SADIA ZAINAB

5880
PROJECT REPORT
FACTORS CONTRIBUTING IN
EMPLOYEE TURNOVER IN HEALTH
SECTOR REFORMS UNIT (HSRU)
MR. UMER FAROOQ

ABSTRACT
Employee turnover is considered to be one of the persisting problems in any Organization.
Turnover is a behavior which describes the process of leaving or replacing employees in an
Organization, it means another Organization may gain new informative employees that can
become its competitive advantage. Excellent employees in Organizations are so significant
because they are mostly important to the development, their attitudes and behaviors play a key
role in the quality of work. This study investigated the factors contributing in employee turnover
in Health Sector Reforms Unit (HSRU), Health Department, Government of Sindh. The topic
came into existence to know the reasons as to why contractual employees are different then
permanent employees. They dont get timely salaries; they have to wait & keep up following for
the approval/sanction of their budget. The researcher objective is to create some kind of power to
the chief HSRU so that this mind set would be out from common peoples minds as most of them
usually think that Government job is not going anywhere what so ever.
This study follows the primary research data which is directly related to the qualitative research
which refers to the personal observations, questionnaires, interviews, etc. There are different
techniques of accumulating primary data but this research study follows the questionnaire
technique that had been distributed among 50 employees of Health Reforms Sector Unit, Health
Department, Government of Sindh.
This study has time limitations and limited resources which are the major constraints in the
study. The study focus on Health Departments project mentioned above, not on the other
Government Departments. This study would be beneficial for the Department. It will provide
guidelines to other Government Departments also; staff would become punctual and regular,
politics would be erased.
Keywords: Employee Turnover, Work Load, Working Conditions, Compensation

TABLE OF CONTENT
INTRODUCTION-----------------------------------------------------------------------------------4

Problem Statement--------------------------------------------------------------------------5
Research Question--------------------------------------------------------------------------5
Key Research Questions-------------------------------------------------------------------5
Limitations-----------------------------------------------------------------------------------5
Scope of the Research----------------------------------------------------------------------5

LITERATURE REVIEW---------------------------------------------------------------------------6

Employee Turnover-------------------------------------------------------------------------6
Working Conditions-------------------------------------------------------------------------6
Work Load------------------------------------------------------------------------------------7
Compensation--------------------------------------------------------------------------------7

THEORITICAL FRAMEWORK------------------------------------------------------------------8
HYPOTHESIS----------------------------------------------------------------------------------------9
DATA ANALYSIS----------------------------------------------------------------------------------9
QUESTIONNAIRE---------------------------------------------------------------------------------10-12
TESTING-----------------------------------------------------------------------------------------------13, 14
INTERPRETATION-----------------------------------------------------------------------------------15, 16
CONCLUSION----------------------------------------------------------------------------------------17
RECOMMENDATION--------------------------------------------------------------------------------18
REFERENCES------------------------------------------------------------------------------------------19

INTRODUCTION
Employee turnover is considered to be one of the persisting problems in Organization
(Armstong, 2009; ReiB, 2008). According to Currivan (1999), Turnover is a behavior which
describes the process of leaving or replacing the employees in an Organization it means another
Organization may gain new informative employees that can become its competitive advantage.
The loss of knowledge thus is a threat for the former Organization, which amplifies the
consequence of knowledge continuity. In the phase of more and more competitive environment
in the era of new knowledge economy, the role excellent employee play in an enterprise gains
more weight and value than before and become the solution to a success of companies in todays
growing industries. Excellent employees in Organizations are so significant because they are
mostly important to the development, their attitudes and behaviors play a key role in the quality
of work. In this way employees are chiefly accountable for proving a sustainable competitive
advantage. Therefore, success in Organizations depends on managing and sustaining quality
employees.
Turnover has substantial impact on an Organizations performance as it should be properly
tackled and considered. Past researches concluded that employee turnover has very negative
effect on the operating performance of an Organization with the help of theoretical and empirical
analysis and this is due to interruption of daily Organizational routines (Dalton and Todor 1979,
Blue Dorn 1982). On the other hand, many other researchers found that Organization gets benefit
due to fresh blood and innovative thinking and also increases the motivational level of
employees that bring to new job (Abelson and Baysinger 1984, Mowday etal. 1982).
The area for the research study was, Health Sector Reforms Unit, (HSRU), Health Department,
Government of Sindh. The research study was based on qualitative technique. The questionnaire
will be distributed among the staff member of HSRU and data will be gathered to know that how
much employee turnover affect the performance of an Organization. The reason thats why
HSRU has been chosen is because its environment has become pathetic due to political
involvement for excellent hardworking employees. The research study is been conducted to
check out the scope the employee fulfill their task that is assigned to them by their superiors and
what are the other reasons of turnover on Organization.

