Employee turnover in opportunity international savings and loans limited

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.