The Effects of Succession Planning on Employee Retention

Topics: Employment, Pearson product-moment correlation coefficient, Management Pages: 20 (6042 words) Published: February 19, 2013
The Effects of Succession Planning on Employee Retention
Faisal K. Qureishi, Iqra Univesity

Sana Yazdani, Iqra University

This study has been carried out to explore whether any relationship exists between Succession Planning and Employee Retention. The way information is circulated regarding the process of succession, plays a very important role in how the employees will perceive these changes and how they will react to them, which in turn will affect their job outcomes. For this purpose, four banks: SCB, RBS, MCB and UBL were chosen, taking 25 employees from each and collecting data through a structured questionnaire. For testing hypotheses the Correlation Model was used to identify the influenced factors based on the correlation value which is significant at the 0.05 level. The study found significant relationship between the independent variable i.e. Succession Planning and dependent variable i.e. Employee Retention. Therefore the researcher concluded that the way information regarding the Succession Planning was communicated to the employees has significant relationship with their behavioral outcomes. In fact the changes that are imposed on the employees after succession have a huge impact on their motivation and intention to continue the job.


Statement of Problem
The problem being studied here is
“The Effect of Succession Planning on Employee Retention”


Proper succession planning helps an employee to get their work done as well as to sustain the employees in the most effective and efficient manner. This study also highlighted that for any particular job what are the organizational commitment, job security, job content which leads to self-esteem, leadership and staying in the organization for a longer time period. The study is intended to answer the question of whether proper succession planning could mitigate the expected negative effects of retentions on employees.

The basic purpose of this research is to find out that whether the way information regarding Succession Planning taking place is well defined or not and what are the impacts of employees’ behavioral towards retention through proper communicated and well-defined work on succession planning. And up to what level are they emotionally and expressively affected.

1 Implications of the Study

The findings of this study will have important implications from the perspective of employees and top management associated with employee retention & succession planning. The HR department in order to develop a proper job content for every job to develop an organizational commitment & security in which employees are most comfortable with the tenure, leadership & self-esteem.

This research will extend our knowledge on how differences the employee retention and succession planning of the company will impact the performance of employees both internal and external. And would also allow more detailed prescriptions for practitioners faced with such issues.

2 Variables

Independent Variable
Succession Planning
• Tenure
• Leadership
• Self Esteem
Dependent Variables
Employee Retention
• Organizational Commitment
• Job Security
• Job Content

3 Hypothesis

• Hypothesis: There is a positive relationship between succession planning and employee retention. LITERATURE REVIEW

In an organization, every employee tends to rise to his level of ineffectiveness (Jr., 2003).Succession planning is the power to developing the strengths and performance of their people and maximizes production capacity. We provide businesses with a broad range of highly effective tools, methodology and the processes, established to dramatically develop the part played by entities and businesses at all levels (Jr., 2003). These are the role of Succession Planning in an Organization • Prepares current employees to undertake...
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