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Review on Turnover Rates in Financial Service Organization

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Review on Turnover Rates in Financial Service Organization

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  • March 17, 2010
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REVIEW ON TURNOVER RATES IN FINANCIAL SERVICE ORGANIZATION

Working in a very active financial institution in a country where citizens are eager for financial freedom and increased response and sensitivity of the financial sector to the yearnings of the medium, small and micro-scaled industries to stimulate economic growth and reduce hardship in a poverty stricken environment could be very tasking and demanding.

Not only that workers turnover rate is high, the extreme nature of this is taking its toll to an alarming extent. This can be evident both locally and regionally.

The wave of brain drain sweeping across Nigeria and other countries may have been taking its toll on the regional economy; a recent United Nations Development Programme (UNDP) has revealed that about $4 billion are being spent yearly by African countries to employ more than 150,000 expatriates to fill the gap created by brain drain yearly. The large exodus of qualified Africans is a huge burden on the African economy. Since 1990, Africa has been loosing 20,000 professionals yearly; more than 300,000 professionals reside outside Africa.

Similarly, monies spent in singular companies to conclude the hiring process of a new recruit as a result of the exit of the former staff and to conclude requisite training for the expected job is running into several millions of Naira for the average company, such funds would have ordinarily be channeled into filling more obvious gaps or achieving better and meaningful desired goals.

A high staff turnover rate helps to force up wage costs. In middle level management, the average retention period of an employee has been estimated to be just 1.8 years, with human resources managers among the most difficult to keep. Some job applicants are known as ‘jumpers’ because of their tendencies to switch jobs every two years.

Taking a cursory look into my organization, on the average, ten resignation notices are receive every week nationwide, in an outfit...