Effect of Labour Turnover on Performance in Nigerian Banking Industry (A Case of Ado-Ekiti Metropolis, Ekiti State)

Abstract

In the midst of other resources, human capital is considered the most valuable in organisations. The contribution of human resources to organization performance is significant. Organisation 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 turn-over relationship with the performance of Nigerian banking industry. Survey method was used; the population of the study comprised the entire commercial banks in the three senatorial districts of Ekiti-State, Nigeria. Sample size of 34 officers of current employees out of total population of 51 officers was used while 51 out of total population of 68 ex-employees were used. The current key officers were used to ascertain if the determinant factors have influence on the banks performance. On the other hand, ex-employees were used to know if any of the determinant factors used in the study had caused the employees to leave the banks. Purposive and convenient sampling techniques were used respectively to select the respondents while questionnaire was used to collect the data. Regression was used to analyse the data using Statistical Package for Social Sciences (SPSS). The finding shows that retrenchment, unrealistic target, leadership style, training and job insecurity have a positive relationship with performance while excessive workload shows negative relationship with the performance. Arising from the findings, it shows that performance in an orgarnisation hangs on each determinant factors working together as a system. This indicates that a single determinant factor cannot give banks a desirable performance. The value of R² 80.1% shows the good fit of the result. The following recommendations were made; Banks management should ensure that other determinant factors especially, those that are concerned with the institutions performance are given necessary support and pursued to actualise them. Banks management should set realistic target rate for their employees to curtail the risk of evil vices of getting the target especially, the ladies banker.

Keywords: Labour Turnover, Performance, Separation, Accession and Bank.