Labour turnover and its impact on performance of Banks in Ghana

Abstract

The normal saying that the devil you know is better than the angel you do not know suggest that it is better for organizations to continue working with their existing employees than to encourage labour turnover by employing new employees most of the time.  The research was done to examine labour turnover and its impact on performance of Banks in Ghana.  Two main sources of data namely primary and secondary were used in the study.  The primary data refers to the interviews that where conducted with employees of the banks selected for the study.  The secondary source was through journals, textbooks and annual reports of Bank of Ghana.  Convenience Sampling was used and the study concluded that there is a positive relationship between labour turnover and performance of Banks in Ghana in terms of customer complains.  The analysis through the coefficient of determination calculated indicated that its contribution to performance of Banks in Ghana in terms of customer complains is 55.8% whilst other factors contribute to 44.2%.   The Chi Square Statistic (X²) calculated 71.074 made the study to reject the null hypothesis formulated by accepting the alternative hypothesis that customer complains is dependent on labour turnover in Banks in Ghana.  Interviews conducted with the employees (72.3%) also showed that labour turnover play a significant role in terms of quality of services rendered to customers especially in the short run.  The study concluded by recommending positive measures which Banks in Ghana need to adopt in order to maintain their existing employees so as continue the relationship they had already established with customers.

Keywords: Labour turnover, customer complains, performance, banking industry