Abstract
Employee turnover is a challenge for all organisations. The private banking division is known to have a high employee turnover as well. The current study sought to examine the impact of effective leadership on reducing high employee turnover in the private banking division. The study adopted a quantitative research approach and employed a cross-sectional design. A simple and stratified random sampling technique was used. Data was collected using a structured questionnaire. A total of 201 online questionnaires were completed (female = 115; male = 67). Descriptive statistics used in this study included frequency and mean. For inferential statistics, correlation, factor and regression analysis was completed to enable data interpretation. Data was presented using tables and figures. The findings of the study revealed that 23.9% of employee turnover is explained by effective leadership. This result suggests that respondents who felt they were managed or led effectively were less likely to think about leaving the private banking division. Respondents agreed that there was effective leadership in the private banking division, with a high mean of 3.85. Employee turnover had a mean of 3.11, indicating that respondents sometimes thought about leaving the private banking division. A strong significant negative correlation existed between effective leadership and employee turnover with a P value of 0.000, which is less than the 0.05 threshold required for relationship significance. It is hope that the results of this study will provide human resource managers with a better understanding of the relationship between effective leadership and employee turnover.
Keywords: Private banking division, Effective leadership, Employee turnover.