Impact of staff turnover on organisational perfomance: A case study of Beitbridge town council

 

 

 

(University)

The impact of staff turnover on organisational performance – A case of Beitbridge Town Council

By

(YOUR NAME)

Submitted in fulfillment of partial requirement for the degree of (degree course) in the department of (Department name) at (university)

On (Date)
Acknowledgement

My sincere acknowledgment goes to all the employees of Beitbridge Town Council who participated in this study. My sincere thank and appreciation goes to my supervisor as well for his support during the time I was writing this dissertation. His encouragement and criticisms that he made on my work have contributed to the successful completion of this dissertation. Last, I would like to thank my family members for their unending support and love during the time I was conducting this study.

Abstract

The purpose of this study is to investigate the impact of staff turnover on organizational performance in Beitbridge Town Council. While past studies have reported that high staff turnover may disrupt the organizational efforts to achieve its goals and objectives, there is literature gap on how staff turnover leads to low performance in organisations, and thus this study seeks to not only explore the relationships between staff turnover and organisational performance, but also the mediating factors leading to decreased organisational performance as a result of high staff turnover. This study has employed explanatory case study design where quantitative data was collected using questionnaires using a sample of 100 employees from Beitbridge Town Council. A high response of 94% was achieved, where data from 94 participants was further analysed using SPSS 17.0 software.

The findings in this study suggest that, the main cause of high staff turnover at Beitbridge Town Council is poor employee compensation and managerial ineffectiveness. This study also revealed that, high staff turnover leads to poor work-life balance of employees, wastage of resources, and high costs which adversely affect productivity within the organisation. On this basis, this study recommends that the management at Beitbridge Town Council should focus on adopting an effective work-pay balance and improve the relationship between employees and the management in order to foster satisfaction in the organisation which would further reduce staff turnover.

Table of Contents

Acknowledgement ii

Abstract iii

List of Tables. vii

List of Figures. viii

  1. Introduction. 1

1.1 Background Information. 1

1.2 Statement of the Problem.. 2

1.3 Research Aim and Objectives. 3

  1. Literature Review.. 4

2.1 Introduction. 4

2.2 The concept of staff turnover 4

2.3 Organisational Performance. 7

2.4 Impact of staff turnover on organisational performance. 10

2.4.1 Financial Performance. 11

2.4.2 Productivity and efficiency. 12

2.4.3 Quality attributes and customer satisfaction. 13

2.4.4 Product development and innovations. 13

2.5 Conceptual Framework and Conclusion. 14

  1. Methodology. 16

3.1 Introduction. 16

3.2 Research Design and Approach. 16

3.3 Research population and sampling. 17

3.4 Data collection. 18

3.4.1 Questionnaire Design and Instrumentation. 18

3.4.2 Data Analysis. 20

3.7 Ethical considerations. 21

3.8 Chapter summary. 21

  1. Results and Data Analysis. 22

4.1 Introduction. 22

4.2 Demographic Profile of the participants. 22

4.3 Descriptive Statistics. 25

4.3.1 Job Satisfaction. 25

4.3.2 Turnover Rate and Turnover Intentions in the organisation. 26

4.3.3 Work-life balance. 27

4.3.4 Impact of staff turnover on resources use and costs. 28

4.3.5 Performance. 29

4.3.6 Participants suggestions on the ways to reduce turnover 30

4.4 Inferential statistics. 31

4.4.1 Testing of hypotheses. 31

4.5 Chapter Summary. 36

  1. Discussion and Conclusion. 37

5.1 Introduction. 37

5.2 Discussion. 37

5.2.1 The level of staff turnover at Beitbridge Town Council 37

5.2.2 The effect of staff turnover on the performance of Beitbridge Town Council 38

5.2.3 The mitigation strategies for staff turnover at Beitbridge Town Council 40

5.3 Conclusion. 41

5.4 Future Research. 41

Reference List 43

Appendices. 45

Appendix 1 – Questionnaire. 45

List of Tables

Table 3.1 – Construction of the research variables. 19

Table 4.1 – Cross-tabulation between age and gender of the participants. 23

Table 4.2 – Cross-tabulation between age and level of education of the participants. 24

Table 4.3 – Job satisfaction among the participants. 26

Table 4.4 – Impact of staff turnover on the participants’ work and their turnover intentions. 27

Table 4.5 – Impact of staff turnover on work-life balance. 28

Table 4.6 – Impact of staff turnover on resources wastage and costs. 29

Table 4.7 – Impact of turnover on performance. 30

Table 4.8 – Ways of mitigating staff turnover 31

Table 4.13 – Regression analysis between staff turnover and costs within the organisation. 36

Table 4.10 – Regression analysis between staff turnover and work-life balance. 33

Table 4.11 – Regression analysis between work-life balance and organisational performance. 34

Table 4.12 – Regression analysis between staff turnover and wastefulness of resources. 35

Table 4.9 – Correlation analysis between staff turnover and performance. 32

List of Figures

Figure 2.1 – Performance Reference Model 8

Figure 2.2 – The research model 15

Figure 4.1 – Job tenure of the participants in their organisation. 25

Figure 4.2 – Rate of staff turnover at Beitbridge Town Council 26

1. Introduction

1.1 Background Information

Over the last decade, staff turnover in organisations has received massive attention among academicians and practitioners in equal measures. While much of the focus has been given on understanding the causes of staff turnover, Muhammad et al (2013) points out that the ultimate end-result of staff turnover is quite disastrous to organisations. Explicitly, Ton & Huckman (2008) argues that performance is one of the key organisational processes which is most affected by staff turnover. Considering that organisations today are focusing on achieving high performance targets in the light of the highly competitive business environment (Armstrong and Armstrong, 2011); focusing on strategies that would enhance increased performance in the organisations has become a norm in the contemporary organisations. However, a study conducted by Ellickson (2002) revealed that very little concern is given on staff turnover in the contemporary organisation. Given the intertwined nature of staff turnover and performance, it has become quite difficulty for firms today to achieve high levels of performance with regard to their performance goals and targets.

A study conducted by Mathis & Jackson (2011) indicated that, an average cost on a single turnover case in the United States is estimated to be between $3,500 and $25,000; it is evident that staff turnover largely impacts negatively on the financial performance of an organisation. In this study, the researcher focuses on the empirical analysis of the impact of staff turnover in Beitbridge Town Council. Located at the Metabeleland South Province in Zimbabwe, Beitbridge Town Council is entrusted with key activities including town planning, water supply, sanitation and waste management, provision of health services and refuse collection among others in a region comprising of 42,000 residents. Though no specific statistics on the rate of staff turnover at Beitbridge Town Council, a study conducted by Munsaka (2014) revealing that Zimbabwe is experiencing a high rate of staff turnover reaching about 39% annually in its public sector. Since Beitbridge Town Council is a public sector, the researcher assumed that, given the key responsibilities and roles played by the council, understanding the role played by staff turnover on the organization’s performance was considered to be critical.

1.2 Statement of the Problem

Given the economic crisis facing Zimbabwe over the recent years, the need for increased efficiencies on the government has been on the rise (Haruna and Doorgapersad, 2014). With much of the focus being given on the reduction of wastage and revamping of workforce efficiency, Mondy (2010) points out that human resource management is key in order to ensure retention of skills while reducing attrition and turnover of talents within the public service. The increasing pressure on organisations to achieve high levels of performance in order to meet the changing consumer needs also necessitates a special focus on the role played human resources in facilitating high performance in organisations. Considering that Beitbridge Town Council is a public institution whose role is critical for smooth running of the activities managed and controlled by the Council. Given the crisis facing the economy of Zimbabwe, conducting this study is expected to illustrate the levels of staff turnover in the focus organisation, while also pointing out the impact of the identified staff turnover rate into the organizational performance.  This study is therefore, expected to contribute towards establishing practical impacts and solutions of staff turnover at Beitbridge Town Council.

