TIGIST TILAYE FETENE Corrected Thesis

CPU-Business and Information Technology College
School of Business Postgraduate Program

Business Administration Department
Factors affecting employee turnover intention, in cases of Bunna bank S.C.
By: Tigist Tilaye Fetene

Advisor: Bekele Reta (Pro)
A THESIS SUBMITTED TO THE SCHOOL OF BUSINESS POSTGRADUATE PROGRAM IN

CPU COLLEGE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
MASTERS OF BUSINESS ADMINISTRATION IN MANAGEMENT.
December, 2023
Addis Ababa, Ethiopia
DECLARATION
I do hereby declare that the work which is being presented in this thesis entitled “Factors
Affecting Employee Turnover Intention, in Cases of Bunna Bank S.C.” with the guidance and
support of the research supervisor is my own original work. It has not been submitted partially or
in full by any other person for an award of a degree in any other university or higher education
institution and all sources of material used for the thesis have been duly acknowledged.
By: Tigist Tilaye Fetene
Signature:
Date:
December 30, 2023 i

LETTER OF CERTIFICATION
This is to certify that the thesis prepared by Tigist Tilaye Fetene entitled “Factors Affecting
Employee Turnover Intention, in Cases of Bunna Bank S.C.”. I have supervised and directed
the student in undertaking the research reported herein and I confirm that the student has effected
all corrections suggested and suitable for submission for the award of master of business
administration to the best of my knowledge.
____________________________________ ____________________
Supervisor Date
December 30, 2023 ii

APPROVAL
This is to certify that the thesis submitted in partial fulfillment of the requirements for the award
of Master of Business Administration by Tigist Tilaye Fetene complies with the regulations of the
College and meets the accepted standards with respect to originality and quality.
______________________ ____________________ __________________

Supervisor Signature Date
_______________________ ____________________ __________________

Internal Examiner Signature Date
_________________________ ____________________ _____________________

External Examiner Signature Date
_________________________ ____________________ _____________________

Dean Signature Date
December 30, 2023 iii

ACKNOWLEDGMENTS
My deepest appreciation and thanks go to my research adviser Bekele Reta (Assoc. Prof.) as he
provided me with all the necessary support, guidance, materials and constructive criticisms that
helped me stay focused from the beginning of this work to the end. My appreciation also goes to
the Management and Staff members of all sample organizations for their valuable comments and
their support in filling the questionnaires and other required information for the successful
accomplishment of the study.
December 30, 2023 iv

Table of Contents
DECLARATION.............................................................................................................................. i
LETTER OF CERTIFICATION ..................................................................................................... ii
APPROVAL ................................................................................................................................... iii
ACKNOWLEDGMENTS ............................................................................................................. iv
List of Tables ................................................................................................................................ viii
List of Figures ................................................................................................................................ ix
CHAPTER ONE ............................................................................................................................. 1
1. Introduction ............................................................................................................................. 1
1.1. Background of the Study .................................................................................................. 1
1.2. Statement of the Problem ................................................................................................. 3
1.3. Research Questions .......................................................................................................... 4
1.4. Research Objectives ......................................................................................................... 4
1.4.1. General Objectives .................................................................................................... 4
1.4.2. Specific Objective ..................................................................................................... 4
1.5. Significances of the Study ................................................................................................ 4
1.6. Scope of the Study............................................................................................................ 5
1.7. Limitations of the Study ................................................................................................... 5
1.8. Organization of the Study ................................................................................................ 6
CHAPTER TWO ............................................................................................................................ 7
2. Literature Review.................................................................................................................... 7
2.1. Introduction ...................................................................................................................... 7
2.2. Theoretical Review .......................................................................................................... 7
2.2.1. Employee Turnover intention ................................................................................... 7
2.2.2. Factors That Affect Employee Turnover intention ................................................... 7
2.2.3. Hierarchy of Needs ................................................................................................... 8
2.2.4. Equity Theory ........................................................................................................... 8
2.2.5. ERG Theory .............................................................................................................. 8
2.2.6. Maslow’s Theory Z ................................................................................................... 9
2.2.7. Expectancy Theory ................................................................................................... 9
2.2.8. Job Matching Theory ................................................................................................ 9
December 30, 2023 v

