EFFECTS OF STAFF TURNOVER ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF ANGO’LO COMMUNITY DEVELOPMENT CENTRE (ACDC) IN NAIROBI, KENYA

Abstract

This study focused on effects of staff turnover on organizational performance at Ang’olo Community Development Centre (ACDC) a not-for-profit organization aiming at alleviating poverty in Nairobi County. The objectives of the study was to establish the factors that causes high staff turnover, investigate the effect of high staff turnover and to establish the appropriate strategies that can be used to overcome high staff turnover. The study explored the links that exist between organizational performance and staff turnover. The study adopted descriptive survey design and since the entire population under study was manageable, the researcher purposively selected all the sixty six ACDC staff members from different departments. Self administered, open-ended questionnaires were used to collect the primary data and the data was analyzed using SPSS program and the information presented in figures and tables. In order to determine the relationship and correlation between staff turnover and organizational performance, value variables for measuring performance was run against hygiene-motivational factors proponed by Fred Herzberg; SPSS Multi variety Analysis Of Variance (MANOVA) was used. The study revealed that human resource system in this organization has not been well managed and this mainly comes as a result of systems overlap. The organization does not approach its systems holistically. A link was established to exist between performance and appropriate strategies that can be used to decrease staff turnover. The study recommends autonomy of the human resource department, and consideration of the general system approach to be initiated. This system will include implementation of human resource policies and practices, setting the standard of motivation with consideration of motivational issues such as work beliefs and attitude, and continually measuring its performance in areas such as customer, finance, internal business process, growth and development.