




































 

 

 

  

Succession Planning Strategies and Employee 

Performance of Selected Deposit Money Banks in Lagos 

State, Nigeria: The Moderating Effect of Educational 

Qualification  

Egwakhe A.J, Akinlabi B.H, Magaji N, and Ojuolape S.A 

 



European Journal of Human Resource                                                                                      

ISSN 2520-4697 (Online)     

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52 
 

Succession Planning Strategies and Employee Performance of 

Selected Deposit Money Banks in Lagos State, Nigeria: The 

Moderating Effect of Educational Qualification  
1Egwakhe A.J, 2Akinlabi B.H, 3Magaji N, and 4Ojuolape S.A 

1,2,3,4Department of Business Administration and Marketing, Babcock University Ilishan-

Remo, Ogun State, Nigeria 

Abstract 

Purpose: Employees’ performance was investigated along succession planning strategies and 

roles played by educational qualifications. This study examined the relationship between 

succession planning strategies and employee performance of selected money banks in Lagos 

State, Nigeria with the moderating effect of educational qualification.  

Methodology: The study adopted survey research design. The target population for this study 

comprised twenty thousand and five (25005) employees of five selected money banks in Lagos 

State, Nigeria.  A sample size of 760 was chosen to stand in for the entire population of the 

study. Stratified and simple random sampling techniques were used to determine the sample 

size. Hierarchical Multiple Regression technique was used to test the study’s hypothesis.  

Findings: Findings indicated that succession planning strategies have significant effect on 

employees’ performance among selected deposit money banks in Lagos State, Nigeria. 

Findings further revealed that educational qualification significantly moderated the relationship 

between succession planning strategies and employee performance among deposit money 

banks in Lagos State, Nigeria.  

Recommendation: The study recommends continuous learning and capacity building to 

ensure better fit and qualified persons occupy position to succession planning. 

Keywords: Career Management, Corporate Mentorship, Employee Performance, Succession 

Planning, Reward Management, Training and Development 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Introduction 

Employees are pivotal to the attainment of organizational objectives (Abdussalaam, et al., 

2019). Likewise, organizational success depends on the employees, given their possession of 

the competencies and moral dexterity needed for the execution of organizational strategy (Fu, 

2013; Ismail, Abdul-Halim, & Joarder, 2015a). Considerable research has emphasized the 

significance of improving employee performance (Ismail, Abdul-Halim, & Joarder, 2015b), 

because it results in competitive advantage. Thus, it becomes imperative for organizations to 

create strategies that would enhance the performance of their workers.  

Succession management is an important talent management initiative that enables 

organizations to identify talented employees and provide education to develop them for higher 

and broader responsibilities (Olayo, 2019). Strategic talent management embraces selection, 

development and keeping of supply of steady supply of people moving up and across the 

organization. Succession planning as derivative of succession management is a deliberate and 

systematic effort by an organization to ensure leadership continuity in key positions, retain and 

develop intellectual and knowledge capital for the future and encourage individual 

advancement. It is a process that helps to ensure the stability and tenure of persons (Odengo & 

Bett, 2016). Rothwell (2005) cited by Olayo (2019) regards it as an effort intended to ensure 

continued effective performance of an organization, division, department or work group by 

making provision for the development, replacement and strategic utilization of key persons 

over time. With succession planning process, recruiting superior employees, developing their 

knowledge, skills and abilities and preparing them for advancement or promotion into even 

more challenging roles becomes achievable. Therefore, succession planning can result to 

increase in workers performance. 

Effective implementation of secession planning strategies in organisation provides a 

framework for succession and leadership continuity that greatly supports realization of 

increased employees’ performance. According to Olayo (2019), an effective succession 

planning in the organization should identify the organization’s long-term goals and then hire 

the necessary staff. Moreover, there is need to ensure that all key employees understand their 

career paths and the roles they are being developed to occupy. In fact, well implemented 

succession planning strategies have been shown to increase organisational productivity and 

financial returns (Fulmer, 2009). Moreover, effective succession planning strategy leads to 

recruitment of competitive top management staff who steer the organisation towards 

achievement employees’ productivity and performance (Komora, Guyo, & Odhiambo, 2015). 

