THE EFFECT OF INTERNAL MARKETING ON EMPLOYEE TURNOVER INTENTION, THE CASE OF INTERCONTINENTAL ADDIS HOTEL

Abstract

The general objective of the study is to examine Internal Marketing practice in Intercontinental Addis Hotel and its effect on the employee Turnover Intention. The study used both quantitative and qualitative research approach to collect data from employees of the Hotel. A survey was made by taking 164 samples of employees of the Hotel as respondents through a non-probability sampling technique. The study used explanatory (cause and effect relationship) and descriptive (event occurred) research approach. A structured questionnaire on five Likert scale basis was used to collect data. Both descriptive and inferential (correlation and regression) statistics were utilized using SPSS version 23 to analyse the data. The result indicates that two of the dimensions of internal marketing (Employee development, and, Management support) have significantly and negatively affected Employee turnover intention while the remaining two (Internal communication and Performance Incentives) did not have a significant effect on Turnover Intention. Thus, Intercontinental Addis Hotel is recommended to fully implement internal marketing principles to reduce employees‘ turnover intention and the management must consider employees as internal customers and satisfy their needs. It must also establish on internal marketing program for Intercontinental Addis Hotel on the basis of those internal marketing dimensions which help to retain employees.