Human resource management is one of the most important practices which help to ensure retention of staffs in organisations. The National Disaster Management Organisation (NADMO) in Ghana has been under intense pressure by citizens to revamp their workforce in order to achieve high performances. However, the institution has failed to be proactive in its responses to disaster management in the country. This study therefore examines the effect of employee turnover on performance of NADMO.

Descriptive design of the quantitative method of research was employed for the study. The simple random sampling method was used in selecting respondents. Questionnaire was the main data collection instrument and a sample size of 221 employees was used. Frequencies, tables, and percentages were also used to present the data. The research found that employee turnover in NADMO is at a high rate. It was also revealed that the institution is highly under resourced with human personnel and logistics and staffs are poorly paid attributing to the high employee turnover. The study also showed a negative relationship between employee turnover and performance. It is recommended that management should provide improved remunerations to staffs and make available logistics in carrying out the duties of the organization. It is therefore concluded that inadequate logistics and resources and high turnover affect the organisation which lead to a lower productivity and performance.

Background to the study
Retaining highly skilled employees is the most important human resource activity in every organization all over the world. Globally, rating agencies have adopted turnover rate ratios as an indicator in rating companies (Dockel, 2013). This provides for the basis that employee retention is an essential tool towards the success of an organization. Although in Ghana company ratings are difficult to be carried out, employee retention remains an important determinant in the successes of organizations (Armstrong, 2010). In Ghana, the market movers or high market performing companies are the ones known to have high employee retention rate. These organisations are able to control the market with different strategies because of the relevance they place on keeping their employees. Companies develop and remain competitive when they are able to have low employee turnover.

In the developed nations, employee turnover rate continue to be high (Martin, 2015). In South Africa, employee turnover is at its greater heights costing the state an estimated 40 billion rands a year; annually in the United States, employee turnover is estimated to cost the country $40 billion; in Canada it is estimated to cost $12 billion and in Germany €60 billion (Oregon, 2014). Frederick (2010) also estimates the cost of each employee turnover in the United States of America to be between $3,500 and $25,000. This loss is enough to depress any human resource manager and the organization. High employee turnover causes delay of service delivery while waiting for a replacement of staff to arrive (Harrie, 2012). She also says that in addition, there might be production losses while assigning and employing replacement staff.

Also, organizations with high turnover experience a waste of time due to inexperienced replacement of staff. Management and other staff spend valuable time not doing their own job but trying to orient the replacement staff. In the opinion of Armstrong (2010) employee turnover is the rate at which an employer gains and loses employee, how long the employee tend to leave and join the organization. Duncan (2008) also explain employee turnover as a percentage which shows the rate at which employees move in and out of an organization. Edward (2010) is of the view that employee turnover is a costly undertaken which is of great concern to most companies. According to him, these costs may include advertising expense, human resource management expense, loss of time and efficiency, work imbalance, training and recruiting expense for new employees and many others.

Saeed, Waseem, Sikander and Rizwan (2014), posits that turnover is a very difficult issue to contend with in this competitive world. Saeed, et al stated that most organisations aim at reducing their turnover ratio, thereby saving turnover cost which consists of hiring, recruiting and selecting the right employees. Baker (2007) explains employee turnover as the number of permanent employees leaving the company within a specific period to the actual employees working on the last day of the period. The popular suggestion according to Tariq, Ramzari and Riaz (2013) is that, organisations should adopt standard operation procedures (SOPs) that reduce the gap among the top management and the middle management in order to identify and resolve employee turnover in the organization.

Employee turnover can be controlled if companies put in place the required retention strategies to keep employees for a longer period (Donald, 2011). These retention strategies may include training and development, good working conditions, higher salaries, efficient organizational environment, good leadership, performance based incentives and many others. Dessler (2009) asserts that the effective implementation of these strategies helps to reduce turnover of employees. Therefore, it is important for companies to calculate turnover rate frequently in order to reduce high turnovers. If a company determines the most common causes of employee turnover, it is able to take the necessary steps to reduce the problem and retain well skilled staff.

