Human Resources Management Practices and Their Influence on Voluntary Employee Turnover in Commercial Banks in Tanzania: Shreds of Evidence from CRDB Bank in the Northern Zone of Tanzania
DOI:
https://doi.org/10.59645/abr.v16i3.361Keywords:
Human Resource Management Practices, Voluntary turnover, CRDB BankAbstract
This study examined the influence of Human Resources Management Practices (HRMP) on voluntary employee turnover in commercial banks in Tanzania, focusing on CRDB Bank in the Northern Zone of Tanzania with a specific focus in Arusha, Kilimanjaro, and Manyara. It was observed that the bank operates in a highly competitive environment and face unique regional dynamics in so doing the zone has experienced high turnover rates than other branches despite HRM practices are consistent over all branches according to HR report in 2021. We therefore examines key HRM practices, including recruitment, training and development, compensation, rewarding performance and performance appraisals as critical parameters that influence turnover dynamics. The research design was a sequential explanatory design whereby quantitative data were first collected and analyzed followed by qualitative. Mixed approaches were applied. It targeted employees working in 40 Branches including Brach managers, employees from various departments, and exit employees who were contacted. The total population was 354 people with a sample size of 188 participants. Data collection involved a questionnaire for 183 staff working in the northern zone. Other five (5) participants; Human resources officer from, two Brach managers and exit employees were interviewed to grasp other unique factors for turnover in the respective zone. Since the population was heterogeneous Stratified sampling was used to get these percipients. Descriptive statistics was employed with the help of a statistical package for social science SPSS 26 Version. The findings reveal that well-executed recruitment and selection processes, training and development programs, and compensation practices play a pivotal role in reducing turnover. However, it is noteworthy that performance appraisal alone does not significantly influence voluntary turnover, while job design modifications exert a clear and meaningful negative effect on turnover within the organization. The study recommends that CRDB Bank can proactively manage and reduce voluntary employee turnover in the Northern Zone by focusing on various aspects of HRM practices and the work environment.
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