CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Labour turnover is defined as the degree at which the organization gains and losses workers, how
long the workers tend to quit and join the organization staff turnover places unnecessary pressure
on staff members who are at work and the remaining staff experience an increased workload
leading to low morale, high level of stress and therefore absenteeism. Employees also have to
work extra hours to compensate for the work of those who resigned. Employees who leave on
the organization’s request as well as those who leave on their own initiative can cause disruptions
in operations, work team dynamics and unit performance both types of turnover create costs for
the organization (Robbins and DeCenzo, 2015). If an organization has made significant
investment in training and developing its employees. That investment is lost when employee
leaves. In addition, excessive labour turnover can hurt the overall productivity of a firm and is
often a symptom of other difficulties. Every organization strives to have high productivity, lesser
turnover and maximum profitability (Mello 2016). 2 Managing turnover successfully is a must to
achieve the above goals. The managers must recognize that employees are major contributors to
the efficient achievement of the organizational productivity. Therefore, there is need to develop a
thorough understanding of employee’s turnover from the perspective of causes, effect and
strategies to minimize turnover (Hollman 2015). The achievement of any organization is closely
knotted to the job performance of its employees. The worth of the employees‟ workplace
environment influence on their motivation level and hence performance. When workers have the
desire, physically and emotionally to work, then their performance shall be improved. They also
stated that having a suitable workplace environment assist in decreasing the number of
absenteeism and as a result can advance the performance in today’s competitive and dynamic
business world. The workplace environment that is set in place impacts employee morale,
productivity and engagement - both positively and negatively. She adds that factors of workplace
environment play an important role towards the employees‟ performance. The Gambia
Telecommunications Company Ltd., also known by Gamtel for short, is the principal
telecommunications company of the Gambia. It is a state company, charged with the task of
overseeing the provision of telecommunications and internet service in the country. In
association with Gamtel's internet company, Gamnet, it has successfully built Gambia's internet
infrastructure. The company was established in 1984 by an act of parliament as the single
licensed telecommunications services provider in the country, with its stock 99% owned by the
government of the Gambia, and the remaining 1% owned by the Gambia Port Authority. In 1993
it commenced the task of creating the Gambia Radio & Television Service, a company that
operates the nation's radio and television industry. Gamtel currently employs over 1,000 people
and its main offices are at Gamtel House in Banjul.

In 2007 Gamtel was partially privatized with 50% of its equity sold to Spectrum Group, a
telecommunications company of Lebanon, due to financial problems at Gamtel. The merger
came to an end after only one year, when Gamtel declined to renew the Spectrum management
contract. It is not clear if Spectrum still owns a significant part of Gamtel.

1.2 Statement of Problem

Gambia telecommunication company Ltd has been experiencing labour turnover for a period of
time, the employees of Gamtel no longer feel attached to the organization and when employees
quit the organization, the organization has to suffer a great amount of direct and indirect cost.
The expenses of staff turnover can be shocking ranging from advertising expenses, resource
management expenses, loss of time and efficiency, work imbalance, and training and
development expenses for freshly employees (Harrie,2015). This can be very disturbing to an
organizational performance if experienced workers who have the knowledge and have learnt the
culture of the organization regularly quit the organization and look for other jobs in different
companies, this therefore means that the organization would definitely lose its market share to
the competitors who are Africell, Comium, and Qcell. The competitors of the Gamtel have been
taking great advantage of these issue thereby making them more productive and increasing their
market share to the public hence generating more profit to their organization. According to
Phillip (2015), employees turnover affects distribution of the roles and duties in different
department to new employees who have no capability on effective operations of organization
services, this greatly worsens the superiority of organization services and as result, low level of
clients or customer satisfaction is recognized. The organization sales income falloff and this
drops the level of organization competence. New employees who are not experienced and don’t
have the capacity to function well on the roles and duties they have been assigned for, they take
time and money thus exposing the organization to huge expenses on selection, hiring and training
to replace the work force gap generated by the exiting employees. The main issue to employee’s
turnover is that the organization loses the best qualified and capable employees that the
organization had capitalized seriously in training and coaching on different job tasks. This
therefore means that, the company must suffer massive expenses in terms of time and finance to
train the newly employed workers in order to make them efficiently and familiar to organization
working culture and show the necessary skills and experience. due to high staff turnover rates,
organizations have adopted on various employee’s dentation approaches such as increased
rewards management, career growth, and improved health and safety. This however has headed
to increased organization overheads and recognition of a deteriorated profit margin.

1.3 Research Question

The following research questions were formulated from the study;

1. What is the effect of training and development on organizational performance?

2. What is the impact of performance evaluation on organizational performance?
3. What is the effect of career growth on organizational performance?
1.4 Research Objectives

The objective of the study is to examine the factors influencing labour turnover on organizational
performance at Gamtel;

1. To Examine the effects of training and development on organizational performance.

2. To investigate the effects of performance evaluation on organizational performance.
3. To determine the effects of career growth on organizational performance.
1.5 Research Hypothesis

The following were the tests of hypothesis;

H1: Training and development have no significant effect on organizational performance.

