Review on Turnover Rates in Financial Service Organization

Topics: Employment, Termination of employment, Management Pages: 14 (4720 words) Published: March 17, 2010

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 with less than 10,000 staff. This implies that on a daily basis, at least two staff shall resign and take up other employment opportunities. Most worrisome of this trend is that about 85% of these take up employments with competitors in the sector! Really a cause for concern and urgent redress.

At some points in time during our career life, one may need to quit a job, due to a variety of reasons raging from dissatisfaction, furthering our education or having a new job offer. A handful of proponents to turnover while trying to advise others about this decision would ask: • Are you uncomfortable on the job? Is your job no longer interesting? • Are you losing sleep because of on-the-job stress?

• Are you feeling marginalized? Have your responsibilities been reduced? Do you feel relegated? Are you being included or excluded in important meetings? • Are you no longer challenged? Have you been upgraded to your level of competence and experience? • Do you have a better job offer? Have you got an offer too difficult to refuse? And everything else about the prospective position seems to be a good fit for you; you should give it a serious consideration • Is a family responsibility interfering with your job? Are you struggling to balance your job and family with your limited success? Is your family not getting enough attention from you because of work pressure?

These and many more questions are being asked daily by staff, which shapes their attitudes and behaviour towards their present employment and future stay therein.

Several scenarios have occurred in my organization that demonstrated the staff reaction towards these factors which eventually determined is final decision to leave and take up another employment, accompanied with its untold hardship, cost and negative influence it leaves behind for his colleagues to grapple with.

There was this particular day in one of the business offices which, as fate could have it, was among the small...
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