The Effect of Succession Planning On Employee Retention The Case of Ethiopian Electric Power (EEP)

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Addis Ababa University


In recent times, the world become competitive and organizational plans often become unsuccessful due to a lack of implementation of succession planning. The objective of this study is to assess the succession planning practices and its effect on the retention of employees in Ethiopia Electric Power. The researcher adopted a quantitative approach to get understanding of a research problem. Related literature and empirical studies were reviewed to assess what is studied past in the area of Succession Planning practices and employee retention. The design of the study adopted was Explanatory research, and data was collected from EEP’s project managers and directors of the power generation and transmission projects using questionnaire. Descriptive and inferential analysis are used to analyze the Succession Planning attributes and its effect on employee retention. The study found a strong positive correlation between Availability of Succession Planning Practices and Employee Retention, but a very low correlation between Successor Identification Mechanism and Employee Retention. The study concluded that Succession Planning attributes have an influence on employee Retention in EEP. Based on the findings and conclusions, it’s been recommended that EEP needs to develop and apply more comprehensive succession planning practices by informing the employees about the extent, challenges and also needs to carry out succession planning practice in the organization in every area or all departments to fill the gap even though high emphasis was given to the critical areas. Future research studies should try to find out the effects of succession planning impacts on employee retention in a broader area instead of specific departments within an organisation



Succession Planning, Employee Retention, EEP