Problem Statement:

The topic came into existence to know the reasons as to why

contractual employees are different then permanent ones. It is bee observed that contractual
employees are not treated the way permanent employees are treated. They dont get their salaries
on time, they have to wait for the sanction of their budget and they have to move the documents
monthly for salary processes. Once their contract expires they have to move their extension
documents which it selves take time and permission.

Research Objective:

The researcher objective is to create some kind of power to the

authority so that this mind set would be out from common peoples minds as most of them
usually think that Government job is not going anywhere what so ever.

Research Question: How would the power of being the authority been implemented if
the politics is in the surroundings?

Key Research Questions:

What are the factors which create difference in permanent and contractual employees?
What are the factors that would erase the immature mind set of employees?

Limitations:
Time limitation and limited resources are the major constraints.
The study only focuses on Health Departments project not on the other Government
Departments.
This research requires primary data which will be through questionnaires which are not
broadly accessible.

Scope of the Research: The study would be beneficial for Department. It will provide
guidelines to other Government Departments also. Working would be made. Staff would become
punctual and regular. Politics would be erased, so those who want to work, would work and
improvise.

LITERATURE REVIEW
Employee Turnover:

Employee turnover is a percentage judgment of the number of

employees a firm must exchange in assumed period of time to the ordinary number of total
personnel (Agnes, 1999). A vast concern to most companies, employee turnover is expensive
especially in lower disbursing job roles, for which the worker turnover level is highest (Samuel,
2012). Turnover denotes to the amount of effort of employees in and out of an organization,
generally existing in terms of the turnover ratio (Chruden & Sherman, 1972). The sense of
employee turnover as the discontinuance of association in an organization by the individual who
expected financial compensation from the organization Mobley (1982). The employees turnover
means the variation of labours around the labor market, between organizations, contracts and
careers. Wages, company benefits, employee attendance, and job performance are all factors that
play a significant role in employee turnover Carley (1992 cited in Tham, Pee, Kankanhalli &
Tan, 2008). Two factors that are linked to the employee's evolution through sequential steps of
withdrawal (Bean, 2009). In turnover procedure everyone generally points out one reason for
their turnover choice, but there are continually more aspects on the back hand that works as
push-cart or dynamic strength for that element (Jaffari, 2011). Although, there is no ordinary
structure for understanding the employees turnover procedure as whole, a wide series of factors
have been initiate useful in understanding employee turnover Kevin et al. (2004). It was found
that employee aim setting (Medlin and Green 2009); career growth (Hamel and Breen,
2007),work environment (Cardoso and Monfardini, 2008; Hansen, 2008 and Burke and Hsieh,
2006), training and progress (Walsh and Taylor 2007);Hence keeping in mind the Pakistan
economic background following few factors was considered in order to access employee
turnover in banks. Price & Muller (1981) observed that job dissatisfaction influenced actual
turnover indirectly through its direct effect on turnover intention. Research by Knapp at al.
(1998) reported that the rate at which staff change jobs has posed a serious problem for
employers in the private and public sectors. Since, staff employee turnover generally breaks the
stability, consistency and continuity of work, makes long-term planning more difficult, it leads to
shortages of staff which in turn can raise the workloads of other employees, and raises the costs
of recruiting and training staff. Costly et al. (1987) points out that a high labor turnover may
mean poor personnel policies, poor recruitment policies, poor supervisory practices, poor
grievance procedures, or lack of motivation. All these factors contribute to high employee
turnover in the sense that there is no proper management practices and policies on personnel
matters hence employees are not recruited scientifically, promotions of employees are not based
on spelled out policies, no grievance procedures in place and thus employees decides to quit.

