Employee turnover rate and organizational performance in South Africa
Problems and Perspectives in Management
Management Advancement Programmes, Wits Business School, University of Witwatersrand (WITS), South Africa
Within the business community, employee turnover is widely assumed to affect organizational performance. Different variations of this relationship have been proposed over the years. This study seeks to confirm if a curvilinear relationship exists between employee turnover rates and organizational performance that could inform an optimal employee turnover rate for organizations in South Africa. To this purpose, a cross-sectional study that collected quantitative data through the use of a self-administered questionnaire was employed. Through multiple linear and nonlinear regression, the results indicate that voluntary employee turnover rate significantly predicted financial and organizational performance through a cubic function. The optimal functional voluntary employee turnover rate for organizations in South Africa was calculated to be between 14 and 19%. © Rasoava Rijamampianina, 2015.