The influence of staff turnover on project performance in the banking sector in Kenya : A case of Family bank

Abstract

Most organization’s performance and productivities are influenced by the staff turnover. To survive and remain competitive in the evolving and highly competitive environment, organizations need the human touch to work. This study aimed at investigating the influence of staff turnover on project performance in the banking sector. The study was guided by three objectives: determining the influence of staff turnover in terms of costs on the organization's performance, finding out the influence of staff turnover in terms of productivity on the organization's performance and finding out the influence of staff turnover in terms of staffs' morale on the organization's performance. The study was also guided by three theories namely; Abraham Maslow’s hierarchy of needs theory, Herzberg’s to factor theory and Vroom’s expectancy theory. The study adopted a descriptive research design. The study target population was 80 staffs from the family bank headquarter in Nairobi with a sample size of 67 staffs. Primary data was collected using a semi-structured questionnaire. The validity and reliability of the questionnaires was tested through a pilot study that was conducted at Family Bank Kasarani branch. The reliability of the research instrument was done using the Cronbach’s Alpha. The data analysis for this study was conducted through Statistical Package for Social Sciences (SPSS) in form of frequencies, means, and standard deviation as descriptive statistics. Findings were presented in form of figures and tables which concluded that high staff turnover has a negative impact on the financial performance on banking sector. Recommendations were generated based on the outcomes of the data analysis whereby the main recommendation was for banks to retain its staff so as to reduce on costs.