Ogbu (2019) accentuates that planning for succession of leadership is usually propelled by 

level of education of successors, skills and experience of the subordinates that will take over 

the responsibilities in the future. Succession planning can be an important way to identify 

employees who have the current skills or the potential to develop skills that can help them 

move up in an organization, or on to another positions (Leigh, 2015). Elumah and Shobayo 

(2016) asserted that education investment for workers significantly affects their productivity in 

the workplace. Along with the belief of education about improving workers’ productivity, 

many researchers stress the importance of education and training in the human capital field 

(Lucas, Griliches & Regev, 2016; Olowolaju & Oluwasesin, 2016). Furthermore, for business 

succession to be viable and sustainable there should not be only efforts towards employee 

retention but adequate mentoring is imperative. Through participating in leaning activity and 

mentorship, the learning participators are likely to easily implement job-seeking activities with 

increasing the human capital (Makinde, Tayo, & Olaniyan, 2018). Lucas (1998) cited in 

Makinde et al., (2018) emphasizes that education provided to a worker enhances the worker’s 

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European Journal of Human Resource                                                                                      

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54 
 

productivity. Therefore, education is capable of enhancing the skills of people by ensuring 

thorough screening that the best people are selected and made available for the organization 

(Simon-Oke, 2012). 

Most deposit money banks operating in Nigeria make adequate preparations for succession 

planning because of the volatility of the industry. The management of the banks planned 

leadership succession through on-the-job training and mentoring, but it is still uncleared about 

the conscious efforts carried out by the deposit money banks to ensure that its succession 

planning strategies are followed. In Lagos State, studies on succession planning among deposit 

money banks are generally limited. These studies never considered the strategies and/or 

discussed the predictor variable of employee performance and most of them either focused on 

organizational survival, sustainability and were carried out on either small-and-medium scale 

businesses or fast-food businesses with small samples. The emphasis on the five succession 

planning strategies (reward management, corporate mentorship, talent management, training 

and development and career management) with employee performance and the fact that it is 

directed at solving a seemingly perennial challenge in the banking industry goes a long way to 

making a difference in the deposit money banks in Lagos State, Nigeria. Also, the extent to 

which educational qualification moderates the effect of succession planning strategies and 

employees’ performance in deposit money banks in Lagos State, Nigeria is yet to be proven by 

scholars.  

Therefore, this study examined the relationship between succession planning strategies and 

employee performance of selected deposit money banks in Lagos State, Nigeria: The 

moderating effect of educational qualification. 

Hypothesis of the Study 

H0: Educational qualification does not significantly moderate the relationship between 

succession planning strategies and employee performance of selected deposit money banks in 

Lagos State, Nigeria. 

Literature Review 

Issues revolving around the concept of performance have substantially caught the attention of 

both researchers and the practitioners, but what is interesting in it is that performance should 

be defined and measured in relation to the context within which it exists (Lebas & Euske, 2002). 

Moreover, employee performance has attracted numerous definitions. Among these definitions 

is that of Viswesvaran and Ones’s (2000) definition which described employee performance as 

the way in which employee efficiently takes actions and contributes with behaviours that are 

consistent with firm’s goals. Performance incorporates the resulting outcomes of the performed 

actions of employees based on their expertise and skills. In organizational settings, employees’ 

performance is the accumulated result of the skills, efforts and abilities of all the employees 

contributed to organizational improved productivity leading towards its goal achievement. 

Improved organizational performance indicates the efforts towards goal achievement while 

requiring more efforts in terms of improved employee performance (Ellinger et al., 2003). 

