Labour turnover and its financial cost in public institutions of higher learning in Rwanda: the case of National University of Rwanda, School of Finance and Banking and Higher Institute of Agriculture and Animal Husbandry.

Labour turnover is among the major issues of concern in public institutions of higher learning in Rwanda. This study explored labour turnover and its financial cost in public institutions of higher teaming in Rwanda: the National University of Rwanda, the School of Finance and Banking and the Higher Institute of Agriculture and Animal Husbandry being the areas of study. The objectives of the study were to build up a more accurate picture of the extent of labour turnover, to determine the extent of financial cost in replacing academic and administrative staff who might have resigned. Both quantitative and qualitative approaches were used to analyse data. SPSS was used to analyse quantitative data. Hypotheses of the study were tested using the Kolmogorov Smirnov method. The study revealed that labour turnover is in local (nationals) employees. The average rate of labour turnover of l0.3% and 12% in 2008 and 2009 respectively were reported. The study also reveals that, financial cost in replacing academic staff who might have resigned is high because it is very difficult to get Rwandese employees of the required skills and knowledge. Moreover, the study also reveals that, the quick solution of recruiting foreign staff increases financial cost. Financial cost of replacing administrative staff was reported to be high because of frequent recruitments to replace the resignees. Various recommendations were suggested. Salaries particularly for academic staff should be revised, clear human resources planning; clear employees' retention strategies and clear employees' succession plan should be put in place. Finally all concerned Institutions should work together to solve the problem.