H2: Performance evaluation does not have any significant impact on organizational
performance.

H3: Career Growth has no significant effects on organizational performance.

1.6 Significant of the Study

This study brings to light employees understanding and appreciation that causes the influence of
labour turnover in the given organization. It contributes to knowledge and literature because it
focuses on the causes that influence employee turnover. To forward the concern bodies to look
for the solution for the problems that takes place in the organization during high rate of turnover.
It will be an input for managers to decision making intention. It develops the researcher’s ability
and skill to carry out further research and also researchers gain more experiences. The research
findings generate new information which can help the managers and enable to understand the
causes that influences employee turnover. The produced information will help the organization
Factors Affecting Employees Turnover in Gamtel to come up with involvements that improve the
performance of employee retention within each staff. The research will also help the
management of the organization by viewing different directions to know the problem of
employee why they leave the organization. And also, this study was significance for future
researchers to identify the gab and investigate further researches based on the suggestions of this
study.

1.7 Scope of the study

The study focused on the factors influencing labour turnover in the Gambia. Labour turnover
being the independent variables with operationalization of; training and development,
performance evaluation and career growth. The study population was 85 staffs working
employee under finance department of Gamtel. The study focused only factors affecting
employee turnover. Descriptive research design was used and closed and open-ended
questionnaires used to collect data. The study was conducted in Gamtel and it mainly focuses on
employee turnover.
CHAPTER TWO
LITERATURE REVIEW

2.0 Preamble

This chapter seeks to present Theorical Review of the related literature, the Empirical Review
and Conceptual Framework, Operationalization of variables.

2.1 Conceptual Review

2.1.1 Labour Turnover

According to Flippo, (1984), Turnover is the movement into and out of an organization by the
work force. According to Armstrong, (2006), High rates of attrition can destabilize a business
and demotivate those who attempt to maintain levels of service and output against a background
of vacant posts, inexperienced staff and general discontent. Recruitment, induction and training
costs all arise with an increase in labor turnover. Chartered Institute of Personnel and
Development, (2000), Notes that, turnover may be a function of negative job attitudes, low job
satisfaction, combined with in ability to secure employment elsewhere. According to Rion
(2009:8), and Beam, (2009), Labour turnover as a ratio comparison of the number of employees
and organization must replace in a given time period to the average number of total employees.
Turnover is “the movement of employees out of the organization” as stated by Carrell et al,
(1995), It results from resignations, transfers out of the organizational units, discharges,
retirement and death. People are bound to join organizations for work and leave through
resignation, dismissal, retirement or for some other reasons. These are normal actions, what is
not normal is where there is employee mass exodus states Nzuve, (2007), Turnover always rises
when the economy is strong and jobs are plentiful because there are more opportunities available
for people to change employers’ notes Torrington et al, (2005), Conversely, during recessions
staff turnover falls because relatively few attractive permanent positions are advertised. 8
According to Abassi et al, (2000), Labour turnover as a ratio comparison of the number of
employees an organization must replace in a given time period to the average number of total
employees. Labour turnover has also been defined as the rotation of workers around the labor
market; between firms, jobs and occupations; and between the states of employment and
unemployment. The attraction and retention of high-quality employees is more important today
than ever before. A number of trends (globalization, increase in knowledge work, accelerating
rate of technological advancement) make it vital that firms acquire and retain human capital. In
human resources context, turnover can be viewed as the rate at which an employer Gains and
misplaces employees or how long employees tend to stay in a particular Organization. Turnover
is measured for individual companies and for their industry as Whole Turner, (2010), Globally,
labour turnover is a much-studied phenomenon but there is no universally accepted account for
why people choose to leave organization’s Flinkman, (2013), Labour turnover in organizations
has received substantial attention from both academics and managers. Much of this attention has
been focused on understanding its causes. Implicit in this approach is the assumption that
turnover is driven by certain identifiable characteristics of workers, tasks, firms, and markets,
and that, by developing policies to address these characteristics, managers might reduce the
occurrence of turnover in their respective organizations. As noted by several observers, however,
the consequences of turnover have received significantly less attention from researchers Staw,
(1980), Mobley (1982), Glebbeek and Bax (2004), According to Martin, (2005). A huge concern
to most companies is that labour turnover is a costly undertaking especially in organizations that
thrives and values viability of the business. Employees‟ wages, company benefits, employee
attendance, and job performance are all factors that contribute to labour turnover Dessler, (2009)

