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STAFF TURNOVER AND EMPLOYEE PERFORMANCE IN NON PROFIT
HEALTHCARE PROVIDERS
Background to the Study
Performance related reverse influence of staff turnover has been documented in many a
number of researches in relation to performance. Among the reported negative influence
include but not limited to unmet goals, untimely service delivery with compromised
quality and inefficiency and ineffectiveness, accomplished workload among other
performance related issues. Keeping staff as opposed to losing them isn't accomplished on
a silver platter, Kreitner (2003). Effective organizations have recognized management
policies and set up reward, carrier advancement and some various inspirations to attract
staffs to commit to their work and stay longer in their organization. As indicated by Testa
(2008), organization ought to stay away from high turnover rates particularly one
including talented experts as it can represent an inescapable hazard because of human
capital expense. This may cost the business, as per Johnson et al. (2000).
It’s crucial for top management of any organization to understand intentions of employees
leaving their jobs. Increased staff turnover of qualified workers in non-profit health
organizations affects enrollment preparation and benefits viability. Philanthropic NGOs
are not-for-profit associations that have the essential intend to spare lives and diminish
human enduring (Barnett and Weiss, 2008). Currently, most of the Indian business
organizations face a paradoxical problem in human resources employment. In contrary to
that, they are facing problems of overstaffing that Leeds to separation with the surplus
staff through voluntary retirement and other schemes. Despite that the same organizations
2
face problem of employee turnover and are forced to continuously develop retention
strategies. Employee turnover problem is more acute in new economy businesses. WHO
Report Geneva, (2006) indicates that the basic foundation of a health system is effective
human resources and a major prerequisite to improve health outcomes.
Numerous nations in sub-Saharan Africa have endemic deficiencies of health specialists,
yet the beginning of the HIV/AIDS plague has compounded the issue by drastically
expanding the outstanding task at hand of doctor's, facility, staff and straightforwardly
influencing numerous health laborers who have turned out to be tainted with the infection
(WHO Geneva, 2004: Kober & Van, 2006: MOH Report, 2007). Lately, the circumstance
of HR for health (HRH) in many sub-Saharan African nations has been normally depicted
as "the emergency in HR for health (Liese & Dussault, 2004). A key supporter of the
emergency is whittling down of the health workforce, estimated by the quantity of health
specialists who for all time leave their posts. Whittling down is because of various
reasons, including retirement, passing, rejection and deliberate renunciation by health
laborers who leave the general health area to work in the private part, for more alluring
occupations in the nation of origin, or to emigrate to work in health offices in more
extravagant nations, looking for better pay and working conditions (Dovlo, 2005:
Regional gathering East and Southern Africa, 2006).
Kenya, just like other African countries, Human Resource for health crisis seems a great
challenge for delivery of health services and achieving MDGS (MOH Report, 2004,
MDG Report, 2005). Half of the health care services in Kenya are provided by public
health sector (MOH Survey, 2005). Continuity of knowledge in many organizations is
hampered by labor turnover. Employees are considered key competitive advantage and
most crucial assets to current world economy (Urbancova & Linhartova, 2011). Training
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and development programs are now being heavily being invested in by most
organizations both public and private. Murthy (2003) stated that “organizations invest in
their workers to various preparing programs like classes, courses and others to improve
ability of their representatives and efficiency. Be that as it may, at present representatives
leave their associations in the wake of improving their aptitudes and learning".
Nonprofit health care organizations are primarily responsible and accountable to the
communities and populations they serve. They are legally and ethically bound to “do
well” for the benefit of their communities. This sector includes; for-profit commercial
providers, and not for profit social / faith based providers (Nonprofit 2015). African
governments, major donor organizations and development banks widely recognize the
potential of private healthcare sector. Some studies document that nonprofit health care
organizations provide significantly more “community benefits” than their for-profit health
counterparts (Mark & Gray 2007). In the United States Nonprofit healthcare
organizations have historically played, and continue to play, a critical role in the
financing and delivery of health care services. Around 60 percent of network clinics are
charitable, all network wellbeing focuses are philanthropic, just about 30 percent of
nursing homes are not-for-profit, and around 17 percent of home social insurance
organizations are assessed to be not-for-profit. In US, the financial quality of the
charitable segment has expanded as of late and the division is presently the third biggest
business. About 2 million philanthropic associations utilize 10.7 million individuals
(Nonprofit 2015).
