1.1 BACKGROUND OF THE STUDY
Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their best interest to retain that employee, and further develop and motivate him so that he continues to provide value to the organization.
In today’s competitive labour market, there is extensive evidence that organisations regardless of size, technological advances, market forces and other factors are facing retention challenges. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. Employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employers and focuses only on the needs of the organization, staff turnover often results.
The term ‘employee turnover rate’ as used in this research effort excludes layoffs, reduction in workforce, and completion of temporary assignments. Furthermore, Fitz-enz (1997) states that the average company loses approximately $1million with every 10 managerial and professional employees who leave the organisation. Managerial and professional employees were categorised as ‘exempt employees’ (see definitions section).
1.2 STATEMENT OF THE PROBLEM