THE EFFECT OF STAFF WELFARE ON EMPLOYEE TURNOVER (A CASE STUDY OF PORTHARCOURT ELECTRICITY DISTRIBUTION COMPANY)


THE EFFECT OF STAFF WELFARE ON EMPLOYEE TURNOVER (A CASE STUDY OF PORTHARCOURT ELECTRICITY DISTRIBUTION COMPANY)  

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The efficient and effective utilization of human resources to achieve the goals of an organization constitute an essential function of every organisation. This is the human resources management activity (Opatha, 2002). Consequently, the human resources management function seeks to identify and satisfy employee needs as it seeks to attain the goals and objective of the organization. According to Hogan (1996), employee welfare which is the function of the human resources department constitute all the efforts of management to improve the living standards of individuals or family groups whose income would otherwise fall below a level deemed minimal by policy makers and their constituents. Welfare is the provision of facilities and comforts to employees of an organization to enhance employee living standard (Opatha, 2002). It is important to note that expenditure on staff welfare is a profitable investment in the long- run as it motivates the workers for higher productivity. A Strategic reason for employee welfare is to attract and retain employees, improving the companys image and enhancing job satisfaction. Employee turnover is viewed as the number or percentage of employees who leave a company and are replaced by new employees voluntarily or unvoluntarily. However, whether an employee resigns or is fired it exacts grave consequences on the organization as it results in loss of productivity, lost revenue and cost of replacement, training and development of new employee. The study seeks to appraise the effect of staff welfare on employee turnover. A case study of Port Harcourt electricity Distribution Company.

1.2 STATEMENT OF THE PROBLEM

The issue of Turnover has constituted a major challenge in many industries. While some employee leave voluntarily some are fired. However, whether an employee resigns or is fired it exacts grave consequences on the organization as it results in loss of productivity, lost revenue and cost of replacement, training and development of new employee. Therefore, the importance of employee welfare is to motivate employees for higher productivity and retention in the orgainsation.

Consequently, the problem facing the study is to appraise the effect of staff welfare on employee turnover. A case study of Port Harcourt electricity Distribution Company.

1.3 OBJECTIVES OF THE STUDY

The Main Objective of the study is to appraise the effect of staff welfare on employee turnover. A case study of Port Harcourt electricity Distribution Company; The specific objectives include:

i.     To examine how effective staff welfare scheme is in PHDC. 

ii. To investigate the effects of staff welfare on employee turnover in PHDC. 

iii. To understand the challenges of the staff welfare scheme in PHDC.

1.4 RESEARCH QUESTIONS

i. How effective is the staff welfare scheme in PHDC? 

ii. What are the effects of staff welfare on employee turnover in PHDC?

iii. What are the challenges of the staff welfare scheme in PHDC?

1.5 STATEMENT OF THE HYPOTHESIS

Ho1: There is no significant effective staff welfare scheme in PHDC.

1.6 SIGNIFICANCE OF THE STUDY

The study proffers an appraisal of the effect of staff welfare on employee turnover. A case study of Port Harcourt electricity Distribution Company. It provides relevant data for the effective formulation and implementation of policies to enhance the realization of envisaged objective.

1.7 SCOPE OF THE STUDY

The study proffers an appraisal of the effect of staff welfare on employee turnover. A case study of Port Harcourt electricity Distribution Company.

 1.8 LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors.

1.9 DEFINITION OF TERMS

HUMAN RESOURCES MANAGEMENT DEFINED

The efficient and effective utilization of human resources to achieve the goals of an organization constitute an essential function of every organisations. This is the human resources management activity. (Opatha 2002). Consequently the human resources management function  seeks to identify and satisfy employee needs as it seeks to attain the goals and objective of the organization.

EMPLOYEE WELFARE DEFINED

employee welfare which is the function of the human resources department constitute all the efforts of management to improve the living standards of individuals or family groups whose income would otherwise fall below a level deemed minimal by policy makers and their constituents. Welfare is the provision of facilities and comforts to employees of an organization to enhance employee living standard.

EMPLOYEE TURNOVER DEFINED

Employee turnover is viewed as the number or percentage of employees who leave a company and are replaced by new employees voluntarily or unvoluntarily. However, whether an employee resigns or is fired it exacts grave consequences on the organization as it results in loss of productivity, lost revenue and cost of replacement, training and development of new employee.

CERTIFICATION DEFINED

Certification is a process of giving recognition to an individual for passing a prescribed examination. 

LICENSURE DEFINED

 This is the permission granted an individual to practice a designated professions. 

ACCREDITATION DEFINED

The s the granting of right of recognition to an institution program. 

EDUCATION DEFINED

Education is viewed as the process of inviting truth and possibility. It is the wise, hopeful and respectful cultivation of learning undertaken in the belief that all should have the chance to share in life.

REFERENCES

Camp, R, Vielhaber, M & Simonetti, J 2002, Strategic interviewing: How to hire 

good people, CA, Jossey-Bass, San Francisco. 

Hogan, J 1992, „Turnover and what to do about it‟, Cornell Hotel and Restaurant 

Administration Quarterly, vol. 33, no. 1, pp. 40–44. 

Kottawatta, H 2014, Research guide book, Department of Human Resource 

Manageemnt, Colombo. 

Krueger, A & Rouse, C 1998, „The effect of workplace education on earnings, 

turnover, and job performance‟, Journal of Labor Economics, vol. 16, no. 1, pp. 61–94. 

Mitchell, O 1982, „Fringe Benefits and Labor Mobility‟, The Journal of Human 

Resources, vol. 17, pp. 286–298. 

Opatha, HHDNP 2002, Performance evaluation, 2nd Edition, Sri Lanka, The institute of management Science. 

Sun, J 2013, „Employee engagement: How to use recognition and non-monetary 

rewards to drive employee engagement

.


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