Staff turnover is a standard measure of the rate of exits compared to the number that fills up the same position in the organisation. By calculation, it’s the percentage of staff exits against the initial employee numbers at the start of the period under review. For instance, a company that had 200 staff in January and 10 opt to exit by December the turnover ratio is five per cent.
The lower the percentage the better for the company since exits and entries have associated costs, recruitment expenses, terminal benefits, and cost of litigations in case of hostile separation, among others. Employees spend most of the day at their workplace. The standard working hours being eight implies that one spends 30 per cent of the day or 60 per cent of their active hours between 6am and 6pm at work.
How you spend your day translates into your living years. Every employer should, therefore, ensure that the work environment is conducive because employees are the drivers of the organisation. Here are some of the reasons for high turnover:
The current crop of employees are sensitive to pay and any reasonable counter offer presented way above their salary has a tendency to sway staff loyalty. This is evident in the local media industry in which we witness high staff turnover due to better terms rivals offer such as higher pay, paid time off and stock options education assistance, among others.
The market is changing. For employers, the salary structure for yesteryears may not be relevant today. Human resource or talent sourcing departments should research regularly on new trends in the market and act accordingly.
Even though companies do consider salary or money as a satisfactory measure of effort, they should aim to offer a fair salary for effort expended based on the ability of the company to sustain the wage bill.
2. Leadership/ Supervision
Supervision is the act of directing employees to achieve desired results or simply working through other people. How an organisation achieves this is very critical. Humans are a creature of habit, routine and consistency.
The employee desires a level of predictability. Therefore, a manager should ensure the strategies adopted have a human face. Many employees opt for lower paying jobs to escape an arrogant and punitive supervisory system.
Supervisors should be well-trained and understand their duties.
Employees tend to honour and respect expertise coupled with experience. A supervisor who meets these criteria may find his or her work fun due to the high level of team cooperation.
3. A lack of participation
There is a paradigm shift in operations where every idea is regarded as equally special and weighed against the scale of reason and practicability before being discarded. Even that tea girl we always look down upon has something to offer. Most firms now have ‘ideas book’ at the reception for all staff to write what they consider, if implemented, could be a game changer in a company. All staff now want to participate in company decision-making process, not just routine and structural operations. Let us create room for this as part of staff retention.
Employees who rise up the corporate ladder may find it prudent to exit and create room for promoting the junior staff.
Depending on company size and structure, the staff may hold on since they can see growth opportunities as those at the top exit. This results in new ideas or fresh blood as well as succession planning.
In summary, the talent search department should be sensitive to the market and ensure the remuneration structure is commensurate with employee skills to foster staff retention.
A firm that experiences a high turnover should conduct a survey for root cause analysis. How the company handles its staff determines how long they stay in the company.
Employers should also conduct management performance appraisal to eliminate cases of punitive supervision.
All employees are important and their ideas count. Involve all of them in the day-to-day decision-making process as suggested earlier.
Put in place a succession plan to create a pool of experienced and capable employees to take up the positions left vacant on staff exits.
TOM SHAMIAH, Managing partner, Periperi Recruitment Services.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.