CAUSES AND CONSEQUENCES OF EMPLOYEE TURNOVER.THE CASE OF KOLFIE KERANIO SUB-CITY

Abstract

Human resource is vital success of any organization. High staff turnover has been always a key issue that needs to be addressed. The reasons of employee turnover may be either push or pull factors or a combination. The objective of this research is to investigate the causes and the consequences of employee turnover in Kolfi Keranio sub-city. The research design selected for this study is explanatory design that primarily relies on sample survey as a primary data collection method to search for the cause and consequence of employee turnover. The study population is Kolfi Keranio sub-city existing permanent employee at the head quarter. The sample size of the study was determined by tabulated formula. Stratified sampling procedure was used and samples were selected from the human resource list as a source list/ sapling frame. A structure questionnaire was used to collect data from permanent employees through whom the questionnaire was distributed to the respondents that were administered by them. The researcher was conducted the study by taking all ethical standards of a research in to consideration. Descriptive statistics was employed and a simple percentage and mean calculation were made based on construction of frequency table by using SPSS. Correlation and regression analysis was conducted. Based on the regression analysis conducted, the study found that the most important causes of employee turnover are; poor physical work environment (22.1%), supervision (20.1%), workload (19.8%), level of participation on organizational issues (12.3%) and low salary (10.6%). The study also found that, employee workload increased, organizational service and customer satisfaction were decreased due to employee turnover. The study concludes that the sub city is losing its human capital. The recommendations highlighted that top management should create conducive work environment, revise salary structure and the employees must be rewarded if they have achieved their goals. Top management should involve employees when they make decisions that will affect employees.