Working Conditions: Outsourcing is more prevalent under condition of high scientific

uncertainty and high information exchange; research gained some tentative insights into the fact
that higher outsourcing under these conditions leads to higher performance of individual
(Magnus at al, 2001). Magner et al. (1996) argues that employees feel comfortable to stay longer,
in positions where they are involved in some level of the decision-making process. That is
employees should fully understand about issues that affect their working atmosphere. According
to Camp (1993), the organizational commitment found to be a significant predictor of

organizationally relevant behavior, in his case, turnover. This certainly lends support to the
position of organizational commitment. Conversely, He further justify that there was no evidence
from this study of workers in one public sector agency that job satisfaction has any effect on
voluntary turnover. The correct in that even when combined with the other relevant control
variables, the explanatory power of the models containing organizational commitment is fairly
low. It should be kept in mind that organizational commitment was typically measured months
before the respondents actually quit work. Even so, the results of this and related studies suggest
that even though we have additional insight about the theoretical relevance of organizational
commitment, we still do not seem to understand much about the processes that generate turnover.
Harris at al. (2002) theory asserts that high turnover lowers firms incentives to provide staff
training programs and, therefore, reduces productivity. On the other hand, job matching theory
postulates that turnover can help employers and employees to avoid being locked in sub-optimal
matches permanently, subsequently increases productivity. The conflict between retaining
workforce stability on the one hand, and flexibility on the other, gives rise to the quest of an
optimal turnover rate.

Work Load: Kahn et al. (1964) also consider stress as conservation a incentive to a person,
or an oddity between individual and environment. The knowledge of job related stress (job
stress), the series of reasons that lead to job related stress (stressors), lack of commitment in the
organization; and job frustration make employees to quit Firth et al.(2004). Fogarty at al. (2004)
results that the employee turnover increases due to individuals in offices were mostly at fault,
making errors because they failed to follow procedures and were ineffectually supervised the
circumstances; put the employees of the organization in, such a pressure created by poor
planning and results in increase in turnover and organizational performance decrease. Klasen
(1999) uses multinational cross panel regressions to explore the extent of employee turnover in
the organization which may trim down growth and development of any organization and the
overall economy. His paper finds a substantial impact of employee turnover on economic growth
based on data from East Asia, Africa, South Asia and the Middle East. His results suggest that
employee turnover in education and management has a direct impact on economic growth
through throbbing change in management lowering the average quality of human capital.

Compensation: Compensation is output and the benefit that employee receive in the form
of pay, wages and also same rewards like monetary exchange for the employees to increases the
Performance(Holt,1993).Compensation is the segment of transition between the employee and
the owner that the outcomes employee contract. As the prospective of employee pay is the
necessary of life. The payment receives from work done on the behalf of people getting the
employment. From the employee prospective one of the most important part of cash flow.
Compensation is mostly equal to half of cash flow of the companies. But in the service sector it
is more than half. It is the major to attract the employee and motivate employee to increases the
performance (Ivanceikh and Glueck, 1989). It is argument that mostly individuals that getting
higher education they are not satisfied their jobs and their turnover is more than so that
organizations are overcome to that problem design the compensation plain to retain the
employees as well plays more to attract, retain and motivate to give man power. Different
universities objectives make their benefits and compensation packages to attract as possible

(HRM Process BPR term report June, 2009) mostly employees believe their abilities that know
that if they perform well pay can be increasing Center for Promoting Ideas, USA. In other words
you can say that compensation and rewards effects the employee decision making to stay their
organizations and also accepted the responsibility (Bratian &Gold 1995). The value employee
training as a compensation and benefits packages has increases the performance human resource
outcomes normally increases the performance, satisfaction and productivity also stay there and
attracting. The perception of employee about the organization benefits policy. If pay is tied to
employee performance good quality and quantity of work done(Ivancevch and
Glueck,1989).Organization pay directly influences to employee voluntary turnover employee
compare to their pay available in other organization (Henman and Schwab,et.al.1987).People
stay or leave the company more reasons they satisfied with their job promotional opportunity and
work environment (Mitchell and Holton et.al.1993).This paper designed to assessing to evaluate
the employee perception towards compensation and benefits policy associate problems to
selected government higher education because the compaction strategy is same as well study of
this paper focus on perception of employee towards compensation and pay rewards as well.

