The effects of employee turnover on the loss of organisational knowledge in South African municipalities

Abstract

Employee turnover poses a significant challenge for South African municipalities, particularly for retaining tacit organisational knowledge. Therefore, this study assessed how employee turnover impacts organisational tacit knowledge retention in South African municipalities. The study uses secondary data analysis to examine employee turnover in critical positions in various municipalities in South Africa, such as senior management and those earmarked as scarce skills. The findings of this study show that employee turnover significantly negatively impacts tacit organisational knowledge. The findings further revealed that turnover exacerbates the retention of the organisational knowledge gap within municipalities, often leading to diminished service quality and increased operational costs such as recruitment and use of service consultants. Furthermore, the study highlights the gap between rhetoric (policies) and actual practice (implementation) in addressing the issues of service quality and operational costs, noting that existing retention strategies and knowledge management approaches often need to be revised. Questioning the effectiveness of retention strategies, the paper suggests that municipalities require more proactive and innovative approaches to manage turnover and organisational tactical knowledge retention to enhance public service delivery continuity and organisational sustainability. Furthermore, municipalities should integrate retention strategies such as succession planning, continuous training, leadership, and mentorship programmes into a broader municipal governance framework.