IMPACT OF LABOUR TURNOVER ON THE PERFORMANCE OF SELECTED DEPOSIT BANKS IN ENUGU METROPOLIS, NIGERIA

This study investigated the impact of labour turnover on the performance of selected deposit banks in Enugu Metropolis. There has been the problem of high rates of resignation and dismissal in deposit banks. The objectives of this study are: to identify the cause (s) of labour turnover in Enugu Metropolis, to assess the extent to which labour turnover affect the workload and effectiveness of the remaining bank employees in Enugu deposit banks, to examine the impact of labour turnover on the profitability of deposit banks in Enugu Metropolis and to ascertain the effectiveness of policy used by deposit banks to reduce labour turnover. Survey research design was adopted for the study because questionnaire and oral interview were used as the research instrument for data collection. Out of the 19 deposit banks in Enugu, 4 was purposively selected with a total population of 787 employees and a sample size of 265 drawn from Yamane’s formula at 5% error of tolerance and 95% level of confidence. Hypotheses 1 and 2 were tested using Chi-square while hypotheses 3 and 4 were tested using Z-test statistical tools. The findings show that: poor remuneration is the main cause of labour turnover in deposit banks (X2c = 30.629 > X2t = 21.03), labour turnover has a positive and significant effect on employees’ workload and effectiveness (X2c = 40.750 > X2t = 21.03), labour turnover has a negative impact on profitability of deposit banks (Zc = 2.299 > Zt =1.96) and policy of collective bargaining has a negative and significant impact on labour turnover reduction (Zc = 2.671 > Zt 1.96). The study concluded that dealing with labour turnover calls for collective and continuous efforts of all employers, employees and stakeholders of selected deposit banks in Enugu Metropolis. The study recommended that: Nigerian banks should enhance remuneration of staff in order to reduce labour turnover and cost, they should make sure that most of their staff are exposed to different job descriptions so that staff can work in another department when there is labour turnover, there is need to select the right and capable candidates that can render quality services to customers in order to reduce loss of personal account and good communication should be improve by allowing staff to freely air their mind without threat from their superior.