THEORITICAL FRAMEWORK

Working
Conditions

Work Load

Compensation

Employee
Turnover

HYPOTHESIS
H1: There is a relationship between Working Condition and Employee Turnover.
Ho: There is no relationship between Working Condition and Employee Turnover.

H2: There is an influence between Work Load and Employee Turnover.

Ho: There is no influence between Work Load and Employee Turnover.

H3: There is a relationship between Compensation and Employee Turnover.

Ho: There is no relationship between Compensation and Employee Turnover.

DATA ANALYSIS

The Data Analysis refers to the collection of data that how this research studies collects data.
This research study shows the questions that was asked from both male and female and also
shows the result about what level of percentage of male and female gave answer of each
question. The z-test was applied on each hypothesis for the accurate result in this research. Likert
scale of an Interval scale was used , this research study also shows the interpretation of applied
test and discussed which hypothesis are accepted or rejected.

SURVEY QUESTIONNAIRE
You are requested to give your opinion as correct as possible.
Gender:

Male

Female

Designation: ___________________

Dept: _______________________

Please tick any option as per your choice of understanding.

5 = strongly agree

4 = somewhat agreed

3 = neither agreed/nor disagreed

2 = somewhat disagreed 1 = strongly disagreed.

WORKING CONDITION:
The staff of the organization is very positive &
Supportive.
1

Efforts are recognized & acknowledged in tangible

ways.
1

The rewards for success are greater than the penalties

for Failure.
1

Employees should fully understand about issues that

affect their working atmosphere.

High turnover lowers firms incentives to provide staff

training programs.

WORK LOAD:
The workload from your organization is according to your
designation and manageable.
1

In most of the public sector organizations, there is no concept of

proper division of work.
1

There should be merit based hiring rather than politically which

can certainly distribute workload equally.
1

Workload should be divided because too much stress can affect the
productivity.
1

A pressure created by poor planning results in increase in turnover

and organizational performance decrease.
1

COMPENSATION:
Compensation is very important to upraise performance of the
employees.
1

Reward is the most important element to eliminate employee for

paying their best efforts.
1

Employee loyalty increases if remunerations are in accordance to

their efforts.
1

A pay is the key determination.

1

Experience rewards is study indicate more complex and difficult.

1

EXCEL SHEET
No. of
W. W. W. W. W. W. W.
Respond
C
C
C
C
C
L
L
ents
(1) (2) (3) (4) (5) (1) (2)
1
5
1
5
5
5
5
5
2
5
5
5
4
3
2
2
3
3
4
5
3
4
4
3
4
4
1
4
4
5
4
4
5
5
1
5
5
5
5
5
6
3
1
3
4
4
4
1
7
3
4
4
4
3
4
2
8
1
3
5
1
1
5
4
9
4
1
5
4
3
5
4
10
4
2
3
4
3
3
4
11
3
2
1
2
2
3
4
12
3
2
4
2
3
3
4
13
3
1
4
5
4
3
4
14
1
1
5
5
4
1
1
15
1
5
4
3
4
1
5
16
5
5
5
4
5
4
5
17
5
5
5
5
4
1
1
18
5
4
5
5
3
4
4
19
5
3
5
4
3
3
3
20
3
2
4
3
4
3
4
21
3
4
3
3
4
4
3
22
2
3
2
3
1
1
2
23
3
4
3
5
4
3
5
24
3
4
3
4
3
3
4
25
3
4
5
4
3
4
3
26
3
4
5
4
3
4
4
27
4
1
4
2
1
3
5
28
3
5
1
4
3
4
2