Employee performance is among the critical factors that contribute significantly to 

organizational success. Learning organizations play important role in enhancing employee 

performance through providing trainings and developments for their employees (Gitongu et al., 

2016). Moreover, management standards to evaluate employee performance also play critical 

role in improving employee performance as they provide the picture of actual performance and 

its alignment with the benchmarks. If discrepancies found, then these standards help bringing 

the outputs again towards their required levels (Rozi & Sunarsi, 2020). Employee performance 

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European Journal of Human Resource                                                                                      

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55 
 

also depends on their internal satisfaction towards their job. If employees are satisfied from 

their jobs as well as the organization than they are more keenly interested to perform well 

towards organizational goal achievement (Badrianto & Ekhsan, 2020). 

With regards to succession planning, it is a deliberate and systematic effort by an organization 

to ensure leadership continuity in key positions, retain and develop intellectual and knowledge 

capital for the future, and encourage individual advancement. It is an effort designed to ensure 

the continued effective performance of the organization, department, or group by providing, 

developing and replacing key people over time in accordance with the strategic direction of the 

organization (Rothwell, 2010). In a similar way, Rouse (2018) defined succession planning as 

the process of developing talent to replace executive, leadership or other key employees when 

they transition to another role, leave the company, are fired, retire or die. It is a process whereby 

an organization ensures that employees are recruited and developed to fill each key role within 

the company (Heathfield, 2019).  

The author went further to say that through succession planning process, organisation’s 

recruit’s superior employees, develops their knowledge, skills, and abilities, and prepares them 

for advancement or promotion into ever more challenging roles in an organization. The purpose 

of succession planning is to cope with staffing surprises in an organization. This becomes even 

more crucial in executive leadership positions, which play a significant role in business 

continuity and timely attainment of strategic objectives in the organization (Rothwell, 2010). 

When a member of the top leadership team suddenly resigns or the position is left vacant, it 

becomes important for an organization to have had a succession planning and management 

process in place to counter this. By then, it is too late to start the development process. It is in 

fact that, the objectives of succession planning are the survival and continuity of organizations 

and good organizational performance. Rothwell (2010) further observed that the reason behind 

enforcing succession planning in corporate companies is to make sure that there is maintenance 

of a pool of successors who are potentially able to continuously achieve success in the 

organization while enabling its continuity and survival for the long haul. 

Various models proposed for succession planning include structured leadership and mentoring 

training programs, forums, courses, motivation, a formal succession plan, continuity policies, 

and family integration plans (Stephens, 2016). Moreover, succession planning strategies as 

used in this study is a multi-dimensional concept which is narrow to specific constructs as 

determinants of employees’ performance. Succession planning strategies within the context of 

this study included reward management, corporate mentorship, talent management, training 

and development, and career management. 

Reward management refers to the development, maintenances, implementation, evaluation and 

communication of reward process (Tsadik, 2017). Armstrong (2010) posited that, reward 

management is the process, policies and strategies needed to maintain the employee's interest 

and the commitment that they make to accomplish organisational goals is rewarded. It deals 

with assessing the relative nature of the work, value and management of pay structure, paying 

for performance, competency, and the management of reward procedure and the provision of 

employee benefits (Armstrong & Helen, 2005). Reward administration deals with procedures, 

tactics and methods required to ensure that workers’ contributions to the company are 

acknowledged by financial and non- financial means (Tsadik, 2017). The objectives of reward 

management are accomplished by implementing and developing strategies process, practices 

and policies that are founded on a philosophy, act in line with the distributive and social justice 

principle; equitably, consistently, transparently and function fairly, are aligned with the 

organization's corporate policy and ideology (Tsadik, 2017). 

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Mentoring is the “traditional relationship between a senior, more experienced person (the 

mentor) and a junior or less experienced person (the protégé/mentee) for the purpose of 

teaching the junior employee about his or her job, of introducing the junior employee to 

contacts, to orient the employee to the industry and the organization, and to address social and 

personal issues that may arise on the job” (Allen, Eby, O’Brien & Lentz, 2008). 

