An empirical investigation of predicting employee performance through succession planning

The interplay between employee development factors and succession planning in predicting employee performance: evidence from retail banks

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.

Measuring career shocks: A study of scale development and validation in the Chinese context

The emergence of self-career management has pushed individuals to manage their careers proactively and evade unexpected events. The purpose of this study was to develop and validate a career shocks scale for use in Chinese organizations. In doing so, we developed a comprehensive scale of career shocks to cover a significant gray area of career management and enhance a deeper understanding of the emergence of career shocks among Chinese employees. Using the mixed-method approach, we recruited multiple samples to validate the item structure and assess construct validity and internal consistency of the career shocks scale. The findings of a confirmatory factor analysis suggested two dimensions of career shocks (positive and negative), having nine items. Moreover, a strong inter-item structure indicated that this research measure would be valuable for future research endeavors in the domain of career management.