The effect of employee turnover on the performance of employees in organizations: a case study of Bidco Uganda Limited in Jinja.
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Date
2016-11
Authors
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Journal ISSN
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Publisher
Kampala International University.College of Economics and Management
Abstract
The study was carried at Bidco Uganda Limited-Jinja. It was intended to examine the effect
of employee tum over on the performance in organization, the main objectives of the study
were to examine the effects of Employee turnover at Bidco Uganda Ltd, to assess employee
performance at Bidco Uganda Ltd and to establish the relationship between employee
turnover and performance at Bidco Uganda Ltd. The methods used in the study were
quantitative and qualitative in nature. Questionnaires were used in the study. Simple random
stratified sampling procedure was used to get a preventative sample size of one hundred
(100) respondents. The selected respondents were selected from the human resource,
production, marketing, accounting, customer care and procurement departments.
The study findings revealed that In reference to the research question one, low salary 40%,
lack of career development 25%, lack of assistance programme with 11 %, poor employeeemployer relation with 10%, poor decision making process with 14% are the causes of
employee turnover in Bidco limited-Jinja. The findings also found out the following
measures to prevent employee turnover, good pay with 44%, improved relationships with
27%, effective performance appraisal with 6%, and employee recognition and appreciation
with 23%.
The study found out the following effects of employee turnover to organization wastage of
resources with 35%, 27% for low productivity, tarnishing organization reputation with 15%
and management distraction with 23%. The study identified the following relationships
between employee turnover and performance, Product development and innovations with
34%, financial performance with 26%, productivity and efficiency with 25% and finally
effects on customer satisfaction with 15%.
The study concluded that wastage of resources is the main effect of employee turnover in
Bidco other effects are low productivity, tarnishing organization reputation and management
distraction as other effects of employee turnover to the organization. It was also concluded
that low salary is the cause of employee turnover in Bidco Uganda limited however other
causes suggested are lack of career development, lack of assistance programme, poor
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employee-employer relation, poor decision making process and lack of recognition in Bidco
Uganda Limited-Jinja. From the findings it is concluded that good pay is the most
appropriate measure to control employee turnover in the company however the respondents
also suggested improved relationships, effective performance appraisal, and employee
recognition and appreciation as addition measure to Bidco Uganda Limited-Jinja. And
finally it was concluded that the main factor that indicates the relationship between
employee turnover and performance is the effect on Product development and innovations
other relationships suggested are effects on financial perfornmnce, productivity and
efficiency and customer satisfaction.
The study further recommended establishing education programmes, employee recognition,
financial incentive and putting in place guarantee that employee rights and protection in the
workplace are adopted. The study also suggested the area for fmiher study such as factors
affecting employee turnover in Post Conflict situations and Involvement of the Non
Government Organizations in strengthening employees' rights like labour unions.
Description
Research report submitted to the College of Economics and Management Science in partial fulfillment for the award of bachelors degree in Human Resource Management of Kampala International University
Keywords
Employee, Performance, Employees, Organizations