AN ASSESSMENT OF FACTORS AFFECTING EMPLOYEES’ TURNOVER INTENTION IN ETHIOPIAN REVENUES AND CUSTOMS AUTHORITY

Abstract

This thesis was entitled “An Assessment of factors affecting employees’ turnover intention: In Ethiopian Revenues and Customs Authority (ERCA), Kaliti Branch. The general objective of the study was, therefore, to identify the factors that are significantly arising employees’ turnover intention at ERCA Kaliti branch. More specifically, it was meant to: identify the level of turnover intention of the current employees; examine to what extent the management of ERCA is aware about the determinant factors of employees’ turnover; identify the factors that drive employees’ turnover intention; and examine the strategies in place to minimize employees’ turnover intention at ERCA Kaliti branch. In relation to factors that drive employees’ turnover intention, three variables were proposed to be linked to it namely job stress, work overload, and working environment. The population of the study was employees of ERCA, which were 688 in size. Out of this, a sample of 253 was taken using simple random sampling technique. In addition to existing employees, some the management bodies of ERCA were also selected by using purposive sampling technique. As part of methods and instruments of data collection, structured survey questionnaire and semi-structured interview guide were used for employees and the management of the organization respectively. To analyze the data obtained from the survey questionnaire descriptive statistics (mean) and inferential statistics (Pearson Correlation and linear regressions were used). The inferential analysis was essentially needed so as to establish the relationship between the independent variable (job stress, work overload, and working environment) and dependent variable (turnover intention). The data collected from the management through interview method were also analyzed qualitatively in the form of presentation of the narrative accounts. The key findings revealed that: a) the turnover over intention is as high as 4.3 out of a five point scale; b) the management of the ERCA had no sufficient awareness about the turnover intentions of the Company and the key determinants needed thereof; c) the independent variables (i.e. job stress, work overload and work place environment each) are found to have statistically significant correlation with turnover intention. The regression analysis also revealed that the three independent variables in group predict 68.7% of the variations in the turnover intentions with particular reference to ERCA although working environment has the highest contribution. Therefore, the general conclusion is that working environment plays a pivotal role in determining employees’ turnover intention. Consequently, management should work towards creating smooth and conducive working environment which may include, among others, forming inter personal relationship among informal groups, availing facilities needed at work place, etc. Furthermore, since the majority of the works done in ERCA is risk full there must be some protection and security programs for employees working in the risky positions.