Causes of labour turn over in Uganda. A case study of Igara Growers’ Tea Factory
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Employee turnover has bad influence on factory efficiency as the factory may lose some of its experienced staff, leaving junior ones that need mentorship to produce results. In Uganda, most factories such as Igara growers’ tea factory lose their employees due to reasons some of which are within the control of factory management. The purpose of this study was to investigate the causes of employee turnover in Uganda, a case study of Igara growers’ tea factory. The study was set to investigate the relationship between level of salary, job security, motivation, availability of career development opportunities and staff turnover. The researcher employed a cross-sectional survey design and used primary data collected by the researcher to answer the study objectives. Descriptive statistics such as tables and charts were used to present the findings. Chi-squares tests were employed to test the hypotheses at 5% level of significance and the null hypotheses were rejected when the probability value of the chi-square was less than the significance level, otherwise, it would be accepted. A logistic regression reporting odds ratios was employed to investigate the contribution of each of the independent variables to the dependent. From the study, it was found out low level of salaries paid to workers is one of the major causes of employee turnover at Igara growers’ tea factory (Pearson chi2 (16) = 21.9, Prob= 0.023). Employees leave the factory to go look for “greener pastures” elsewhere. Lack of Job security is a significant cause of staff turnover at Igara growers’ tea factory (Pearson chi2 (6) = 33.3967, Pr = 0.007). Employees leave the factory to look for better jobs because there is no job security and they can be terminated any time. Lack of motivation significantly causes staff turnover at the factory (Pearson chi2 (16) = 60.7991, Prob = 0.000). Employees leave the factory to go and look for better jobs where fringe benefits and recognition of excellently performing staff exists. Absence of career development opportunities significantly contributes to staff turnover (Pearson chi2 (16) = 49.0876, Prob = 0.000). Employees leave the factory to look for jobs where they can be supported to advance their careers. It is therefore recommended that employee salaries be reviewed, a minimum wage be introduced by government, career development programs be put in place by the factory, job security be addressed, employees be motivated for example through fringe benefits, recognition of excellently performing staff, sensitization of the factory management about workers’ rights be carried out to reduce on mistreatment of employees by their line managers. This will help increase the efficiency of the factory and lead to an upward trend of revenues year on year.