2.1.2 Training and Development

According to Paul, (2004), training and development is a function of human resource

management concerned with organizational activity aimed at bettering the performance of
individuals and groups in organizational settings. It has been known by several names, including
"human resource development", and "learning and development. New-hire Induction and staff
development are two essential requirements for job preparation which are mandatory from the
employers. Research done by Dwomoh and Korankye (2012) depicted that there is a significant
correlation between labour turnover in the Organizational sector and Training and development
opportunities. Therefore, companies like Gamtel, should invest on training and development to a
comparative advantage than their competitive. According to Beruktawit Ayalew, (2017), training
and development is a function of human resource management concerned with organizational
activity aimed at bettering the performance of individuals and groups in organizational settings.
The research of Griffeth, and Hom (2002), revealed that the respondent depicted that the most
reasons for the labour turnover were the inadequate of training and development in the
organization. There exist a high-involvement of employees in training directly and positively
correlates to decrease in labour turnover in the Organizational sector, as argued by Batt (2002).
As present by Woodruffe (2010) on his research on impact of training on employee’s turnover in
the organizational sector i depicted career goals are being addressed by an organization, the more
their commitment and loyalty to the organization found that training, education and development
are critical to the career development of an employee. Those Gamtel s spend in the training and
development of their employees would have acquire strong employee base and bring out their
commitment. (Noe, Holleneck, Gerhart, and Wright, defined Training as the systematic planned
attempt to facilitate employees’ achievement of job- Factors Affecting Employees Turnover in
related knowledge and skills so as to advance productivity. Wan (2007) states that comprehensive
training and development is the only strategy the companies can increases an employee’s
commitment of workforce productivity and trim down employee turnover. But shama (2006)
argues that by creating opportunities for employee training and development, Gamtel s increase
the chances of their employees’ ability to succeed in the market. Similarly, Testa (2008), repeat
the same opinions that employees’ skills development through training increase their competitive
advantage in the labor market hence their self-confidence of their job security. Batt (2002) argues
that in the Organizational sector high-involvement of employees in training and development
directly and positively associated to cutback in employee turnover.

2.1.3 Performance evaluation

Performance evaluations provide employees sufficient opportunity to establish their work plans,
objectives, and goals. Cleveland et al., (2003) employees get frustration that have a significant
relationship with labour turnover if they perceived that the kind of evaluations are skewed
negatively towards them and don’t get sufficient feedback from their supervisors on
expectations, performance, and goal setting. Performance evaluations in the Organizational
sector tied employee and supervisor because it can be the source of acrimony between employees
and their supervisors who are to have oversight and mentorship role over them if there is failure
to have employee evaluation discrete. (Pritchard & Payne, 2008). Equally Cleveland et al.,
(2003) argue that Organizational sector as any other sector used to evaluate an employee’s
performance to make decisions on promotions, demotions, or even termination. Supervisors can
use this appraisal system as an instrument for progressive performance or for punishing
employees Based on how the appraisal is designed, the appraisal system can be an instrument for
progressive performance or for punishing employees (Bernardin, 1984). If the appraisal system is
Illogical and punitive or assumed as like this by the employee the resultant effects are massive
turnover. (Ahmed et al., 2012). Gamtel s practice performance appraisals to manage end year
bonuses to their employees as described by Ishaq et al., (2009). Loss of morale and subsequent
turnover has happened after the bonus which base the result of bad appraisal reviews. Dechev,
(2010); Franken, (2012) argued that employee negative perception on the fairness of appraisal
system and rewarded based on it limits the organization commitment or turnover intentions.
Ahmed et al., (2012), Arbaiy & Suradi, (2007) argued that job satisfaction levels can be
determined by appraisals, which can enhance the labour turnover or employee commitment to an
organization.The jittery employees fear to get guarantee of their future to continue with the
Gamtel increase the turnover rate as described by Mbah & Ikemefuna, (2011).

2.1.4 Career growth opportunity

Career growth opportunity is an upward mobility that the availability of chances are provided by
the organization that employee wish to come across as stated by Mayrhofer et al., (2007). Salary
and other related remuneration cost are the one that hinder the organizations to not provide the
career growth opportunities. According to Puah & Ananthraj, 2006) there is strong correlation
between career growth opportunities and employee turnover. Armstrong, 2009 argued that lack a
contingency plan in managing their employees’ career growth in an organization brings a high
employee turnover. Agarwal, et al., (2006) also portrayed that failure to meet employee’s
expectation in career growth opportunities results in high turnover with employees’ seeking these
opportunities elsewhere. Duffy, et al., (2011) claims that organizations that place obstacles in
employee’s career development stand a greater chance of focusing dissatisfied employees who
would quit the organization at any best available opportunity for growth. Samuel (2010)
associates moving up the organization to moving out of the organization and counts for basic
career growth that can cause turnover. Opportunity for advancement or promotion outside the
organization enforced the inside organization labour turnover as Feldman and Nigel (2008)
extrapolates their argument.

