Empirical Literature Review on Voluntary Staff Turnover and Employee Performance
Fanou (2018) did a descriptive research to establish whether employee turnover affected
the competitive advantage of insurance companies. The study revealed that voluntary
employee turnover was due to unattractiveness of the job; life time decisions or
circumstances for instance, family moves, serious illness and death. Another study by
Heneman et al (2012) affirms that search for better jobs, chance of carrier, unfavorable
working conditions, poor remuneration and benefits and poor relationship with mangers
may lead to employees voluntarily leaving an organization. Fanou (2018) Study
disagreed that voluntary turnover occurs due to life decisions or circumstances like
serious illness, family relocations or death. This is in line with the study done by Sandra
(2012) which asserts that unavoidable turnover occurs due to life time decisions that are
beyond an employer's control. It occurs when an employee relocates or a spouse is
transferred to a different locality. The study also reveals that unavoidable turnover occurs
due to severe disease, death, relocation that the organization may not have control (Taylor
& Finley, 2010).
Thuita (2018) conducted a study in Nyeri County, Kenya and sought to find how
employee turnover affected performance of the county. Descriptive design was used, and
failure to have succession planning contributed to employee’s turnover in the county. The
study established that employee appreciation makes their stay in the county much longer.
Kwame, Boahen and Denu (2013) studied on the Effects of Employee Turnover on the
Performance of Zoomlion Ghana Limited. Poor working environment, Lack of
motivation, poor management, lack of recognition, too much work load, inadequate
training and development opportunities, educational advancement, high remunerations,
lack of promotion and carrier development all influenced staff turnover. The study also
revealed that inadequate job training, inadequate job supervision and lack of chance to
improve on job skills were among causes of staff turnover at the organization.
Ntinyari (2017) did a study on commercial banks in Kenya and sought to find out how
turnover affected their performance. The findings reveal that compromised customer
service quality, cost of replacement, job satisfaction, and production were among major
effects of employee turnover. Job satisfaction, employee commitment, motivation, better
remunerations, working conditions, work life balance and employee relations were among
the factors that majorly affected the commercial bank. Phillips and Hernandez (2018)
study found that overall compensation, job training, carrier development, life balance and
access to management affected turnover in nonprofit organizations and good
remuneration significantly guaranteed employee retention. Groonroos (2007) studied on
voluntary turnover consequences and established that service quality will likely decline
due to resources and time required for employee replacement. Groonroos categorized
quality services into to two categories understood by customers; the functional and
technical quality.
Mabindisa (2013) did a study that sought to establish how stuff turnover impacted
organizational effectiveness and employee performance. The quantitative study design
approach was used and data collection used structured questionnaire. A survey was used
because the target population only included 100 employees. The findings showed how
high turnover affects organizational performance by distorting its efforts towards
objectives of the organization. The other findings were; negative impact on innovation,
major service delivery delays and consistency.
Butali, Wesang’ula and Mamuli (2013) also did a study in Masinde Muliro University of
Science and Technology (MMUST). The study sought to establish existing relation
between staff turnover and performance. In their study they used correlational design and
collected data using cluster random sampling. Relevant data was obtained using
observation, questionnaires, document analysis and interviews. The study used a total of
152 respondents that were obtained from 25 departments that were selected randomly.
Among the findings were; derailed performance due to increased workload for the
remaining staff, dissatisfaction by clients and lowered staff morale creates loopholes in
the social networks as a result of turnover. Tariq (2013) did another studied that sought to
find out the impact employees turnover on organizational performance and worked
together with Derek (2006) study revealing inefficiency in organization has positive with
staff turnover. Quantitative research design was used and results of the study showed
strong negative relation between independent and dependent variables of performance
based on workload, work stress and turnover of employees respectively.
In the above researches their exist gaps in literature that this study sought to fill. Most of
the studies sought to find effects of staff turnover and organization performance. This
study sought to find how performance of the employees themselves is affected by staff
turnover. Some studies used correlational methodology while this study employed
descriptive study design. Literature reveals most of the studies have been carried in
business organization where products are the main subject. This study focuses on
knowledge workers where tacit knowledge if vital in performance measurements. The
conceptual issues addressed in this study are not limited to what was reviewed in the
existing literature. Previous studies have majored on commercial institution with very
limited study on nonprofit health care organization that the study sought to find how staff
turnover affected employees in this set ups.
Involuntary Staff Turnover and Employee Performance
Fanou (2018) did a descriptive research to find out how turnover affected competitive
advantage of insurance companies. The study established that workplace policies,
economic necessity or business slowdown, performance problems, death or family issues
were not causes of involuntary turnover. The study revealed that organizational
downsizing did not guarantee effectiveness and efficiency neither did restructuring
enhanced cost reduction. Heneman et al (2012) and Aman (2015) confirms that death,
long term illness, relocating to overseas, or employer initiated separation are likely causes
of involuntarily turnover. Contrary, Omollo (2011) revealed that an organization reduces
employee costs through downsizing and thereby by improving employee efficiency and
effectiveness. Adnan (2010) asserts that organization restructuring can be used to reduce
cost and improve efficiency and effectiveness of an organization hence increasing
shareholder value. Organizational restructuring may be an intentional strategic, proactive
move designed to improve the effectiveness of the organization (Zarika 2013).
Phillips and Hernandez (2018) study found that Involuntary turnover was due to business
slowdown or economic necessity, Employees left or had been discharged due to
performance problems, The Organization had used re-restructuring strategy to cut costs,
Involuntary turnover was also due to employee’s death or family issues and involuntary
turnover occurs frequently. Thuita (2018) studied on how staff turnover affected the
performance of Nyeri County in Kenya. The result revealed that regular performance
reviews are used to provide opportunities for carrier development in the County. Study
revealed that employees, who are much more trained, tend to stay longer in the county. It
was however not clear whether the regular performance appraisals led to dismiss of
poorly performing employees.
Dwomoh, Kusi and Agyeman (2013) studied on the effects of involuntary turnover on
performance of employees. The study revealed that the major causes of involuntary
turnover were terminating due to pension or retirement, pregnancy before probation,
death, poor health, poor performance and dismissal for indiscipline. David, Young and
Burges, (2012) researched on turnover and performance: the regulating effect of team-
oriented culture of organization. Their study majored on healthcare system and to
determine existing relation on employee turnover and operational performance and if
cultural organization could be a moderator. In the research a sample of 114 outpatient
facilities was used. The findings revealed much negative relation between operational
performance and employee turnover and the vital influence on service delivery to
customers. The study sought to establish effects of turnover on knowledge based workers
specifically nurses in health care. In this context, knowledge workers refer to personnel’s
taking part in using specialized knowledge or skills. Knowledge workers always provide
intangible services in situations that demands knowledge innovative delivery of services
in meeting a number of expectations and client’s needs. Neo, Hollenbeck, Gerhart &
Wright (2006) revealed that turnover disrupts processes, affect group socialization and
may lead to internal conflicts. Workload for alternative personnel after turnover,
overtime, and minimized number of employees may lead to low morale of employees.
Such are likely to cause errors during performance of duties and thus compromising quality of services
being offered.
Previous literature that has been reviewed in this section mostly focus on service workers unlike the
current study that aims at knowledge workers. The context of previous studies is mostly are public or
government institutions while the current study focuses on nonprofit health care organizations. The
study sought to find how performance of the employees themselves is affected by staff turnover while
review focuses on organizational performance. Literature reveals most of the studies have been carried
in business organization where products are the main subject. The conceptual issues addressed in this
study are not limited to what was reviewed in the existing literature.
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