THE INFLUENCE OF HUMAN RESOURCES PRACTICES ON EMPLOYEES’ VOLUNTARY TURNOVER IN TANZANIAN BANKING SECTOR

Abstract

The study investigated the influence of Human resources practices on employees’ voluntary turnover in Tanzanian banking sector based on CRDB banks in northern zone. Specific objectives were; to explore the rates of employee voluntary turnover at CRBD Northern Zone, to find out the HR practices commonly used by CRBD bank and examined how HR practices relate to employees’ voluntary turnover. Participants comprised of branch managers, and human resource managers, its data were collected using the quantitative and qualitative approach. Both primary data (questionnaires) and secondary data were used as tools for data collection.The documentary report analysis was made from population of 359 workers with a sample of 183 respondents who returned questionnaires. Analysis was done through the Statistical Package for Social Sciences (SPSS 20 version), whereby the descriptive analysis and linear regression were run to draw the nature of the relationship between independent and dependent variables. With regards to the extent of employees leaving the organization, an average mean of 2.81 was attained denoting neutral. This implies that, the respondents neither agreed nor disagreed with the above questions that the number of employees who were leaving the organization was neither large nor small. Other findings indicated that recruitment and selection was significant and negatively related to voluntary turnover, training and development was also found to have a negative and significant relationship with voluntary turnover.The Performance appraisal had no significant influence on voluntary turnover of employees. Thus, rewarding and compensation was negative and had significant relationship with voluntary turnover whereas job design had a significant negative effect on voluntary turnover among employees. The study concludes that the voluntary turnover at CRDB is related to Human resource management practices. It is recommended that managers and human resources manager should place more emphasizes on training and development; compensation and reward; job design; recruitment and selection in order to create a suitable working environment to their employees as it reduces the rate of turnover in the organization and increase productivity.