W.
L
W. W. CO CO CO CO CO
(3 L
L
M
M
M
M
M
)
(4) (5) (1) (2) (3) (4) (5)
3
4
5
5
5
5
5
1
3
4
4
5
5
5
5
5
2
3
4
3
2
3
4
5
5
5
5
5
5
1
5
5
5
5
5
5
5
1
1
5
5
3
5
4
4
1
5
5
5
4
3
4
2
3
3
4
3
2
3
4
5
1
4
5
4
5
3
5
5
5
5
5
3
4
4
3
4
2
3
4
2
3
1
2
3
3
2
2
3
4
2
5
4
3
2
4
5
5
5
4
3
5
4
3
5
5
5
3
1
5
5
3
1
5
4
4
5
4
5
4
5
5
5
5
5
5
5
5
1
5
5
5
3
3
5
3
4
4
4
4
4
5
5
5
3
5
5
5
5
5
5
5
2
5
5
3
3
4
5
5
5
3
5
3
3
4
5
3
3
3
2
3
4
4
5
3
3
3
4
4
4
3
3
4
5
4
4
3
4
3
4
3
4
5
4
4
3
4
3
4
3
5
4
3
3
4
5
5
2
1
4
1
2
5
3
1
4
5
1
2
4
2
4
2

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Total
Mean of
Variable
Standard
Deviation

3
4
3
5
4
3
3
4
5
4
3
4
1
4
2
5
2
1
3
4
3
5
4
3
2
3
4
4
2
3
2
4
1
5
3
2
2
2
3
2
4
4
3
4
5
3
4
4
4
4
3
4
5
4
3
3
4
3
3
5
3
4
3
4
4
3
3
4
4
3
4
3
4
3
4
5
4
5
5
5
5
5
5
5
5
5
5
5
4
4
5
3
5
4
4
5
5
5
4
4
4
4
5
4
3
3
5
5
1
1
2
3
4
2
1
2
3
4
5
4
1
3
5
2
5
4
5
4
3
1
1
2
3.2 3.2 3.8 3.7 3.5 3.4
8
2
2
6
4
4

4
5
4
4
4
4
3
3
5
3
4
3
4
4
5
5
4
5
1
3
5
5
3.6
8

4
5
3
5
4
4
1
5
3
3
4
3
3
3
4
2
1
3
4
4
3
3
3
3
3
5
3
4
4
3
2
4
2
4
5
4
3
4
5
4
4
5
4
5
5
5
5
4
5
4
5
5
4
4
2
5
4
2
1
2
3
1
4
1
4
1
3. 3.9 3.7
4
6
4

4
4
4
4
3
5
4
4
4
2
3
5
3
4
4
5
5
4
3
3
1
5
3.7
8

3
4
1
3
3
1
4
4
4
4
4
5
4
5
4
3
4
4
5
4
4
1
3.6
6

4
3
4
4
4
5
3
4
5
3
3
4
3
4
4
4
3
5
4
5
2
3
3.6
2

3
4
3
3
3
4
4
5
4
5
4
4
5
5
5
5
4
5
3
4
5
5
4.1
4

3.524

3.644

3.78

1.235935

1.174125

1.139338

H-1
Data
Null Hypothesis
=
Level of Significance
Population Standard
Deviation
Sample Size
Sample Mean

3
0.05
1.23593452
50
3.524

Intermediate Calculations
0.17478753
Standard Error of the Mean
6
Z Test Statistic
2.99792543

4
3
3
4
4
1
4
4
3
3
3
5
3
4
4
4
5
4
4
3
4
1
3.7

6
Two-Tailed Test
1.95996398
5
1.95996398
5
2.718E-03

Lower Critical Value

Upper Critical Value
p-Value
Reject the null hypothesis

Interpretation:
After applying z-test this research study finds out that alternative hypothesis will be accepted and
the entire null hypothesis will be rejected because there is a p-value of 2.718. It has standard
deviation of 1.235 where as it has sample mean of 3.524 so it is said to be there is a relationship
between Working Condition and Employee Turnover.

