An assessment of the impact of labour turnover on performance in the banking industry (A case study of XYZ Bank (k) Ltd)
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Date
2010
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Publisher
Daystar University
Abstract
This study was carried out to assess the impact of labour turnover in the banking industry with special focus on XYZ Bank (K) Ltd. According to Ferris, Rowland and Buckley, (1990, p.427), employee turnover is of great concern to organizations because it is very costly to companies. It can lead to personal tensions in other employees and has the potential to further increase turnover and organizational ineffectiveness, because those who remain do additional work until the replacement performs at an acceptable level. Several scholars have examined employee turnover decisions to better understand them and to develop suggestions for effective coping in the workplace. The banking industry is not an exception especially since it deals in professional services where personal relationships established between employees and clients are central to ongoing business and turnover rates in excess of 10% are likely to cause damage to the business (Torrington, Hall & Taylor, 2005). The number of employees who joined XYZ Bank (K) Ltd between years 2006 to 2009 was 348 while those who left were 300 (HR report, 2009). The study endeavoured to find out how these gains and losses impact on the organization’s performance. To address this issue, this research report is organized into 5 chapters. Chapter 1 gives the introduction into the research topic including the objectives and scope of the study. In chapter 2, the study examined market conditions and trends in job tenure, the main reasons for employee turnover and impact of staff turnover. It further explores some approaches which are expected to improve staff retention rates in general. Chapter three provides all the details of the research methodology used in the study. The study involved administering questionnaires to 63 people from non-management staff and conducting interviews to 12 management staff. Non-participant observation on the work environment, behaviour of employees at the work place, employee attitudes and perceptions together with organizational values among other aspects were also done. Chapter 4 provides the research findings which were analyzed using thematic categories to establish trends and patterns. It has further endeavoured to establish how employee turnover impacts on the performance of the organization in relation to service, operations, productivity and ultimately profitability. In Chapter 5, the research gives the summary, conclusion of the study from the findings and provides recommendations relevant both to this case study and for further research.
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Keywords
Labour turnover, Banking industry
Citation
An assessment of the impact of labour turnover on performance in the banking industry (A case study of XYZ Bank (k) Ltd). By: Tabitha Wambui Mbugua, Daystar University, 2010