The Effects of Succession Planning Practice on Employees Retention : In the case of National Cemen
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Date
2026-11-03
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Addis Ababa University
Abstract
The purpose of this study was to assess the effect of succession planning on employee retention at National Cement PLC. Specifically, the study examined the influence of successor identification, leadership development programs, career development, and transparency and fairness on employee retention. The study was motivated by the growing need for organizations to develop strong internal leadership pipelines and reduce dependence on expatriate employees for key managerial and technical positions. A mixed research approach was employed, using both descriptive and explanatory research designs. Primary and secondary data were utilized in the study. Primary data were collected through structured questionnaires and semi-structured interviews. The target population consisted of division managers, directors, and executive management employees. Out of 72 distributed questionnaires, 63 were returned and found usable for analysis. The quantitative data were analyzed using descriptive statistics, correlation analysis, and multiple regression analysis using SPSS version 27. The qualitative data were analyzed using thematic analysis. The findings revealed that succession planning dimensions are positively associated with employee retention. The regression results further indicated that leadership development programs, as well as transparency and fairness, have a statistically significant positive effect on employee retention, while successor identification and career development were found to have an insignificant effect. The qualitative findings further supported that employees’ commitment to remain in the organization improves when succession planning practices are transparent, fair, and supported by top management. The study concludes that effective succession planning practices play a significant role in enhancing employee retention at National Cement PLC. In particular, leadership development programs and a transparent and fair succession planning system are critical in strengthening employees’ commitment to remain in the organization. Therefore, the study recommends that the management of National Cement PLC strengthen leadership development initiatives and improve transparency and fairness in succession planning practices to enhance employee retention
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: Succession Planning, Employee Retention, Leadership Development Programs, Transparency and Fairness, Career Development, Successor Identification, National Cement PLC