1.3 Research Aim and Objectives

This study aims investigating the impact of staff turnover on organisational performance where Beitbridge Town Council is the case study organisation. As such, this study seeks to achieve the following objectives in the light of the research aim:

  1. To identify the level of staff turnover at Beitbridge Town Council
  2. To examine the effect of staff turnover on the performance of Beitbridge Town Council
  3. To identify the mitigation strategies that can be adopted by the management of Beitbridge Town Council to reduce staff turnover and stabilize performance in the region


2. Literature Review

2.1 Introduction

After exploring the study’s background information and establishing the research and objectives in chapter one above, this section delves into the theoretical framework underpinning staff turnover and performance. The first section of this chapter focuses on the concept of staff turnover. Further, the concept of performance and how it can be measured in organisations is also explored. Later, the underlying impacts of staff turnover on organisational performance are further brought into focus. As the chapter concludes, the conceptual framework underpinning this study is developed in the light of the key discussions and concepts emanating from the review of relevant literature.

2.2 The concept of staff turnover

The concept of employee turnover is one of the most explored concepts in the field of organisational behaviour over the last few decades. However, the concept remains highly dynamic as orchestrated by the changing workplace environment in the 21st century (Ellickson, 2002). Many scholars and researchers have thus developed numerous definitions of the ‘staff turnover’ concept. According to the CIPD (2014) ‘staff turnover refers to the proportion of employees who leave an organisation over a set of period (usually on 1-year basis), expressed as percentage of the total workforce numbers’ (p.1).  Similarly, Hendry (2012) considers staff turnover as the rate at which workers leave and be replaced by others within an organisation. Staff turnover can either be voluntary or non-voluntary. In Voluntary turnover, employees leave the organisation at will, end of employment contract, at attaining retirement age, or by natural causes like death or illness; whereas involuntary turnover is mainly initiated by the human resources management where employees are either laid off, promoted, or transferred to other branches within the organisation (Talent Management Alliance, 2013). While both the types of staff turnover can be harmful to organisations, they can be quite helpful in cases of replacement with better talents.

Toker (2011) observed that, job satisfaction is a central factor influencing staff turnover. Job satisfaction is defined by Munsaka (2014) as the state of fulfillment of expectations which is a cognitive resultant effect from the nature of the job and the work benefits. With reference to a study conducted by Toker (2011) on the role of job satisfaction on university lecturers in Turkey, it was revealed that those lecturers with high satisfaction in their job indicated low intentions to leave their job. Similarly, Mondy (2010) pointed out that job satisfaction predicts low turnover intentions in organisations.  In this regard, therefore, staff turnover is facilitated by the lack of factors at workplace which can lead to satisfaction of the employees. Mathis & Jackson (2011) considered low work-pay to be a key factor that influences low satisfaction from the job leading to high turnover intentions among the employees. Though a study conducted by Ellickson (2002) revealed that good pay alone cannot guarantee employee satisfaction, and hence staff retention, Armstrong and Armstrong (2011) argues that it is important that organisations consider staff compensation as part of the factors contributing to the retention of their staff members.

Work-life imbalance has also been pointed out by numerous studies (e.g. Ton & Huckman, 2008; Muhammad et al, 2013) as one of the key factors affected by high staff turnover in organisations. While the increasing economic pressures can be considered as one of the key factors that has made organisations to demand higher work-output from the employees (Federal Enterprise Architecture, 2005), the personal lives of the employees have frequently been compromised by the employers. This happens mostly in organisations with high turnover of their staff because the current workforce is usually overloaded. With more working hours and limited time for personal life activities, Upadhaya, Munir & Blount (2014) point out that employees are more likely to leave their organisation for better employment opportunities and hence leading to vicious circle of staff turnover. It can therefore be argued that, poor work-life balance as a result of increased staff workloads is a resultant outcome of staff turnover in organisations.

Another key factor that Kirby (2005) considers to be an adverse outcome of staff turnover is the break of team work spirit within the organisation. It is important to note that, when employees leave an organisation, the remaining counterparts experience the gap left by their counterparts within a work-group which largely affects the effectiveness of the group (Hendry, 2012). In cases of poor selection criteria, cohesion between the experienced and new staff members becomes more affected. Considering that job-fit and organisational-fit factors determine the conformity of the employees to the nature of the job and organisational culture within the organisation (Munsaka, 2014); poor staff selection criteria can adversely affect the effectiveness of a group.  A study conducted by Mondy (2010) on the USA manufacturing industry revealed that, employees who were recruited in their organisations with poor job-conformity based on their qualifications and personalities had high turnover intentions because of the work-related stress in the organisations. Similarly, Mathis & Jackson (2011) argues that poor staff training is a major cause of staff dissatisfaction because of low motivation in their job as a result of inadequate knowledge acquisition in their job. It can therefore be argued that, poor selection and recruitment criteria where employees are further not subjected to training and development programs contributes towards staff turnover intentions.

Further, Clark-Rayner and Harcourt (2000) identified the effectiveness of the organisational management and leadership to be having critical role promoting staff retention or turnover within organisations. Though staff management is a complex process which requires both managerial and leadership skills (Hendry, 2012); Ellickson (2002) observed that organisational leadership that values the inputs of its staff members within the organisation while making critical decisions affecting the employees usually fosters higher job satisfaction among the employees; and thus leading to higher retention intentions among the employees. Quite importantly, Haruna, and Doorgapersad (2014) pointed out that the quality of supervision at workplace also play a critical role in enhancing staff turnover because when employees are not given opportunities to experiment with new knowledge and skills, they feel less satisfied and this can lead to their turnover. However, Munsaka (2014) points out that employee efficiency at workplace is the key determinant of his willingness to remain in their organization, as the leadership has no direct influence on the motivation of the employees. Nevertheless, the nature of interaction that leaders usually have with their staff members can be considered as an important indicator of their willingness to stay in their organisation or not.

2.3 Organisational Performance

Performance in organisations is a multi-dimensional concept whose complexity makes it difficult to be defined from a single perspective. This is because performance is a multi-faceted organisational concept which cannot be measured using a single measurement tool (Hendry, 2012). Nevertheless, many researchers have tried to establish the definition of performance. According to Kirby (2005), organisational performance can be considered as an actual outcome of an organisation measured against the output targets or goals. Upadhaya et al (2014) points out that, though organisational performance can be perceived on the ‘wholeness’ of goals achievement, it is important to focus on specific areas including financial, product markets and shareholder returns which altogether can be summed to determine the overall outcome in the organisation. Organisational performance has developed to be the most important issue that every organisational management is concerned about, as it determines the ability of an organisation to continue with its operations.

According to Muhammad et al (2014), measuring performance in organisations is necessary as it seeks to assess the value that employees bring into the organisation. The impact that the inputs in an organisation has on the processes and activities within an organisation play a central role in determining the strategic outcomes within the organisation which is determined by the achievement of mission, vision, financial position, and goals within the organisation. Federal Enterprise Architecture (2005) established the performance reference model which explores how performance is achieved – as shown in figure 2.1 below.

