THE EFFECT OF JOB SATISFACTION ON EMPLOYEES’ TURNOVER INTENTION: (THE CASE OF ELMI OLINDO CONSTRUCTION COMPANY)

Abstract

The main purpose of the study was to examine the effects of job satisfaction on employees' turnover intention of Elmi Olindo construction company. Both mixed research approaches were used to collect data through the utilization of a questionnaire and interviews respectively. The respondents were randomly selected from Elmi Olindo construction company Head office and construction site at Addis Ababa and around. The questionnaire design includes 7 items of demography, 5 dimensions of job satisfaction with 23 items, and 1 dimensions turnover intention with 6 items and. Independent and dependent variables’ items utilized five Point Likert-scales. A total of 148 questionnaires were administered and 134 were analyzed with a response rate of 90.36 %. The reliability and validity tests were done before analyzing the data. Data analysis was done by descriptive statistics, correlation, and regression analysis using SPSS 26(Statistical Package for Social Science). Five factors of job satisfaction; achievement, recognition, compensation/pay, organizational commitment, and job engagement were found to Medium employee job satisfaction at Elmi Olindo construction company. The study also found employees have a high level of intention to leave the company. All aspects of job satisfaction were found to be strongly linked with turnover intention. Furthermore, the study found that all factors of job satisfaction explained 31.8 % of turnover intention. Since this model explains only 31.8% of the dependent variable that reveals the model is weak. Therefore, to increase employee satisfaction level and to reduce turnover intention the HR and/or company management must focus to improve the factors of job satisfaction (on compensation /pay and job engagement ) that have a high impact on turnover intention.