THE CAUSES AND IMPACT OF EMPLOYEE TURNOVER ON PROJECT PERFORMANCE THE CASE OF ETHIOPIA SUGAR CORPORATION PROJECTS

Abstract

The objective of this study is to the causes and impact of employee turnover on project on project performance at Ethiopia Sugar Corporation. The study employed quantitative and qualitative research approach. Random and purposive sampling techniques were used to select the sample from the population. Questionnaire, interview and document review were used for data collection. Descriptive statistics such as percentage, mean value, cross tabulation were employed for data analysis. The questionnaires were open-ended questions and one hundred thirty eight (138) respondents were from Finchaa sugar factory and the rest fifty eight (58) respondents were from Kessem Kebena Sugar factory. The study revealed that salary is the primary cause of staff turnover in both projects In addition, lack of employee assistance programs, mismanagement of employee, lack of employee involvement in decision making, the difficulty of working conditions and lack of capacity in project management poor working relationship between employees, project cost overrun, lack of flexible working condition and lack of commitment were the cause of staff turnover in both projects. The recommendations highlighted that top management should improve the compensation of employees improve the working condition for the employees, develop realistic resource utilization strategy to reduce production cost , economic decision on the price of sugar and lack performance local project contractors.