Impact Of Labour Turnover On Performance In Banking Sector In Nigeria
In the midst of other resources, human capital is considered the most valuable in Organizations. The contribution of human resources to organization performance is significant. Organization must ensure maximum cost reduction to attain high level of profitability and one way of doing that is by attending to labour issue. Hence, the aim of this study is to examine labour turnover relationship with the p0erformance of Nigerian banking industry.
Survey method was used: the population of the study comprised the entire commercial banks in the three sensational districts of Oyo State, Nigeria. The research work employed the use of open and close ended questionnaires in order to elicit relevant information from the respondents, the open ended questionnaire was used during the pilot study with 40 respondents chosen from the existing 23 banks in Nigeria while the close emended questionnaire was developed in line with livert five point rating scales.
The research work used random and purposive sampling techniques in the course of administered the questionnaires to 40 respondents who were the employees of the bank out of the 40 questionnaires administered 30 questionnaires were considered to be adequate for analytical purpose representing 75% respondent rate., descriptive statistics, correction and regression analyses were used to analysis and test the hypothesis at 0.5 level of significance. It was found that the result showed that labour turnover was significantly influenced by job stress variables with strong positive correlation in relationship and thus, suggested that a pragmatic review of the human resources management polices as well as organizational policies to induce serene atmosphere conditions where no one is carrying out responsibilities in fear or operating under duress i.e. a family live work environment.
In Nigeria today, the world is constantly changing as a result of different challenges emanating from the political, legal as well as the technological environment of business and this explains why the nature of work is changing at whirlwind work itself is a natural phenomenon which is fundamental to human existence and survival in a nutshell the environment in \which man works is a major factor to be considered in man’s reaction to work for existence and survival as some environments are conducive while some are not conducive (Ehigie, 2002)
Among all business resources (human, financial, material and information), human resources is the most important. If they are nurtured, cared for, and supported they will provide valuable contribution to the enterprise (Akindele, 2007). This explains why companies of various size and scope invest lot of resources to make them efficient and effective for improved performance. However, firms are finding it difficult today to retain their employees, and this leaves a soaring experience which firms must bear too find a replacement (Akindele, 2007).. consequently labour turnover issue was being generating heat discussed in the literature for the past decades due to p-psychological dimension on organizational significant and economic dimensio9ns on nation (Long, perumal and Ajagbe, 2012)
Labour turnover refers to employees’ mobility in an organization, the rate at which employees come and go. It can be external or internal. External turnover is when it is concerned with the employees leaving the organization entirely for another one, white internal turnover is when employees move from one department to another within the same organization. The external labour turnover can be accession or separation, resignation, retirement, retrenchment and dismissal.
Analysis of labour mobility is a vital of personnel management process because this confronts managers with different interrelated problems. The degree of labour turnover avoidable or unavoidable, healthy or unhealthy affects the productivit5y of an organization. However, although some degree of labour turnover is both inevitable and healthy, too much of it can severely reduce productivity demoralize the manager and employees and damage the organizations’ public image. On the other hand, of there is too little internal mobility, it lower employees ambitions and to low rate of external mobility (separation of old hands and inflows of new hand ) leads to the organization becoming moribund.
1.2 Historical Background
The entire banking tasks styarte4d in Italy during the late 1500s when Jews in Lambardy transact business in benches in the market place. Skye bank is one of Nigeria’s top financial institutions providing a one-stop banquet of various financial services, which are facilitated by cutting edge technology to meet the needs of different cadres of customers.
The bank was established in 1990 as a merchant bank and it converted to commercial banking ten years 2000. Following the banking consolidation in 2005-2006, Skye bank emerge in its current form. These are the commercial bank that emerged one prudent bank, bond bank, Eko international bank, cooperative bank and Reliance bank.
The bank is managed by seasoned professionals with over 2250 years at cumulative, quality financial service industry experience. T6he board of directors of Skye bank comprise4s proven professionals who have held executive positions in the accountancy legal military, statutory regulation, financial, academic, medical and industrial sectors. The shareholder’s funds in excess of #100 billion Skye bank has over 240 business offices (comprising branches and cash offices) spread across all the geo-political Zones in Nigeria. The pursuit of excellent customer service is enunciate by the well acknowledged leadership of the bank in efficient deploying information and communication technology (ICT) in all its locations.
In it\s bid to seek opportunity for growth and create avenue for providing adequate return to shareholders, the bank has 3 subsidiaries in countries in the west African sub region namely Sierra Leone, the Gambia and Guinea.
1.2 Purpose Of The Study
The purpose of the study cannot be very emphasized, bank renders varieties of essential services to the general populace and their contributions towards the development of the country socially, technologically and economically cannot be underrated. This study is also justified by the importance of research to the world in general. It is also important because the outcome of the organization and that a good personnel management policy can be formulated from the recommendation’s which is a necessary condition for retaining and maintaining staff
1.3 Research Objectives
The main objective of the research was to examine the impact of labour turnover on performance in the banking sector of Nigeria economy which was achieved through these specific objectives which include:
- To study the degree of labour turnover on performance in banking sector.
- To exiling the causes and effects of labour turnover on the organization, the employees and the managers,
- To proffer solution or make recommendations regarding labour turnover rate.
1.4 Statement Of The Problem
Majority of scholars that has contributed to the performance of labour was as a result of the interaction of workers and the condition of work although views fifers about the causes and effect however, it was established that performance is a function of personal characteristics and working conditions. In other words, what one labour can perform may differ from another threat to limited time of worker and in the long run the productivity of the organizations and considering the fact that banking environment is exposed to many work. The research is based on unanswered question, limited time, a missing line, the cost and the need.
1.5 Research Question
- What could be the degree of labour turnover in banking sector?
- What are the causes and effects of labour turnover on the organization, the employees and the managers?
1.6 Scope Of The Study
The scope of the study was Skye bank and labour turnover while the study was conducted using the employees in the banking sectors of Nigeria economy which were drawn from the twenty three (23) banks in Nigeria as dully represented in Lagos
1.7 Significance Of The Research
The significance of the study was fund to be in the area of provision o0f insight into the various elements that could be regarded as components of labour turnover, implication of labour turnover on work environment and personality characteristics as well as level of employees
1.8 Definition Of Term
1. Labour Turnover:
This is the ratio of the number of employee that leave a company through attrition, dismi9ssal, or resignation during a period to the number of employees on payroll during the same period. It’s the proportion of a firm’s workforce that leaves during the course of a year.
This describes the situation when employees decides to leave the organization personality by himself. Its can be a formal act of giving up or quitting one’s office or position, it can occur when a person holding a position gained by election or appointment steps down
It describes staff coming into the organization. The attainment or acquisition of rank and power.
It is an employee’s departure from a job. It can be voluntary on the employee’s part, or it may be at the hands of the employer. It describes the situation when an employees is revealed of his job due to incompetence
This is the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost and speed. It is the fulfillment of obligations in a manner that releases the performer from all liabilities.
This is a group of persons, as employees, charged with carrying out the work of an establishment or executing some undertaking.
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