Figure 2.1 – Performance Reference Model

Source: Federal Enterprise Architecture (2005)

Based on the above model of performance reference, people, technology and other fixed assets are the key inputs within a production system. According to Federal Enterprise Architecture (2005), the people are the most important form of inputs because they control the efficiency of their inputs based on their competencies. As such, the human capital is generally considered to be the fundamental form of input that influences the overall effectiveness of their inputs. As such, it can be argued that the effectiveness of the human resources within the organisation determines the nature of the outputs of the other inputs within the organisation. Though Armstrong and Armstrong (2011) asserts that people without the help of technology and other resources required in a production process cannot create any meaningful output, it is important to note that without competent human resources effectiveness in transforming inputs into outputs cannot be guaranteed; and hence the role of people in any production system remains critical.

At the second level, Federal Enterprise Architecture (2005) points out that the quality of inputs brought into the organisation determines the nature of outputs which are characterised by processes and activities within the organisation. In essence, quality attributes, financial efficiency, productivity (quantity), and management innovations within the organisation characterize the nature of innovations within the organisation. Some of the key financial performance indicators include increased profitability which profits the shareholders, while making more financial resources available for the organisation for re-investment (Hendry, 2012). Further, the issue productivity and efficiency can be measured through increased quantity of production, as well as the reduction of wastes within the organization’s value chain. Other indicators like quality and innovations can be characterised by product turnover within an organisation comprising of high value standard products within the organization’s value chain. As such, the efficiency of workforce within an organisation is considered by Kirby (2005) to be a fundamental determinant of the level of outputs within the organisation.

This model differentiated between outputs and outcomes in the sense that, outputs are considered as the products, services or facilities that emanate from organization’s activity; whereas outcome comprises of the direct benefits that an organization achieves from the outputs (Federal Enterprise Architecture (2005). According to the performance reference model, outcomes are marked by the achievement of mission and business results, as well as customer results. Issues like customer satisfaction, timeliness in delivery of customer services, service quality, and responsiveness determine the nature of outcomes on customer results as pointed out (Kirby, 2005). It is also important to note that, outcomes determines the achievement of strategic goals (both broad and specific) by an organisation as they reflect the actual impact that organisational process and activities have on the organisational goals and objectives. While the performance reference model has been widely accepted by researchers like Talent Management Alliance (2013) and Munsaka (2014) as an effective framework of understanding performance in organisations, it has not been without any limitations. For example, Ton & Huckman (2008) points out that the model lacks provision for activities outside an organization’s core business activities. Nevertheless, it can be argued that the model provides a holistic approach towards understanding organisational performance with regard to its key strategic goals and objectives.

2.4 Impact of staff turnover on organisational performance

Numerous studies have been conducted to investigate the underlying relationship between staff turnover and performance in organisations (Clark-Rayner and Harcourt, 2000). Hendry (2012) argues that while staff turnover can impact positively on the performance of organisations, it is associated with negative impacts in most cases. This is because the loss of experienced employees can be harmful to the organisation because it may interfere with the output within the organisation. Muhammad et al (2013) identified four key ways through which staff turnover can impact on the performance of an organisation which include productivity and efficiency, financially, quality attributes and customer satisfaction, and innovation.

2.4.1 Financial Performance

Achieving optimal financial performance is one of the key performance goals in every organization, as indicated by Armstrong and Armstrong (2011). High staff turnover within organisations has been empirically found to have negative effects on the financial performance of organisations. According to Muhammad et al (2013), replacing employees can cost an organisation three times more than the value that the employees will contribute to the organisation within a year. This is because new employees need to be trained, as the outgoing employees also need to be compensated based on the reason why the employee left the organisation. Though the competence and effectiveness of the incoming employee is a key determinant of the magnitude of the financial loss incurred by the organisation in case of an employee turnover (Upadhaya et al, 2014), most organisations have reported negative financial performances as a result of high staff turnover.

With inexperienced staff members as a result of high employee turnover within an organisation, low profits or to a great extent losses because the newly acquired employees tend to be less efficient in their job, while consuming a lot of resources through training. As a result, Kirby (2005) argues that staff turnover may not be healthy for an organisation financially because inexperienced employees are characterized by high inefficiencies and high expenses. More so, high staff turnover also leads to burnouts among the employees which may largely impact on the effectiveness within the organisation, leading to the overall reduced financial performance within the organisation (Ellickson, 2002). It can therefore be argued that, financial performance is usually negatively affected by high staff turnover in organisations.

2.4.2 Productivity and efficiency

The rate of production per unit of time defines productivity (Munsaka, 2014). According to Muhammad et al (2013), employees who are experienced in producing a particular unit of output use less energy in producing the unit within a shorter period of time than non-experienced ones. This implies that, high staff turnover which leads to large number of inexperienced employees within an organisation can adversely affect productivity within the organisation. Though Upadhaya et al (2014) argues that, employees’ skills and competence is the key determinant in productivity regardless of the length of period that the employee has been working; a study conducted by Talent Management Alliance (2013) in manufacturing sector in Saudi Arabia revealed that employees with lower job tenure struggled with attaining production goals than their experienced counterparts. As such, it can be argued that high staff turnover impacts negatively on productivity within the organisation.

The concept of efficiency can also be linked with productivity in the sense that, it is determined the ratio of energy used and the total output produced (Upadhaya et al, 2014). As earlier pointed, employees with long working experience in their organizations experience have higher productivity efficiencies than their counterparts with no or very little experience (Ton & Huckman, 2008). It is also important to note that, efficiency is also associated with stage within organisations, where a study conducted by Upadhaya et al (2014) revealed that new employees in organisations tend to be wasteful because they are not used to the activities and processes within the organisation. On this basis, it can be argued that high staff turnover negatively impacts on the efficiency of employees in their job, which in return affects performance.

2.4.3 Quality attributes and customer satisfaction

Quality attributes of products plays a central role in determining customer satisfaction in any organisation (Mondy, 2010). Since quality may be tangible and non-tangible brand associations, organisations ought to ensure that they keep talented and experienced employees who will uphold the standards required in the organisations to maintain product and service quality (Muhammad et al, 2013). Based on Armstrong and Armstrong (2011) ideas, employees with prior experience in maintaining a particular quality cue are more effective than their counterparts with no such experience. This implies that, high staff turnover can negatively impact on quality levels within an organization which can lead to low customer satisfaction. Considering that high staff turnover leads to the loss of experienced employees who are replaced with new inexperienced ones (Ton & Huckman, 2008); it usually becomes difficulty for the organisation to maintain standardized quality attributes in their products and services. While sometimes staff turnover can bring new talents into the organisation, and hence lead to improved quality within the organisation, most of the past empirical studies (e.g. Muhammad et al 2013) have revealed that high employee turnover only has negative impact on quality attributes with an organisation.

2.4.4 Product development and innovations

In the light of the increasing competition in the business environment over the recent years, it has become inevitable for organisations to invest in product development innovations within the organisations (Muhammad et al, 2013). However, the competence of the workforce within an organisation is identified by Talent Management Alliance (2013) to be among the key factors that determine the success of the new product development and innovations within the organisations. A study conducted by Clark-Rayner and Harcourt (2000) in New Zealand’s banking industry revealed that, firms that have experienced highly dynamic and innovative product line experienced low staff turnover than their counterparts with high staff turnover. This indicates that, staff turnover interferes with product development efficiencies and innovations within organisations. This is because inexperienced employees struggle with innovative creations unlike experienced counterparts who can easily come up with new and more innovative product models because they are more used in their work. It can therefore be argued that, high staff turnover in organisations adversely affects new product development and innovations within the organisation.

