ABSTRACT

This study explores the causes of turnover and its effects on organizational performance in insurance companies in Buea, Cameroon. Employee turnover, defined as the rate at which staff leave a company, can greatly affect the performance of organizations, especially in the insurance sector. This research investigates the key factors that contribute to high turnover rates in these companies. The study also examines how turnover influences organizational productivity, client satisfaction, and overall business success.

Primary data were collected through structured questionnaires administered to employees of selected insurance companies in Buea. Secondary data sources were also used to support the analysis. Factors such as poor working conditions, lack of promotion, and inadequate salary were identified as the main causes of employee turnover. These factors create dissatisfaction among employees, prompting them to seek better opportunities elsewhere. The study also found that turnover leads to significant costs for insurance companies. These include recruitment and training expenses for new employees, decreased productivity, and loss of experienced staff.

The impact of turnover on organizational performance is substantial. High turnover rates disrupt workflow, reduce team cohesion, and negatively affect customer relations. This is because frequent changes in staff often lead to inconsistencies in service delivery, which can affect client trust and loyalty. Furthermore, organizations with high turnover rates face challenges in maintaining a stable workforce, which is critical for long-term growth and success.

Recommendations from the study suggest that insurance companies in Buea should focus on improving working conditions, offering competitive salaries, and providing clear career progression paths for employees. These measures can reduce turnover rates and improve organizational performance. Additionally, investing in employee retention strategies such as regular training, recognition programs, and creating a supportive work environment will help retain skilled employees and enhance overall business success.

Keywords: Employee turnover, organizational performance, insurance companies, Buea, job satisfaction, retention strategies, productivity, client satisfaction.