The Impact of Employee Turnover on Organizational Performance: A Case Study of Mada Walabu University, Bale Robe, Ethiopia

Abstract

This research focuses on the impact of staff turnover on organizational effectiveness and performance in Mada Walabu University. High staff turnover rates may jeopardize efforts to attain organizational objectives. In addition, when an organization loses a critical employee, there is a negative impact on innovation, consistency in providing service to primary users may be jeopardized and major delays in the delivery of services to customers may occur. The research design used in this study was the descriptive approach, which allowed the researcher to use semi-structured questionnaires when collecting data. The survey method used in this study because the target population only composed of 425 employees. The study employed Purposive, Simple Random sampling, and Convenience sampling techniques. A high response rate of 100% obtained using the personal method of data collection; questionnaire structured in a 5-point Likert scale format. Furthermore, the study interviewed human resource heads and ten voluntary employees with convenient sampling techniques. The study finding suggests that high labor demand and job opportunities in the market, lack of opportunity for career advancement in the organization, Unsatisfied with the working conditions, and no involvement in decision-making, are the foremost causes of employee turnover on organizational performance. The study finding also showed that staff turnover causes loss of some of the very experienced and skilled employees, reduction in work productivity and quality of services rendered as well as it causes too much wastage of resources when new staff settles and loses public confidence in the operation of the organization. In order to return the reduced university’s capacity in terms of national attrition rates, higher education access targets, quality education assurance, significant community, and technology transfer, and standardized research-based problem-solving culture due to staff turnover.