The Effect of Employee Turnover on the Performance of Employees in Organisations A Case Study of Bidco Uganda Limited in Jinja.

ABSTRACT 

The study was carried at Bidco Uganda Limited-Jinja. It was intended to examine the effect of employee tumover 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 xi 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.

TABLE OF CONTENTS

Declaration ................................................................................................................................ i

Approval .................................................................................................................................. ii

Dedication ............................................................................................................................... iii

Acknowledgement. ................................................................................................................. iv

List Of Abbreviations .............................................................................................................. v

Table Of Contents ................................................................................................................... vi

Abstract .................................................................................................................................. ixi

Chapter One ............................................................................................................................. I

Introduction ............................................................................................................................. I

1.0 Introduction ....................................................................................................................... I

1.1 Background ........................................................................................................................ I

1.2. Problem Statement. ........................................................................................................... 2

1.3. General Objective Of The Study ...................................................................................... 2

1.4. Sp~ific Objective Of The Study ...................................................................................... 2

1.5. Research Questions ........................................................................................................... 3

1.6.0 Scope Of The Study ........................................................................................................ 3

1.6.1. Geographical Scope ....................................................................................................... 3

1.6.2. Content Scope ................................................................................................................ 3

1.6.3. Time Scope: ................................................................................................................... 3

1.7 Significance Of The Study ................................................................................................ 3

1.8. Conceptual Frame Work ................................................................................................... 5

Chapter Two ............................................................................................................................ 6

2.0 Introduction ................................................................................................................. 6

2.1 Employee Turnover ...................................................................................................... 6

2.2 Types Of Employee Turnover ...................................................................................... 7

2.3 Employee Turnover And Retention .............................................................................. 8

2.4. The Causes Of Employee Turnover In Bidco Uganda Limited .................................. 12 -:s

2.5. Measures For Managing Employee Turnover In Bid Co Uganda Limited ................. 16

2.6 Organizational Performance ......................................................................................... 18

2.7 Measures Of Performance ............................................................................................ 19

2.8 Benefits Of Performance .............................................................................................. 20

2.9. The Effects Of Employee Turnover On Performance ............................................... 21

2.10 The Relationship Between Employee Turnover And Performance . ......................... 24

Chapter Three ........................................................................................................................ 26

Research Methodology .......................................................................................................... 26

3.0 Introduction ................................................................................................................. 26

3 .1 Research Design .......................................................................................................... 26

3 .2.1 Study Population .......................................................................................................... 26

3.2.2 Sampling Technique .................................................................................................... 26

3.2.3 Sample Size ................................................................................................................. 27

3.4 Data Collection Methods ............................................................................................. 27

3.4.1 Questionnaires ............................................................................................................. 27

3.4.2 Interviews ................................................................................................................... 28

3.5 Statistical Treatment Of Data ...................................................................................... 28

3.5.1 Data Processing ........................................................................................................... 28

3.5.2 P.-esentation Of Data .................................................................................................... 28

3.5.3 Data Analysis ............................................................................................................... 29

3.6 Validity And Reliability Of The Instruments ............................................................... 29

3.7 Limitations To The Study ............................................................................................. 29

Chapter Four .......................................................................................................................... 30

Presentation And Analysis Of Study Findings ...................................................................... 30

4.0 Introduction ..................................................................................................................... 30

4.1.0 Characteristics Of Respondents .................................................................................... 30

4.1.1 Sex Distribution Of Respondents ................................................................................. 30

4.1.2 Educational Levels . ...................................................................................................... 31

4.1.3 Age Of Respondents ..................................................................................................... 32

4.1.4. Length Of Operation In The Company ........................................................................ 32

4.1.5 Marital Status ............................................................................................................... 33

4.2 Causes Of Employee Turnover. ................................................................................... 34

4.2. Measure To Reduce Employee Turnover In The Company ........................................ 34

4.3. Effects Of Employee Turnover On Organizational Performance . ............................. 35

4.4 The Relationship Between Employee Turnover And Performance ............................ 36

Chapter Five ......................................................................................................................... 38

Summary, Conclusion And Recommendations ..................................................................... 38

5.1 Introduction ................................................................................................................... 38

5.2 Summary Of Key Findings ............................................................................................ 38

5.3 The Causes Of Employee Turnover. .............................................................................. 38

5.4 The Measures To Reduce Employee Turnover In The Company .................................. 38

5.5 The Effects Of Employee Turnover On Organizational Performance .......................... 39

5.6 Relationship Between Employee Tnrnover And Performance ........................................ 39

5.7 Conclusion ...................................................................................................................... 39

5.8 Recommendations ........................................................................................................... 40

5.9 Areas Suggested For Further Stndies .............................................................................. 4 I

References ............................................................................................................................. 42

Appendix ............................................................................................................................... 44

Questionnaire ......................................................................................................................... 44