FACTORS AFFECTING EMPLOYEES’ TURNOVER INTENTION: THE CASE OF DASHEN BANK WEST ADDIS ABABA DISTRICT

Abstract

The study was conducted to assess the factors affecting employee turnover intention in Dashen Bank West Addis Ababa district. The specific objectives of the study are identifying the major determinant factors for employees to leave the Bank, and determining what employee retention schemes are available by the bank and examining their effectiveness. The study was conducted on existing employees selected from three branches. A questionnaire was designed using structured questions to collect primary data from the selected respondents. Personal interview were held with HR management staff and selected employees of the Bank. The study uses inferential analysis like Pearson correlation and Descriptive research method for describing the intention of employees towards leaving the bank and to identify what factors are leading them to leave. The main finding of the study is that there is a high rate of employees’ turnover intention in the bank and these intentions are a result of employees’ dissatisfaction with the banks salary, benefit, and reward, packages, low supervisors competence, absence of job rotation, and lower level of empowerment. Besides this, even though the bank has retention strategies like health insurance, annual salary increment, bonus, and staff loan provision, majority of the respondents inferred that they are not benefited from these strategies because of different reasons. And finally, recommendations are given to the management of the Bank to revise its salary, benefit and reward packages, to develop a trend of giving recognition for employees’ contribution, to give timely promotion for employees and give high level of empowerment for employees and more over to revise its retention schemes in the way that employees will be satisfied and benefited.