DETERMINANT OF EMPLOYEES' TURNOVER INTENTION: THE CASE OF ADDIS INTERNATIONAL BANK S.Co

Abstract

The main purpose of the study was to identify the Determinant of Employees' Turnover Intention in AdIB. The study employed descriptive survey and explanatory method. The data used were primary and secondary data. The sampling method was purposive and simple random sampling. The study used close ended self-administered questionnaire which is designed to collect quantitative data. The questionnaire design includes 4 items of demography, 14 dimensions of job satisfaction with 56 items and turnover intention with 4 items. Independent and dependent variables’ items utilized five Point Likert-scales. A total of 371 questionnaires were administered and 321were analyzed with a response rate of 86.52%.The reliability and validity test were done before analyzing the data. Data analysis was done by descriptive statistics, correlation and regression analysis using SPSS 20(Statistical Package for Social Science). Ten determinant of job satisfaction; achievement, recognition, responsibility, advancement, growth, compensation, work conditions, job security, status and communication were found low employee satisfaction at AdIB. In addition three factors; supervision, co-workers, and Policies were moderate level of satisfaction. The study also found AdIB employees have moderate level of intention to leave the company. The other finding was that all determinant of job satisfaction except job status have negative relationship with turnover intention. Besides this, all factors of job satisfaction were found to be significantly associated with turnover intention except policy and job status. Furthermore, the study found that all determinant of job satisfaction explained 32.2% of turnover intention. Since this model explains only 32.2% of the dependent variable that reveals the model is weak. Among these predictors; achievement, Compensation, job security, and Supervision have contributed relatively high impact to the variation of turnover intention. Therefore, to increase employee satisfaction level and to reduce turnover intention the policy makers and/or AdIB management must focus to improve the factors of job satisfaction that have high impact on turnover intention.