IMPACT OF LABOUR TURNOVER ON THE PERFORMANCE OF SELECTED DEPOSIT BANKS IN ENUGU METROPOLIS, NIGERIA
ABSTRACT
This study investigated the impact of labour turnover on the performance of selected deposit banks in Enugu Metropolis. There has been the problem of high rates of resignation and dismissal in deposit banks. The objectives of this study are: to identify the cause (s) of labour turnover in Enugu Metropolis, to assess the extent to which labour turnover affect the workload and effectiveness of the remaining bank employees in Enugu deposit banks, to examine the impact of labour turnover on the profitability of deposit banks in Enugu Metropolis and to ascertain the effectiveness of policy used by deposit banks to reduce labour turnover. Survey research design was adopted for the study because questionnaire and oral interview were used as the research instrument for data collection. Out of the 19 deposit banks in Enugu, 4 was purposively selected with a total population of 787 employees and a sample size of 265 drawn from Yamane’s formula at 5% error of tolerance and 95% level of confidence. Hypotheses 1 and 2 were tested using Chi-square while hypotheses 3 and 4 were tested using Z-test statistical tools. The findings show that: poor remuneration is the main cause of labour turnover in deposit banks (X2c = 30.629 > X2t = 21.03), labour turnover has a positive and significant effect on employees’ workload and effectiveness (X2c = 40.750 > X2t = 21.03), labour turnover has a negative impact on profitability of deposit banks (Zc = 2.299 > Zt =1.96) and policy of collective bargaining has a negative and significant impact on labour turnover reduction (Zc = 2.671 > Zt 1.96). The study concluded that dealing with labour turnover calls for collective and continuous efforts of all employers, employees and stakeholders of selected deposit banks in Enugu Metropolis. The study recommended that: Nigerian banks should enhance remuneration of staff in order to reduce labour turnover and cost, they should make sure that most of their staff are exposed to different job descriptions so that staff can work in another department when there is labour turnover, there is need to select the right and capable candidates that can render quality services to customers in order to reduce loss of personal account and good communication should be improve by allowing staff to freely air their mind without threat from their superior.
TABLE OF CONTENTS
Title Page i
Declaration Page ii
Approval Page iii
Dedication iv
Acknowledgements v
Abstract vi
List of Tables x
CHAPTER ONE: INTRODUCTION
1.1 Background of Study 1
1.2 Statement of the Problem 6
1.3 Objectives of the Study 6
1.4 Research Questions 7
1.5 Research Hypotheses 7
1.6 Significance of the Study 7
1.7 Scope of the Study 8
1.8 Operational Definitions of Terms
References 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction 11
2.2.1 Labour Turnover 11
2.2 Conceptual Review (Concepts) 11
2.3 Theoretical Review (Theories) 14
2.3.1 Theories of Labour Turnover and Productivity 16
2.4 Empirical Review 17
2.5 Theoretical Framework/Conceptual Framework 18
2.5.1 Classification of Labour Turnover 20
2.5.2 Factors Impacting on Labour Turnover 22
2.5.3 Desirable and Undesirable Labour Turnover 23
2.5.4 High Labour Turnover 24
2.5.5 Turnover Cost 24
2.5.6 How to Calculate Labour Turnover Cost 25
2.5.7 Some of the Difficulties Encountered during the Replacement of New Employees 26
2.5.8 Causes of Labour Turnover 27
2.5.9 Reasons for Labour Turnover 29
2.5.10 Consequences of Labour Turnover 31
2.5.11 How to Solve Labour Turnover Rate 33
2.5.12 Tips for Reducing Labour Turnover 34
2.5.13 Useful Tips to Improve Employee Morale and Retention in an Organisation 35
2.6 Summary of the Reviewed Related Literature 37
2.7 Knowledge Gap in the Reviewed Related Literature 38
References 40
CHAPTER THREE: METHODOLOGY
3.1 Introduction 46
3.2 Research Design 46
3.3 Sources of Data Collection 46
3.4 Population of the Study 46
3.5 Sample Size Determination 48
3.5.1 Sampling Technique 49
3.6 Description of research instrument 49
3.7 Validity of Research Instrument 50
3.8 Reliability of Research Instrument 50
3.6 Method of Data Analysis 51
References 52
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction 53
4.2 Presentation of collected Biographical Information of Respondents’ (Section A) 53
4.2 Presentation of Questionnaire Analyses (Section B) 55
4.3 Test of Hypotheses 62
4.4 Discussion of Result 68
References 70
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 71
5.2 Conclusion 72
5.3 Recommendations 72
5.4 Suggested Areas for further Research 73
5.5 Contribution to Knowledge 74
5.6 Limitations of the Study 74
Bibliography 75
Appendix I: Questionnaire
Appendix II: Oral Interview Guide