Factors affecting employees’ voluntary turnover: a case of Deloitte & Touche Kenya

A thesis submitted in partial fulfilment for the award of degree in masters of business administrationStaff turnover has been regarded as an overall measure or indication of organizational functionality. When employees are dissatisfied with their job, they tend to withdraw in order to try to minimize their exposure to the job. Staff turnover is further exacerbated by the fact that losing high performing individuals affect the productivity of the organization, as the organization loses the investment that was made in their development. As the percentage of the workforce in the professional or highly technical work increases, understanding and effective management of the employment relationship between professional employees and their employing organizations becomes increasingly important. The purpose of this study was to examine the factors that influence employees’ voluntary turnover at Deloitte & Touche Kenya. The study specifically sought to establish the relationship between employee turnover and employee attributes, work-life balance, career development opportunities and financial compensation. The study was informed by equity theory and Herzberg’s theory. This study adopted a cross-sectional descriptive research design. The study targeted Deloitte & Touche Kenya employees at the Nairobi offices. Therefore, the sample size was 65 employees in the offices of Deloitte & Touche Kenya (Nairobi Branch) who were selected using convenience sampling. Primary data was obtained through self-administered questionnaire. Data was processed and analyzed using Statistical Package for Social Sciences. The sample was described using descriptive statistics such as frequencies, cross tabulation and measures of central tendencies. Inferential statistics such as Chi Square was used to establish association between variables. The study found that age was significantly associated with employee voluntary turnover. However, gender, education and tenure in position held did not have a statistical significance with voluntary turnover. In addition, the study found moderately strong positive association between work life balance and employee voluntary turnover, a weak positive association between financial compensation and and employee voluntary turnover, and a negative association between career development and employee turnover. The study recommends the need to design work schedules and strategies that facilitate employee work lifIn addition, companies that promote equal training opportunity for all employees have good employee retention. The study also recommends that firm balance, need to consider alternative financial compensation to retain employees, and career development strategies that enhance employee capacity to effectively complete assigned tasks