2.5 Conceptual Framework and Conclusion

This chapter has explored the concepts of staff turnover, performance and the underlying relationship between the two concepts. As indicated in this chapter, staff turnover is influenced by job satisfaction, which is determines by work-pay balance and managerial/leadership effectiveness.  This chapter has also revealed that high staff turnover impacts negatively on staff work-life balance, resources usage, and costs within the organisation. On the other hand, performance was revealed to be largely influenced by human resources within an organisation as the key inputs, leading to outputs (financial, quality, productivity and efficiency, and innovations) and outcomes (customer satisfaction and achievement of mission and vision). A critical link between staff turnover and organisational performance was established in this chapter, where it was indicated that high staff turnover has direct impact on the performance of organisation (as shown in figure 2.2 below). The model shown below is adopted for further investigation in this study in the context of Beitbridge Town Council.

Figure 2.2 – The research model

Wastefulness of resources
Staff satisfaction

– Work-pay balance

– Managerial effectiveness

                                                        


3. Methodology

3.1 Introduction

This chapter presents the methodological approach employed in this study in order to achieve the research aim and objectives. In essence, this chapter presents the research design employed, research population and sampling strategies, and the data collection methods employed in this study. As reflected in this chapter, the methodologies and methods employed in this study were informed by the nature of the research problem. Further, before the chapter concludes, the data analysis methods employed, validity and reliability issues, and the ethical considerations adopted in this study are brought into focus.

3.2 Research Design and Approach

The research design is considered by Creswell (2008) as the blueprint which defines the nature of the data collected in a study so as enhance optimal achievement of the research aim and objectives. As such, Saunders et al (2009) considers it necessary for researchers to select the most effective research designs which best suits the nature of the data required to achieve their research aims and objectives. In this study, the researcher considered explanatory case study design to be the most effective for this study. Considering that this study focuses on the impact of staff turnover on organizational performance taking Beitbridge Town Council as the case study organization, explanatory case study design enabled the researcher to establish the case-effect relationship between staff turnover and performance in the organization.

Though explanatory case study design is limited to detailed analysis of the relationship between the research variables (Trochim, 2006), it is quite useful in establish the cause-effect relationships more effectively in a research study; and thus the research considered it to be the most effective in this study. Deductive approach was further considered for this study due to its effectiveness in establishing the relationship between research variables using scientific tests in order to prove a theory. Since the concepts of staff turnover and organizational performance have been previous explored, this study adopted deductive approach in order to confirm their relationship in the context of Beitbridge Town Council as an organization.  In this study, only quantitative data will be collected because deductive approach is most effective when only quantitative data is collected in a study pointed out by Ghuari & Gronhaug (2005). In the light of the research model illustrated in chapter 2 above, the following are the research hypothesis formulated for investigation in this study:

H1 – There is significant relationship between staff turnover and organisational performance

H2 – There is significant relationship between staff turnover and work-life balance  

H3 – There is significant relationship between work-life balance and organisational performance

H4 – High staff turnover leads to the wastefulness of resources

H5 – High staff turnover significantly impacts on the costs within the organisation     

3.3 Research population and sampling

The research population in this study comprises of the stakeholders of Beitbridge Town Council. This organization was preferred for investigation in this study due to its key roles within Beitbridge town and its environs as its services are relied on by over 42000 people; and hence investigating its levels of staff turnover and how this turnover impacts on its performance is necessary for timely mitigation procedures to be initiated. The specific organizational unit of analysis in this study is the employees of the organization.

In selecting the participants in this study, a sample of 100 employees was selected using simple random method. The use of simple random sampling method was preferred in this study because it is not only effective in reducing researcher bias, but also easy and quick to administer (Crowther and Lancaster, 2012). As such, Saunders et al (2009) considers simple random sampling method to be effective in facilitating the external validity of research findings because of the diversity brought about by the use of this method.

3.4 Data collection

While both secondary and primary data were collected in this study, much weight was given on the primary data. Secondary data was mainly used in establishing the research background and literature review, where books, journal articles, and industry publications were the key reference materials in this study. Further, primary data was collected using questionnaires from a sample of 100 employees from Beitbridge Town Council.

3.4.1 Questionnaire Design and Instrumentation

Questionnaires were the main source of data in this study. A questionnaire is defined by Marczyk (2005) as a data collection tool comprising of questions that are prepared by the researcher to be answered by the research participants concerning a particular research problem. In this study, the questionnaires were designed following the conceptual framework established in chapter two, with much of the focus being on the research aim and objectives. The questionnaire was formulated using Likert’s 5-point scale where most of the questions were closed-ended, with a few of them being open-ended (as shown in appendix 1). The 5 – point scale was preferred in this analysis because its effectiveness in facilitating robust statistical analysis in any research study as earlier pointed out by Zikmund (2000).As shown in table 3.1 below, the dependent variable is performance where the independent variable is staff turnover.

Table 3.1 – Construction of the research variables

Variable Items Literature source
Staff turnover

(Independent variable)

Job Satisfaction Work-pay balance Mathis & Jackson (2011); Armstrong and Armstrong (2011)
Organisational Leadership (Ton & Huckman (2008); Muhammad et al (2013)
Work-life balance (mediating variable) – Burnouts and poor group dynamics Kirby (2005); Mondy (2010); Clark-Rayner and Harcourt (2000); Hendry (2012)
– Stress Toker (2011); Munsaka (2014)
Wastefulness of resources (Mediating variable) Clark-Rayner and Harcourt (2000)
High costs (Mediating variable) Munsaka (2014); Upadhaya et al (2014)
Performance (Dependent variable) Financial Armstrong and Armstrong (2011); Upadhaya et al (2014)
Productivity and efficiency Munsaka (2014); Upadhaya et al (2014)
Product development and innovations Muhammad et al (2013); Clark-Rayner and Harcourt (2000)
Quality attributes and customer satisfaction Mondy (2010); Ton & Huckman (2008)

Before the actual data collection was conducted, a pilot study was conducted with a sample of 13 participants from the organization. The aim of the pilot study was to establish the validity of the questionnaire before the actual study as indicated by Ghuari & Gronhaug (2005). Surprisingly, all the participants answered the questions within a period of 10 minutes as earlier forecasted. As such, the questionnaire was considered to be having high internal validity and hence adopted in the actual data collection. The questionnaires were administered online though Facebook and the participants were given a week to complete them. Online questionnaires were preferred because they save time, only that Simon (2011) observed that the participant response rate using online questionnaires is low.

3.4.2 Data Analysis

Data analysis is one of the most important steps in research study because the accuracy of the data analysis determines the reliability of the findings (Wilson, 2010). As such, Crowther and Lancaster (2012) points out that it is important for researchers to adopt effective data analysis methods based on the nature of collected data in order avoid errors which may be associated with wrong data collection methods. In this study, the completed questionnaires were coded in SPSS 17.0 software for further statistical analysis. Considering that this study involved the testing of hypotheses, correlation and regression analysis methods were adopted in data analysis in order to test the research hypotheses formulated in this study. Descriptive statistics were also employed in describing the research sample as well. By using SPSS 17.0 software, the researcher was able to reduce human error which could have occurred during manual analysis of the data, while also saving time.

