CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Job turnover has a long history of affecting an organization’s reputation as well as individual and organizational performance. Job turnover, according to Ahuja, Chudoba, George, Kacmar, & McKnight (2002), refers to the amount of personnel moving in and out of a company. Another definition of turnover is the departure of an employee from an organization (Hammerberg, 2002). Turnover intention is defined as a conscious and purposeful desire to quit a company (Khan, Yusoff., & Khan., 2014; Qureshi, 2013).
Rapid changes in the world, globalization, economic conditions, and technological innovation have recently produced difficulties such as competitiveness among employees in organizations. Every organization competes with another organization in some way. Similarly, every firm strives to train their personnel and prefers smart work over hard effort. As a result of this competitiveness, employees are overworked and underpaid. As a result, workload refers to the amount of work assigned to an individual (Khan., Rasli, Khan, Yasir, & Malik, 2014; Qureshi, 2013).
Staff turnover has both negative and positive aspects, and it is a typical part of how a organizations operates. According to Flippo (1984), staff turnover is the flow of employees into and out of an organization. High employee turnover rates may be detrimental to the organization (Armstrong 2004). The loss of skilled personnel increases the pressure on the remaining employees, resulting in major operational challenges (Dessler 2004). The intrinsic expenses of personnel turnover account for a larger portion of a company’s total operating costs.
Mungumi (2002) identified the costs and consequences of high staff turnover rates as loss of competent human resource, hiring costs involving time and facilities for recruitment, interviewing, and examining a replacement, scrap and waste rates that rise when new employees are involved, overtime pay resulting from an excessive number of separations causing difficulty meeting contract delivery dates, and training costs involving time of supervisors, personnel department, and train personnel. High accident rates among new employees, insufficient use of production equipment during the hiring and training periods, loss of production between the separation of the old employees and replacement, administration costs of adding and replacing from payroll, decreased commitment among remaining employees, and loss of competent staff with exceptional capabilities. Cascio (1982) finds that high levels of turnover drive up expenses, and new employees take time to learn and adapt to the organization’s culture, systems, and processes.
1.2 STATEMENT OF THE PROBLEM
Private schools’ primary goal is to make a profit, which they can only do if they add greater value to student accomplishment per unit cost of the student’s investment. To increase profitability, the management of these schools should seek to reduce costs as much as feasible. Staff turnover accounts for a larger portion of an organization’s operational costs (Armstrong, 2004). According to (CIPD, 2004), there are direct expenses associated with training and development, as well as the opportunity cost of time spent by managers in training and development, as well as the associated loss of performance. High employee turnover is costly. Consequently, one of the primary concerns of organizational management is to maintain effective staff retention by adopting periodic quantitative and qualitative measurements to evaluate the severity of staff turnover. A staff turnover rate of 10-15% is considered reasonable (Armstrong, 2004). An company must understand the causes and rates of turnover in order to take the necessary efforts to lower the rate.
Almost all private schools face the enormous task of identifying, attracting, and maintaining high-caliber faculty or staff. These developments have resulted in a more strategic approach to human resource management in the education sector. According to Nyakundi (2010), employees in organizations and learning institutions like to feel that someone cares about and appreciates their work, which motivates them to work more effectively; thus, the purpose of this study is to investigate the determinants of employees turnover in private schools.
1.3 OBJECTIVES OF THE STUDY
Broadly, the main aim of this study is to investigate the determinants of employees turnover in private schools. Specifically, other aims of this study are:
i. To examine the factors that influence employee turnover in private schools
ii. To determine if the rate of employee turnover affects academic performance of students in private schools.
iii. To determine if the rate of employee turnover affects the profitability of private schools.
iv. To proffer measures that can help private schools to retain employee turnover.
