The Effect of Employee Turnover on the Performance and Competitiveness of Banks in Ghana

Background. Employee turnover is widely considered organisational issue. The commonest assumption regarding the relationship between turnover rates and organizational perfor- mance is that increasing turnover rates is dysfunctional in the sense of being associated with decrements in organizational performance and competitiveness. Research Aims. The main objective of this study is to assess the effects of Employee Turn- over on the performance and competitiveness of firms in the banking industry in Ghana. Method. This research targeted the employees of 15 selected banks operating in Ghana. A sample of 480 respondents were purposively selected with no discrimination to sex, religion, disability, and, nationality. The Independent t-test and the Pearson's Product Moment (Pearson r) Correlation Coefficient test were the statistical tools used in the analysis of the data. Key Findings. The analysis of the data reveals that banks with low employee turnover will perform better and are more competitive than those with high employee turnover; highly motivated employees will have a lower turnover intention than those less motivated and employees in higher ranking jobs have lower employee turnover intentions than employees in low ranking jobs. Gender, age and job tenure have no significant influences on turnover intentions.