FACTORS LEADING TO HIGH EMPLOYEE TURNOVER OF SECURITY SERVICES (PVT) LTD.

Abstract

This research was carried out as a partial fulfillment of CQHRM in the Chartered Institute of Personnel Management, Sri Lanka. As Human Resources Management is essential for the growth of any organization the findings of this research project can help them function more efficiently and effectively. The main objective of this study was to find the root cause of the high employee turnover at XYZ Security Services (Pvt) Ltd., which is based in Colombo and currently has around 1000 employees. The name of the company is given as XYZ Security Services (Pvt) Ltd, to maintain the complete anonymity of the company. The study was aimed at identifying the rate of employee turnover in the company within a three-year span, to examine the reasons for high employee turnover and propose a workable solution to minimize the employee turnover rate. Due to the time constraint only 3 factors, such as pay structure, work environment, and lack of promotions were taken into consideration. A sample of 80 employees were selected for the study from 6 different departments. The simple random sampling technique was used to select the sample. Mixed methodology was used for this study, using both primary and secondary data. Primary data was collected using questionnaires and interviews. Whereas secondary data was collected with the use of the records prevailing within the organization. The privacy of the interviewee is secured here. The data analysis done through decision analysis techniques is presented in terms of graphs and tables. Apart from the main objective, there are sub-objectives to discover the areas concerned to be developed and to identify current HRM practices related to employee retention within the organization. According to the study pay differences between employees, poor working environment, lack of job recognition, employee dissatisfaction, and lack of motivation, are among the reasons influencing employee turnover in the company. The study also revealed that the rate of employee turnover is growing year by year, which could negatively impact the growth of the company. The hypotheses tested are H0 – Pay structure has no effect on employee turnover. H1 – Pay structure has an effect on employee turnover. H2 – Work environment has an effect on employee turnover. H20 – Work environment has no effect on employee turnover. H3 – Lack of promotions has an effect on employee turnover. H30 – Lack of promotions has no effect on employee turnover. According to the findings, the study recommends that there is a need to restructure salary scales and take adequate measures to ensure employee satisfaction to minimize the rate of employee turnover.