Abstract:
Employee turnover in nearly all organizations worldwide have raised great
concern. Rapid exit and entry of employees into an organization presents serious
obstacles to organizations in achieving their organizational goals. Employee
turnover should be analyzed in order to identify various reasons for people
leaving the organization. Thus, the study sought to analyze employee turnover in
Opportunity International Savings and Loans Limited (OISL) and to establish its
causes, effects and recommendations on how to retain employees.
Data was collected through the use of interview guide and structured
questionnaires. Data was analyzed descriptively by the use of mean, frequencies
and percentages. Findings of the study suggested that employee turnover in the
company was real and that poor reward and compensation system, low employee
motivation, delays in promotions and poor career progression scheme are the
major causes of employee turnover. The study also found major effects of the
phenomenon to be high operational cost, separation cost, replacement cost,
training cost, reduced organizational profits and distorted manpower planning.
Recommendations were made that retention strategies should be implemented and
that more emphasis should be placed on human resource and the development of
people in order to reach the core objective of the company through contented and
well developed employees.
