The most important asset of any organisation is its people. However, in the service sector, employee turnover continues to plague businesses.
When Louis Bismark Ovon bought a salon in 2011, all the stars seemed aligned. He already had employees, so he assumed the journey of training people would be shorter. However, he was shocked when they walked out to neighbouring salons.
Ovon says these employees were not accustomed to having a boss who was present every day. The previous owner only came in occasionally, perhaps on a weekend or once a month, to collect money and balance the books.
‘I have been in business for over a decade and employee turnover has always come in phases. In the first phase, seeing that I was physically present all the time, they felt insecure. They thought I was monitoring their every move. There were also systems I introduced that they weren’t used to,’ he says.
Mr Henry Kibirige, a human resource practitioner, says people employed in service roles are often not highly qualified or specialised. Because of this, they tend to have a lot of mobility, moving from one job to another with ease.
‘Since their jobs don’t demand rare or highly specialiSed skills, there is little reason for them to stay in one role,’ Kibirige explains.
Irene Mbabazi, the proprietor of Variety Mart, has lost up to three employees in a year and agrees that most of them are not highly qualified. She adds that they are often humble in the beginning, but their egos grow over time. It is the same experience Ovon, the proprietor of Louis’ Salon and Locs and More, has had.
‘When you work with someone for about three years, they either become complacent or start to see themselves as managers because they feel indispensable. At that point, some decide to move on,’ he explains.
In Mbabazi’s case, the highest turnover is among cashiers who, over time, become familiar with the system and begin to dislike giving accountability, especially when a shortage arises. When they are reassigned to the back office, some simply leave.
‘Once these cashiers start handling money and understand how the business flows, they start feeling untouchable,’ she says.
Mbabazi says the biggest cause of employee loss is the male clients who promise them heaven on earth. These befriend them, making them feel they no longer need to be accountable to their employer.
‘With a man giving her money, promising marriage and a better life, her work ethic changes. Unfortunately, it is never as rosy as they expect, and some later call asking for their job back, which is impossible. That was the case with the last one,’ she shares.
Ovon adds that some employees he has trained have left because they felt ready to start their own businesses. They believed that since they had mastered the skills and were making money for the salon, they could just as well make that money for themselves.
‘Despite all this, I have been fortunate to enjoy periods of stability. There are stretches of three or four years where no one leaves, or maybe just one or two go because of indiscipline or poor performance. But the core of my team usually remains, and that has kept the business grounded,’ he smiles.
Mbabazi says the loss of cashiers means she has to step in, which is straining, as the commute from her home to the minimart is cumbersome. It also means training another cashier, which is time-consuming.
On the other hand, employers sometimes fail to offer stability. Mr Kibirige, the proprietor of Sofos Consults, says many treat employees casually, dismissing them over small annoyances. What they do not realise is that by sacking people so easily, they create a trend: Employees learn that their jobs are insecure and dismissal can happen at any time.
‘When an employee knows that their employer is not committed to them, even when they have a reason to stay, they find no difficulty in leaving,’ he says. ‘Commitment must exist on both sides.’
Structures are crucial in reducing employee turnover. However, Mr Kibirige notes that many workers in this sector do not operate under formal, written contracts. Employers simply put up a poster saying ‘I need a chef’ or ‘I need a shopkeeper,’ and whoever shows up starts working immediately.
‘There are no three-year or five-year contracts outlining terms, conditions or obligations. You simply walk in and begin. ‘This means they can also walk out at any time,’ he says.
Ovon shares that he has no formal measures to deal with employee turnover. He tries his best to be a good employer, pays his staff well and on time, and trains them. ‘I teach and train them and try to be understanding while leaving the rest to God,’ he says.
But over the years, he has realised that none of this can stop someone who has made up their mind to leave. He acknowledges that one of his weaknesses may be empowering his staff through training.
‘Many of these have soon left, even with some of my clients. But truly, it is very difficult to stop someone who has decided to move on. It is like someone deciding it is time to get married; once that decision is made, there is nothing much you can do.’
Mbabazi acknowledges that these are grown women who, even though in need of work, have the free will to stay or leave. She has now resorted to counselling them, telling them that a bird in the hand is better than two in the bush.
‘With the current girls, I have told them that men will come, tell them all the sweet things, but there is no guarantee they will fulfil their promises,’ she says.
Solutions
Solomon Muhirwa, a human resource practitioner, says reducing employee turnover in this sector does not have definitive measures, partly because of the meagre earnings. Even a salary increase of Shs5,000 can lead to a job change.
Nonetheless, he says employers could start adopting technology to reduce reliance on human labour. ‘It could be automated sales adverts to reduce the headache of forgotten adverts. It is about relegating routine work to technology to reduce the pain of turnover,’ he says.
Mr Kibirige advises employers in the service sector to formalise the employment process by introducing proper contracts, clear expectations and fair treatment.
‘With this, employment can become far more stable,’ he advises.
Muhirwa also recommends outsourcing labour through labour companies. For example, a business with a poultry slaughterhouse can hire labour services.
‘Maintaining that workforce may be tough, but with the HR function outsourced, the HR company will provide the 50 people needed for the job in time,’ he says.
Employee turnover in the service sector may never be eliminated, but it can be managed. Ultimately, reducing turnover requires a balance of empathy, structure, and shared responsibility. Employers must build supportive systems, and employees must recognise the value of growth where they are.