2.2.9. McClelland's Needs Theory .................................................................................... 10

2.2.10. Reinforcement theory .......................................................................................... 10
2.2.11. Career Development ............................................................................................ 10
2.2.12. Training and Development .................................................................................. 10
2.2.13. Career Planning ................................................................................................... 12
2.2.14. Career Growth Opportunities .............................................................................. 12
2.2.15. Mentoring and Employee Turnover .................................................................... 13
2.2.16. Employee relationship with supervisor ............................................................... 14
2.2.17. Performance Evaluations..................................................................................... 15
2.2.18. Rewards system and Employee Turnover ........................................................... 16
2.3. Empirical Literature ....................................................................................................... 19
2.4. Literature Gap ................................................................................................................ 20
2.5. Conceptual Framework .................................................................................................. 21
CHAPTER THREE ...................................................................................................................... 22
3. Research Methodology ......................................................................................................... 22
3.1. Introduction .................................................................................................................... 22
3.2. Research Design ............................................................................................................. 22
3.3. Research Approach ......................................................................................................... 22
3.4. Data Type and Source of data......................................................................................... 23
3.5. Methods of data collection ............................................................................................. 23
3.6. Target population ............................................................................................................ 24
3.7. Sampling and Sampling technique ................................................................................. 24
3.8. Methods of data analysis ................................................................................................ 25
3.10. Reliability and validity test .............................................................................................. 26
3.10.1. Cronbach’s Alpha Reliability test ............................................................................. 26
3.11. Ethical Considerations ..................................................................................................... 26
CHAPTER FOUR......................................................................................................................... 27
4. Result and Discussion ............................................................................................................... 27
4.1. Introduction .................................................................................................................... 27
4.2. Descriptive statistics ....................................................................................................... 27
4.2.1. Respondents’ Demographic data ................................................................................. 27
December 30, 2023 vi

4.2.2. How career development affect employee turnover intention .................................... 28

4.2.3. How employee-supervisor relationship affect employee turnover intention .............. 31
4.2.4. How Salary and Benefit affect employee turnover intention ...................................... 33
4.2.5. How Working Environment affect employee turnover intention ................................ 36
4.2.6. Employee Turnover ..................................................................................................... 38
4.3. Inferential Statistics ........................................................................................................ 41
4.3.1. Correlation Analysis................................................................................................ 41
4.3.2. Assumptions Testing in Multiple Regression ......................................................... 44
4.3.3. Model Summary...................................................................................................... 50
4.3.4. Analysis of Variance (ANOVA) .............................................................................. 51
4.3.5. Regression Coefficients .......................................................................................... 51
CHAPTER FIVE .......................................................................................................................... 56
5. Summary of Findings, Conclusion and Recommendations ...................................................... 56
5.1. Summary of Findings ..................................................................................................... 56
5.2. Conclusion...................................................................................................................... 57
5.3. Recommendations .......................................................................................................... 58
REFERENCES ............................................................................................................................. 60
ANNEX......................................................................................................................................... 62
Questionnaire ............................................................................................................................ 62
December 30, 2023 vii

List of Tables
Table 1. Target Populations ........................................................................................................... 24
Table 2:- Cronbach’s Alpha Reliability test for the 31 items of questions ................................... 26
Table 3:- Demographic data of the Respondents' ......................................................................... 28
Table 4: Descriptive Statistics Result for Career Development .................................................... 28
Table 5: Descriptive Statistics Result for Employee-Supervisor Relationship ............................. 31
Table 6: Descriptive Statistics Result for Salary and Benefit ....................................................... 33
Table 7: Descriptive Statistics Result for Working Environment ................................................. 36
Table 8: Descriptive Statistics Result for Employee Turnover ..................................................... 38
Table 9. Classification of Correlation Coefficient Result ............................................................. 41
Table 10: Correlation Matrix ........................................................................................................ 42
Table 11. Collinearity Statistics .................................................................................................... 45
Table 12. Skewness and Kurtosis.................................................................................................. 46
Table 13. Model Summary ............................................................................................................ 50
Table 14. ANOVA Table ............................................................................................................... 51
Table 15: Regression Coefficients ................................................................................................ 52
December 30, 2023 viii

List of Figures
Figure 1. Histogram Plot of Regression Standardized Residual ................................................... 45
Figure 2. Normal p-p plot of Regression Standardized Residual ................................................. 48
Figure 3. Scatterplot of Standardized Residuals ........................................................................... 49
December 30, 2023 ix

