ABSTRACT

This study focused on the implication of employee retention and turnover on organizational growth (A Study of Selected Firms in Abia State, Nigeria). The study sought to examine the effect of turnover rate (Vacancy cost, Replacement cost and advertising expenses) on organizational performance of Selected Firms in Abia State, assess the impact of employee retention (Rewards and recognition, Salaries and Promotion) on organizational effectiveness of Selected Firms in Abia State, determine the relationship between employee retention and turnover on organizational growth of Selected Firms in Abia State, explore the impacts of employee retention and turnover strategies adopted on organizational growth of Selected Firms in Abia State and analyze the limiting factors affecting employee retention and turnover on organizational growth of Selected Firms in Abia State. The researcher employed a survey research design. The researcher used primary and secondary sources of data to collect information from the respondents. The total population of the study was 259 management and staff of Nigeria Breweries Aba and Unilever Plc Aba, Abia State.  The sample size of 157 was derived from Taro Yamane formula. The simple random sampling method was used to gather information from the respondents. Regression model, Pearson Correlation Coefficient analysis and ANOVA test was used to test the dependent and independent variables of the study. The study found out that Turnover rate (Vacancy cost, Replacement cost and Advertising cost) has a significant difference on organizational performance of Selected Firms in Abia State p-value = .009 < .05% significance level. Employee retention (Rewards and Recognition, Salaries and Promotion) has a significant difference on organizational effectiveness of Selected Firms in Abia State p-value = .005 < .05% significance level. There is a positive relationship between employee retention and turnover on organizational growth of Selected Firms in Abia State p-value = .005 < 0.05% significance level. The study concluded that there is a significant impact on employee retention and turnover strategies adopted on organizational growth of Selected Firms in Abia State p-value = 0.005 < .05% significance level. The study recommended that management under the study should endeavor to reduce the turnover rate of employees to enable them save the vacancy cost and replacement cost and also reduce the cost of train and develop new employees working in the organization.