Training and Development

Performance Evaluation Organizational Performance

Dependent Variables
Career Growth opportunities

Unfair Promotion

Independent Variables

Conceptual Framework

2.2 Theoretical Review

2.2.1 Human Capital Theory

Human Capital Theory of Labour turnover on organizational performance. Human capital

theories by Durkheim, Simmel, Marx and Weber proposed that turnover rates at any stage stress
organizational performance. Human capital theory recommends that more skilled employees do
well since they more experienced and necessary to do the work. From this point, when qualified
employees quit, an organization is stressed since it loses more skilled employees in which it has
invested on human capital. Organizations may swap employees who vacate the offices, but time
must pass before they substitutes accrue same levels of human capital. Furthermore, turnover
creates extra human resource management expenses such as recruitment, selection, and training
costs. Human capital theory recommends that turnover is expensive since it lessens social capital
an asset reproducing the personality of social affairs within the organization. Growth in turnover
rates interrupts an organization collective function. In addition, turnover causes extra beginners
socialization expenses. Human and social capital theories concentrate on growth in turnover rates
and advise that turnover rates are linearly and destructively connected to organizational
performance. A more advanced 10 method is differentiating voluntary and involuntary turnover
rates based on causes for exiting the organization; voluntary turnover rates states to the number
of employees exiting instigated by workforce for example resignations, and involuntary turnover
rates state to the number employees exiting instigated by organizations for example dismissals,
discharges, sackings, terminations, (Jenkins, & Gupta, 2015). Voluntary turnover rates comprise
resignations for higher salary and wages, career opportunities, further education, and job
dissatisfaction for instance eliminate discharges, retirements, transfers, and promotions.
Moreover, involuntary turnover rates comprise letter of resignation initiated by disappointment
to meet expectations and expired employment agreements Reduction-in-force (RIF) turnover and
downsizing is a different group since no swapping workforce are intended and the exiting
employees are alleged to have been at least minimally competent. Scholars have often proposed
that voluntary and involuntary turnover have different consequences for example highly
experienced performing workforce may be more likely to quit voluntarily because they have
other employment chances (Trevor, 2013). Voluntary turnover is frequently shocking and
uncontrollable. Thus, voluntary turnover rates are expected to be negatively connected to
organizational performance. In contrast, the link between involuntary turnover rates and
organizational performance has long been expected to be positive for the reason that
organizations decide to release staffs for individual performance insufficiencies or other social
hitches. Assuming that employees who are poor performers are substituted with better
performers, the elimination of poor performers should be related with better organizational
performance. In addition, this sorting consequence may assist remedy 11 poor recruiting
conclusions and uphold performance-oriented standards among remaining employees. Some
scholars have, however, currently interrogated the presumed positive relationship and have
suggested that the involuntary turnover rates and organizational performance have undesirable
relationship instead. High involuntary turnover rates might have slightly to do with the
workforce association which is the grounds for the voluntary turnover rate hypothesis but may
instead just redirect a low-quality employee and the following poor performance that this group
is anticipated to deliver (Hausknecht and Trevor 2014).
2.1.2 Herzberg Reward Theory

Herzberg himself proposed this point in his motivation–hygiene theory that reward is largely
motivated by the way to which work is basically challenging and offers chances for appreciation
and reinforcement. Reward signifies the application of hygiene factors, and recognition signifies
the application of motivator factors. Optimistic reinforcement for employees often takes the
system of touchable rewards as well as recognition and praise (Giancola, 2016). A mixture of
reward and recognition, along with unceremonious recommendation is expected to be the most
motivational. Rewards must have a positive effect on organizational performance, and he
established that the most preferred form of reward by employees was oral appreciation or
recommendations by their immediate Managers. The form of reward done by the organization
does a significant part in encouraging employees to execute their roles and responsibility (Beer
and Walton, 2014). 12 According to Hansen and Hansen (2016), This eventually affects the
performance of the organization. It is generally thought that if rewards are used efficiently, they
can motivate employees to perform at higher levels, and the practice of appropriate rewards ends
in the organizational performance at the organizational level. Most organizations have official
recognition and reward platforms and these recognition platforms generally comprise of rewards
since good employee performers are acknowledged with rewards. Amongst the rewards offered
are gift cards, jewelry and on the spot, cash awards More stylish recognition platforms identify
morals that support organizational principles, so the rewards are a notice of what is essential to
the organization. Appreciating employees for super performance is a main kind of informal
recognition. Though rewards cost no cash and only needs a few moments of time, most
employees feel that they do not get sufficient recommendations bosses and Directors therefore
have a decent opportunity to rise motivation by the humble act of praising good behaviour
(Kinicki and Kreitner, 2016).

