The effect of retention strategies on labour turnover in the wood processing industry (A case study of Hanmax Veneer and Plywood Company and Logs and Lumber Limited)

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The purpose of this study was to identify the effect of retention strategies on labour turnover. The study therefore sought to identify the causes and effects of labour turnoverat Hanmax Veneer and Plywood Company Limited and Logs and Lumber Limited, the current retention practices at both firm, an assessment of the effectiveness of the retention strategies at the selected firms and to make recommendations. To achieve this goal, the broad theoretical explanation of staff turnover, the consequences of turnover and the measurement of staff turnover were investigated and identified; the current labour turnover experienced in the timber industry was also explored. A literature study was also conducted, focusing on the job, organizational and environmental factors that influence staff turnover and also strategies that managers can utilize to reduce staff turnover with the administration of questionnaire to 116 respondents at Logs and Lumber Limited and 84 respondents at Hanmax Veneer and Plywood Company Limited. Interviews were also granted by the General Managers and five other employees each from Hanmax Veneer and Plywood Company and Logs and Lumber Limited. The effectiveness of retention strategies that were utilized by both firms to retain employees was also investigated and it was observed that the retention strategies in both firms were not effective enough to retain staff. It was therefore recommended that employees are trained to improve upon their skills because it is through training that the competence of employees could be maximized and retained in the organization to give off their very best to increase productivity. It was also recommended that Management should establish or set up a recognition program for its employees to recognize their contributions.
A thesis submitted to the School of Business, Kwame Nkrumah University Of Science And Technology In partial fulfilment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT). 2012