An empirical investigation of predicting employee performance through succession planning

Abstract

Purpose Leadership development practices develop future leaders for the organizations which are evidence for the proper utilization of organizational resources. The purpose of this paper is to integrate succession planning into the job demands–resources (JD–R) model to predict individual performance. Design/methodology/approach In total, 239 participants were drawn from commercial banks located in a large city of Pakistan through a structured questionnaire. The proposed model was tested through structural equation modeling. Findings The results from 239 participants suggest that succession planning has a direct and indirect effect on engagement and employee performance through the JD–R model. Furthermore, job resources and engagement mediate the association between succession planning and employee performance. Research limitations/implications The present study employed a cross-sectional approach, and all constructs were answered on a self-report questionnaire. Thus, the findings should be validated through a longitudinal design by employing a more objective construct. Practical implications The banks should adopt proactive succession system to improve individual and organizational performance. Succession planning helps the banks to reduce recruitment cost and promote internal hiring. This study supports the managerial decisions making by mobilizing skilled and talented employees in the sudden resignation of a bank employee. Social implications Succession planning seems an important development factor that directly improves employees’ well-being through the JD–R model. Originality/value The present study demonstrates the integration of the JD–R model into succession planning.