Employee turnover in a South African asset management firm

Abstract

Abstract This research sought to identify and describe the causes of employee turnover in a South African asset management firm. The research was a quantitative study and the data was collected through a questionnaire. Two propositions were examined: 1. Low job satisfaction leads to employee turnover. 2. Low employee engagement leads to employee turnover.

With regards to proposition 1 it was found that employees left the organisation for better paying jobs; because of a low level of management support; and as a result of limited growth opportunities. The findings with regards to proposition 2 were that employees left their organisation because of a lack of clear career development plans; as a result of a lack of trust between management and employees; and because of limited recognition. The study made three recommendations, firstly, that the employer should review its remuneration system to align it with industry norms; secondly, that the organisation institute employee engagement programs and processes to deal with perceptions of a lack of trust and opportunities; lastly, that managers are trained to be more supportive and willing to engage in a two way dialogue with employees. Utilisation of the Net Promoter Score as a tool to determine how employees feel about their organisation was suggested as a research topic to determine whether asset management firms could use it as a tool to pre-empt and limit employee turnover.