Factors Influencing High Staff Turnover in Commercial Banks in Kenya: a Case of Commercial Bank of Africa

Abstract

The project report covered factors influencing high staff turnover in commercial banks in Kenya ;a case of CBA .Research objectives were to establish factors influencing Staff turnover by studying variables (intrinsic, extrinsic, career development and Employee relations) and their influence on staff turnover. Descriptive research design was used with a sample size of 104 derived using (Cooper & Schindler) from a target population of 140 employees based at Upper Hill (Head office) and 5Branch networks in Nairobi County. Functional departments were the strata and simple random method applied to distribute the questionnaires. Split-half reliability test was used to estimate reliability and content validity tested through expert‟s opinion and referencing on past questionnaires. Interview Guide and desktop information provided key information used in summarizing the conclusions. Data collected was exported to SPSS version 20 for editing, coding to facilitate informative and relevant computation. Staff turnover was described as high and there were strong correlations between the variables studied. Spearman‟s product correlation was used for analysis and statistical summary presented in tables. Intrinsic factors showed very strong correlation to staff turnover, HRM practices should accommodate Control and Freedom(37,41.6% & 0.816) in execution of duties and tasks to provide a conducive environment for the achievements of Targets (49,55.1% & 0.901) to increase intrinsic factors. Salary& Benefits (58, 65.2% &0.829) and Job security (48, 53.9% & 0.724) showed very strong correlations to staff turnover, management should benchmark extrinsic factors for competitive bargaining. Career development aspects like Training (27,30.3% & 0.819) was very strongly correlated to staff turnover. More training should be offered to sharpen skills and facilitate career development in the organization. Employee welfare (49,55.1% &0.806),Promotions (61,68.5% & 0.872) and Succession plan (37,41.6% & 0.754) positively influenced stuff turnover. Fairness and justice in handling employee affairs and in resource allocations should be practiced.HRM policies should therefore be developed within the context of intrinsic and extrinsic factors, career development and employee relations to increase productivity and staff retention. Future research studies should focus on factors influencing Employees performance using variables like training, job satisfactions, change management both in the banking industries and other sectors.