Kenya's private area is a standout amongst the most created and dynamic in Sub-Saharan
Africa. Over half of all health facilities in Kenya are private, and 37% of all health
spending occurs in private facilities (2009/2010 Kenya National Health Accounts). Any
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important procedure to enhance wellbeing results in Kenya looks past the general
population area and considers the capability of the non-benefit and the revenue driven
(business) wellbeing division. The Government of Kenya (GOK) comprehends this, and
the private segment is especially a piece of their Vision 2030 arrangement for
development in all territories, including wellbeing.
Employee Performance
Employee performance is termed as the completed work in relation to the measured
Current known accurate standards, costs, speed and completeness of tasks. Baldwin
(2008) defines employee performance as the process of undertaking duties effectively and
efficiently to meet specified job objectives. In this case it’s used to evaluate how well (i.e.
how effectively and efficiently) employees are doing in achieving their goals as spelled
out by the non-profit organization. Performance measures are objective, quantitative
indicators of various aspects of the performance of organizations or agencies. Therefore,
different kinds of performance measures are defined to track particular dimensions of
performance, such as effectiveness, operating efficiency, productivity, service quality,
customer satisfaction, and cost-effectiveness (Poister, 2003). The choice of performance
measures is dependent upon the objectives, and there are several types of performance
measures that have been used in this case such as achieved goals, efficiency and
effectiveness, timeliness and quality of services and workload-accomplished. Vance
(2009) measures employee productivity using factors like production, billable hours, ill
rate, and the degree of supervision, among others.
No matter how important a role measuring performance plays, especially in managing for
results, if we cannot practically put performance measurement system into use or if we do
not much use the results of measuring performance, performance measurement would
5
turn into merely an impractical proposition, symbolic statement, or expensive trial.
Therefore, scholars who study performance and its measurement usually stress
prerequisites or first steps before implementing performance measurement. Hatry (1999)
pointed out three prerequisites that are highly desirable before processing performance
measurement: high-level support for the performance measurement effort, reasonable
program stability, and at least some computerized data-processing capability. Poister
(2003) also suggested as desirable a process for designing and implementing performance
measurement systems that includes securing management commitment as a first step.
Employees in all facet of life play a central role in ensuring that the organization delivers
on its mandates, if employees leave, meeting the organizational needs may have negative
effect on the quality of service provided to service beneficiaries (Nzimande, 2011). Most
organizations have been effective due to their capacity to hold on to their employees.
Keeping staff as opposed to losing, nonetheless, this isn't accomplished on a silver platter.
Fruitful associations here are the ones whose administrations have distinguished and set
up measures, for example, reward, preparing and improvement and different types of
inspiration to urge the representatives to work entire heartedly and remain in the
association for a more drawn out timeframe. This guarantees consistency in the yield of
work.
Inexperienced workers in an organization or a business will not produce more compared
to people who apprehend additional knowledge regarding what they are doing. Just like in
a production job, the efficiency of production will probably go lower (Gayatri & Saurabh
2014). In view of Armstrong and Armstrong (2011) thoughts, employees with related
knowledge in keeping up a specific quality signal are more powerful than their partners
with no such experience. Quality properties of items assume a focal job in deciding
consumer loyalty in any association (Mondy, 2010). Since quality might be unmistakable
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and non-substantial brand affiliations, associations should guarantee that they keep skilled
and experienced representatives who will maintain the norms required in the associations
to keep up item and administration quality (Muhammad et al, 2013).
Staff Turnover
Staff turnover refers to the proportion of staff leaving their employment in a specific
organization either voluntarily or involuntarily within certain duration before the expected
expiry of their tenure; thereby affecting the organization negatively in terms of costs and
the capacity minimum to deliver required services. In this study, four types of turnover
are explored and classified as: voluntary, involuntary, functional and dysfunctional staff
turnover. High turnover normally influences execution of organizations functions and
really affect service delivery Kreitner (2003). Armstrong (2001) saw that long term
employees by large have higher profitability and productivity at work than fresher
representatives, because of their length of involvement with the firm. While here and
there staff turnover can carry new gifts into the association, and consequently prompt
enhanced quality inside the association, the vast majority of the past observational
investigations (Muhammad et al 2013) have uncovered that high representative turnover
just has negative effect on quality properties with an association. High turnover will harm
a business capacity to hold customers and supply top notch client benefit. Clients may
feel greater conversing with a comparable staff and customer benefit delegates after some
time (Jaj & Arokiasamy (2013). Individual connections and commonality will construct
customer reliability. Hausknecht (2008) has given a breakdown of 12 major retention
factors for employee retention factors in the past 60 years been published in literature.
