Examining employee turnover in outsourcing companies. A case study of ISON BPO Uganda Limited

Abstract

This research study examines employee turnover in outsourcing companies using the case study of ISON BPO Uganda Limited. The study aimed to identify the drivers of employee turnover, examine the impact of turnover, and recommend strategies to mitigate it. The study used a case study research design and employed a quantitative research approach. It targeted a sample size of 200 respondents and achieved a response rate of 100%. Data was collected using a questionnaire. The findings on the drivers of employee turnover reveal that employees tend to disagree with the statement that compensation and benefits are competitive in the industry. The results also indicate that majority of respondents were dissatisfied with their workload and job responsibilities. Majority also disagreed with the statement that Work-life balance is effectively supported in the company, they perceived their workload and expectations to be unrealistic and were generally dissatisfied with the overall work environment and office facilities but there was agreement on the organisational culture promoting a sense of belonging and the existence of communication transparency as well as supervisors being supportive and providing the necessary guidance while mixed perceptions were recorded on the company providing opportunities for professional growth and getting recognition for their contributions. The study findings on the effects of employee turnover on outsourcing companies revealed that respondents strongly agree that high employee turnover negatively affects the overall performance of the company, client relationships are negatively affected as well, and the cost of recruitment and training associated with high turnover is a burden to the company. The respondents agreed that high employee turnover has a negative impact on company profitability, and that the retention of top talent is difficult in companies that are characterised by high employee turnover, difficulty meeting project deadlines also garners significant agreement. Employee morale and job satisfaction are notably affected, as most respondents strongly agree. Majority of the respondents were however unsure if the company has a formal retention strategy in place. Finally, the study findings suggest strategies to mitigate employee turnover. Respondents strongly endorse offering competitive compensation and benefits packages, professional growth and development opportunities within the company, a supportive and inclusive work environment, alignment of training and development with employee needs, clear career progression paths, and active encouragement of employee feedback. They also recommend reasonable and manageable workloads, work-life balance and flexible work arrangements should be considered, effective communication channels, and recognition and rewards for outstanding performance.