3.7 Ethical considerations

Research ethics play a central role in ensuring that research findings in a study are credible and reliable as pointed out by (Trochim, 2006). As such, the research upheld high degree of ethical considerations in this study based on Sekaran (2003) suggestions. First, the participants had the right to participate where no attempt to force or coerce the participants was made a priority a priority in this study. As such, the participants were made aware of their rights to withdraw from the study at any time during the study. Further, the issue of confidentiality was also considered in this study where the participants were assured of the privacy of the data they provide in this study. With reference Saunders et al (2009), the completed questionnaires were treated with confidentiality where all the participants were considered anonymous. By upholding these research ethics, the researcher ensured that findings in this study were reliable.

3.8 Chapter summary

This chapter has presented the methodological approach employed in this study. As indicated in this chapter, this is an explanatory case study which has adopted deductive approach, where only quantitative data was collected using questionnaires. The research population comprised of the employees of Beitbridge Town Council where a sample of 100 employees was selected for this study using simple random selection method. While designing the questionnaires, a special focus was given on the validity and reliability issues in order to ensure that the findings in this study can be generalizable. Throughout the study, a high degree of ethical considerations was upheld.


4. Results and Data Analysis

4.1 Introduction

This chapter mainly focuses on presenting the results obtained in this study following the data collection procedures pointed out in chapter three above. With the aim of this chapter being to investigate the impact of staff turnover on organisational performance at Beitbridge Town Council, this chapter first establishes the demographic profile of the participants. Further, descriptive statistics job satisfaction, staff turnover rate and intentions at Beitbridge Town Council, work-life balance, use of resources, costs, performance, and ways to reduce turnover are presented. Before the chapter concludes, inferential statistics are presented where testing of hypotheses formulated in this study are tested using regression and correlation. Further, reliability test using Cronbach’s alpha is further conducted.

4.2 Demographic Profile of the participants

Out of the 100 questionnaires administered in this study, six of them were not completed and thus the analysis conducted in this study comprises of only 94 completed questionnaires. Based on cross-tabulation results obtained between age and gender of the participants, it was revealed that the majority of the participants were males aged between 34-41 years comprising of 26.6% (as shown in table 4.1 below). Overall, it was revealed that there were more males (64.9%) in the organisation than females (35.1%). As indicated in the results, the modal age group was between 34 and 41 years, which comprised of overall 46.8% of the participants.

Table 4.1 – Cross-tabulation between age and gender of the participants

What is your gender? Total
Male Female
What is your age? 18-25 Count 4 2 6
% of Total 4.3% 2.1% 6.4%
26-33 Count 16 7 23
% of Total 17.0% 7.4% 24.5%
34-41 Count 25 19 44
% of Total 26.6% 20.2% 46.8%
41-49 Count 12 4 16
% of Total 12.8% 4.3% 17.0%
Over 49 Count 4 1 5
% of Total 4.3% 1.1% 5.3%
Total Count 61 33 94
% of Total 64.9% 35.1% 100.0%

In the third question of the questionnaires, the participants were required to indicate their academic qualifications. From the results obtained, most of the participants had degree level education, comprising of 44.7% of the total participants, followed by those with diploma education comprising of 42.6% (as shown in table 4.2 below). As observed from the results, majority of the participants aged between 26 and 41 years are diploma holders; whereas most of the elderly participants over 41 years had bachelor degree level of education.

What is your highest verifiable level of education? Total
High school Diploma Bachelor degree Masters degree PhD
What is your age? 18-25 Count 1 1 4 0 0 6
% of Total 1.1% 1.1% 4.3% .0% .0% 6.4%
26-33 Count 1 12 8 2 0 23
% of Total 1.1% 12.8% 8.5% 2.1% .0% 24.5%
34-41 Count 0 21 17 4 2 44
% of Total .0% 22.3% 18.1% 4.3% 2.1% 46.8%
41-49 Count 0 5 10 1 0 16
% of Total .0% 5.3% 10.6% 1.1% .0% 17.0%
Over 49 Count 1 1 3 0 0 5
% of Total 1.1% 1.1% 3.2% .0% .0% 5.3%
Total Count 3 40 42 7 2 94
% of Total 3.2% 42.6% 44.7% 7.4% 2.1% 100.0%

Table 4.2 – Cross-tabulation between age and level of education of the participants

Further, job tenure among the participants was investigated in this study in order to get an overview of the proportion of experienced versus inexperienced counterparts. Based on the results obtained, majority of the participants had work tenure of between one and 5 years (31.91%), followed by those with job tenure of between 6 and 10 years (24.47%) – as shown in figure 4.1 below. Surpringly, 20.21% of the participants had worked in the organisation for a period of less than a year, an indication of significant fairly high number of inexperienced employees since they comprise of over 20% of the total sample.

Figure 4.1 – Job tenure of the participants in their organisation

4.3 Descriptive Statistics

4.3.1 Job Satisfaction

As earlier pointed out, job satisfaction is one of the key factors that influence staff turnover; and thus the researcher investigated the factors that contribute to staff satisfaction in this study. Based on the findings obtained, low level of staff motivation was identified most of the participants revealing that they are not satisfied in their job, with a mean of 2.79 out of the 5 possible maximum rating. Pay from their job was also rated very low with a mean of 2.76, while leadership was rated fairly neutral at 3.23 (as shown in table 4.3 below). These findings imply that, the majority of the participants are not satisfied in their job, where they pointed out work-pay balance and leadership in their as key factors that influence their satisfaction levels.

N Minimum Maximum Mean Std. Deviation
Generally, I am satisfied with my job in this organization 94 1 5 2.79 1.096
The pay I get from job is fair based on the work that I do 94 1 5 2.76 1.179
Am satisfied with the nature of leadership in this organisation 94 1 5 3.23 1.257
Valid N (listwise) 94

Table 4.3 – Job satisfaction among the participants

4.3.2 Turnover Rate and Turnover Intentions in the organisation

The participants’ perception of the rate of staff turnover in their organisation was further investigated in this study. Though some of the participants disagreed that there is no high staff turnover at Beitbridge Town Council; majority of them ‘strongly agreed’ that Beitbridge Town Council faces high level of staff turnover. Specifically, 35.11% of the participants strongly agreed, 31.91% agreed, 14.89% were neutral, 17.02% disagreed, while only 1.06% strongly disagreed (as shown in figure 4.2 below).

Figure 4.2 – Rate of staff turnover at Beitbridge Town Council

Further, the researcher investigated whether the rate of turnover in the organisation has affected the participants’ work in their organisation. As reflected in the descriptive statistics in this study, majority of the participants ‘agreed’ that their work is adversely affected by the level of staff turnover in the organisation (with a mean of 3.66), with most of them revealing that they have high staff turnover intentions (with a mean of 3.65) based on the stress caused in their job by the level of staff turnover in the organisation (as shown in table 4.4 below).

N Minimum Maximum Mean Std. Deviation
My work has been adversely affected by the level of staff turnover in this organisation 94 1 5 3.66 .979
I have high turnover intentions based on the nature of work in this organisation 94 1 5 3.65 .888
Valid N (listwise) 94

Table 4.4 – Impact of staff turnover on the participants’ work and their turnover intentions

4.3.3 Work-life balance

Work-life balance has previously been identified by Armstrong and Armstrong (2011) as one of the organisational dynamics which is adversely affected by high staff turnover within an organisation. The results obtained in this study confirmed this where most of the participants considered high staff turnover to be increasing their workload, stress at work, over-time working, and disrupting teamwork within their organisations. With an average of over 4 in each of these issues, it is evident that the majority of the participants agreed that high staff turnover impacts negatively on their work-loads (mean of 4.33), stress at work (mean of 4.32), over-time working (mean of 4.13), working for long hours (mean of 4.34), and disruption of team (mean of 4.29) – as shown in table 4.5 below.

