Assessing the impact of low employee morale on labour turnover at the KwaZulu-Natal Liquor Authority.

Abstract

The KwaZulu-Natal Liquor Authority (KZNLA) has experienced unpreceded labour turnover, due to the perceived poor employee morale, ultimately impacting on the entity’s organisational performance (KZNLA, Report, 2019). The purpose of the study was to assess the impact of low employee morale on labour turnover at the KwaZulu-Natal Liquor in order to improve the morale as well as organisational performance. The study employed the mixed method approach which include the quantitative and qualitative method gathering data through questionnaire and interviews. The target population of the study comprised all the employees of KZNLA which include lower-level employees, middle management, senior management totalling 167. The quantitative study used all the 167 employees as the sample size while 14 employees which include 8 managers, and 6 employees took part in the qualitative study. Quantitative data was analysed using SmartPLS 4 statistical tool. The SmartPLS 4 statistical software is a software with graphical user interface for variance-based structural equation modelling (SEM) using the partial least squares (PLS) path modelling method. Qualitative data was analysed using manual thematic analyses. The study findings revealed KZNLA employees present with low morale levelled responsible for the labour turnover as well as poor organisational performance. The study also revealed that KZNLA experience an increasing spate of employee dismissals, work overload, lack of recognition, low salaries, lack of benefits, unclear organizational structure, poor communication, and lack of consultation. Drawing from the findings the study recommended that KZNLA needs to appoint an organisational development specialist (OD), whose focus would be to professionally management the rationalisation process currently underway with specific mandate to improve employee morale by creating a positive motivational environment. Considering that KZN has several similar state entities which could be experiencing similar challenges, the study recommends that a similar study be conducted in order to have a balanced view which could serve other sate entities.