CHAPTER ONE
1. Introduction
1.1. Background of the Study
The Government of Ethiopia gave permission to the establishment of private banks and insurances
in 2001, but doesn't yet permit foreign ownership inside the sector within the country. The
Ethiopian banking sector is currently consisting of a financial organization (National Bank of
Ethiopia or NBE), one in all state own development bank, a government owned bank and twenty
one private banks.
Bunna Bank S.C (previously named as Bunna international Bank S.C) is establish as a Share
Company on 10th of September 2003 in contract with the Commercial Code of Ethiopia of 1980
and therefore the Licensing and Supervision of Banking Business Proclamation No. 84/1994 and
get hold of a banking services license from the full service bank of Ethiopia and is register with
the then Trade, Industry and Tourism Bureau of the capital of Ethiopia City. At the time of its
foundation, Bunna Bank's authorized capital was Br. 100 million, out of which Br. 20,865,100 was
entirely subscribed and paid-up in cash by 335 founder-shareholders. Bunna Bank's main concern
within the coming years is to build up its capital base, maximizing return on equity and get pleasure
from the most current technology so as to keep on alongside each other with the most up to date
developments within the local and international financial services industry. (www.bunna-
bank.com.et,) Over the years, outsized and ever-increasing customers Bunna Bank correspondent
base is made itself into a progressive and modern banking institution, competent with a powerful
financial structure and strong management.
In the course of the year, the development of the Bank’s Head Quarters is reaching its end and
inauguration of the building been launched at the month of January 2022 as the researcher
fortunately confirmed by his presence there. Within connection, the procurement process for
acquiring the required article of furniture and fittings that may match the grand image of the long-
lasting Head Quarters building had already been set in motion. (Annual report of 2022/2023)
Employee turnover can be describing as an employee stop to work for an organization. On a larger
scale, it is explaining as the percentage of employees leaving a company in a specific period of
time, typically a year (Armstrong, 2006). However, the measurement of the number of people who
left jobs and the reasons for their departure made known whether any action was needed to improve
December 30, 2023 1

protection rates. Due to miss production and in excess of replacement expenses, lead turnover
which is still more costly (Armstrong, 2008). Academics and management have to give close
consideration to employee turnover. A large amount of the effort was focused on discovering what
caused it. That is why employee turnover turn out to be an important subject matter of human
resource management.
Employee turnover can be divided into two which are voluntary Employee turnover and
involuntary Employee turnover. Voluntary turnover can be describe as the employee preference to
leave, but in the case of involuntary turnover, the employee has no right to choice. Employees are
terminating for causes further than their control, such as continuing illness, death, moving abroad,
or employer- kicked off termination (Martin, 2003). Internal employee turnover and external
employee turnover is restructuring by Ruby (2002). Employees leave-taking their existing
situation and taking new positions within the same organization are address to be internal employee
turnover. Classic human resource mechanics, such as an internal staffing policy or formal chain
planning, can help to limit and control internal turnover. External employee turnover is a parting
of the company because of external factors. Numerous academic professional have associate
turnover to work discontent and a lack of organizational commitment as sign of intention to leave.
The common explanations of personnel turnover are poor relations between employees and
managers (Blake, 2006). When there is a conflict, resolution mechanism has also greatly
influenced staff retention (Armstrong, 2006). Lack of a career planning is causes staff turnover as
high job dissatisfaction increases among employees (Grobler, Warnich, Carrell, Elbert and
Hatfield, 2006). And also inequality between the employee’s expectation and profession and the
job or the organization is impact too. (Barney et al 2009). The level of compensation spreading
and inequality within same company drives turnover as employees leave when rewards, such as
bonuses and incentives, are not allie with performance. (Luyt, 2008). Therefore, researchers
sought to establish causes that influenced employee turnover in terms of career planning, growth
opportunities, training, mentoring and coaching, employee relationships with supervisors,
performance evaluations, salaries, and bonuses at Bunna Bank. They also measured the extent of
influence of these different factors on employee turnover by testing hypotheses and suggested
possible solutions to address these most significant factors in Bunna Bank S.C.
December 30, 2023 2