2.2.3 Super Theory of Career Growth Management

Among the many theories of career growth and development, the theory by Super has received
much attention in the USA as well as in other parts of the world. He suggested that career choice
and development is essentially a process of developing and implementing a person‟s self-
concept. Self-concept is a product of complex interactions among a number of factors, including
physical and mental growth, personal experiences, and environmental characteristics and
stimulation. Super’s theory has called for a stronger emphasis on the effects of social context and
the 13 reciprocal influences between the person and the environment (Hansen and Hansen,
2015). Building on Super’s notion that self-concept theory was essentially a personal construct
theory that took a constructivist perspective and postulated that the process of career construction
is essentially that of developing and implementing vocational self-concepts in work roles. A
relatively stable self-concept should emerge in late adolescence to serve as a guide to career
choice and adjustment. However, self-concept is not a static entity and it would continue to
evolve as the person encounters new experience and progresses through the developmental
stages. According to Super (2014), Life and work satisfaction is a continual process of
implementing the evolving self-concept through work and other life roles., proposed a life stage
developmental framework with the following stages: growth, exploration, establishment,
maintenance or management, and disengagement. In each stage one has to successfully manage
the vocational developmental tasks that are socially expected of persons in the given
chronological age range. For example, in the stage of exploration (ages around 15 to 24), an
adolescent has to cope with the vocational developmental tasks of crystallization (a cognitive
process involving an understanding of one’s interests, skills, and values, and to pursue career
goals consistent with that understanding), Accordingly, the concept of “career maturity” was
used to denote the degree that a person was able to fulfil the vocational developmental tasks
required in each developmental stage. Partially due to the mixed results obtained in empirical
research studies on career maturity, there have been suggestions to replace career maturity with
the concept of adaptability. Whereas the above vocational developmental stages are likely to
progress as maxi cycles in a 14 person’s life journey, super theory stated that a mini-cycle
consisting of the same stages from growth to disengagement would likely take place within each
of the stages, particularly when a person makes transition from one stage to the next (Allen and
Robert, 2014). In addition, individuals would go through a mini-cycle of the stages whenever
they have to make expected and unexpected career transitions such as loss of employment or due
to personal or socioeconomic circumstances The contextual emphasis of Super’s theory is most
clearly depicted through his postulation of life roles and life space (Savickas, 2016). Life at any
moment is an aggregate of roles that one is assuming, such as child, student, citizen, worker,
parent, and homemaker. The salience of different life roles changes as one progresses through
life stages, yet at each single moment, two or three roles might take a more central place, while
other roles remain on the peripheral (Torrington, 2015). According to Cole (2016), Life space is
the constellation of different life roles that one is playing at a given time in different contexts or
cultural “theatres”, including home, community, school, and workplace. Role conflicts, role
interference, and role confusions would likely happen when individuals are constrained in their
ability to cope with the demands associated with their multiple roles.

2.2.4 Abraham Maslow Hierarchy of Needs Theory

There are five different levels of Maslow’s hierarchy of need and it is mostly displayed as a
pyramid. The lowest levels of the pyramid are made up of the most 15 basic needs while the
most complex needs are at the top of the pyramid and they include Self-actualization, self-
esteem, love, belonging, safety and physiological. Security and safety needs at this level become
primary, people want control and order in their lives so this need of safety and security
contributes largely to behavior at this level Some of the basic security and safety needs include,
Financial security, Health and wellness, Safety against accidents and injury Finding a job,
obtaining health insurance and health care, contributing money to a savings account, and moving
into a safer neighborhood are all examples of actions motivated by the security and safety needs.
Together, the safety and physiological levels of the hierarchy make up what is often referred to as
the basic needs. The basic physiological needs are probably fairly apparent these include the
things that are vital to our survival. Some examples of the physiological needs include food,
water, breathing In addition to the basic requirements of nutrition, air and temperature regulation,
the physiological needs also include such things as shelter and clothing. Maslow also included
sexual reproduction in this level of the hierarchy of needs since it is essential to the survival and
propagation of the species. Social needs In order to avoid problems such as loneliness,
depression, and anxiety, it is important for people to feel loved and accepted by other people.
Personal relationships with friends, family, and lovers play an important role, as does
involvement in other groups that might include religious groups, sports teams, book clubs, and
other group activities. At the fourth level in Maslow’s hierarchy is the need for appreciation and
respect. When the needs at the bottom three levels have been satisfied, the esteem needs begin to
play a more prominent role in motivating behavior. At this point, it becomes increasingly
important to gain the respect and 16 appreciations of others. People have a need to accomplish
things and then have their efforts recognized.

Figure 1 Maslow Hierarchy of Needs

2.3 Empirical Review

Nelly (2018) conducted a study on labour turnover on organizational performance in

