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The Effect of Employee Turnover on the Efficiency of Pharmaceutical Fund and Supply Agency (PFSA)

Background: Employee turnover is one of the major factors to affect organizational efficiency and considered as challenging issues and deep implications for public health supply chain, while a professional workforce is vital to ensure continuous availability of pharmaceuticals. Objective: To assess the effect of staff turnover on organizational (PFSA) efficiency. Methods: A cross-sectional descriptive study was conducted. Using sample size determination formula 96 respondents was obtained from 478 permanent employees of target population. Data obtained through structured questionnaires were analyzed using the version 20 SPSS. Descriptive statistics (mean, standard deviation, variance, and percentage) was computed and summary results was present using tables and graphs. Chi-square test was compute to see the association and proven the research hypothesis. Result: A total of 96 respondents were participated. The result showed that majority 90 (93.8%) of the respondents were responded PFSA has experience of employee turnover. A mean of 4.05, 4.00 of respondents agreed that lack of incentives and poor wages, low level of employee motivation, were the reasons of employee turnover respectively. Even though 50 (52.1%) of the respondents felt that the organization had not taken any measures to manage employee turnover, a mean of 3.55 and 3.41 respondents indicated that establishing of functional and effective human resource management system and create an open communication between employee and management respectively could decrease employee turnover and improve organization efficiency to a great extent, this supported by (X2= 10;97, df=4, p< 0.027) establishing effective human resource management system is the way of reducing staff turnover implies significant relationship between staff turnover and organizational effectiveness. A study showed that a significant association between staff turnover and organizational efficiency (X2= 20.49, df=4, p< 0.000).Conclusion: The study concluded that almost all the employees had an intimation to left the Agency due to poor incentives and wages, low level of employee motivation, lack of career development opportunities.