The study depicts that extrinsic reward, commitments of organization, satisfaction at
work, consistent attachments and organizational prestige as the most appearing reasons.
7
Among them, opportunity advancement and organizational prestige sited most by high
performers and extrinsic rewards given by those who didn’t perform best.
Mathis and Jackson (2011) depicted low pay at work as a key issue that affects low
satisfaction at the work causing high intentions of turnover in the employees. Armstrong
and Armstrong (2011) articulate that it is significant that organizations include
compensation of staff as part of the determinant to the maintenance of their staff. David
and Stephen (2005) states that career development is among the ingredient contributing to
turnover of employees and separation. It is a mandate for an employee to get promotion.
Saporta and Fajourn (2003) also have the same view of the factors to influence turnover.
Heavy workloads and stagnated employment grades contributes greatly to staffs intention
of leaving an organization (Khan 2013). Besides opportunities in promotion, poor reward
systems promotion positively influenced employees actions in the organizations. Poor
systems and ineffective performance appraisal resulted into high staff turnover (Akila
2012). Survey result reveals how such employees wished to remain on jobs equipping
them with appropriate skills and opportunities.
Lower turnover may emerge from the unions ‘ability to establish work motivated and
friendly policies that increases employees comfort to stay on their current job (Sun,
2011). In cognition with Martin, the connection between turnover being low has been
well depicted by researchers mistreatment each level and knowledge of industry (Mahdi,
Zin, Nor, Sakat & Naim 2012). Establishment of better operating condition will shape
down turnover, twenty percentage sites limited higher conditions operation results in
turnover. Martin (2003) highlighted how the union’s impact on staff turnover revealed
clearly how unionism is inversely associated to employee turnover. He argues that where
the unions have ability to establish good working conditions that aid the attractiveness for
staffs to stay in their current job, then turn in such situations are relatively lower.
8
Employee’s levels of satisfaction at work have close links with the wills of new
professionals to alter jobs. For a decreased turnover, a strong work group network
relation need to be developed, integrated and satisfaction of employees enhanced. Remote
job turnover and job satisfaction are influence by well-built peer groups. Co-worker will
affect the directions and destinations – sum of positive will of their colleagues’ intention
to leave, (Kumar & Ramendran 2012).
Voluntary Turnover
Voluntary turnover refers to separation of employees that is initiated by the employees
themselves. Such move may be as a result of job security, poor of remuneration package,
search for carrier advancement, promotions, job rewards, unionism, and co-workers peer
influence among others. Avoidable turnover is a form voluntary that may be reversed for
employees who wishes to leave due to poor job satisfaction, poor management problems
and benefit packages among others. Armstrong (2011) argues that likely contribution to
staff turnover is the chances of receiving high remunerations elsewhere. Using cash
incentives is contemporarily acknowledged to be vital in maintaining staffs and widely
recognized crucial reward to improve staff behaviors. Most people have job as the
financial security and primary source of income. Self-worth is a definitive factor in the
society and organization but is defined by pay. These reasons reveal that pay satisfaction
is important for maintaining employees. To attract and minimize employee turnover
meriting pay is prudent. Gedefaw (2012) on his research stated that, teachers’
dissatisfactions were majorly triggered by salary and benefits.
Involuntary Staff Turnover
Involuntary turnover refers to turnover in which employee has no choice in their
termination. Some notable reasons may be due to workplace ethics violation and
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rationalization by the organization. Various situations can be their root cause; retirement,
dismissal, relocation, physical / mental disability, among others, this requires some good
managerial techniques to handle (David, 2008) other factors are beyond control by the
management e.g. incapacity of a member of staff or death. This is one among the means
and organizations prevent its employees from looking for other opportunities in the
market and enhance their performance. It’s always important for firms to regularly
evaluate business and processes plans (Good Practice Note, 2005). Retrenchment of
employees in some firms may become last option for resignation of employees on the
ground not related to performance or misconduct. Such measures seem the only
alternative for such organizations in remaining relevant in the competitive market.
Nevertheless such process requires much vigil based on, Good Practice Note, (2005) in a
transparent manner, fair, application should showcase consistency and to poses an appeal
or procedure of grievance.
