FACTORS INFLUENCING EMPLOYEE LOYALTY IN THE CASE OF COMMERCIAL BANKS OF ETHIOPIA, ADDIS ABABA SOUTH DISTRICT

Abstract

Commercial bank of Ethiopia is the most stable compared to other industries in Ethiopia. As a large number of employees are working in this sector, their loyalty towards their jobs along with other factors has its own effect on the bank’s overall performance. The purpose of the study was to describe factors influencing employees’ loyalty such as reward fairness, training, job characteristics’, and leadership style in the case of commercial banks of Ethiopia Addis Ababa south district. In relation to the methodology, simple random sampling was used to selecting the respondents. The study has been conducted on the basis of the quantitative research techniques to describe those factors which might be influencing employee loyalty in CBE south Addis Ababa district. 185 employees were selected from the total employees of 200 from selected five branches. Data were collected through questionnaire. Finally, the data collected through the questionnaires were coded, entered into computer and analyzed and presented in the form of tables using SPSS version 20 Software. Hence, it is through analysis of the direct relationships that insight is developed between the dependent and independent variables. Employee loyalty (dependent variable) was found to have a strong positive relationship with reward fairness, Training, job characteristics’, and leadership style. This research concludes with a discussion of the implications of these findings as well as recommendations for further research in the area. The results of the study indicate that reward fairness, Training, job characteristics’, and leadership style had positive or significant direct effect employee loyalty on potential employee in commercial banks of Ethiopia in south Addis Ababa district. The findings depicts that the employees loyalty were highly influenced by reward fairness, Training, job characteristics’, and leadership style and helps to improve employer-employee relation. Based on the results, researcher provide some recommendations for CBE to build competitive income system and create effective communication in the organization between employee-employer and focus on employee empowerment, training and development.