Effect of Retrenchment on Workers’ Productivity: A Study of Ecobank Plc Abia State

Abstract

This study investigate the effect of retrenchment on workers’ productivity of Ecobank Plc. Abia State. Having analyzed the distributed 132 questionnaire to staff of Ecobank Plc. Abia State, descriptive survey approach was adopted and analyzed using regressions with the help of SPSS version 22.0. The study found that; there is significant relationship between workforce downsizing and workers’ productivity of Ecobank Plc. Abia State. Also, there is significant relationship between cost cutting and workers’ productivity of Ecobank Plc. Abia State. The study concludes that workforce reduction and cutting have significant relationship with workers’ productivity of Ecobank Plc. Abia State. This study recommended that, Ecobank should assured employees who survive the workforce reduction exercise their job secure this will inbuilt higher self-confidence and self-efficacy, reduce workers absenteeism and enhance performance. Secondly, the management of banks should ensure that cost cutting will not discourage employees’ innovation that could enhance the level of productivity; this will enhance the level of organizational productivity and overall performance.