Functional Staff Turnover
Functional turnover refers to termination of employment for a substandard service
provider. Such employee’s departures produce a benefit for the organization. Functional
turnover comes with poor performance or when employee’s talent can be replaced with
ease. Functional turnovers are the substandard performers’ resignation. Mainly for
underperforming staffs to compensate retaining and replacements figure of a high index
performing employee. This type of turnover has great advantage to the firm due to
increase in productivity. The turnover benefits the firms in two indirect ways that includes
a motivational signal to remaining employees to improve on performance (McElroy,
Morrow & Rude 2001), and to inject new blood, ideology, reforms and innovation
(Kellough & Osuna 1995). Turnover of Low to moderate levels brought fourth gains in
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performance of an organizational by inculcating new individual and with better training,
but such benefits reduces as with increase in turnover.
Dysfunctional Staff Turnover
Dysfunctional is where High performers who are difficult to replace leave the
organization. Such is an employee whom the organization would like to retain, (Noe &
Gerher 2003). Dysfunctional turnover is seen in conditions where highly performing
employees with high skills that are relatively rare in the market. Their impact may be
detrimental on firms’ production and workforce with cost implications. According to
Testa (2008), organization is obliged to avoid turnover rates especially for skilled
professional. Phillip and Connell (2003) justify the need for exit interviews for such
employees to unravel the persuasive reasons for exit. The reasons may be used by the
management to go over inadequacies. Moreover, this may help organizations in the
policy formulation on retention that curbs the undefined issues arising. Griffeth et al.
(2000) in their study to explore relationship between pay, individual performance and
turnover found great impact pay and related variables on staff turnover. The competitive
world today has set standards for highly-performing employees going for more than
compensations and benefits but also captivating work , flexibility employers, to be
regarded of value, be subjected to training and advancement opportunities that forms
their determinants to turnovers (Cunningham, 2002).
Non Profit Health Care Providers in Uasin Gishu County
Academic Model Providing Access to Health Care (AMPATH)
AMPATH defines "healthcare," as the focus lies on the patient, not merely disease. When
a patient gets hungry, or is jobless, or has once been discriminated or abused, AMPATH
responds, a commitment spearheading toward holistic care. Therefore, AMPATH not
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only treats over 140,000 HIV-positive individuals at above 60 urban and rural clinics in
western region, Kenya. They partner with the World Food Programme and UN, to feed
over 31,000 HIV-affected individuals each day, provide fees for school, nutrition, and
other relevant help over 20,000 kids left orphaned or predisposed due to HIV/AIDS, and
have put in 10,000-plus clients in programs for income security, including extension
services for agriculture, micro-finance and initiating businesses. They also do prevention
and early treatment programs that illustrate a community-based effort that can stop the
spread of HIV/AIDS (http://www.ampathkenya.org). Core component of AMPATH is
sustainability at every level, depicted by the use of an enhanced electronic medical record
system to promote cost savings in shifting of tasks in clinic care, overall integration
program with the government of Kenya through the new partnership with the Ministry of
Health, and focused on developing income security for patients who may gain the ability
to pay for services rendered to them (http://www.ampathkenya.org).
AMPATH Plus Program’s records shows 16 members of staff departed for other
institutions in 2012 and 2013 increased to 26. The trend isn’t a good one
(http://www.ampathkenya.org). With urgency, staff turnover reasons need to be
investigated and sorted out. This baseline from in a design of the study to establish the
relationship between the turnover of staff and employees’ performance remaining behind
at AMPATH Plus Program. The recent past experience of staff turnover of at AMPATH
plus Program has affected the performance and effectiveness in the organization. Mathis
and Jackson (2007) states that turnover of staff includes; retirees and employees who go
to demise, quitters or the discharged and those boarding off always affect an organization
negatively.
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World Food Program (WFP)
World Food Programme (WFP) is a National food branch and the world's
biggest humanitarian organization dealing with promoting security and hunger. WFP
reveals that about 80 million individuals in 76 countries are provided food assistance
annually. WFP works to aid individuals who cannot access sufficient food for themselves
and their families. It is a member of the United Nations Development Group and part of
its Executive Committee. 1961,WFP was first established after the 1960 Food and
Agricultural Organization (FAO) Conference, when George McGovern, director of the
US Food for Peace Programme, proposed programme for multilateral food aid. It was
formally created in 1963 by the FAO and the United Nations General Assembly on
experimental basis of three-years. In 1965, the programme developed to a continuing
basis. WFP has Executive Board governing that consisting of representatives from 36
member states. Executive Director is the head, heading the Secretariat of the WFP.
The European Union observes WFP permanently and, being major donor, participates at
Executive Board work. Its vision is a "world in which every man, woman and child has
access at all times to the food needed for an active and healthy life."
