Employee turnover in a financial institution

Abstract

With recognition of turnover as a financial issue increasing, companies are searching for strategies to confront the problem in ways that generate a good return on investment. Successfully managing turnover is a matter of understanding its costs, causes and cures. In service–oriented industries such as banking, people are considered among the most important assets of a firm. Forward–thinking banks are looking for ways to leverage people, along with processes and technology, to achieve their objectives. Employee expectations are changing, too, forcing organisations to place a greater emphasis on talent management strategies and practices. Employees rarely quit on the spot. Generally, an employee becomes dissatisfied and stays disengaged for quite a while before leaving. However, from the moment of disengagement, most employees are no longer as dedicated or productive as they once were. Nearly all the real reasons why employees quit, fall into four basic categories of human needs: the need for trust, the need for hope, the need to feel competent, and the need to feel valued and trustworthy (Branham, 2005). Thirteen possible reasons for resignations were identified within the banking sector, namely: desire to take on a new challenge, bad relationship with management, bad relationship with colleagues, lack of opportunity for advancement, lack of appreciation (perception of recognition), better compensation and benefits elsewhere, long working hours, lack of control over work or working environment, travelling distance to work, personal satiation at home, lack of training and support to reach potential, the department is conducive to black advancement, the bank embraces diversity for all. Most of the employees that resigned voluntary did so because of lack of opportunity for advancement, a desire to take on a new challenge and a lack of appreciation. The statistical analysis revealed that amongst position title, there is a statistical significance for the bank embraces diversity for all as a reason for resignation and that the effect between junior managers and team leaders has a large effect. Analysis by gender differences shows that there is a statistical significance for personal situation at home as a reason for resignation and that females feels stronger about this than males. When looked at the difference between ethnic group, there are two reasons that are statistical significant namely, better compensation elsewhere and long working hours. Africans, coloureds and white‘s size effect is large, meaning that Africans and coloureds feel stronger about leaving for better compensation elseware than whites.