H-2
Data
Null Hypothesis
Level of Significance

Population Standard Deviation

Sample Size
Sample Mean

3
0.05
1.17412532
6
50
3.644

Intermediate Calculations
Standard Error of the Mean
Z Test Statistic

0.16604639
6
3.87843407
3

Two-Tailed Test
Lower Critical Value
Upper Critical Value
p-Value
Reject the null hypothesis

1.95996398
5
1.95996398
5
0.00010513
1

Interpretation:
After applying z-test this research study finds out that alternative hypothesis will be accepted and
the entire null hypothesis will be rejected because there is a p-value of 0.0001. It has standard
deviation of 1.174 where as it has sample mean of 3.644 so it is said to be there is an influence
between Work Load and Employee Turnover.

H-3
Data
Null Hypothesis
=
Level of Significance
Population Standard
Deviation
Sample Size
Sample Mean

3
0.05
1.13933772
5
50
3.78

Intermediate Calculations
0.16112668
Standard Error of the Mean
6
4.84091132
Z Test Statistic
1
Two-Tailed Test
Lower Critical Value
Upper Critical Value
p-Value
Reject the null hypothesis

Interpretation:

1.95996398
5
1.95996398
5
1.29245E06

After applying z-test this research study finds out that alternative hypothesis will be accepted and
the entire null hypothesis will be rejected because there is a p-value of 1.2924. It has standard
deviation of 1.1393 where as it has sample mean of 3.78 so it is said to be there is a relationship
between Compensation and Employee Turnover.

CONCLUSION
This research study was all about the Employee Turnover and Factors contributing in Employee
Turnover in Health Sector Reforms Unit (HSRU), Health Department, Government of Sindh. It
was concluded from different results that Working Conditions, Work Load and Compensation
has significant as well as positive impact on Employee Turnover. It is proved from the applied
Z-test analysis that all the independent variables which were selected in this study has a positive
relationship. Descriptive research in this study also reveals that all the independent variables
have positive impact on Employee Turnover in Health Sector Reforms Unit (HSRU). In other
words, the entire alternative hypothesis will be accepted and the null hypothesis in this research
will be rejected. The objective of the research was achieved. There is a positive impact of

Working Conditions, Work Load and Compensation on Employee Turnover in Health Sector
Reforms Unit (HSRU).
This research study also highlights the procedures that are used during the process. This study
also concluded towards the independent variables that affect the Employee Turnover in Health
Sector Reforms Unit. The study finds that the Working Conditions of their employees has
directly related to the Employee Turnover .As same as Work Load has an influence on Employee
Turnover where as Compensation also directly related to the Employee Turnover. So, it has been
proved by the Z- test and questionnaires which had been distributed among the staff of the
HSRU. In short, it is clearly identified that there is a significant effect of Working Conditions,
Work Load and Compensation on Employee Turnover in Health Sector Reforms Unit (HSRU).

RECOMMENDATION
This research study was all about the Employee Turnover and Factors contributing in Employee
Turnover in Health Sector Reforms Unit (HSRU) Health Department, Government of Sindh.
After applying z-test we have identified that there is a significant effect of Working Conditions,
Work Load and Compensation on Employee Turnover in Health Sector Reforms Unit (HSRU).
Every organization should provide better Working Conditions to their employees in order to
satisfying their needs and wants. They should provide proper work to them so that a lot of work
load would not be takes place because most of the employees move towards quit because they
failed to follow procedures. As same as compensation is also very important for the performance
of the employees. It has positive impact on employee performance. This study will be helpful for
other researcher to know how much these factors affect Employee Turnover in Health Sector
Reforms Unit (HSRU) Health Department, Government of Sindh. This study would be beneficial
for Department. It will provide guidelines to other Government Departments also. Working
would be made. Staff would become punctual and regular. Politics would be erased, so those
who want to work would work and improvise. So, I recommended to new researcher that if they
want to research on the same topic then focus on other factors to know how much that factors
give satisfaction to employees of HSRU and if researcher want to focus on the same factor as

this study discussed then they must focus on other Government Departments to know the impact
of these factors on Employee Turnover.

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