Retrospectively, mentoring is prevalent in everyday life and mentor-protégé relationships can 

be found in nearly all professions (Allen, Eby, Chao, & Bauer, 2017; Adair, 2006; Onyia, 

Asikhia, Egbuta, & Makinde, 2019). Mentoring has so many advantages related to mentee and 

organizational performance directly and indirectly by transferring information and knowledge 

assembles through many years of experience. Mentoring has positive effects on  organizations 

such as, mentoring reduced labour and training costs, help in managing talent, reduced staff 

turnover and improved retention rates (Rockoff, 2008), help in disseminating business values 

and developing the culture, improved business stability, improved morale, motivation and 

relationships, improved succession planning, improved job creation and business performance, 

provided cost efficient enhancement, enhanced productivity, encouraging older managers, 

enhanced flow of information and communication, improving business learning. 

Talent management involves positioning the right people in the right jobs (Devine, 2008). This 

ensures that the employees maximize their talent for optimal success of the organization. As 

talent management is a relatively new area for both public and private sector organizations, 

most organizations have prioritized it to ensure they acquire the right staff. This is because 

talent management has been linked to successful attraction, retention and development of 

employees (Baheshtiffar, 2011). The prominence of talent management can be traced to around 

the start of the year 2000. This is the period when a management consulting firm, ‘McKinsey’ 

reported that employers face a ‘war for talents’ characterized by difficulties in recruitment of 

employees due to tight labor market (Hartmann et al., 2010). Since then, the topic of talent 

management has increased in importance and has gained attention in both the literature and in 

business practices. It has been claimed to be ‘‘more critical than ever to organizational strategic 

success’’ and a ‘‘fast gaining top priority for organizations across countries’’ (Hartmann et al., 

2010). Effective talent management practices must align with business strategy, values, and 

mechanisms to ensure internal consistency, cultural embeddedness, management involvement, 

the balance of global and local needs, and employer branding (Al Ariss, Cascio, & Paauwe, 

2014). Effectively managing talent involves focusing on specific value processes, including 

creation, capture, leverage, and protection. These processes hinge on reflecting the functions 

of the talent, explaining the potential value of the activity, and contributing to the underlying 

strategic purpose of the organization (Sparrow & Makram, 2015). 

Staff training and development constitutes one aspect of the human resource management 

processes in any organization. It is the most potent tool of any organization’s success. 

According to Gatti, Angel-Urdinola, Silva, and Bodor (2011), Employee training is a program 

aimed at helping employees gain specific skills and knowledge. The acquired knowledge and 

skills are provided to assist employees in improving their job performance (Gatti, et al., 2011). 

Training is developed through organized programs that ensure employees are given skills that 

are essential in the job market. Devi and Shaik (2012) describe an effective training program 

as one that addresses training needs and delivers training according to training objectives. 

Training effectiveness refers to the benefits that organizations and trainees receive from 

training. There are two major types of training, on-the -job training and off- the -job training 

as identified by Alo (1999): On-the-job training, is normally handled by colleagues, 

supervisors, managers, mentors to help employees adjust to their work and to equip them with 

appropriate job-related skills. Armstrong (1995) argues that on-the-job training may consist of 

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European Journal of Human Resource                                                                                      

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teaching or coaching by more experienced people or trainers at the desk or at the bench. 

According to Ejiogu (2000) off-the-job training would include lecture, vestibule training, role 

playing, case study, discussion and simulation Armstrong (1995) listed group exercises, team 

building, distance learning, outdoor and workshops as part of off-the-job training. The benefits 

to the trainee may include acquisition of new skills or behavior, and the benefits to the 

organization may consist of an increase in productivity and satisfaction of customers (Godwin, 

Adeniran, & Jamogha, 2020). 

Career management is the procedure by which people gather data about qualities, interests, and 

aptitude qualities and shortcomings (vocation investigation), recognize a lifelong objective, 

and take part in career methodologies that enhances the likelihood that career objectives will 

be accomplished (Furman, 2018). According to Ogar, Igwe, and Effenji (2019), career 

management is an umbrella term that envelops different individual activities that shape 

individuals’ profession changes and experience. These exercises incorporate parts of career 

improvement (for example recognizing one's occupation enthusiasm, settling on a lifelong 

decision, and seeking after career achievement) and how one arrangement with career occasion 

and changes over time (e.g., work misfortune and quest for new employment), (Wang & 

Wanberg, 2017). Career management has two main dimensions such as organizational career 

management and personal career management (Orga, 2020). Organizational career 

management is different from individual career management and it includes organized 

activities for employees’ career development and it differs from organization to organization. 

