FACTORS AFFECTING THE INTENTION OF EMPLOYEE TUROVER: CASE STUDY OF THREE TO FIVE STAR RATED HOTELS IN ADDIS ABABA

Abstract

Employee turnover has become one of the central challenges faced by organizations today. As its one of human intensive industries, managers of businesses should be asking themselves the following pivotal question: Why are skilled and top-performing employees leaving organizations? The purpose of this study was to assess factors affecting the intention of employee turnover in Ethiopian hospitality industry with reference to three to five star hotels in Addis Ababa. The study was delimited to three and above rated hotels that are operating in Addis Ababa and only Internal (organization related) factors were assessed. To conduct this research, the data was collected from both the Human Resource department managers and employees who are currently working in the above star rated hotels. Therefore, the respondents are selected using stratified sampling technique. In order to gather the relevant data, 345 sample questionnaires and 12(twelve) structured interviews were administered. Three hundred of them were accepted and used as a valid base for the data analysis. In addition, the collected data were classified, analyzed, and interpreted with the help of SPSS and the result of the study shows that Wage and remuneration, Career advancement opportunities, training and development, Proper leadership and reward and recognition are the dominant factors, which affect the employee’s decision to leave. According to the finding, though, Four and Five star have a good range of execution on the above factors, three star hotels shows relatively lower execution. As a result, they are paying that price with a high employee turnover.