Impact of Strategic Human Resource Management Practices in Talent Retention and Succession Planning in Hospitality Industry

Running head: MSC IN LEADERSHIP AND HUMAN RESOURCE MANAGEMENT
MSC in Leadership and Human Resource Management
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1MSC IN LEADERSHIP AND HUMAN RESOURCE MANAGEMENT
Research Title: "Examining the impact of strategic human resource management practices in talent
retention and supporting succession plan ".
Literature Background
In this era of globalization accompanied by high competition between organizations, Strategic
Human Resource Management (SHRM) practices are considered to be one of the most efficient tools to
improve as well as maintain the performance of an organization by retaining highly skilled and
experienced employees. SHRM practices are conceptualized as independent variables measured
through a bundle of distinct practices. According to researchers, a good number of multinational
organizations operating worldwide are facing several issues when it comes to retaining employees who
are highly efficient and skilled (Boella and Goss-Turner 2013). Lack of appropriate remuneration plan,
training sessions as well as work-place environment are considered to be the some of the chief reason
behind attrition of talented employees. According to Li, Sanders and Frenkel (2012), unavailability of
efficient and talented employees is a chief issue which is hindering succession planning. AlBattat and
Som (2013) stated that training and development as well as restructuring the compensation system can
be considered as two of the most efficient SHRM practices.
Industry Background
According to survey, the global hospitality industry has the highest attrition rate in the year 2017
(Li, Kim and Zhao 2017). The chief reasons behind employee attrition as encountered by researchers are
lack of appropriate training session, employee-friendly workplace environment and inappropriate
remuneration structure. Considering the fact that the mentioned industry is associated with high
competition between the competitors, attrition of highly efficient and talented employees is imposing
negative impact on the succession planning of the organizations (Sagar 2016). Development of new
leaders who possess the potential and talent to replace old leader is highly crucial for the industry.