Causes of Employee Turnover in Micro Finance Institutions in Tanzania. The Case Study of Presidential Trust Fund
Human resources are one of the most valuable resources of an organization and indeed an organization is nothing without human resources. This applies to companies, educational Institutions and widely used in all of the business circles. Getting and keeping good people is critical to the success of every organization. Maintaining employees is about providing working conditions that are worker friendly, involvement in decision making, good salaries, recognition for good performance and so forth. Many institutions are increasingly finding it difficult to retain employees. Turnover is becoming a serious problem in today’s corporate environment. Turnover costs for many organizations are very high and can significantly affect financial performance of an institution. This study focused on Presidential Trust Fund and its main objective was to assess the causes of employees’ turnover in microfinance institutions in Tanzania. The study used a sample size of 35 employees of PTF. Purposeful sampling was used to select two respondents from each of the fifteen branches while snowball sampling was used to obtain five respondents who have resigned from the institution. The study used interview and questionnaires to collect data; they were administered to the respondents at their offices and to those respondents from upcountry branches were mailed. Data was analyzed using statistical package for social sciences (SPSS) and frequency distribution tables were used. The study established that the main causes of employee turnover at the Presidential Trust Fund were lack of compensation procedures, less recognition and no clear employees’ involvement in decision making. These result to poor productivity, poor institutional image and low motivation for the workers. The study further revealed that 99% of the respondents felt the company is not doing enough to reduce the effects of labour turnover. The study came up with many recommendations which includes; The management should introduce better technique on compensation package, the management of PTF should involve workers in decision making/planning, review its training policy and opportunities for growth be put in place in order to retain its workforce and should implement the findings of employees’ turnover in order to reduce its effects, the management should implement worker friendly leadership styles to be used by all managers in the company for instance democratic style.
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