WFP help is directed to battle inadequacies of micronutrients, lessen kid death, advance
maternal wellbeing, and avert illnesses, including HIV and AIDS. Nourishment for-work
programs help in improving natural, monetary and horticultural generation security. In
2015, the WFP contacted 76.7 million individuals in 81 nations. In crises, in excess of 50
million individuals were aided to enhance their sustenance and nourishment security.
School dinners were given to 17.4 million children helping kids in schools, supporting
continuous access to training. WFP improved utilization of money and vouchers as
nourishment help instruments. Almost 7.9 million People got help through trade or
voucher programs out 2013. Around the same time, the WFP obtained sustenance in 91
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nations; 86% of that nourishment originated from creating nations. Among its different
exercises, the WFP has composed the five-year Purchase for Progress (P4P) pilot venture.
Propelled in September 2008, P4P helps smallholder ranchers by giving them chances to
get to farming markets and to wind up aggressive players in the commercial center. The
venture traversed crosswise over 20 nations in Africa, Asia and Latin America and
prepared 800,000 ranchers in enhanced farming creation, post-gather taking care of, value
confirmation, amass showcasing, horticultural fund and contracting with the WFP. The
undertaking brought about 366,000 metric huge amounts of nourishment delivered and
created more than $148 million in wage for its smallholder agriculturists.
World Vision International (WV)
World Vision International is an Evangelical Christian, improvement, and backing
association. It wants to introduce itself as interdenominational and utilizes likewise staff
from non-zealous Christian categories. It was established in 1950 by Robert Pierce as an
administration association to meet the crisis needs of preachers. In 1975 advancement
work was added to World Vision's goals. It is dynamic in excess of 90 nations with add
up to income including awards, item and outside gifts of $2.79 billion (2011). World
Vision started tasks in Kenya in 1974 and as of now has somewhat more than 1,000
advancement staff individuals working in 53 Area Programs in 35 regions, countrywide.
Through esteemed organizations, they bolster networks to enhance the prosperity of
youngsters, particularly the most powerless. Their yearning is that all youth will
appreciate great health, be instructed forever, be thought about and secured, and
encounters the affection for God and their neighbors.
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Statement of the Problem
A survey report by Phillips, Yolanda and Hernandez, Jessica M., (2018) found that 52 percent of
nonprofits could not meet their performance expectation, up from 44 percent in 2009 (State of the Sector
Surveys, 2013). The survey also reveals inadequate resources human included have impacted non-
profits ability to attract and retain highly skilled employees to their organizations (Buteau, Et al., 2014).
Nonprofit healthcare providers are at the verge of degraded performance due to turn over of staff. An
increase from16% in 2013 to 19% in 2014 in turnover rate in nonprofit organizations was registered
(Nonprofit 2015). This drastic change depicts the significant relationship between turnover and
performance in nonprofit organizations. Burges, (2012) deduced how performance was affected in terms
of service delivery to customer and expected achievement goals similar to situation in nonprofit sector.
Melaku (2014) shows the influence of turnover and performance in organizations due to employee
performance- based problem on degraded morale, stress at work, team works disorders, and
dissatisfaction in job, distorted Service delivery and organizational goals not being met fully. The
difficulty in retaining incoming staff on to the organization as the government continues to grow.
Performance in nonprofit in Uasin Gishu County has been deteriorating with time making it impossible
for them to achieve outlined goals. As the nonprofit in Uasin Gishu County proceeds to develop, many
of them are facing added challenges in performance due to cumbersomeness in maintaining new staff
(Nonprofit 2015). This has led to Inefficiency, Unmet goals, compromised services and increased
workload and stress to employees due to increasing number of staff turnover. Mabindisa (2013) did a
research on the Impact of Turnover of Staff on Effectiveness of an Organizational and findings were;
the Major
delays in the service delivery to customers may happen on performance of employee and in inefficiency.
Despite the negative relationship of turnover and employee performance, there exist limited recent
15
studies undertaken within this area of study. There exist few researches and literatures on turnover and
performance even though most studies on the same have focused in different areas of operation.
Existing literature highlights large other studies required on the relationships between turnover and
performance (Yong Beom, 2007). Some few researches in this area include; Kahiro (2015) a study on
influence of labour turnover in banking institutions, Githinji (2015) sought to establish influence of
labour turnover and performance of selected security organizations. Namasaka (2013) who did a study
on influence of labour turnover in relationship with performance of university. Studies above reveal
existence of a wide gap in literature on staff turnover and employee performance in different set ups.
Current research therefore seeks to fill notable gap in literature by establishing the effects staff turnover
on employee performance in Uasin Gishu County.
16
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