ASSESMENT OF PROFESSIONAL EMPLOYEE TURNOVER AND ITS MANAGEMENT: THE CASE OF NATIONAL BANK OF ETHIOPIA

Abstract

Employee turnover affects employees by experience interruption, the need to learn new job-specific skills and find different career prospects and; the turnover also affect the employer by exposing for additional costs of recruitment, training of new workers and the loss of jobs-specific skills. Employees are main sources for organizations in meeting organizational objectives. If the company determines the most common causes of employee turnover and the existing staff intention to turnover, it would certainly be able to take the necessary steps for retaining of qualified and experienced personnel. Having this in mind, this study has been employed to asses and describes factors that contributed to the turnover intention of the NBE’s professional staffs; investigate the existence of turnover intention and the bank’s practice in managing the turnover. To conduct this study, a descriptive survey research method was employed to explore and describe the major factors that affect turnover of professional employees. The data collection also has been taken through primary and secondary data collection method. The primary data for the study was collected from 176 existing professional employee of the bank through standard questionnaire and analyzed by using SPSS-20 and also gathered from HRMD staffs interview has been analyzed verbally. Based on the assessment result the researcher has found that job satisfaction, employee/managers relationship, pay scale and work environment has impact on turnover. The main findings were majority of the respondents has intention to turnover due to the dissatisfaction of compensation system, leadership and communication, job dissatisfaction, career development opportunity and the work environment. To resolve this issue and retain those professional staffs the bank should enhance its compensation package, create better relationship with employee, receive feedback of employee and apply talent management practice.