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Why Using Skill-Based Assessments in Succession Planning Matters

It’s a busy December afternoon at a commercial bakery in Indianapolis, IL. Luis, the Plant Manager, has just announced that he will be retiring at the end of May after 15 years of leadership.

The bakery owners and Kelly, the Hiring Manager, start compiling a shortlist of internal candidates in hopes of identifying a clear successor by April. All winter, one name kept coming up in conversation: Bruce.

Bruce has a strong reputation throughout the plant for being a hard worker. His peers regularly comment on how he knows everyone on the floor by name and how he approaches every workday with a positive attitude.

Kelly liked Bruce, too. However, when she asked the owners what specific skills made Bruce the strongest candidate, the discussion fell silent. Meanwhile, Maya, a line lead known for reducing waste by nearly 40% through process improvements, hadn’t been mentioned once.

It became clear that the team’s succession planning relied on familiarity and instinct rather than measurable capability. That realization led Kelly to implement skill-based assessments, and her company’s talent strategy transformed.

 

The Limitations of Traditional Succession Planning

 

Unconscious Bias Influences Decision-Making

Bias naturally creeps in. Leaders tend to favor employees who resemble themselves in communication style, personality, or background. In environments like commercial bakeries or automotive assembly lines, outspoken workers often get noticed more than quieter but equally capable ones.

Without standardized criteria, workforce planning discussions rely heavily on opinions. As a result, hidden high-potential employees – like Maya – are often overlooked for leadership roles.

 

Why Skill-Based Assessments Strengthen Succession Planning

Skill-Based Assessments ensure all candidates are evaluated using the same metrics or skill sets. This levels the playing field across departments, shifts, and locations.

In manufacturing, skill assessments might focus on process oversight, safety knowledge, or problem-solving. In culinary environments, they may evaluate timing, consistency, food safety, or communication under pressure.

 

Assessments Identify the Competencies That Matter Most

Rather than relying on gut instincts, skill-based assessments reveal strengths in:

  • critical thinking
  • communication
  • decision-making
  • technical mastery
  • team leadership

This helps organizations promote leaders based on capability – not personality.

 

Bias Is Reduced Through Structured Evaluation

When decisions rely on data, personal familiarity or assumptions play a smaller role. Assessments help surface candidates who might otherwise stay invisible.

Skill-Based Assessments analyze a worker’s specific knowledge and skill level, while also identifying any skill gaps which provides a clear picture of how individuals may perform in roles they haven’t yet held. This is essential in industries where leadership requires calm under pressure, strong judgment, and the ability to coordinate and train teams.

 

Succession Planning as a Strategic, Future-Focused Process

Strong succession planning is intentional. It equips organizations to meet future talent needs rather than reacting to employee departures. It also aligns directly with business strategy. For example, if the company is investing in automation or preparing to expand into new markets, its leadership pipeline must reflect those goals with the technical skills to match.

Effective succession planning identifies the competencies needed for tomorrow’s challenges and hires people with the skill sets needed to meet them.

 

Skill-Based Assessments Create Stronger, Fairer Leadership Pipelines

When Kelly implemented Skill-Based Assessments at the bakery, both Bruce and Maya were evaluated objectively.

  • Bruce excelled in communication and people management.
  • Maya excelled in process improvement and analytical thinking.

Rather than choosing one based on instinct, the organization created two leadership roles aligned to each person’s strengths. The result? Better performance, stronger morale, and a more equitable process.

Succession planning is most powerful when it shifts from subjective impressions to objective, validated criteria. Just as Kelly discovered, leadership shouldn’t depend on who is most visible or familiar, it should depend on capability. When organizations promote based on skills and potential, they build stronger teams, stronger cultures, and stronger futures.

 

To Improve Your Organization’s Succession Plans with Skill-Based Assessments, Contact NBS Today

NBS creates skill assessments for all industries and all levels. Skill-Based Assessments can be used for new hires, entry-level employees, experienced workers, and advanced level skills.

All NBS assessments go through a rigorous process to ensure that they are reliable, fair, and legally defensible. They are based on industry standards, developed with a panel of subject matter experts and a psychometrician, with job and task analysis to ensure they are relevant and up-to-date with current technology. Assessments go through pilot testing and cut score development to help give employers actionable information about the skills of potential and current employees.

To see the full list of available assessments, please see the Assessment Index. NBS also offers custom assessments for clients.

If you’re ready to identify and promote future leaders based on skills with NBS Skill-Based Assessments, contact us here.