An analysis of the labour turnover situation in First Allied Savings and Loans Limited; its impact and the way forward.
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Date
2005-11-03
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Abstract
The human resource element of any organization is very essential to its growth. It is very important that no stone is left unturned in ensuring that labour is satisfied to give its maximum contribution so that productivity is increased.
Labour turnover occurs when workers leave an organization and need to be replaced by new recruits. This could be through resignations, dismissals and retirement. This study is mainly on voluntary resignations, which are not foreseen by management and can therefore have a particularly disruptive effect.
Indeed, a certain degree of labour turnover may be desirable in any organization since it creates opportunities for new ideas, lower labour costs among others. Persistently high levels of labour turnover are however costly to any institution.
First Allied Savings And Loans Limited started operating in September 1996 with a staff strength of 14. As at December 2903, the staff strength was 155, a remarkable increase over this period. There again has been a lot of people being appointed and leaving over the yeais. Inspite of this, there is no human resources department to handle only human resource issues. The Finance and Administration department partly performs this duty.
The main objective of this study is to assess the impact of labour turnover in FASL.
This cannot be complete without ascertaining the rates of labour turnover over the years, determining the reasons for it and identifying the patterns of labour turnover in FASL.
The rate of labour turnover has fluctuated over the years, between 5% and 26%.
The patterns of resignations in FASL have also been discussed in three main ways.
Positions and their levels of resignations, the duration of stay of leavers and,
Departments/branches and their levels of resignations.
Several reasons for resignations were realized. Both from filed records (resignation letters) and results from the research conducted. Some of the reasons realized from the research included low pay, poor management style, lack of training and development opportunities, delayed promotion, education etc.
The impact of the labour turnover on FASL has also been discussed. The impact was both positive and negative. The negative impact however outweighed the positive. The negative impact includes high recruiting costs, high staff training costs, low productivity, overburdening of staff among others. The positive impact include new ideas, lower labour costs and loss of poor performers.
Recommendations have been made to help reduce the level of labour turnover in FASL so that the institution would improve in its performance as a micro finance institution. These include payment of competitive salaries, training and development opportunities, induction, equal promotional opportunities, job rotation, etc.
Description
A thesis submitted to the College of Arts and Social Sciences in partial fulfilment of the requirements for the award of Master of Arts (Economics), 2005