A Comparative Analysis of Perceived Factors Influencing Labour Turnover at Cooperative Insurance Company and Jubilee Insurance Company

Abstract

The current state of the economy characterized by information explosion, liberalization, globalization and intense competition from within and outside the country has led many organizations both in the private and public sector to become preoccupied on how to increase the ―added value‖ of their employees. A need to encourage employees to remain in the organization and to increase productivity beyond that which is at a minimum accepted standard using scarce resources has become a necessity. The issue on labour turnover is critical and managers have to manage employees to minimize turn over since high turnover is not cost effective. This study was motivated by the need to compare the factors affecting the turnover rates of the employees in two insurance companies. The researcher used descriptive research design to carry out the study. The data was collected from Jubilee and Cooperative insurance companies. The sample size was 182 and was collected using questionnaire. The data was later analyzed using mean, percentages, frequencies, t-test, chi square and correlation. The study found that the deserved salary, remuneration, experience with a firm and rewards in both companies. In Jubilee the rate of turnover among staff members was influenced by the working environment, relationship with colleagues, level of stay in the company, deserved salary and remuneration, level of experience and ample rewards and incentives while in cooperative it was influenced the deserved salary and remuneration, experience with the firm, ample rewards and remuneration, social behavior of the management staff, the number of supervisors and the retirement package. The study also found no significant relationship between work output and the rate of turnover in both Jubilee and Cooperative insurance companies. Further, the study found no statistical difference between the factors affecting turnover rate in Jubilee insurance company and Cooperative insurance company.