  N Minimum Maximum Mean Std. Deviation
Staff turnover increases the workload of every employee in my department 94 3 5 4.33 .694
High staff turnover increases stress at work of every employee in my department 94 1 5 4.32 .819
We are usually asked to work over-time whenever some employees leave the organisation 94 2 5 4.13 .858
We are exposed to long working hours every time some employees leave the organisation 94 1 5 4.34 .784
High staff turnover disrupts teamwork in this organisation 94 1 5 4.29 .785
Valid N (listwise) 94

Table 4.5 – Impact of staff turnover on work-life balance

4.3.4 Impact of staff turnover on resources use and costs

The impact of staff turnover on resources efficiency and costs within an organisation was also investigated in this study. As revealed in the results obtained, majority of the participants revealed that high staff turnover leads to the wastage of resources and high costs within their organisation where an average rating of 4.0 and above was achieved (as shown in table 4.6 below). These findings imply that, high staff turnover is reportedly a major source of resources wastage, high inefficiencies, and high unnecessary costs within the organisation.

Table 4.6 – Impact of staff turnover on resources wastage and costs

N Minimum Maximum Mean Std. Deviation
High staff turnover leads to the wastage of resources in this organisation 94 1 5 4.20 .770
High staff turnover causes the reduction of efficiency in my department 94 2 5 4.28 .724
New employees spend too much time in doing little 94 1 5 4.34 .979
High staff turnover leads to more use of money and resources to train new staff members 94 1 5 4.38 .929
High staff turnover increases costs per unit in my department 94 2 5 4.17 .812
It is my view that high staff turnover affects the general financial position of my organisation 94 2 5 3.99 .922
Valid N (listwise) 94

4.3.5 Performance

This study investigated the impact of staff turnover in the organisation in four levels of performance which include financial, productivity and efficiency, product development and innovations, and quality attributes and customer satisfaction. Based on the results obtained, majority of the participants agreed that high staff turnover in their organisation makes them not meet their deadline (productivity) with an average rating of 4.66, followed by financial performance with an average rating of 4.32 (as shown in table 4.7 shown below). Impact on staff turnover on innovation and continuity was rated at 3.99 and its impact on quality attributes and customer satisfaction rated at 3.84.

N Minimum Maximum Mean Std. Deviation
High staff turnover has negative impacts the financial performance in this organisation 94 1 5 4.32 1.039
High staff turnover makes employees not to meet their deadlines and targets 94 2 5 4.66 .741
High staff turnover has negative impact on innovation and continuity in this organisation 94 2 5 3.99 .922
High staff turnover leads to the low customer satisfaction because of poor service quality 94 1 5 3.84 1.050
Valid N (listwise) 94

Table 4.7 – Impact of turnover on performance

4.3.6 Participants suggestions on the ways to reduce turnover

The participants were also asked to indicate the areas they think should be addressed in their organisation to mitigate staff turnover in the organisation. Among the key areas that the participants pointed out to be improved in order to foster satisfaction while reducing turnover in the organisation include fair compensation, the relationship between managers and employees, working conditions, and recognition of employee efforts where each received an average rating of 4.66, 4.65, 4.29, and 4.27 respectively (as shown in table 4.8 below).

Table 4.8 – Ways of mitigating staff turnover

N Minimum Maximum Mean Std. Deviation
Employees should be compensated fairly 94 2 5 4.66 .756
Managers should improve their relationship with employees 94 1 5 4.65 .744
Working conditions should be improved 94 1 5 4.29 .899
Employee efforts should be recognised 94 1 5 4.27 .870
Valid N (listwise) 94

4.4 Inferential statistics

The following hypotheses were established in this study to be tested using the collected data:

H1 – There is significant relationship between staff turnover and organisational performance

H2 – There is significant relationship between staff turnover and work-life balance 

H3 – There is significant relationship between work-life balance and organisational performance

H4 – High staff turnover leads to the wastefulness of resources

H5 – High staff turnover significantly impacts on the costs within the organisation    

4.4.1 Testing of hypotheses

H1 – There is significant relationship between staff turnover and organisational performance

The relationship between staff turnover and organisational performance was tested using Pearson’s correlation. Pearson’s correlation was preferred in this analysis due to its effectiveness in establishing the nature of the relationship between two variables in a research study (Saunders et al, 2009). As shown in table 4.9 below, a negative relationship between the two variables was established as indicated by the correlation coefficient of -0.096. With a level of significance of 0.003, the hypothesis is accepted because the two variables are significantly related, though the relationship is negative; and hence high staff turnover adversely affected performance.

Table 4.9 – Correlation analysis between staff turnover and performance

Staff turnover Organizational performance
Staff turnover Pearson Correlation 1 -.096
Sig. (2-tailed) .003
N 94 94
Organizational performance Pearson Correlation -.096 1
Sig. (2-tailed) .003
N 94 94

H2 – There is significant relationship between staff turnover and work-life balance 

In order to empirically establish the relationship between staff turnover and work-life balance, regression analysis was conducted. Regression was preferred because of its effectiveness in establishing the relationship between variables with multi-items.  The regression coefficient of -0.387 obtained indicates a negative relationship between the two variables. With level of significance of 0.001, at (P<0.005), it is evident that the two variables are significantly related (as shown in table 4.10 below), though the relationship is negative, and hence the research hypothesis is accepted. This implies that, high staff turnover negatively impacts on work-life balance of employees.

Model R R Square Adjusted R Square Std. Error of the Estimate
1 -.387a -.150 .102 1.064
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 17.608 5 3.522 -3.109 .001a
Residual 99.669 88 1.133
Total 117.277 93
a. Predictors: (Constant), disruption of teamwork, increase of workload, asked to work over-time, High staff turnover increases stress at work, exposure to long working hours
b. Dependent Variable: Staff  turnover

Table 4.10 – Regression analysis between staff turnover and work-life balance

H3 – There is significant relationship between work-life balance and organisational performance

The relationship between work-life balance and organisational performance was further investigated in this study. This was done using regression analysis where a positive value of regression coefficient of 0.241 was obtained as well as a negative F value of 1.376. This indicates a positive relationship between work-life balance and organisational performance (as shown in table 4.11 below). With the level of significance of (P=0.002), the research hypothesis is accepted.

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .241a .058 -.016 .735
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.977 4 .744 1.376 .002a
Residual 48.129 89 .541
Total 51.106 93
a. Predictors: (Constant), disruption of teamwork, increase of workload, asked to work over-time, High staff turnover increases stress at work, exposure to long working hours
b. Dependent Variable: Organisational performance

Table 4.11 – Regression analysis between work-life balance and organisational performance

 

 

H4 – High staff turnover leads to the wastefulness of resources

Since resources usage efficiency is one of the key factors determining the output in organisations (Munsaka, 2014), the relationship between staff turnover and wistfulness of resources was investigated in this study. This was done using regression analysis where the regression coefficient of 0.258 obtained indicated a positive relationship between the two variables. With significance level (P=0.003) – as shown in table 4.12 below, it is evident that the two variables are significant. This implies that, the research hypothesis is accepted, where high staff turnover was revealed to have positive impacts on high resources wastefulness.