telecommunication industry in kenya. This research study sought to investigate the effect of
labour turnover on organization performance, and how these factors affect the performance of
employees of Telkom Kenya Limited. The major concern to most organization is that employee
turnover is an expensive process especially in organizations that thrives and values viability of
the business. Lack of Reward management, lack of career growth, lack of health and safety and
finally lack of motivation are all factors that contribute to labour turnover. The overall objective
of the research project was to determine the effect of labour turnover on Organizational
Performance, the project was directed by the following specific objectives; To determine the
effects of Employee Reward Management in the Organizational Performance at Telkom Kenya
Limited Nairobi County, To establish the effect of Employee Career Growth on Organizational
Performance at Telkom Kenya limited Nairobi County, To examine the effects of Employee
Health and Safety on Organizational Performance at Telkom Kenya Limited Nairobi County, To
establish the effect of Employee Motivation in the Organizational Performance at Telkom Kenya
Limited Nairobi County. The project was engaged in descriptive research design as the study was
intended to collect quantitative and qualitative data that explained the nature and features of the
effect of labour turnover on Organizational Performance. The targeted group for the research
study comprised total of 120 employees working at Telkom Kenya Limited shops within Nairobi
County. Stratified sampling was used in this research. The targeted population was distributed
into three categories namely; Top management staff, middle level management staff and
subordinate staff. Primary data was collected using oral interview and structured questionnaires.
The collected data was analyzed using Microsoft excel and presented in the form of pie charts
and tables. Based on the study findings the organization needed current strategies for reducing
labour turnover rates since the employee reward offered to the employee were not satisfactory,
the employees stated that the organization was not committed to employee career growth
development which denied the employees with an opportunity for career growth, the employees
stated that low level of motivation influenced the realization of increased labour turnover
employee health and safety management. The following were the recommendations of the study;
that the organization should re-evaluate its employee salary/wages benefits packages to improve
the morale and motivation of the employees, the organization should offer opportunities for
career growth, the organization should involve its employees in the decision making processes,
the organization should improve working conditions within the organization finally the
organization should apply strategies to reduce labour turnover rate by retaining best employees to
improve organizational performance.

Tsadik (2018) conducted a study on causes of turnover and its influence on Organizational
performance the case of nib insurance s.c. This study is aimed to identify the main reasons of
labour turnover & its effect on the performance of Nib Insurance Company. To obtain
information relevant to the study both primary and secondary data was used. The type of
research that was used in this paper is a descriptive study. In order to achieve the objective of the
study and answer the research questions, mixed research approach was used (qualitative and
quantities research approaches). The study used purposive sampling, stratified random sampling
and simple random sampling techniques. Data were analyzed using a statistical package for
social sciences (SPSS). Result of the study indicated that voluntary turnover is the main type of
turnover in the company and most ex-employees left the company because of resignation. From
the period 2009/10 to 2012/13 the total number of staffs terminated from Nib Insurance Share
Company is counted to 126. This indicates that the organization has lost almost 39% (126 out of
323) of its employees due to different reasons. Of the total terminated 126 employees, the highest
share of terminated staff based on position hierarchy is medium and subordinate level of
employees. In addition to the above, the majority of the respondents stated that the basic positive
effect of turnover on the performance of the company are displacement of poor performer and
induction of new knowledge on one hand and on the other hand degraded performance,
unaccomplished daily routine activities, increased work load on the existing employees and high
cost of replacement are the basic negative effect of employee turnover. Most of the respondents
stated that the push factors which lead employees to leave the company are; poor performance
management system, staff training and development, opportunity for advancement, salary
structure and benefit package of the company, leadership style. The basic pull factors are
searching of better salary; benefit package and searching for career advancement.

Idris (2019) conducted a study on A huge concern to most companies is that labour turnover is a
costly undertaking especially in organizations that thrives and values viability of the business.
Employees’ wages, company benefits, employee attendance, and job performance are all factors
that contribute to employee turnover. The company take a deep interest in their labour turnover
rate because turnover affect the running of the business by creating disruptions which results to
reduced production and profits of the organization. The researcher initiated to investigate this
study was the existence of high rate of labour turnover in Angolela and Tera wereda. The main
objective of this research was identifying factors that affect labour turnover in Angolela and Tera
wereda. Descriptive and explanatory research design was used for this study. The data collection
instruments were structured closed and open-ended questionnaire, and semi structured interview
were used. A sample size of study population was 182 employees of the wereda office out 1998
from the total population of employees. Stratified sampling was used for this study. To analyses
the data descriptive statics and inferential statistics were used by using SPSS software version
20. Overwork load, lack of tanning and development, lack of reward and recognition and all of
the organizational factors, social factors and personal factors were affected labour turnover in
Angolela and Tera wereda. The positive correlation of organizational, social and personal factor
of turnover was founded in the study. The marital status and qualification of employee have a
negative effect on turnover in Angolela and Tera wereda. The researcher recommended that the
management bodies of the organization should work hard and discus together about work load in
order to outline job design for every employee and be ready to employing new employees during
turnover is existed other than giving over activities for the rest individuals. The researcher
recommended that the organizations of Angolela and Tera Wereda should offer challenging jobs
and responsibilities for employees or workers and give recognition and reward for an individual
who have score best performance and be role model for the others and it help employee to
increase their loyalty and commitment to their office.