However, individual career management is the career management that is the responsibility of 

the individual (Dittmann, 2011). 

Linking the Succession Planning to Employee Performance 

Related studies on succession planning strategies have been employed in different 

organisations both in public and private to accomplish employee retention and organisational 

sustainability (Maphisa, Zwane, & Nyide, 2017; Osho & Afolabi, 2018; Owiredu & Kwakye, 

2020; Ozili, 2021; Tayo-Tiwo, 2020; Ugoani, 2020; Voughani & Clever, 2016). Ugoani 

(2020), Akinyele et al. (2015), and Agbaeze, Monyei and Agu (2017) found a significant 

positive effect of talent development, board size, percentage of non-executive directors on the 

board, career development, and mentoring on organizational sustainability.  Ibidunni et al., 

(2016) examined how best an organization can retain and manage talented employees to ensure 

survival and growth in the banking industry. The results from the survey indicate that pay has 

positive significant implications on employees’ commitment and involvement. Other studies 

carried out by Onwuka, Kelechi, & Kekeocha (2015) and Vito et al. (2018) equally revealed 

positive significant relationships between the related studies’ dependent variables and 

independent variables that were related to succession planning 

Educational Qualification as a Moderator 

Ishola, Adeleye and Tanimola (2018) carried out a study examining the contributions of 

educational and professional certification to job performance among financial accounting staff 

of a university in Nigeria. The survey captures both perceived-cum-the experience of job 

performance and professionalism among bursary staff of a first-generation University in 

Southwest Nigeria using a standardized self-report questionnaire containing job performance 

scale, items on normative and professional accounting roles and socio-demographic profile. 

Three hypotheses were answered using multiple regression analysis and one-way ANOVA at 

p ≤ .05. Results revealed that, Bursary staff with professional qualification reported more job 

performance than non-certified staff. Bursary staff with higher tertiary education performed 

better in accounting task than those with lower qualification. Thirdly, significant results were 

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found for gender and age as predictors of job performance. The article concludes with 

directions for future inquiry on the need to upped organisational performance through 

continuing education for a financial accounting. 

In the same vein, study carried out by Makinde et al. (2018) said that the effect of employee 

engagement and educational qualification on employee needs to be examined because of its 

implication for improved quality labour which in turn, leads to organizational success. The 

paper examined the effect of between employee engagement and educational qualification on 

employee productivity in selected deposit money banks in Lagos State, Nigeria. The study 

adopted the descriptive survey research design. The population was 2,704 consisting the senior 

and middle level management staff of five selected banks. Sample size of 450 was selected 

using the Krejcie and Morgan table and proportionate random sampling method was adopted. 

The research instrument was validated and deemed reliable. The KMO results ranged from 

0751 to 0.897 while the Cronbach’s Alpha coefficient ranged from 0.856 to 0.912. The data 

were analysed using the simple regression analysis. The findings revealed that employee 

engagement had a significant effect on employee productivity. Meanwhile, while Makinde et 

al., (2018) reported that engagement and educational qualification had significant positive 

effect on employee productivity in banking sector of Nigeria, Onukwufor, Umoh, and Amah 

(2018) reported that organisational culture which was a moderating variable had a negative 

moderating effect on the relationship between career development and organisational success.  

