A replacement chart is a tool used in leadership succession planning, which shows current and potential future vacancies in particular roles; it lists the critical job roles within the organization, the employees currently positioned in those roles, their competencies and the current vacancies and facilitates in future succession planning.

How does a replacement chart work?

Within a replacement chart, each job role is mapped alongside information such as skills,  potential replacements, experience, gender, age and potential promotion. 

A replacement chart categorises employees into four different groups:

• Employees who are ready for a promotion
• Employees who would be ready for a promotion if they are given additional training
• Employees who are who do not make a good fit in the organization
• Employees who need motivation and further improvements in order to perform well in their roles

The replacement chart seeks to answer the following questions:

• Which employees are the most eligible replacement options for a vacant position?
• What are the benefits of selecting a specific employee for a current position relative to another employee?
• What is the organizational history of an employee and the competencies that the employee possesses?

Why is a replacement chart important?

A replacement chart is important because it is used as a technique to estimate succession planning to assist the organization in visualising important job roles of existing employees,  the current and upcoming future positions. 

This chart is particularly important for the HR department as it helps them determine the benefits of selecting an employee for a position quantitatively and prevents the organization from losing revenues in case of any unforeseen exit from the organization

Organizations usually update replacement charts regularly; this is because it is used as a response to fluctuations in business activity or economic conditions. This helps the organization to visually identify gaps or future gaps in the workforce; it also helps ensure a constant supply of labor at all levels.