Otieno (2020) Conducted a study on factors influencing high employee turnover: A case study of
Oxfam international. The purpose of this study was to determine the factors influencing high
labour turnover in Oxfam International. This study was guided by four research questions,
namely: What is the influence of career development on labour turnover at Oxfam International?
What is the influence of reward system on labour turnover at Oxfam International? What is the
influence of leadership style on labour turnover at Oxfam International? What is the influence of
employee relations on labour turnover at Oxfam International? The study used descriptive
research design. The target population was based on the Oxfam international distribution
programmed staffs who were 115. The stratified random sampling technique sampling technique
was used to select 53 respondents. The tool for data collection was a questionnaire. Data was
analyzed using mean and standard deviation scores, spearman‟s rank correlation analysis and
logistic regression in SPSS.The results showed that in terms of the influence of career
development on labour turnover at Oxfam International, career development explained 22.3% of
the variance in labour turnover (Nagelkerke R2=.223). However, only career planning was
significantly associated with a decreased likelihood of labour turnover (B=1.733, p<.05,
OR= .177; 95% C.I.: .034, .928). Concerning the influence of reward system on labour turnover
at Oxfam International, reward system explained 20.2% of the variance in employee turnover.
However, none of reward system was independently significantly associated with likelihood of
labour turnover (p>.05).As pertains the influence of leadership style on labour turnover at Oxfam
International, leadership style explained 10.2% of the variance in employee turnover. However,
none of leadership style dimensions was independently significantly associated with likelihood
of labour turnover (p>.05).Regarding the influence of employee relations on labour turnover at
Oxfam International employee relations explained 15.5% of the variance in employee turnover.
However, none of employee relations dimensions were independently significantly associated
with likelihood of labour turnover (p>.05).The study concluded that career development had the
most influence on labour turnover at Oxfam International. Career planning, training and
development and growth opportunities all played a significant role in determining the level of
employee satisfaction which is a necessary precondition for effective management of labour
turnover at the organization. The reward system also positively influenced employee turnover.
On this respect, the rewards that were salient in terms of their influence on employee satisfaction
were bonuses and recognition. Employee relations practices moderately influenced employee
turnover. This was attributable to the way employer-employee relations, relationship
management and communication was managed, with direct implications on the level of
employee satisfaction. Leadership style was perceived to have an influence on the rate of
employee turnover. The leadership practice at the organization was more achievement oriented
but comparatively less supportive or participative. It was recommended that the management of
Oxfam International should dialogue with employees in order to have a better grasp of career
training and development aspirations of staff. The development of reward system in the
organization needs to be informed by the various needs of employees at every level of the
organization. The human resource department need to revamp its employee relations policies and
practices so as to minimize employee turnover. Management should make the practice of
participative leadership more common than is currently the case. A future study should explore
other factors not accounted for in this study that might be responsible for labour turnover in the
organization. A follow up study that makes use of qualitative approach should be conducted to
reveal any hidden nuances that may add value to decision making.
Kushoka(2021)conducted a study on Factors Influencing the Employee Turn Over atTanzania
Telecommunication Corporation. Employee retention is among the important factors for business
sustainability. The purpose of the study is to examine the factors influencing the labour turnover
by using Tanzania Telecommunication Corporation Limited (TTCL) as a case study. Specifically,
the study examined the impact of Training and Promotion on employee turnover, the effects of
working environment on labour turnover and it identified the strategies for reducing labour
turnover in Tanzania. This study was conducted in Dar Es Salaam city in its five municipals
(Ilala, Ubungo, Temeke, Kinondoni and Kigamboni). The study used Primary data which was
collected using questionnaire and interview. Quantitative data was analyzed using Correlation
and Regression while the qualitative data was analyzed by content analysis. The findings
revealed that Training and Promotion positively influence the Employee turnover. Also working
environment positively influences the Employee turnover. Furthermore, the study identified
different strategies for improving reduction of labour turnover such promoting high-quality of
work relationships and Promotion of job Satisfaction. The study concludes that providing a
positive work environment reduces turnover.

Hussain (2019) conducted a study on Factors Affecting Employees’ Turnover Intention. This
research is about factors affecting employees’ turnover intention in construction companies.
Employees’ turnover intention is known as the organization’s workers’ intent or plan to leave
their current working place’s position. Malaysia has scored third highest voluntary turnover rate,
which is 9.5% in Southeast Asia year 2015. Most of the construction projects are difficult and
complex to manage it. High employees’ turnover rate may influence the construction companies’
productivity and performances. There are many factors that will affect employees’ turnover
intention, such as colleague relations, organizational commitment, organizational justice,
organizational reputation, communication, and organizational politics. In order to address the
issues above, this research was aims to identify the factors affecting employees’ turnover
intention and to determine the relationship between the factors and employees’ turnover
intention. Therefore, in order to achieve these objectives, a questionnaire survey involving 160
employees conducted to Grade 7 construction company in Klang, Selangor. There was 73
companies’ worker who responded to the survey. The data analysis conducted using SPSS and
SmartPLS, and the results showed that organizational politics were mostly caused employees’
turnover intention in construction companies. The findings also showed that communication and
organizational politics had a negative relationship with employees’ turnover intention. Results
from this research can provide the evidence and bring convince for the construction companies in
Malaysia to reduce employee’s turnover rate. In the future, the scope of the study can be
expanded to other states of Malaysia to improve the reliability of this study.

