THE EFFECT OF EMPLOYEE TURNOVER ON ORGANIZATIONAL PERFORMANCE, THE CASE OF WEGAGEN BANK

Abstract

The primary objective of this research was to investigate the effect on employee turnover on organizational performance at Wegagan Bank. The research adopted a descriptive and explanatory research designs. Stratified sampling method was used to select the sample that are representative from different branches of the bank and from those employees were selected randomly. Data from employees was collected using questionnaires which are composed of both close ended which makes the research a mixed (both quantitative and qualitative). The data were gathered through questionnaires were processed via statistical software package called STATA and analyzed using descriptive and inferential statistics. The researcher has found out that in most branches of the bank employees don’t have a good relationship with the management of the bank and there is inequality and a miss match between jobs and employees due to this most employees don’t like the working condition of their organization. And as to the response of most employees their work is exhausting and boring which increase the level of job dissatisfaction and level of turnover. High rate of employee turnover was observed which highly affect the performance of the organization in several ways. Therefore, the researcher highly recommends that the HR department should give special attention to voluntary turnover and need to make the necessary adjustment as to the attitude of their employees like using an effective way of recruitment and selection process, creating a healthy working environment, make a necessary salary increment; redesign jobs and use exit interviews and other methods to know why their employees leave at the right time and use the information acquired appropriately.