The implementation of a retention policy in the Limpopo Provincial Treasury

Abstract

Retention Management is one of the major challenges impacting on service delivery in the Public Service. Retaining core employees in organisations is not always strategically prioritised, despite the cost of turnover to the employer. This research investigated the implementation of the retention policy in the Limpopo Provincial Treasury (LPT). The LPT is responsible for resource allocation, monitoring and supporting Provincial Departments and public institution as well as monitoring and providing support to municipalities. The LPT faces serious staff turnover rates in core skills especially young internal auditors which have resulted in unmet targets during the past 10 years. In this research, a questionnaire survey was used to collect data focussing on retention theories, models, and legislative and policy frameworks. The questionnaire comprised of both closed- and open-ended questions was designed to determine employee perceptions regarding the retention of core employees. Likert point scale was used for quantitative closed ended questions. Open ended questions gathered respondents’ views and perceptions about the implementation of the retention policy in the LPT. The questionnaire was distributed to 60 core employees in the LPT. The target population included internal auditors, risk management practitioners, internal control practitioners, financial management practitioners, information technology specialists, revenue management practitioners, accountants and economists. Quantitative data was analysed using descriptive statistics in the SPSS software packages, while qualitative data was analysed using thematic analysis. A literature review was done through primary sources i.e. books, acts and policies, as well as secondary sources from articles obtained electronically. The information from the literature review was compared with the results of the research. The results revealed that the employee morale, the lack of promotion opportunities and inadequate resource allocations were the main causes for retention failure. Employees are also unaware of the existence of the retention policy, which exacerbates the situation further. The research resulted in recommendations put forward for the development of an integrated retention policy aligned to all relevant human resource management policies involving all stakeholders through an intensive resource allocation strategy.