Effect of Succession Planning on Employee Retention (A Case Study of Customer Service Industry in Karachi)

Employee retention is an important factor that affects the performance of the company. The day when an organization started operation to the present day. It remains a question to the organization. How do retain productive employees? Globally, 56.5% of employees are intending to change their job due to several reasons. In Pakistan, 23% employees working in the customer service industry have intention to leave their current organization. Succession planning can be an effective tool for employee retention. It is the process of preparing employees for the attainment of the future objectives of organization by enhancing their abilities and skills. The study has focused on analyzing the impact of succession planning on employee retention specifically for the customer service industry in Pakistan. A survey of 300 respondents was conducted through a close-ended questionnaire to collect primary data and the secondary data were collected from published articles. The data were analyzed through SPSS. The respondents for the survey were selected for an interview through a multistage sample using mix approach based on Probability and non-probability sampling. The Study performed Cross tab Analysis, a Chi-Square test, an independent t-test, ANOVA, and binary logistics to analyze variables. The result of the study showed that succession planning has a positive significant impact of 2.1 times on employee retention which is independent of gender variation. A one-time increase in the effectiveness of a succession plan can increase employee retention by 2.1 times.