An investigation into employee turnover and its impact on competitiveness: The case of Transaction Payment Solutions ( Private) Limited (209 - 2012)

Abstract

This research set out to investigate employee turnover at Transaction Payment Solutions (Private) Limited (TPS) and its impact on TPS’ competitiveness. The objectives of the research were to identify the causes of employee turnover at TPS from 2009 to 2012, to assess the employee retention strategy and to assess the impact of employee turnover on competitive advantage. The case study has both qualitative and quantitative aspects and is based on data from nine (9) out of the 15 questionnaires sent out to former TPS employees, 10 out of 18 questionnaires sent out to TPS’ customers and six (6) out of eight (8) scheduled interviews with the TPS’ managers. The research revealed that employee turnover is a cause of concern at TPS as it is the core and critical staff that are leaving. From the study the top four (4) causes of employee turnover include no room for advancement, stressful work environment, lack of job security and seeking new challenges. The levels of employee engagement are generally low and employee retention and attraction have been difficult, registering little success. Retention efforts are largely sporadic and non-systematic in nature, with a number of retention measures in the pipeline. Competitive advantage and its sustainability have not been spared either, as customer service and project delivery capacity (both old and new projects) have been seriously impacted upon. Competitive advantage has been assessed through proxy measures such as issues handover and takeover, improvement or decline in service turnaround times during the period under study. Recommendations include providing a myriad of competitive and attractive packages that recognise outstanding employees, licensing and outsourcing solutions, conducting employee surveys, management development programmes and crafting strategies for embedding employees. Future research needs to explore the effects of holding company culture, if any, on retention of key employee subgroups within a subsidiary organisation and subsequent competitive advantage impact.