2. BACKGROUND OF STUDY
Excellence Insurance Company is situated at fifth floor Phain building corner Robert Mugabe and Second Street in Harare. It has got another branch in Bulawayo. It started operating on 1 April 2003.
Its line of business is to write short term insurance which are fire, marine, motor accidents, farming and engineering policies. The company’s mission statement is, “To replicate the profitable development, integration and penetration of risk transfer and risk management across Africa and beyond”.
This company is management owned. The Chief Executive Officer, The Chief Financial Officer and The Chief Operations Manager and two other board members are the ones that own the company. Most of the business comes from Insurance brokers and a small portion is done directly. In 2004 it had thirty five (35) employees. In Gweru three (3), Chinhoyi three (3), Mutare three (3), Bulawayo seven (7) and nineteen (19) in Harare. Chinhoyi, Gweru and Mutare branches have closed leaving Bulawayo with seven (7) employees and Harare with eleven (11) employees.
High staff turnover has seriously affected the performance of the Insurance Company and this has prompted the author to carry out a research on the factors that lead to high staff turn over at the company.
3. STATEMENT OF THE PROBLEM
In 2009 six (6) employees resigned, 2 from Gweru, 1 from Chinhoyi and 3 from Harare. By August the same year the company recruited six (6) employees to replace them. During the period from December 2009 to June 2010 the company lost eleven employees, two (2) from Chinhoyi, Gweru two (2), Mutare two (2), Bulawayo one (1) and Harare four (4). Three of these employees had fraud cases and the others complained about the salary. The management decided to move two (2) employees from Chinhoyi and Mutare to Harare and one (1) from Gweru to Bulawayo. This was done to boost business since production was low. During the period from January 2011 to November 2011 the company lost two (2) junior staff members and four of its senior managers in Harare. The employees went to a new insurance company. These employees took the company to court and won their cases. The company lost a lot of money and assets though paying the employees their benefits. Up to June 2012 the company has a staff compliment of eighteen (18) workers seven (7) in Bulawayo and eleven (11) in Harare.
4. SUB – PROBLEMS
i) What are the main factors that led to high staff turnover in the company? ii) Are there any conditions of service that can be improved or implemented by the company to reduce high staff turnover? iii) Are leadership styles causes of staff turnover?
5. AIMS OF THE STUDY
To come up with solutions that will contribute towards solving the problem of high staff turnover at Excellence Insurance Company.
6. RESEARCH OBJECTIVES
i) To establish the difficulties that is being faced by the employees during the course of their duties. ii) To evaluate the working conditions at Excellence Insurance Company. iii) To analyse effectiveness of the company’s personnel department. iv) To establish the strength and weaknesses of the current organizational structure.
7. STATEMENT OF HYPOTHESIS
7.1. Null Hypothesis
Staff turnover at Excellence Insurance Company is not a result of poor conditions of services.
High staff turnover at Excellence Insurance Company is a result of poor conditions of services.
8. IMPORTANCE OF THE STUDY
To the organisation
The results of the study would decrease staff turnover of the company if implemented. Low labour turn over will lead to increased production and profits for the company leading to more pay for the workers and also attracting highly skilled personnel and retain the staff.
To the Researcher
Knowledge will be gained on how to reduce staff turnover....