Methodology 

The study adopted a survey research design. According to Kumar (2019), survey research 

design is very useful for examining the effect as well as relationships between the variables in 

the conceptual framework Surveys are useful in describing the characteristics of a large 

population. No other research method can provide this broad capability, which ensures a more 

accurate sample to gather targeted results in which to draw conclusions and make important 

decisions (Owino, 2019). The study research design supported the desired objectivity and 

allowed logistical flexibility for data collection and data analysis for hypothesis testing to come 

up with the objective conclusion. The target population for this study comprised twenty 

thousand and five (25005) employees of five selected deposit money banks in Lagos State, 

Nigeria (Human Resources Department of selected banks, 2021). These selected deposit money 

banks are Stanbic IBTC Bank Plc, First Bank Plc, Citibank Nigeria Limited, Ecobank Nigeria 

Plc, and Wema Bank Plc.  

The selected deposit money banks utilized mentoring and on-the-job training to close gaps in 

terms of retirement by any of the departmental head by promoting a subordinate who have been 

under tutelage of such manager for some years. The study population comprised top, middle 

and lower-level employees of the selected deposit money banks. From a population of 25005, 

a sample size of 760 was chosen to stand in for the entire population of the study. Stratified 

and simple random sampling techniques were used to determine the sample size. The research 

instrument was an adapted instrument measured on a 6-Likert type scale. The data collected 

were analysed using the hierarchical regression method through the use of SPSS 26.0 software. 

The method was adopted in order to determine the moderating effect of educational 

qualification on the relationship between the independent variables and the dependent variable 

Model 1 below was estimated to give the direction and effect of the moderating variable on the 

independent variable and the total effect on the dependent variable. 

EMP = β0 + β1RM+ β2CMP+ β3TMP+ β4TD + β5CM + βizSPCS*EQ + εi ………………eq. 1 

Where:  

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European Journal of Human Resource                                                                                      

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EMP = Employee Performance in selected Deposit Money Banks 

RM = Reward Management 

CMP = Corporate Mentoring 

TMP = Talent Management Practice 

TD = Training and Development 

CM = Career Management 

SPCS = Composite Index of Succession Planning Strategies 

EQ = Educational Qualification 

SPCS*EQ = Succession Planning Strategies x Educational Qualification 

β0 = Constant 

β1 – β5 = Coefficient of succession planning strategies. 

Βiz = Coefficient of the interaction term 

εi = Error term 

Ethical Consideration 

This research was carried out in accordance with the research ethics. First, the researchers 

ensured that considerable efforts were put in place to ensure the confidentiality of data that was 

collected as well as the identities of the subjects that provided the information for this work 

when reporting the outcome of the study. The researchers also ensured that names and other 

personal details that could be traced back to the respondents were not sought for or documented 

anywhere in the study. The researcher was honest all through the course of the study and 

ensured that the process of data reporting, result reporting was honest as well as the method 

and procedure that were used. The researcher also ensured that no false data are included in the 

data that was collected and that the process of presenting and interpreting the data was free 

from bias. Neither money nor any other material benefits was given to respondents in order to 

fill the questionnaire or to cooperate with the researcher concerning the study. However, the 

researcher maintains that cooperation on the part of the respondents was voluntary. 

Data Analysis and Results 

This section presents the results of the hierarchical mutltiple regression analysis to test the 

effect of succession planning startegies on employees performance, as well as how educational 

qualification moderates the relationship bweteen succession planning strategies and employees 

performance in selected deposit money banks in Lagos State, Nigeria. Table 1 reports the 

results. 

 

 

 

 

 

 

 

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Table 1: Hierarchical Multiple Regression for Educational Qualification on the 

Relationship between Succession Planning Strategies and Employee Performance 

 Model B SEB β t F p 

1 (Constant) 167.214 6.627  25.233 3.227 

(5, 678) 

0.000 

Reward Management -0.141 0.124 -0.044 -1.133 0.258 

Corporate Mentorship -0.268 0.119 -0.093 -2.261 0.024 

Talent Management -0.233 0.128 -0.074 -1.818 0.070 

Training and Development -0.068 0.132 -0.023 -0.514 0.607 

Career Management 0.145 0.121 0.054 1.198 0.231 

2 (Constant) 165.738 7.162  23.140 2.735 

(6, 677) 

