Assessment of employee turnover in microfinance institutions: a case of FINCA Microfinance Bank, Dar es Salaam, Tanzania

The problem of employee’s turnover has been and still a threat to Stakeholders including employers and government. This study was conducted with the main objective of ‘assessing the employee’s turnover in Microfinance Institutions in Tanzania.’ In line with that main objective, the study had the following specific objectives:- to determine the nature of employee turnover, to investigate the causes of employee turnover, to identify the effects of employees’ turnover and to assess employees’ retention strategies. The study was carried out in Dar es Salaam. During field data collection the author employed Questionnaire and interview techniques as research tools to collects data from the total number of 75 respondents. The qualitative research approach was used to achieve study flexibility, greater spontaneity, and adaptation of interactive approach between the researcher and respondents. The study was guided by the Hertzberg theory. Data collected during field study were analysed systematically semantically by using Statistical Programme for the Social Sciences analysis (SPSS). The study revealed that managerial controllable factors such as insufficient salary 60(80%), Poor job security 55(73.3%), low recognition and Poor promotions 45(60%), poor working environment 55(73.3%), low carrier growth and training 50(66.7%), poor employee relationship 50(66.7%), poor company policy 45(60%), high work load 35(46.7%) and low job satisfaction 40(73.3%) have bigger contribution to employees’ turnover. The study recommends that management should rely on the human resources department ( HRD ) during the recruitment process to provide a continuous stream of qualified and motivated applicants as well as creating strong networking with other professionals for the purpose of reducing turnover. Also for the purpose of employee’s retention, the study recommends that the management should be able to impart knowledge about the operation of the organization and how its profits are made to all employees.