Determinants Of Employee Turnover And Its Effect On Organisational Performance: A Case Of Airtel Kenya Limited

ABSTRACT

Employee turnover is a vital element in the survival and success of an organization and should be considered when developing strategies and business plans to ensure a competent and skilled workforce that delivers the organizational objectives and goals. The departure of key staff can have a drastic impact on the performance of the organization. The determinants of employee turnover and their effect on organisational performance at Airtel Kenya Limited is a complex area of study. Numerous studies have been published about employee turnover and job satisfaction however there is a paucity of information in literature about the determinants of employee turnover and its effect on organisational performance at Airtel Kenya Limited. With rising globalisation, accelerated use of technology and pressure to innovate and remain competitive in the Kenyan telecom industry, it is becoming increasingly important for Airtel Kenya Limited to attract and retain rich human capital. The study was guided by the following objectives; to determine the extent to which management styles contributes to employee turnover; to establish the role of work environment as a contributing factor to employee turnover and to evaluate the extent to which reward management contributes to employee turnover. The research employed case study approach and the methodology was quantitative. The target population for the study comprised a total of 135 employees working at Airtel Kenya Limited in Nairobi with a sample size of 54 employees. The data collection instrument was a questionnaire. Stratified sampling technique was used to divide the sample into lower, middle and senior level employees and random sampling was used thereafter to give employees an equal chance at selection. The findings indicate that management styles, the work environment and reward management play a key role in employee turnover at Airtel Kenya Limited. Employee turnover affects organisational performance by touching on all the four perspectives of the Balance Scorecard; customer, financial, internal business process and learning and growth. The highlighted recommendation was that Airtel must regularly conduct employee-manager reviews and provide feedback, must align the working environment with the changing, dynamic and culturally diverse workplace, there is need to have employee friendly policies and procedures that provide an enabling environment that allows creativity and innovation. Finally, reward packages should be more favourable and in line with employee needs and the organisation should establish modern retention strategies to enhance retention.