0.000 

Succession Planning Strategy -0.100 0.042 -0.091 -2.386 0.017 

Educational Qualification 0.675 1.239 0.021 0.545 0.586 

3 (Constant) 286.491 2.670  107.310 197.939 

(7, 676) 

0.000 

Succession Planning  -0.874 0.016 -0.795 -54.117 0.000 

Educational Qualification 48.622 0.722 1.504 67.373 0.000 

Interaction term (SPS * EPER 

* HLE) 

.002 0.000 1.978 80.510 0.000 

Dependent Variable: Employee Performance  

R2 = .008, .008 and .906 for steps 1, 2 and 3 respectively. ∆R2 = .007, .006 and .905 for steps 

1, 2 and 3 respectively *p < 0.05 

Table 1 shows the regression coefficient results with three models. In Model I, the dependent 

variable (employee performance of selected deposit money banks) was regressed on the 

independent variable (succession planning). The individual results revealed that corporate 

mentorship (β = -0.268, t = -2.261, p < 0.05) has a negative and significant effect on employee 

performance while other succession planning strategies such as reward management (β = -

0.141, t = -1.133, p>0.05), talent management (β = -0.233, t = -1.818, p > 0.05), training and 

development (β = -0.068, t = -0.514, p>0.05) and career management (β = -0.145, t = -1.198, p 

> 0.05) have negative and insignificant effect on employee performance of selected deposit 

money banks in Lagos State, Nigeria. The results of the multiple linear regression analysis 

revealed that only one of the succession planning strategies (corporate mentorship) has 

significant effect on employee performance of selected deposit money banks in Lagos State, 

Nigeria. This suggests that corporate mentorship is a pivotal in determining employee 

performance of selected deposit money banks in Lagos State, Nigeria. The overall model 

confirmed that succession planning had a significant contribution to employee performance of 

selected deposit money banks (F (5, 678) = 3.227, p < 0.005).  

The results in model II revealed that succession planning strategies (β = -0.100, t = -2.386, p < 

0.05) had negative and significant effect on employee performance of selected deposit money 

banks in Lagos State, Nigeria. The result further revealed that educational qualifications (β = 

0.675, t = 0.545, p > 0.05) have a positive and insignificant effect on employee performance of 

selected deposit money banks in Lagos State, Nigeria. This implies that one unit change in 

succession planning and educational qualifications is associated with (-0.100) and 0.675 

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change respectively in employee performance of selected deposit money banks. The regression 

coefficients for succession planning and educational qualifications revealed that they affect 

employee performance of selected deposit money banks. The overall model also confirmed that 

succession planning and educational qualifications had a significant contribution to employee 

performance of selected deposit money banks (F (2,681) = 2.901, p < 0.05). 

Model III considered existence of the interaction effect and thus the independent variables were 

Succession Planning (SP), Educational qualifications (EQ), Interaction of SP and EQ. When 

interaction was included in the model, the explained variation in employee performance 

remained at 90.6% (R2 = 0.906) with an adjusted R-squared value of 0.905. R2 changes (ΔR2) 

improved from 0.000 in Model II to 0.897 in Model III. Though the overall model was 

statistically significant (F = 2180.959, p < 0.05). The change in F ratio (ΔF = 6481.856) at p < 

0.05 was statistically positive and significant. The result confirmed the apriori expectation of 

positive and significant effect of educational qualification on the relationship between 

succession planning strategies and employees’ performance. The results were further 

confirmed by the beta coefficient of the interaction term (β = 0.002, t = 80.510, p < 0.05) thus 

indicating moderating effect of educational qualifications with a total effect of 0.002 at 95% 

confidence level is statistically significant. MacKinnon, Fritz, Williams, and Lockwood (2007) 

suggested that a variable has a moderating effect if the coefficient of the variable is significant 

both before and after moderation. Therefore, based on the moderation rule by Mackinnon et al. 

