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Background research on the effect of employee turnover on performance
Background research
Employee turnover in organisations, over the course of the last ten years, has
received a wide consideration among academicians and professionals, and the centre
of attention has been on comprehending the sources of employee turnover. Van Zyl
(2011) express that employee turnover, and the adverse effect it has on performance
is one of the most infuriating issues an organisation faces. Tariq, Ramzan & Riaz
(2013) elaborate that the result of employee turnovers in any organisation is very
catastrophic. Unequivocally, performance as an organisational practice is mostly
influenced by employee turnover (Faulk & Hicks, 2016). In the present era
organisations focus on attaining extraordinary performance targets, even though the
business environment has become competitive and by concentrating on approaches
that are likely to improve performance (Armstrong, 2016). Due to high employee
turnover rates, it has become difficult for organisations in the present day to attain a
high level of performance in relation to their performance targets.
According to Catalyst (2016), about 59 million employees in the United States of
America (USA) left their employment in 2015. Furthermore, Obiero (2014)
expresses that the medical services segment in the USA would achieve a turnover
rate at a level of 29% in the year 2020. The report entails that employee turnover
would carry on being an issue in the years ahead. According to the Chartered
Institute of Personnel Development (CIPD) (2016) in the United Kingdom (U.K),
the average turnover rate is approximately 15% every year. However, it is different
according to the type of industries. Furthermore, Schlechter, Syce & Bussin (2016)
express that employee turnover is the biggest challenge faced by numerous
organisations worldwide.
According to Journal of E-Governance (2010) in South Africa, the demand for
talented employees has kept on expanding because of a maturing populace and a
growing economy. Organisations are compelled to be in competition to entice and
retain talented employees in an environment where there is a skill shortage
(Schlechter, Syce, & Bussin 2016). Government departments in South Africa have
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been struggling with the issue of retaining skilled employees (Crous, 2012).
Mabindisa (2013) states that a number of employees are leaving the public service in
South Africa for better-paying organisations in the private sector. Furthermore,
Schlechter, Syce, and Bussin (2016) express that in South Africa employees who
have exceptional skills are in demand and are getting hard to source. In the present
era, organisations have become very competitive. As a result, quality service is a
key factor in having a competitive advantage (Satgoor, 2015). Employee turnover is
turning into a serious Human Resource (HR) concern in all segments of the
economy, since employee turnover influences performance, production and profits
(Pillay, 2011). Additionally, it is costly to replace workers, recruiting skilled
workers can be challenging, and investing in training can be expensive. Along these
lines, as of now, in a competitive setting, employee turnover is not only an HR
concern since it has an effect on organisations in a positive and negative manner
(Faulk & Hicks, 2016).
Nzimande (2012) further reveals that employee turnover places an unnecessary
burden on personnel in an organisation who are doing their regular duties. The staff
that remain in an organisation encounter an expanded workload prompting low
morale, abnormal level of anxiety, which results in workers being absent from work.
Mote (2014) further supports the above by expressing that existing employees, also,
need to perform extra work to compensate the work of the individuals who left the
organisation. Nzimande (2012:13) states that “employees in all facet of life play a
central role in ensuring that the organisation delivers on its mandates, if employees
leave, meeting the organisational needs may have an adverse effect on the quality of
service provided to service beneficiaries”. An organisation that loses its workers
tends to result in low performance. A study conducted by Society for Human
Resource Management (2008) indicated that the cost of replacing personnel might
be as high as 60% of a worker’s yearly compensation, while the aggregate cost of
supplanting which includes loss of productivity and training, can go from 90% to
200% of a worker’s yearly pay. Organisations that experience high employee
turnover tend to suffer performance wise.
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According to KZNDAC (2017), the KwaZulu-Natal Department of Arts and Culture
(KZNDAC) promotes, supports, develops and protects the Arts, Culture and
Heritage of the province and the province’s heritage sites, museums and monuments
also fall under this ministry. The Department believes that arts and culture play a
crucial role in nation building as well as in developing a new national identity
reflective of our democracy. The Department’s initiatives such as the Social
Cohesion Programme ensure that people are proud of their diverse culture and
heritage. To this end, KZNDAC (2017) affirms that the KwaZulu-Natal Department
of Arts and Culture consists of different units that offer various types of services to
the public, such as the Language Services Unit, Museum Services Unit, Arts and
Culture Unit, Library Services Unit and Archives Unit.