Basnet (2021) conducted a study on Employee job satisfaction and turnover intention. The aim of
this thesis is to investigate the level of employee’s job satisfaction and employee’s intention to
leave their work with respect to 4Service offshore AS. In addition, this thesis tests the influence
of demography (age, gender, relationship state and experience) on turnover intention. This thesis
used Herzberg’s hygiene and motivator factor theory as a theoretical framework and email
questionnaire was used as a primary source of data. The questionnaire was sent to all 176
employees and 85 employees responded accordingly. Furthermore, to analyze the information
that were collected through questionnaire and to provide meaningful evidence, STATA software
was used as a statistical tool. The result was analyzed and presented with respect to descriptive
and inferential analysis to provide clear information and to send valuable information for the
reader. The result supports our theoretical framework and it evidently shows job satisfaction as a
single independent variable and hygiene and motivator factors as a separate predictor variable
and they have a significant effect on turnover intention (dependent variable) with a p value =
0.000, which means it is significant at all significant level 0.1, 0.05 and 0.01.

Zelalem (2022) conducted a study on factor that affect employee’s turnover in Ethiopia, Labour
turnover becomes companies massive worry because it costly undertaking the organizations
thrives and values viability of the business. An enormous worry to most companies is that labour
turnover is a costly responsibility especially in organizations that thrives and values feasibility of
the business. The company take a deep interest in their labour turnover rate because turnover
have an effect on the running of the business by making distractions which results to condensed
production and proceeds of the organization. The researcher started to examine by making out
the current factors that affect labour turnover in Hibret Gamtel s.c. and the statistically
researched preparation, Descriptive research design and Open and Close ended questionnaire,
and semi structured interview were functional to collect data and a sample of population was
intended for this research to currently identifying the causes of labour turnover in the Gamtel ing
industry. A sample of population was 358 employees of the Gamtel permanent staffs out of 4433
from the total population of employees. Stratified sampling was designed for the research. SPSS
software version 24 was used to analyze the data descriptive statistics, correlation and regression
statistics and testing the collinearity of the variables. The findings of the study discovered that
Career development product such as Training and development, career planning and growth
opportunities, and mentoring and coaching for instance mentoring, employee relationship with
supervisor and performance evaluation and the rewarding system for example salary and bonus
contribute to the labour turnover in Hibret Gamtel. Discussion based on the variables result has
revealed that there is a positive correlation with labour turnover and make multiple regression
models and less risk of multicollinearity consequence between the independent variable. The
researcher recommended that the management bodies of the Gamtel should amend salary and
bonus, offer fair and equal training and promotion chance, and get better the staff’s career
planning, employee supervisor

relationship and be appropriate advanced and suitable performance evaluation system and also
taking into consideration the external factor by carry out further research till it take the edge off
such employee turnover.
CHAPTER THREE
METHODOLOGY

3.0 Preamble

This chapter describes the research design that was used during data collection, sampling

methods and techniques that were followed. This chapter also describes the research instruments

and data analysis tools and methods as well as the tools used in reporting.
3.1 Research Design

The research project adopted a descriptive research design because the project intended to collect
quantitative and qualitative data that explained the conditions and features of the effects of
labour turnover on organizational performance at Gamtel.

3.2 Population of the Study

According to the Gamtel Human Resource Management, the total number of employees working
in the organization is over 1125 employees. The targeted population was a total of 85 employees
working at the finance department.

3.3 Sample and Sampling Technique

Stratified random sampling was used since the population consists of only the finance
département. Then simple random sampling was employed to ensure that all employees stand
equal chance of being selected to avoid sample bias and ensure that the results were reliable
enough to be generalized.

3.4 Method of data Collection

The researcher drafted the questionnaire and distributed them to the employees of Gamtel. This
was accomplished by a normal method of hand delivery and pick a period of few days was
allowed for the purpose of the employees to answer the questions before they were collected for
data analysis. Primary data was used.

3.5 Research Instrument

The researcher used questionnaires and interviews method to gather information questionnaire
method was used in order to assist in gathering of perfect and trustworthy information since
respondents answered questions easily without any influence. The questions were comprised of
the statement by five Liker scale ranging1=strongly disagree, 2=Disagree, 3=Undecided
4=Agree and 5=Strongly Agree. The questionnaires included two main sections: section one was
collecting the data on demographic variables and section two is designed to measure the effect of
employee’s turnover on organizational performance.

3.6 Validity of The Instrument

The research instrument(questionnaire) adopted will be adequately checked and validated by the
supervisors, his contribution and corrections will be checked into final draft of the research
instrument used.

3.7 Reliability of The Instrument

It is concern with how reliable the data collection instrument is whether the questions in the
survey get the same form to answer. To enhance reliability of the data generated, efforts were
made to ensure that only the respondents who fall within the identify group were given the
questionnaire since they are sure they would give the relevant response

3.8 Method of data Analysis

The data collected was analyzed in both descriptive and inferential. The raw data collected was
categorized into information that answered the research questions. Each research question was
carefully analyzed with reflection to the research topic. The questionnaires and the responses
were coded accurately using Microsoft Excel and Stata to allow perfect analysis of information
so as to come up with comprehensive analysis.