(2007), educational qualifications are actually a moderating variable. Therefore, the model 

showing the relationship between the independent variables and the dependent variables was 

expressed as follows: 

EMP = 286.491 - 0.141RM – 0.268CM – 0.233TM – 0.068TD – 0.145CMGT + 0.002SP*EQ 

The regression equation established shows that taking all factors (succession planning 

strategies (SPS), educational qualifications (EQ), Interaction of SP and EQ) into account 

constant at zero employee performance of selected deposit money banks would be 286.491 

which is positive. As seen in Model III, when interaction is included in the model, the effect of 

any improvement in the interaction variable (SPS*EQ) by a single unit results to a 

corresponding increase in employee performance of selected deposit money banks by 0.002 

units respectively. The results implied that educational qualifications have a statistically 

positive and significant moderating effect on the effect of succession planning on employee 

performance of selected deposit money banks in Lagos State, Nigeria. Based on the results, the 

null hypothesis (H0) which states that educational qualification does not significantly moderate 

the effect of succession planning strategies on employee performance of selected deposit 

money banks in Lagos State, Nigeria was rejected. 

Discussion of Findings 

The above results have been supported by findings of various empirical studies on the 

moderating effects of qualifications and educational characteristics on the relationship between 

succession planning and employee’s performance, Ishola et al. (2018) carried out a study 

examining the contributions of educational and professional certification to job performance 

among financial accounting staff of a university in Nigeria. Results revealed that, Bursary staff 

with professional qualification reported more job performance than non-certified staff. Bursary 

staff with higher tertiary education performed better in accounting task than those with lower 

qualification. Thirdly, significant results were found for gender and age as predictors of job 

performance. The article concludes with directions for future inquiry on the need to upped 

organisational performance through continuing education for a financial accounting. In the 

same vein, study carried out by Makinde et al. (2018) said that the effect of employee 

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European Journal of Human Resource                                                                                      

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engagement and educational qualification on employee needs to be examined because of its 

implication for improved quality labour which in turn, leads to organizational success. The 

findings revealed that employee engagement had a significant effect on employee productivity. 

Meanwhile, while Makinde et al. (2018) reported that engagement and educational 

qualification had significant positive effect on employee productivity in banking sector of 

Nigeria, Onukwufor et al. (2018) reported that organisational culture which was a moderating 

variable had a negative moderating effect on the relationship between career development and 

organisational success.  

Conclusions and Recommendations 

From the findings, it can be concluded that, succession planning strategies significantly had an 

effect on employees’ performance in the selected deposit money banks in Lagos State, Nigeria. 

Secondly it was concluded that, the most significant and effective succession planning strategy 

used by selected Deposit Money Banks is corporate mentorship. The banks used mentorship 

programs to increase employees’ performance, reduce mistakes and produce quality work. It 

was also concluded that educational qualification moderated the relationship between 

succession planning strategies and employee performance in the selected deposit money banks 

in Lagos State, Nigeria. Prior Nigerian studies did not include a moderating factor. Succession 

planning strategies through corporate mentorship have statistically significant effect on 

employee performance among selected deposit money banks in Lagos State, Nigeria. The 

introduction of the moderating variable has enabled the study to have a greater explanatory 

power. Tosi, Werner, Katz and Gemez-Mejia (2000) suggested that in order for research design 

to have greater explanatory power of human resources management field, it is imperative to 

include relevant moderating and mediating variables.  

As the study introduced and confirmed the new moderator of the existing relationship, a 

moderate level of theory building is presented to supplement existing theory. Based on these 

research findings, the research recommends that, the management of deposit money banks 

should implement effective human resource planning policies towards effective succession 

planning. During recruitment, management should exhaust all internal talent before 

considering external talent especially when making promotion decisions. There is need for 

organizations to support their employees in identifying their learning needs and goals, selecting 

suitable learning strategies and participating in learning opportunities that place them in a better 

position with regard to succession planning. Future research should build on the findings of 

this study to enrich existing knowledge on the practice of succession planning. Further research 

should be done to establish to contributions of each of the five succession planning strategies 

to the performance of deposit money banks in Lagos State, Nigeria as well as other 

organisations such as manufacturing firms and insurance companies. 

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