Employee Turnover And The Banking Sector

1837 Words8 Pages
Employee Turnover in the Banking Sector The current global business environment is proving to be shaky especially due to the ripple effects of globalization. Both local and international businesses are increasingly feeling the pressure to grow initial investments in order to fulfill the needs of stakeholders. Even as these businesses continue to make adjustment to measure up to the international standard thresholds, the area of human resources continues to readjust itself in accordance with current market demands. Clarke et al (2010) documented that the field of human resource has for a long time been considered the epicenter of any economy’s development processes. The highly competitive business environment coupled with highly deteriorating on social conditions that have weighed-in on the employees thus causing high turnover in the banking institutions. Various definitions of employee turnover have cropped, however, according to Griffeth (2004), employee turnover is considered to be the ratio of the total headcount of members that have left an organization within a specified period divided by the standard number of employees during the period under consideration. It has widely been interpreted as a measure of general effectiveness of human resources in that a high turnover translates to low effectiveness and vice versa. Employee turnover is a big problem prevalent in many institutions and is mostly associated with actions taken by organizations to reduce expenses and
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