A review of the literature has shown that employee turnover has some significant relationship with organisation performance. When managements do not take measures to control employee turnover it tends to affect the performance of the organization through high costs. Companies operate to make profit; as such they need well performing employees to achieve their goals in ensuring the organization attain a higher performance. According to Farris (2010) organisational performance is the attained outcomes of companies through effective employee performances. Armstrong (2010) also explains organizational performance in the contexts of profitability, productivity, outcomes, quality of service delivery, efficiency, and effectiveness. Organisational performance is measured against the performance standards set by the organization (Hayward, 2015).

Dessler (2009) describes organizational performance as the sum total of employee performances. Okoyo and Ezejofor (2013) also posit that inefficient employee performance will result in negative consequences for the organization since it is accompanied with lower productivity, profitability and weakening of total organizational effectiveness. Ocran (2010) views motivation of employees as necessary to generate some level of commitment for a particular objective in an organization. Ocran stated that changing activities that employees perform, reducing the levels of hierarchy and not involving many employees in the motivation process are substantial enough to affect the levels of trust and commitment necessary for employees to perform their work requirements.

Muchhal (2014) claims that performance is important as the success of a business depend on employee performance and the accomplishment of tasks by individual results in individual satisfaction. Job performance is considered by Bevan (2012) as a very important factor that affects how profitable an organization becomes. According to Boles, Pelletier and Lynch (2004), when the physical and emotional desires of employees to work receives a boost their performance outcomes also increases. Ajang (2008) argues that to boost the performance of human resources and that of a business, attention needs to be given to the nature of the human resource. Gareth (2008) is also of the opinion that organisational performance is the result of patterns of actions carried out to satisfy an objective according to set standards.

Duncan (2008) argues that the employee’s turnover has a positive relationship with the organisation inefficiency. The conclusion he made was that there is an insignificant negative relationship between employee turnover and organisation performance. Tariq, Ramzan, Riaz (2013) claim that employee turnover is a key phenomenon in an organisation and widely affect the performance of an organisation. Various studies have established a negative relationship between employee turnover and overall efficiency of the organisation. Therefore high organisational performance is a critical component to determining the successes of companies and so in order for a company to perform better, employee turnover needs to be controlled.

A low level of attention has been given to the problem of high turnover by management in the National Disaster Management Organisation (NADMO) and this is surprising because high levels of turnover indicate a significant problem with low employee morale (Abraham, 2009). When an employee leaves an organization, management needs to spend money and time to recruit new hires to fill vacant positions. Most organisations including NADMO need to recruit well trained and motivated employees. The organisation equally has to retain its employees to help accomplish the mandate for which the organisation was established. Over the years, the organisation has been bedeviled with high turnover. There is limited research on this issue. It is worth investigating turnover and to examine factors that influence employees to quit the organisation and propose a solution.

Statement of the problem
High employee turnover is something no organisation wants. Having put enough investment in people by means of training and development, organisations expect returns from such people. When employees leave, the investment made in employees goes to waste since no benefit is accrued to the organisation. In recent years, NADMO has experienced increasing rate of employee turnover which has affected the efficiency and effectiveness of the institution. According to Bratton (2013), high employee turnover problems continue to exist in the public institution which has made the situation more worrying to management. A low level of attention has been given to the problem of high turnover by management in NADMO and this is surprising because high levels of turnover indicate a significant problem with low employee morale (Abraham, 2009).

The institution has failed to be proactive in its response to disaster management in the country (Mensah, 2006). However, many have suggested that NADMO’s failure to be proactive is as a result of poor skilled staff and inadequate resources to the institution. This assertion may be true because in recent years, NADMO has experienced increasing rate of employee turnover which has affected the efficiency and effectiveness of the institution.

In previous years, NADMO has experienced increasing rate of staff turnover and the problem continue to persist. Despite the problem of high turnover in the organization, management has failed to offer practical solutions on how the turnover problem has to be managed in order to ensure high operational efficiency and improve upon organizational performance. Hence, this has created a research gap in determining the influence of employee turnover on organisational performance. This study therefore sought to obtain the causes of the problem of high turnover and provide appropriate recommendations on how management should reduce turnover rates in NADMO.

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Item Type: Ghanaian Topic  |  Size: 76 pages  |  Chapters: 1-5
Format: MS Word  |  Delivery: Within 30Mins.


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