What is the best strategy for an organization with a high percentage of retirement-eligible leaders?

Question

Options

• ARehire leaders as contractors or consultants.
• BDevelop internal leadership capabilities.
• CBuild executive retention packages.
• DHire externally for leadership roles.

• A
  5% (1)
• B
  79% (15)
• C
  11% (2)
• D
  5% (1)

Explanation

The best strategy for an organization facing a high percentage of retirement-eligible leaders is to develop internal leadership capabilities (B). At the SPHR level, this scenario represents a succession risk that must be addressed proactively to ensure continuity, stability, and long-term Developing internal leadership capability allows organizations to create a sustainable leadership pipeline, preserve institutional knowledge, and ensure cultural continuity. Leadership development, succession planning, and targeted development assignments prepare high- potential employees to assume leadership roles as vacancies occur. Rehiring retirees as consultants (A) may provide short-term continuity but does not address long- term leadership needs. Executive retention packages (C) may delay retirements but are costly and only temporary solutions. Hiring externally (D) can fill gaps but increases risk, cost, and cultural disruption if overused. SPHR exam content emphasizes that organizations must anticipate leadership transitions and invest in internal talent development as the most effective and strategic response to demographic

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