According to KZNDAC (2017), the Language Services Unit fosters respect for
linguistic rights as enshrined in the constitution, its core functions are; To provide
translation and editing services to the provincial government departments and
statutory bodies in the province’s four main official languages; to provide
interpreting services for meetings, conferences, misconduct queries, etc.
Additionally, to conduct advocacy campaigns on the promotion of multilingualism
and to develop and promote the writing of literature especially in the previously
marginalised languages as a way of promoting literature development (KZNDAC,
2017).
KZNDAC (2017) furthermore asserts that the Museum Services’ unit aim is to
promote the preservation of our country’s rich and varied cultural heritage by
assisting in the development of local museums in KwaZulu-Natal and by raising
their standards. Museum Services has 35 museums affiliated with it, all of which are
open to the public. These museums receive financial assistance from the provincial
government. It also provides smaller museums with professional and technical
assistance in terms of research, art studio, museum conservation, restoration-
display, design and manufacture facility and events marketing and outreach projects.
According to KZNDAC (2017), the KwaZulu-Natal Archives Unit is the custodian
of documents, oral history maps and photographs that tell the province’s history.
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KZN Archives came into existence with effect from 01 April 2001, regarding the
KwaZulu-Natal Archives Act, Act 5 of 2000 Schedule 5 of the Constitution which
provides for the provincialisation of the archives. KZNDAC (2017) states that the
KZN Archives is responsible for: acquisition, preservation, awareness and use of
information that documents the history of our province; ensuring proper
management and care of records in all spheres of government and documenting our
province’s experiences that were neglected in the past.
Furthermore, KZNDAC (2017) is of the view that due to the large geographical
areas that the Archives service covers, the department runs three repositories to
ensure service delivery. The KwaZulu-Natal Archives is headed by the Provincial
Archivist based in the Head Office. The Deputy Manager and two Assistant
Managers head each repository up. In addition, according to KZNDAC (2017), the
Department of Arts and Culture Library Services provides services and support to
affiliated public libraries throughout the province of KwaZulu-Natal. This affiliation
forms the basis of a cooperative partnership between provincial and local
government, each contributing to providing library services to communities so that
the information and recreational needs of all people are catered for. KZNDAC
(2017) asserts that the service consists of a central organisation based at the Head
Office in Pietermaritzburg and cascaded to the Regional Library Depots in Northern,
Western, Southern, and Eastern regions of the province. KZNDAC (2017) concludes
that the services provided to libraries include library material in all formats (books,
music, audiobooks, DVDs, videos, posters, gaming, toys and magazines), ICT and
Information services and promotional items and projects.
KZNDAC Annual Report (2015/2016) states that the turnover rate at the department
was at 8.7%. The turnover at the department is due to 17(45, 9%) employees
resigning, 2(5.4%) died, 9 (24.3%) contract expired, 1(2.7%) dismissed for
misconduct and 8(21.6%) retired. The primary objective of this study is to assess the
effect of employee turnover on performance at KZN Department of Arts and
Culture.
Statement of the problem
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Employee turnover has been a challenge for decades. Globally, some organisations
have ignored the fact that employee turnover is a problem. While a few
organisations have tried to comprehend what makes, employees leave their place of
work and only a few have invested in solving the problem of employee turnover.
Furthermore, Heathfield (2016) expresses that employee turnover can notably affect
organisational performance and to decrease the turnover relies upon the entire work
environment for workers. Organisations that accomplish the most diminishments in
turnover and uphold those low levels are usually the ones where management makes
it the primary concern (Linhartová, 2011). The retention of workers in the 21st
century is perceived as a challenge, due to workers regularly changing occupations
and are uncertain about their future (Heathfield, 2016).
The KwaZulu-Natal Department of Arts and Culture is confronted with a high rate
of employee turnover every year, which affects the performance of the department.
From the year 2012 to 2016 hundred and ninety (190) employees have left the
DAC. Out of the hundred and ninety (190) employees, hundred and fifty-nine (159)
contract expired, resigned or transferred to another government department while
the rest died or retired. When employees depart from an organisation, the remaining
workers tend to perform additional work until another employee is hired, which
affects the performance of the organisation. Employee turnover in an organisation
elevates the cost of recruiting, selecting, training, and employment of temporary
personnel (Mote, 2014). This research study outlines the extent of employee
turnover at the KZN Department of Arts and Culture, while additionally expressing
the influence of the identified employee turnover on the performance of the
organisation. This study, therefore, will propose strategies or recommendations for
reducing turnover and improving performance at the department.
