The influence of employee turnover on organisational performance : a case of private bank South Africa

Abstract

Although the South African Private Banking sector is a lucrative corporate space for many commerce professionals, a significant degree of employee turnover has been recorded in recent years, generating a scarcity and drain on supply of specialised talents, affecting the financial stability of this crucial industry. This study investigated the influences of employee turnover and its impact on organisational performance within the context of a South African private bank. The study aimed to explore the underlying causes of high employee turnover. A mixed method explanatory sequential design method was adopted. The quantitative phase of the study consisted of a questionnaire administered to a sample of 300 private banking employees in the Johannesburg region. The qualitative phase involved semistructured interviews conducted with five key informants from the senior management private banking regions. The participation in this study was entirely voluntary and participants were assured of confidentiality and their anonymity. Quantitative data was captured using the SPPS software. Qualitative data was recorded and transcribed to ensure credibility, the findings were interpreted and analysed utilising the thematic analysis approach where main themes and subthemes were identified and discussed. The main findings of the study showed that employee turnover is driven by organisational performance, but that effect is negative. The study also found that a large portion of the respondents indicated that remuneration was a factor that they were not satisfied with, and this was further corroborated by the findings of the structured interviews held with senior management staff. The study recommended guidelines towards preventing staff attrition, such as developing a talent management pool or pipeline or providing change management efforts and suitable learning interventions.