AN ASSESSMENT OF THE CAUSES AND EFFECTS OF EMPLOYEES’ TURNOVER: THE CASE OF DEFENSE CONSTRUCTION ENTERPRISE

Abstract

The study was to assess the causes and effects of employees’ turnover in Defense Con-struction Enterprise. And the researcher applied descriptive research design to describe the reasons why employees left the enterprise and their effect on the enterprise. The sample size drawn was 203.The study employed the probability sampling method which was ran-dom sampling. This study applied mainly the following information gathering tool, i.e. sur-vey questionnaire and document review. Lastly, Data Analysis was done by percentage and frequency distribution and median value. As of the result of the study – Irregularity in payment was not the cause for employee turnover in the enterprise. This is shown by 126 (61.9%) disagreement by respondents and median value of 2 demonstrates that. Mean-while, in Defense Construction Enterprise better pay elsewhere was the reason for leaving the organization. This is shown by 86 (42.4%) agreement by respondents and median value of 4 demonstrates that. In addition in Defense Construction Enterprise employee turnover results in decrease in productivity. This is shown by 86 (42.4%) agreement by respondents and median value of 4 demonstrates that. This finding complied with the previous studies. Based on the above findings, the study concluded that better pay elsewhere, non-transparency of promotion policies and not merit based promotion are the major causes of employee turnover in Defense Construction Enterprise. In addition as the result of employ-ee turnover the enterprise exposed to work load and decrease in productivity. So far the organization has used revising salaries and benefit packages to reduce employee turnover. Finally, based on the findings and the conclusions made before, the following recommen-dations are provided: the enterprise needs further to improve payment and benefits. The enterprise also needs to transparent its promotion policy.