Impact of Effective Succession Planning Practices on Employee Retention: Exploring the Mediating Roles

Abstract

Succession planning (SP) and employee retention (ER) are mutually reinforcing. Meaning ineffective succession planning leads to turnover, and that would, in turn, make the succession plan ineffective. Hence the big challenge is to find how SP affects ER. For this, we proposed a model explaining the mediation effect of various factors on SP-ER nexus. We hypothesize that proper Succession planning produces a positive effect on Performance Goal Orientation, Supervisor Support, Working Environment, Rewards, Work-life Policies, Career Development, and Job Security. And these factors, in turn, lead to employee retention. We further assumed that the ER would lead to Organizational Effectiveness. To establish its empirical validity, we conducted a survey using a close-ended questionnaire. Data was gathered from 300 respondents who are serving in the middle and lower level of management in the private organizations in Pakistan. Data analysis was done through the descriptive statistics, partial least square (PLS), and Structural Equation Modeling (SEM) with the help of SmartPLS3. The findings indicated that effective succession planning practices had a meaningful, favorable connection with employee retention and out of seven mediators, only three mediators i.e. job security, rewards, and supervisor support significantly mediated the association between effective succession planning practices and employee retention. Succession planning also seems to significantly affect the working environment, work-life policies, and career development. Results also exhibited that there’s an insignificant link between effective succession planning practices and organizational effectiveness and also there is no positive relationship between employee retention and organizational effectiveness.

Succession planning, employee retention and career development programmes in selected organisations in Ghana

“…Succession planning may have led to the promotion of some employees and such employees may see such "move" as a kind of motivation, hence their decision to stay. Further, the finding is consistent with many other findings as reviewed in the literature (Aberdeen Group, 2005;Eshiteti et al 2013;Hassan & Siddiqui, 2019). This finding contributes to the existing body of research by revealing that, formal succession planning program indeed helps in the retention of valuable workers as well as act as a tool to attract other potential employees.…”

“…As a result, research on employee retention has received some attention (Jiang & Klein, 2002) especially in the context of succession planning. Hassan and Siddiqui (2019), investigated the impact of effective succession planning practices on employee retention: exploring the mediating roles using 300 respondents who are serving in the middle and lower level of management in the private organizations in Pakistan. Their findings revealed that effective succession planning practices had a meaningful and favourable connection with employee retention.…”

A Review on Competency-Based Succession Planning at Higher Education Institution in Malaysia

“…This is to ensure a loyal staff, a positive company culture, and long-term workforce sustainability. According to Hassan & Siddiqui (2020), succession planning improves employee commitment and motivation and decreases the impact of layoffs and fosters a diverse range of bright and competent human assets within the company.…”

Talent management practices on employee performance among academic staff of Malaysian private universities: employee engagement as a mediator

“…Literature review and hypotheses development Succession planning practice and employee performance Succession planning practice (SPP) can be a strategic mechanism for any competitive institution to meet human capital requirements and achieve business goals. Holding talented and skilled workers to create a competitive advantage and reach their goals has now become a crucial obstacle for organizations (Hassan and Siddiqui, 2020;Ali and Mehreen, 2018). To do just that, a lot of organizations are formulating various strategies and initiatives to retain and Talent management practices maintain skilled workers.…”