1.2. Statement of the Problem

Employees who leave the organization can cause interruption in operations, work panel dynamics
and component performance. Turnover makes costs for the business. These costs comprises:
employment costs of replacements, leaving costs, indirect cost, and training costs of replacements
of downtime need for brand new employees to attain proficiency. Anytime an employee leaves the
firm, productivity go down because of the training curve concern in understanding the work and
the organization. In addition to it, the loss of intellectual capital
includes to the current cost, it is not only the organizations loss of human capital and relational
capital of the departing employee, but also competitors are potentially acquiring these assets.
Currently, Bunna Bank is high rate of turnover rate treat. If we momentary look at the statistical
data of the bank in June 30, 2019, out of the whole number of 2921 employees 76 of them left
which description is 2.6% of the overall number of employees and if we glance at the recent data
of June 30, 2022 the overall number of employees reached 4064 from this employees 219
employees left the bank and also the percentage share of turnover reached at 5.4% (Annual
Management Meeting Reports, 2019 & 2022).
The Bank’s staff headcount had counted 4,433 (748 managerial, 2,410 clerical and 1,275 non-
clerical) as at June 30, 2023. The quantity demonstrated a rise of 369 employees as compared to
the general number of 4,064 employee’s reporter on June 30, 2022. The variation is account for by
the recruitment of 541 new and the attrition of 276 employees. Moreover, the Bank hiring by
agency a complete of 2,075 Security Officers and Searchers (1,077 for City Branches and 998 for
Outlying Branches). There have be also 28 (8 managerial, 2 clericals and 18 non clerical) staff
working for the Bank on contractual basis. Therefore, the combine total staff strength of the Bank
(permanent, contractual and outsource) stood at 6,508 as at June 30, 2023 (Bunna bank annual
report 2022/2023).
Turnover can bring decrease of organizational culture that develop within the whole bank life time
and might cause decline of service quality delivered to the customer. Because of the well career
and trained staffs leave the bank, all the knowledge, effort and means of accomplishment of work
also windswept from the bank. This got the bank a downturn in social reputation, reduced its profit,
and potentially incurred losses, unless the bank conducted such research, considered the outputs
of the research, and implemented them.
December 30, 2023 3

This study search for therefore to see those factors which influence turnover at Bunna Bank by
analyzing a number of areas include the present career development (career planning, Training and
development, and career growth opportunities), mentoring which incorporates (employee
supervisor relationship, and performance evaluations), and eventually reward system which is
(salary rewards and bonus rewards) at Bunna bank.
Researching factors affecting turnover intention can also be motivated by a concern for employee
well-being. High turnover rates can indicate underlying issues related to job satisfaction, work
environment, career development, or other factors that may affect employees' overall job
experience. By conducting this research, the aim is to identify and mitigate these factors, ultimately
promoting a healthier and more fulfilling work environment for employees at Bunna Bank S.C.
1.3. Research Questions
The research was done on the following research questions: -
1. How career development affects employee turnover intention?
2. How employee-supervisor relationship affects employee turnover intention?
3. How low salary and benefits affects employee turnover intention?
4. How working environment affects employee turnover intention?
1.4. Research Objectives
1.4.1. General Objectives
The general objective of this research is investigating the factors affecting employee turnover
intention, in cases of Bunna bank S.C.
1.4.2. Specific Objective
❖ To investigate how career development affect employee turnover intention
❖ To investigate how employee-supervisor relationship affect employee turnover intention
❖ To investigate low salary and benefits affect employee turnover intention.
❖ To investigate how working environment affect employee turnover intention.
1.5. Significances of the Study

This study brings to light employees understanding and appreciation that causes the influence of
employee turnover in the given organization. It contributes to knowledge and literature because it
focuses on the causes that influence employee turnover. To forward the concern bodies to look for
the solution for the problems that takes place in the organization during high rate of turnover. It
December 30, 2023 4

was an input for managers to decision-making intention. It develops the researcher’s ability and
skill to carry out further research and also researchers gain more experiences. The research findings
generate new information which can help the managers and enable to understand the causes that
influences employee turnover. The produced information helped the organization.
to come up with involvements that improve the performance of employee retention within each
staff. The research also helped the management of the organization by exploring different
directions to understand the reasons why employees left the organization. And also, this study is
significance for future researchers to identify the gab and investigate further researches base on
the suggestions of this study.
1.6. Scope of the Study
The study would have been more comprehensive if it had included most of the outside city
branches found in the bank. However, due to resource and time constraints, it was impossible to
cover other outside branches. Therefore, the study was confined to the Head Office of Bunna Bank
and its two special branches located in Addis Ababa, specifically focusing on some A and B grade
branches. Descriptive and explanatory research design is use and closed and open-ended
questionnaires, and interview is use to collect data. The researcher delimited the study only on the
factors affecting employee’s turnover for the last three years in the head office of Bunna bank S.C.
(2020-2022G.C). These are totally 64 branches in the district where each branch on average
consists of at least 5 staffs including the branch manager apart from those graded big branches.
1.7. Limitations of the Study

