The interplay between employee development factors and succession planning in predicting employee performance: evidence from retail banks
Industrial and Commercial Training
ISSN: 0019-7858
Article publication date: 23 May 2022
Issue publication date: 24 June 2022
Abstract
Purpose
The purpose of this study is to examine how employee development factors directly influence succession planning and indirectly improve employee performance using the tenets of human capital theory. Moreover, whether succession planning enhances employee performance or not?
Design/methodology/approach
Using the time-lag method, this study collected data from bank employees and tested the proposed model and hypotheses in Mplus.
Findings
The results from 239 participants highlight that succession planning improves bank employee performance. Employee orientation and training and development are positively linked to succession planning and employee performance. Succession planning mediates the association between employee development factors and employee performance.
Practical implications
The research assists bank management to promote a learning culture for developing their human resources to realize their organizational goals. The findings exhibit that succession planning generates a pool of skilled and talented employees, which creates a competitive edge for banks having skilled employees and reduces recruitment costs. Banks to save human recruitment costs. Moreover, bank managers can solve the issue of sudden vacant positions and provide excellent customer service.
Originality/value
Retaining talented individuals has remained a challenging task for organizations in the current business environment. The research contributes to theoretically and empirically exploring the association between employee development factors (training and development and employee orientation) and employee performance via succession planning to retain talented employees in the organization.
Keywords
Acknowledgements
The authors are thankful to the Editor (Dr Adriano Solidoro) and two anonymous reviewers for their continuous constructive feedback and valuable suggestions throughout the review process to improve the earlier version of our manuscript.Conflict of interest declaration: This research has no conflict of interest.
Citation
Mehreen, A. and Ali, Z. (2022), "The interplay between employee development factors and succession planning in predicting employee performance: evidence from retail banks", Industrial and Commercial Training, Vol. 54 No. 3, pp. 528-543. https://doi.org/10.1108/ICT-10-2021-0072
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited