Analysing the impact of labor turnover on organisation labor productivity ; Case study: Crown Beverages Company in Uganda

Abstract

This research study investigated the effect of labor turnover on productivity in Crown Beverages Company in Uganda. Labor turnover is a costly problem and an economic drain to the business; it costs huge sums of money in recruiting and training new employees and replacements. Qualitative and quantitative methods were used to collect data for answering research questionnaires and interview guide and testing hypothesis in this research work. The target population composed of 60 respondents, sample size of 52 was used using the Morgan’s krejice table and a response rate of 87% was obtained (45 questionnaires were returned). The questionnaire was in a five point liker scale format and some open ended questions were included. The data collected from questionnaires was also analyzed by using statistical package for social science statistical package for social students (SPSS) software. The research findings revealed that despite the management of Crown Beverages Company effort to train and treat employees in order to improve performance and productivity of the company, there is high competition from rivals. The study findings also revealed that labor turnover is very low simply because employees are treated fairly well. In addition productivity was rated by employees to be high simply because the company has put emphasis on training people to improve their productivity, and this is line with Sirbasku (2008) who says that keeping employees engaged and motivated is a key to a successful highly productive work force. The recommendation highlighted that employees should be motivated in order to increase their commitment towards their work which will lead to high production by the company. The study concluded with a direction for further research on the impact of competition from rival firms on organization productivity since there was a positive relationship between the impact of labor turnover on organization productivity based on the research findings.