Table 4.12 – Regression analysis between staff turnover and wastefulness of resources

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .258a .067 .035 1.103
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 7.810 3 2.603 2.140 .003a
Residual 109.466 90 1.216
Total 117.277 93
a. Predictors: (Constant), little work by new employees, wastage of resources, reduction of efficiency
b. Dependent Variable: staff turnover

H5 – High staff turnover significantly impacts on the costs within the organisation    

The last hypothesis in this study investigated the relationship between staff turnover and costs within the organisation. This was also done through the use of regression analysis where the regression coefficient of 0.187 obtained indicates a fairly weak, but positive relationship between the research variables. This is further confirmed by the significance level of 0.004 (as shown in table 4.13 below), and hence the research hypothesis is accepted. This implies that, high staff turnover predicts high costs within the organisation.

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .187a .035 .003 1.121
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 4.112 3 1.371 1.090 .004a
Residual 113.165 90 1.257
Total 117.277 93
a. Predictors: (Constant), financial position of organisation , more use of money and resources, increases costs per unit
b. Dependent Variable: I consider the rate of staff turnover in my organisation to be high

Table 4.13 – Regression analysis between staff turnover and costs within the organisation

4.5 Chapter Summary

This chapter has presented the findings obtained in this study. This has been done through the using multivariate data analysis where both descriptive and inferential statistics were produced. Generally, this chapter revealed a negative relationship between high staff turnover organisational performance. In the next chapter, a critical discussion of the findings obtained in the light of the literature review is presented as the dissertation concludes.


5. Discussion and Conclusion

5.1 Introduction

This is the last chapter of this dissertation which discusses the findings presented in chapter four above in the light of the literature reviewed in chapter two. The utmost focus in this chapter is to evaluate the extent at which the research aim and objectives were achieved in this study. This chapter also provides the implications of the research findings with regard to the sustainability of performance at Beitbridge Town Council based on its staff turnover rate. As the chapter concludes, the methodological limitations in this study are brought into focus where suggestions on future study are presented.

5.2 Discussion

The aim of this study was to investigate the impact of staff motivation on organisational performance. As such, much of the focus in this study was given on how staff turnover affects performance in organisations with the case study of Beitbridge Town Council. This section is structured on the research objectives where the researcher seeks to evaluate whether each objective was achieved or not. The key areas of discussion in this section include evaluation of the level of staff turnover at Beitbridge Town Council, the effects of staff turnover on the performance of Beitbridge Town Council, and the solutions necessary to mitigate the level of staff turnover in the organisation.

5.2.1 The level of staff turnover at Beitbridge Town Council

Based on the findings obtained in this study, the majority of the participants indicated that they perceive their organisation to be experiencing high level of staff turnover. With no secondary data to consolidate on these findings, the researcher mainly relies on the participants’ information on the level of staff turnover in the organisation. Moreover, no information was collected from the organization’s management to consolidate on the questionnaire findings. Nevertheless, a prior study conducted by Munsaka (2014) revealed that Zimbabwe’s public sector faces high staff turnover as the government pressurizes on high performance without looking on staff motivation and satisfaction factors. It can therefore be argued, since Beitbridge Town Council is a public organisation, the information presented by the participants can be reliable. As such, the organisation faces high rate of staff turnover.

5.2.2 The effect of staff turnover on the performance of Beitbridge Town Council

Based on the correlation analysis conducted in this study, a negative relationship between staff turnover and organisational performance was established. This implies that high staff turnover in organisations negatively impacts on performance. These findings seem to conform to a prior study conducted by Kirby (2005) which revealed that staff turnover in organisations interferes with consistency in organisational performance. With this study identifying job satisfaction as one of the major causes of staff turnover, it was revealed that most of the participants were not satisfied in their job, this was reflected in their discontent with the work-pay balance and organisational leadership in their organisation. As a result, the organisation has been experiencing high staff turnover as reported by the participants, and thus impacting negatively on its performance. Among the key areas of performance that this study revealed to be directly affected by staff turnover include financials, productivity and efficiency, quality and customer satisfaction, and product development and innovations; and this study upholds a previous model of performance established by Federal Enterprise Architecture (2005).

Further study revealed that staff turnover leads to poor work-life balance, which in return leads to low performance. This was revealed when regression analysis between staff turnover and work-life balance resulted into a negative relationship. Specifically, the findings in this study indicated that high staff turnover predicts low work-life balance because employees are exposed to stress, burnouts and disruption of teamwork within the organisation. In consistency with Hendry (2012) ideas which indicates that staff turnover increases the work burden of the remaining workers which is likely to interfere with their work-life balance; it is evident that staff turnover leads to deteriorates work-life balance among employees. As a result of poor work-life balance leading burnouts and stress at work, Clark-Rayner and Harcourt (2000) points out that productivity is usually affected. This is because efficiency in most cases is affected when employees are overworked leading to wastefulness of resources, which is likely to interfere with quality in the organisation. This explains why poor work-life balance in this study was found to be directly related with productivity.

Moreover, this study has also revealed that High staff turnover leads to increased costs in the organisation. This was indicated in the regression analysis where a positive relationship between staff turnover and costs within an organisation was established. This implies that, high staff turnover leads to high costs within the organisation. Considering that acquisition of new employees necessitates training them, it becomes costly for organisations with high staff turnover (Toker, 2011).Armstrong and Armstrong (2011) also observed that, new employees tend to be more wasteful because they are less efficient in their job, which in return leads to the increase in cost per every unit produced in the organization. In the context of Beitbridge Town Council, most of the participants in this study indicated that high staff turnover has negative impact on the financial performance of the organisation because of the high cost per unit on the services delivered. It can therefore be argued that, staff turnover in organisations has negative effects on its financial performance because of the high costs involved in training of new staff, the high wastefulness in the organization leading to high costs per every unit produced, and to a great extent low customer satisfaction leading to decrease in sales.

5.2.3 The mitigation strategies for staff turnover at Beitbridge Town Council

In the light of the high staff turnover identified in this study facing Beitbridge Town Council, it was noted that employee satisfaction is the main factor leading to this trend. The following recommendations are considered to be useful for the company to ensure that the high level of staff turnover is mitigated in order stabilize productivity in the organisation:

  1. Fair compensation should be given a priority in the organization in order to foster satisfaction among the employees. With this study revealing that majority of the participants consider the work-pay balance in their organisation to be low, it is important that organisation establishes an effective remuneration system which would make employees more satisfied, and reduce the rampant high staff turnover in the organisation.
  2. Further, managers in the organisation should improve their relationship with employees with employees by engaging them in various decisions made in the organisation. The quality of supervision need to be prioritized in order to enable a favourable working environment for the employees. With reference to the findings obtained in this study, it was revealed that the majority of the employees do not consider the leadership in the organisation to be effective, and necessitating for a more holistic approach in managing employees in this organisation. By doing so, the organisation would enjoy high levels of staff satisfaction, leading to low turnover intentions which is likely to stabilize performance in the organisation.