The results of that study were very important; however, it was not without limitations.
Confidentiality of information hindered the respondents from giving the needed information.
Hence a researcher assures them that, the information given is to be use for academic purposes and
strictly not otherwise. Uncooperativeness spirit shown by some respondents having varied reasons,
either they don’t care, being busy or whatsoever. To overcome this, a researcher prepares a
timetable that coped with their situation and be easy for them to participate/follow. Ensure an
effective means of follow-up is sustain so as to win their cooperativeness in both aspects. Lastly,
financial constraint is an unavoidable issue. To meet an enormous number of respondents, need
not only sample time, but also money to visit them wherever they are and whenever available.
December 30, 2023 5

1.8. Organization of the Study

This research had five chapters. In the first chapter, the background of the research was presented,
followed by the problem statement, objectives to be achieved, research questions, significance,
and scope and limitations of the study. In chapter two, the literature review related to the study and
the conceptual and empirical review of the research were discussed. The third chapter presents,
research methodology this section discusses the research design and approach of the study, data
source and method of data Collection, Sampling method and sample size also presented in this
section. Chapter four –data analysis and interpretation Lastly, chapter five results and discussions,
in this section the main findings of the research are summarize and conclusions on major findings
is present. Sampling, data collection and analysis.
December 30, 2023 6

CHAPTER TWO
2. Literature Review
2.1. Introduction
That chapter was divided into two major categories: Theoretical Literature Review, where the
study clarified concepts and theories of employee turnover, and Empirical Literature Review.
2.2. Theoretical Review
2.2.1. Employee Turnover intention
Carrell et al, (2005), stated that turnover is the faction of employees out of the business and results
from resignations of employees, transfers out of the company’s units, discharges, leaving at aged
and death of employees. High turnover can be a serious obstruction to organizational efficiency,
importance, and productivity of firms of all sizes as confirmed by Blahna, (2005).
2.2.2. Factors That Affect Employee Turnover intention
Arnolds and Boshoff, (2004) and atkinson et al, (2014) described that voluntary turnover are
reasoned by pull, push and outside factors are aspect that affect employee turnover. Pull factors
are related with the attraction of organization’s rivalries. The employees assure with better paying
job, a career advancement chance that they would not take discharge of in the short term when
they stayed with their nearby organization. External factors are related to situations in which
someone leaves for reasons that are unconnected to their work. The push factors are due to
employee’s displeasure in their jobs to search for another company. Employees start to leave
without having a new job ready about other choices, discussion to recruiters, looking at the job
announcement in the newspaper, on the internet or to others commercial sources.
According to Bilelign Lemma assessment on Dashen Bank page33 (2014) a causative to working
environment and training and career growth opportunity for the supervisor in the business unit has
to be perverted by the Human Resource Department.
Inadequate development opportunities, career planning and growth opportunity, training and
development, unsuccessful supervision, unfortunate performance evaluations and unmerited
reward systems are the most ordinary pick up the rate of factors for the employees to put down
their job. Wasti, (2003).
December 30, 2023 7

