Causes and Effects of Labour Turnover on the Performance of Small Scale Businesses Case Study: Sanlam Insuarance Company-Kololo

Abstract

The study aimed at the Causes and Effects of Labour turnover on the Performance of small scale businesses.

The objectives of the study where to identify the cause of labour turnover, to identify the effect of labour turnover on the performance and to find out the strategies employed to reduce labor turnover in Sanlam General insurance company.

Data was collected through mixed methods of strategies that is to say, questionnaires and the interview guide. The research sample composed of 66 respondents of which 37 were male and 29 female.

Recommendations where made possible by using tables. These were found to be the most appropriate for the study since it was simple/easy to summarize the information.

The causes of labour turnover identified were lack of employee satisfaction, low employee engagement, lack of promotions and recognition in the organization, poor organizational culture, poor supervisors’ feedback, lack of employee benefits and the poor organizational policies.

Effects of turnover on performance identified were loss of skilled manpower, low salaries to non-performers and recruitment of new employees who bring new skills from former job places.

Recommendations made include the human resource having an examination of employee selection procedures, management and planning procedures, management consulting more and coming up with the best benefit scheme for all age groups, government empowering the managers and human resource of the different organisations to monitor their employees’ performance and new horizons of labour turnover be conducted to test the effects and the new intervention on design and strategies.

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