5.3 Conclusion

The findings obtained in this study where a high turnover rate at Beitbridge Town Council can be considered as a threat for the effectiveness of the organisation in achieving its performance targets. With this study establishing a negative relationship between high staff turnover and organisation, the findings in this study imply that Beitbridge Town Council is likely to face decelerating performance because of the high inefficiencies, wastefulness and high costs associated with high staff turnover. Since high staff turnover leads to poor work-life balance, high wastage of resources and increased costs to train newly acquired staff members, it was revealed in this study that organisations experiencing high staff turnover are more likely to fail to achieve their performance targets. It can therefore be argued that, for Beitbridge Town Council to be able to uphold high performance workplace while enabling its workforce to remain focused in achieving the organisational performance goals, it is important that job satisfaction among the employees being given a priority through fair work-pay, employee engagement, and improvement of the relationship between employees and the organisational management.

5.4 Future Research

In this study, only quantitative data was collected using questionnaires. Though the research objectives were achieved, the rate of staff turnover in the case study organisation was not well covered since no actual statistics/data was collected from the organisational management. Moreover, though the participants were randomly selected and thus reducing researcher bias, only quantitative data was collected and thus inhibiting comprehensive coverage of the research problem. Further, only small sample size comprising of 94 participants was involved in collecting data in this study. Based on these limitations, the researcher recommends that future studies on the research problem should involve the collection of both quantitative and qualitative data using questionnaires and interviews/focus groups in order allow the researcher collect comprehensive data which would allow in-depth analysis of the rate staff turnover at Beitbridge Town Council, and how this staff turnover impacts on the organizational performance.


Reference List

Armstrong, M. and Armstrong, M. (2011) Armstrong’s handbook of strategic human resource management, 1st edn, London, Kogan Page.

CIPD (2014) Employee turnover and retention [Online]. Available at: <http://www.cipd.co.uk/hr-resources/factsheets/employee-turnover-retention.aspx&gt; [Accessed Sept 10, 2015].

Clark-Rayner, P. and Harcourt, M. (2000) ‘The determinants of employee turnover behaviour: New evidence from a New Zealand Bank’, Research& Practice in Human Resource Management, vol. 8, No. 2, pp. 61-71.

Creswell, J. (2008) Research design: Qualitative, quantitative, and mixed methods approach. New Jersey: Sage Publications.

Crowther, D. and Lancaster, G. (2012) Research methods. New Jersey: NJ Wiley.

Ellickson, M. (2002) ‘Determinants of job satisfaction of municipal employees’, Public Personnel Management, Vol. 31, No. 3, pp. 343-358.

Ellickson, M. (2002) ‘Determinants of job satisfaction of municipal employees’, Public Personnel Management, Vol. 31, No. 3, pp. 343-358.

Federal Enterprise Architecture (2005) Performance reference model. New York: Author.

Ghuari, P. & Gronhaug, K. (2005) Research methods in business studies, 3rd edn. Harlow: Pearson Education Ltd.

Haruna, P.F. and Doorgapersad, S.V. (2014) Public administration training in Africa: Competencies in development management. Kinshasa: CRC Press.

Hendry, C. (2012) Human Resource Management. London: Routledge.

Kirby, J. (2005) ‘Towards a Theory of High Performance’, Harvard Business Review, Jul/Aug , pp. 30-38.

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Mathis, R. & Jackson, J. (2011) Human resource management: Essential perspectives, London, Cengage Learning.

Mondy, R.W. (2010) Human resources management, 11th ed. Upper Saddle River, NJ, Prentice Hall.

Muhammad, N.T, Muhammad, R. & Riaz, A. (2013) ‘The impact of employee turnover on the efficiency of the organization’, Interdisciplinary Journal of Contemporary Research in Business, Institute of Interdisciplinary Business Research, 4(9): 1-27.

Munsaka, T. (2014) Human resources management: A critical analysis of Zimbabwe’s unemployment crisis from 1990 to 2012. Johannesburg, SA: Grin Verlag GmbH.

Saunders, M., Lewis, P. and Thornhill, A. (2009) Research Methods for Business Students. 5th edn. Harlow: Pearson Education Limited.

Sekaran, U. (2003) Research Methodology for Business: A Skill Building Approach, 4th Edition. Singapore: John Wiley.

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Talent Management Alliance (2013) ‘Talent management strategies to drive business growth in APAC and the Middle East’, People in the Energy East Proceedings, 19th to 18th March 2014.

Toker, B. (2011) ‘Job satisfaction of academic staff: An empirical study on Turkey’, Quality Assurance in Education, Vol. 19, No. 2, pp. 156-169.

Ton, Z. & Huckman, R.S. (2008) ‘Managing the impact of employee turnover on performance: The role of process conformance’, Organisation Science, 19(1): 56-68.

Trochim, W.M.K. (2006) Research Methods, 2nd Edition. New Delhi: Himal Impressions.

Upadhaya, B., Munir, R., & Blount, Y. (2014) ‘Association between Performance Measurement Systems and Organisational Effectiveness’, International Journal of Operations & Production Management, 34(7), 2-2.

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Appendices

Appendix 1 – Questionnaire

Hello! Thank you for accepting to participate in my study which is partial requirement in completing my degree in (Degree course). The information that you provide in this questionnaire will be treated with confidentiality, as it will only be used for internal analysis in this study and won’t be accessed by third parties. As such, you are not required to indicate any of your identification details (e.g. your names, places of residence or contact details) in this questionnaire. Please attempt all the questions in this questionnaire by selecting the most appropriate answer to the best of your knowledge.

SECTION 1 – DEMOGRAPHIC PROFILE

1. What is your gender? Tick within the box
A. Male
B. Female
2. What is your age (tick your age group) – years
A. 18 – 25
B. 26 – 33
C. 34 – 41
D. 42 – 49
E. Over 49
3. What is your highest verifiable level of education?
A. High school
B. Diploma
C. Bachelors degree
D. Masters degree
E. PhD
4. For how long have you been working at Beitbridge Town Council? (years)
A. Below 1 year
B. 1 – 5 years
C. 6 – 10 years
D. 11 – 5 years
E. Over 15 years

SECTION 2 – STAFF TURNOVER

In this section, please indicate the extent at which you agree or disagree with the given statements using this scale:

1 – Strongly disagree; 2 – Disagree; 3 – Neutral; 4 – Agree; 5 – Strongly agree

1 2 3 4 5
5. Satisfaction 
Generally, I am satisfied with my job in this organization
The pay I get from job is fair based on the work that I do
Am satisfied with the nature of leadership in this organisation
6. Rate of staff turnover 
I consider the rate of staff turnover in my organisation to be high
My work has been adversely affected by the level of staff turnover in this organisation
I have high turnover intentions based on the nature of work in this organisation
7. Work-life balance
Staff turnover increases the workload of every employee in my department
High staff turnover increases stress at work of every employee in my department
We are usually asked to work over-time whenever some employees leave the organisation
We are exposed to long working hours every time some employees leave the organisation
High staff turnover disrupts teamwork in this organisation
8. Wastefulness of resources
High staff turnover leads to the wastage of resources in this organisation
High staff turnover causes the reduction of efficiency in my department
New employees spend too much time in doing little
9. Costs
High staff turnover leads to more use of money and resources to train new staff members
High staff turnover increases costs per unit in my department
It is my view that high staff turnover affects the general financial position of my organisation
10. Performance
High staff turnover has negative impacts the financial performance in this organisation
High staff turnover makes employees not to meet their deadlines and targets
High staff turnover has negative impact on innovation and continuity in this organisation
High staff turnover leads to the low customer satisfaction because of poor service quality
11. Mitigation strategies for staff turnover
Employees should be compensated fairly
Managers should improve their relationship with employees
Working conditions should be improved
Employee efforts should be recognised

…………………………………..Thank you……………………………………

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