Abstract
As a state-owned entity mandated to deliver public
value, the KwaZulu-Natal Liquor Authority (KZNLA) has faced challenges and
constraints due to high labour turnover and subdued employee morale, negatively
affecting productivity and
organisational performance. The study's significance and rationale were
to examine the impact of low employee morale on labour turnover and attrition
within the organisation to mitigate and de-risk its pervasiveness that
negatively affects employee morale and organisational performance or
productivity. The study used a quantitative, positivism-oriented, and
deductive-inclined approach, and data collection was done through a
questionnaire. The target population encapsulated the permanent and fixed-term
employees of KZNLA, totalling 167. Data analysis was undertaken using the SmartPLS
4 statistical tool. The SmartPLS 4 statistical and
structural equation modelling (SEM) collaboration was undertaken for the
partial least squares (PLS) path modelling method. The study findings indicated
that KZNLA employees currently are subjected to low morale levels and are
responsible for labour turnover and low productivity. The study also revealed
that KZNLA experiences unabating proportions of employee attrition, work
overload, subdued recognition, non-competitive rewards and remuneration,
perceived lack of benefits, skewed organisational culture and structure, and
poor consultative communication from leadership or top management. Furthermore,
the study's findings recommended that KZNLA undertake a benchmarking exercise
that compares and contrasts the rewards system, culture, and strategic thrust
of similar state-owned entities regarding employee motivation and retention
strategies to bolster employee morale and reduce labour turnover. The
rationalisation process's prioritisation aims to improve employee morale by
creating a conducive motivational environment.
