibilities. Focus on future-fit potential by using data and leadership criteria to identify individuals capable of growing into more complex roles and creating pathways to accelerate their development.
  5. Maximize your return on investment. Organizations often identify too many high-potential successors without rigorous methods, leading to unsustainable commitments and high attrition. To maximize the impact of every dollar spent on development, upskilling and career mobility, focus on investing in the right people and capabilities, targeting those who truly need development rather than spreading resources too thinly.
Creating a Blueprint for Role Identification and Succession Planning

Case Study

Creating a Blueprint for Role Identification and Succession Planning

Aon worked with a financial services company to reimagine how critical roles are identified across their workforce. Over time, the list of “must-have” positions and skills kept expanding without a plan to reassess what truly mattered in the future. As a result, the client had inflated job titles and compensation packages, creating challenges during the performance and promotion cycle. Our team leveraged Aon’s Radford McLagan Compensation Database and assessment tools to pinpoint roles that currently drive success and conduct a deep-dive audit of the firm’s succession planning. The result is a blueprint that will guide their next performance management cycle and lay the groundwork for better role identification and succession planning.

As AI Slows Entry-Level Hiring, What’s the Impact on Succession Planning?

Not only does AI have an impact on the future skills needed for jobs, but it is also disrupting succession planning deeper into the organization. A recent survey1 finds 40% of employers expect to reduce their workforce where AI can automate tasks, potentially displacing nine million jobs. Another survey2 finds 49% of Gen Z job hunters in the U.S. believe AI has reduced the value of their college education in the job market. This leads to a talent pipeline problem. While AI can automate many tasks, it cannot replace the unique human skills and capabilities that are essential for leadership and critical roles. By equipping entry-level employees with competencies that AI can’t replicate, organizations can help ensure a strong future leadership bench.

Traditionally, leadership pipelines have depended on early-career roles that offered hands-on experience where individuals learned to prioritize under pressure, communicate across teams and build judgment through repetition and feedback. However, these foundational positions are now among the first to be automated. As AI replaces routine, undifferentiated work, the lived experience that has long shaped effective leaders is at risk of disappearing. The development stage that once enabled people to grow into leadership is being compressed or eliminated, making it more challenging to cultivate the insight and adaptability that comes from experience.

Limiting entry-level roles limits opportunities for early-career workers to gain foundational experience, develop critical capabilities and advance into leadership roles. When we eliminate entry-level roles, we’re not just shrinking the talent pipeline, we’re cutting off the early experiences that shape future leaders. It’s critical to preserve those foundational opportunities, even as companies focus on upskilling employees for new roles. Occupations with higher exposure to AI have shown a notable decrease in entry-level employment. Early-career workers (ages 22–25) in these roles experienced a 13% relative decline in employment. In comparison, employment among more experienced workers in similar occupations and those in less AI-exposed fields has remained steady or increased.3

Succession strategies must now adapt to a workforce where foundational roles are increasingly automated. This means a greater focus on intentional development. “When organizations reduce entry-level opportunities, they risk losing the critical on-the-job experience that transforms early-career workers into future leaders,” says Yousuf Shaikh, Director of Workforce Transformation in Aon's Talent Solutions team in North America. “Succession planning should focus on upskilling for new roles while preserving pathways for foundational growth. Otherwise, companies may end up hiring for experience instead of developing it.” The reality is that while tasks can be outsourced or automated, the wisdom and leadership that come from lived experience cannot.

64%

of entry-level employees express uncertainty regarding AI’s impact as organizations move toward roles influenced by emerging technologies.

Source: Aon’s 2025 Employee Sentiment Study

Learn More

Measuring and Maintaining Effective Succession Planning

To effectively manage succession planning, it's essential to track key metrics. These can include:

  • Average time to fill key positions from the succession pool
  • Turnover rate of employees in the succession pool
  • Evaluating the performance of placed successors 
  • Tracking the completion of development plans 
  • Understanding the movement of talent between roles, companies or locations
  • Number of vacancies filled from the succession pool 
  • Assessing the ability to fund growth initiatives through developed talent 

It’s often easier to see when succession planning is done poorly — gaps become visible and organizations may find themselves scrambling when key roles are left vacant or successors are ill-prepared. It’s harder to spot when things are going well. However, failed succession planning can cost an organization badly. Harvard Business Review research4 estimates better succession planning for the C-suite could boost profits among large-cap companies’ valuations and investor returns by up to 25%. Measuring results on an ongoing basis is clearly worth the time and effort.

Effective succession planning is not just about filling roles; it’s about identifying the attributes and capabilities for tomorrow and cultivating those qualities within emerging leaders. Investing in innovative assessments and targeted development initiatives helps build sustainable leadership capacity from within. 

Learn more about Aon’s assessment tools and advisory capabilities: Post-Hire Talent Assessment.


25%

Research finds better succession planning in the C-suite can boost profits and investor returns among large-cap companies by up to 25%.

Source: Harvard Business Review, The High Cost of Poor Succession Planning

Aon’s Thought Leaders:

Rhys Connolly
Commercial Director of Assessment, Talent Solutions, United Kingdom

Giles Patterson
Associate Partner, Talent Solutions, Europe, the Middle East and Africa

David Morgenstern
Global Relationship Executive, Talent Solutions, Europe, the Middle East and Africa

John McLaughlin
Partner, Talent Solutions, Europe, the Middle East and Africa

Marc Pajarillo
Partner, Talent Solutions, North America

Charlotte Schaller
Partner and Head of Assessment, Talent Solutions, United Kingdom

Yousuf Shaikh
Director, Workforce Transformation, North America

1 Is AI closing the door on entry-level job opportunities? | World Economic Forum
2 Indeed Hiring Lab, Educational Requirements Are Gradually Disappearing From Job Postings, 2024
3 "Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence." Brynjolfsson, Erik, Bharat Chandar, and Ruyu Chen.
4 Harvard Business Review, The High Cost of Poor Succession Planning

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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