The perceived impact of employee turnover and its outcome on the efficiency of the organizational performance

Abstract

The problem of employee turnover is very important in any organization. The impact of displacing an employee differ based on many factors, including the hardness of the position. To study the impact, we prepare a questionnaire and distribute it online with people working in Oman. However, there is not many studies highlighted the employee turnover. Employee turnover is a measurement of numbers of employee who left their works or organization and there are two types of employee turnover, voluntary and involuntary.

Therefore, the aim of this research is to examine the problem and understand it, which consists of three elements: analyze the cause, determine the impact of employee’s performance, and provide solutions and recommendation based on findings.  This research focuses on the impact of staff turnover on organizational effectiveness and employee performance within Oman. High staff turnover rate may jeopardize efforts to attain organizational objectives. In addition, when an organization loses a critical employee, there is negative impact on innovation, consistency in providing service to guests may be jeopardized and major delays in the delivery of services to customers may occur. The research design used in this study was the quantitative approach, which allowed the researcher to use structured questionnaires when collecting data.

A pilot study was conducted to test the questionnaire. The survey method was used in this study because the target population only composed of 100 employees. A high response rate of 88% was obtained using the personal method of data collection, questionnaire was structured in a 5-point Likert scale format. The Statistical Package for Social Science (SPSS) version 15 for Windows was used for statistical analysis of the main responses. The study finding suggests that salary is the primary cause of staff turnover in the Department of Home Affairs. The findings highlighted that high staff turnover increases workload to the present employees in the department. The study finding also showed that staff turnover causes reduction in effective service delivery to the customers and reflects poorly on the image of the Department. Other findings suggested that unhealthy working relationship may also be the cause of staff turnover in the department. The recommendations highlighted that top management should pay a marketable salary to employees and the employees must be rewarded if they have achieved their goals. Top management should also develop opportunities for career advancement in the department. Top management should involve employees when they make key decisions that will affect them in the organization. The study concludes with direction for future research.