Abstract
M.Ing.
The purpose of the research was to determine the relationship, between the
innovative culture and employee retention within the organisation. High labour
turnover impacts on organisational performance and survival. Despite an
organisation’s level of development, many organisations face employee retention
challenges. Therefore devising strategies to improve employee retention has become
a priority for most organisations. The problem of high labour turnover was also observed during a pilot study conducted at the initial stage of this research study. From the pilot study it appeared as though a relationship existed between an organisation’s innovative culture and employee job satisfaction. A review of literature revealed that there were no extensive studies which had been conducted to establish the relationship between innovative culture an employee retention especially in South Africa. The need to develop strategies to improve employee retention and the lack of extensive studies in South Africa about whether innovative culture could influence employee retention motivated the current research study. High labour turnover has the potential to affect an organisation
negatively with regards to employee morale, productivity, etc. Therefore, there was a
need for a study to be carried out to determine the relationship between an organisation’s culture on innovation and labour turnover within the organisation. The research involved conducting a desk and pilot study to establish the problem of labour turnover; an extensive literature review to inform the researcher about labour turnover, employee retention, organisational culture, innovation and employee conditions of service. Finally a questionnaire survey and interview was used to establish the existing conditions among the selected sample. A relationship between innovative culture, employee satisfaction and employee retention was inferred from the data obtained from the questionnaire and interview survey. The empirical data obtained from the questionnaire survey and interviews was analysed using the Statistical Package for Social Sciences software (SPSS) providing descriptive and inferential statistics. Recommendations on employee retention were informed by the findings from the survey. The respondents to the questionnaire survey and interviews were professionals and employees in the selected organisations from all departments (Marketing, Finance, Human Resources and Trade Marketing). The participants to the study were drawn from the Fast Moving Consumer Goods (FMCG) sector, Manufacturing and Construction Industry Sector and from the Services (Banking and Utilities) sector.