DETERMINANTS OF EMPLOYYEE TURNOVER INTENTION: THE CASE OF ETHIOPIA SHIPPING AND LOGISTICS SERVICE ENTERPRISE

Abstract

This study assessed the magnitude and cause of employee turnover at Ethiopian Shipping and Logistics Service Enterprise with the objectives of identifying different causes that are affecting and aggravating employees’ turnover. Descriptive Research Design and Mixed research approach was used to describe the situation. Both probability and none probability sampling were used to select respondents and data gathered from both primary and secondary sources. Stratified & Simple random and purposive samplings were used to select the study participants. Questionnaire and interview were used for data collection. Descriptive statistics such as percentage, mean value, frequency were employed for data analysis. Based on the data analysis the following findings were forwarded. The finding show trend of employee turnover rate in the last few years was increased. From this perspective, the major activities of the enterprise were affected through employees’ turnover. When well experienced, competent and skilled employees left the organization it affects the organizations performance decrease productivity, increase different cost like training, recruitment and individual inefficiency because of work load. The main finding shows market opportunity, mismanagement, lack of career development, unfair reward and promotion system, absence of clear reward system based on performance, lack of opportunity for job training and career advancement, absence of clear job description and specification and absence of Conducive work environment were the most significant causes or reasons for employee turnover. In general, the researcher recommended that the enterprise should be applying the strategy set attractive salary and different benefit package as much as possible, create / develop an opportunities for career development, providing fair reward and promotion system based on employee’s performance, developing scientific management system which can avoid the poor management system, developed clear job description and specification for each position to retain skilled and competent man power in the organization along period of time.