LABOUR TURNOVER AND ITS IMPACT ON ORGANIZATIONAL EFFICIENCY

ABSTRACT

This research is mainly carried out to investigate labour turnover and it’s impact on organizational efficiency using Nigeria Brewery plc, Benin City as a survey. The study adopted survey research design in which questionnaire was used in date collection. The population of this study is made up of all employees of Nigeria Brewery plc, Benin City. Simple random sampling was used in sampling the population and the main research instrument was questionnaire. To effectively carryout this research, the questionnaire method of fact findings were used. Four hypotheses were tested using X2, it was observed that labour turnover has tremendous effect (positive and negative) on the efficiency of an organization. The study therefore recommended that management should embark on motivational packages for their staff, so as to reduce turnover especially among high performers.

1.1 BACKGROUND TO THE STUDY
In human context of resources turnover or labour is the rate at which an employer recruit and discard employees, i.e how long employees tend to stay or rate of traffic though the revolving door.
Turnover measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover, relative to its competitors, it means that employee of that company have a shorter average tenure than those of other companies in the same industry.
High turnover may be harmful to a company’s productivity if skilled workers are often leaving and the workers population contains a high percentage of noise workers. In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 31% for the period of December 2000 to November 2008.
The dynamism of the general environment has equally affected labour friend now the employees seems to move from one company to another, in search for better service condition. Some reasons identified for such movement are factors like dissatisfaction, financial stand of the organizations economy and misconduct against staff. Staffs tend to leave a company also for the following reasons:
 Death
 Termination of appointment
 Staff lay off
 Resignation
 Retirement
On the other hand, staff can come into the firm or organization based on the following reasons when there is dynamic management for effective use of it’s resources. After the allocation of funds for capital goods, labour investment rank second highest. There is no doubt that organization invest huge amount of money for the procurement, maintenance, training and development of personnel. When organizations fail to curb the glaring problems posed by labour turnover, it leads to a continuous and persistent rise in declining productivity and it prevents the company from achieving it’s set goals and objectives.

1.2 STATEMENT OF THE PROBLEM
The impact of labour turnover in organizational efficiency can be summed in terms of cost and at times of good will-or corporate image. The resultant cost of a high turnover can be observed in the organization in the following areas, production, administration, procurement and training cost.
Organization do not attempt to differentiate between voluntary and involuntary impacts on organizational efficiency. Efforts will be made in identifying the relationship between labour turnover and organizational efficiency. The types and resultant tangible and intangible cost, in view of knowing this, Hence, “the research study examination” labour turnover and it’s impact on organizational efficiency using the Nigeria Brewery as a survey.

1.3 OBJECTIVES OF THE STUDY
 To find out whether labour turnover affects organizational efficiency

 To determine if management can uti;lize labour turnover to improve the quality of their personnel.

 To examine the extent to which labour turnover have economic impression on the individual affected.

 To ascertain whether labour turnover can boost the moral of the employees in the organization.