2.2.3. Hierarchy of Needs

Abraham Maslow's hierarchy of needs theory placed employees' wants into five progressive
categories, and one had to pass the lower level of satisfaction before entering the higher level. This
meant starting with basic physical needs and progressing towards needs for personal growth and
career development Ozodboyeva (2022). It is strong theory as it claims that through meeting each
level of employees' needs employers can motivate the employee to truly commit to
workplace goals. Even if employee satisfied better in their location they leave the organization,
because the organization cannot meet up every requirement of its employees and this theory does
not consider human needs are continual. This means no clear point showing that show the highest
level of satisfaction. This study can also guide by this theory because as it is depicted in the case
of Bunna Bank s.c , employees in some organization leave their job after they are rewarded and
well-motivated. According to Maslow, the failure to fulfill the lower-level needs would compel
employees to leave the organization, as their needs must be met in a sequential manner.
Consideration under this theory is that human needs are endless and in real facts the organizations
cannot meet every need of its employees.
2.2.4. Equity Theory
Equity theory, Yeong Joon (2022) talked about that employee consider even handedness on equity
by comparing their relevant with others against their efforts and rewards. The perceptions of
individuals about the equality of rewards relative to others do inspiration their level of motivation.
The theory argues that the more concentrated the employee considerations that he or she is either
more or less paid, the higher the stress and the stronger the motivation to act (Huczynski and
Buchanan 2007). Since it considered their productivity, rewards and its outcome the theory was
adapted for the research.
2.2.5. ERG Theory
Songkhla, Woraporn (2022), the ERG theory (existence, relatedness and growth theory)
requirements do not need to be met in ordered way which means at a particular time there can be
more than one need.
However, the theory has disregarded the fact that it is not easy for an organization to find out the
desires of each employee since they differ from one person to another and with time. Therefore,
this theory was not implied to direct this study.
December 30, 2023 8

2.2.6. Maslow’s Theory Z

Timothy T. F. Yu (2022) on his theory Z argued that organization should enlarge employee devotion
by providing a job for life with strong focus on employee security on job and off the job.
(http:en.m.wikipedia.org). Stable employment, high productivity, high employee morale and
satisfaction are the one that the companies should give stress to because workers have a high
want to be support by the company, and highly value a working environment in which such things
as family, cultures and traditions, and social institutions are regarded as equally considerable as
the work itself which is depicted in this theory. This theory is valued in the view that managements
must have a high degree of assurance in its workers in order for this nature of participative
management to work. Therefore, this theory was not to guide this research.
2.2.7. Expectancy Theory
On expectancy theory Anna Nikulina (2022) argued that employee look forward to take delivery
of in return equivalent to their commitment and amount of work put forth in the organization.
Employee may put minimal efforts in work and can quit the job if they get little compensation and
no growth opportunities in return of their work. According to Mullins (2001), incentives work
effectively when there is a functional relationship between the efforts exerted, perceived potential
outcomes, and the expectation that rewards linked to performance. The importance of this theory
in this study however, is on the fact that the spirit of employee turnover in banking industry in
Bunna bank can be examined and evaluated on the base of the workers conditions in terms of their
future and continuing expectations like upgrading of pay as the economy changes, compensations
and other rewards which might increase their working morale.
2.2.8. Job Matching Theory
Job Matching Theory, Byunghyun Lee (2022) assumes that for each employee a no degenerate
allotment of productivities is present from corner to corner of different jobs. The same is true for
the employer – employees change in their productivities in a given task that the employer needs to
have performed. Secondly take for granted that employers can acquire in touch with with
employees on an individual basis. The employer reward an employee with whom he matches well
by paying the employee relatively more. He discusses that firms search for better employees and
employees look for superior firms, an ongoing process until there is good struggle between the two
parties. Considering that employees in the banking industry are searching for jobs to ever
increasing number of financial institutions and a good number of financial institutions do look for
December 30, 2023 9

experienced workers who have adequate skills, experience and high degree of commitment. The
collapse to recognize these variables build this theory to be insufficient to direct this study.
Therefore, this theory was not taken to direct this research.
2.2.9. McClelland's Needs Theory
According to McClelland's Needs Theory Ayu Dwi Nindyati (2022) there are three precise needs:
the need of achievement, the need for power and the need for affiliation (association). Everyone
prioritizes their need in a different way because s/he believes that individuals are not born with
their need but learned all the way through life experiences. The theory has a guide to this study
that individuals are strongly motivated by job situations with personal accountability, feedback,
and a transitional degree of risk.
2.2.10. Reinforcement theory
Through reinforcement, punishment, and extinction the employers can change the employee
behavior. As rewards are used to strengthen the behavior you want and punishments are also used
to stop the behavior you do not want. Viewing the fact, reinforcement can be divided as positive
and negative reinforcement.
Positive reinforcement occurs when the consequence that follows a behavior increases the
likelihood of the desired behavior being repeated. Negative reinforcement occurred when a
negative outcome was removed or suspended upon the establishment of a desired behavior, thereby
increasing the likelihood that the desired behavior would persist.
2.2.11.Career Development
From both the organization and employee’s perspective career development is the outcome of
career plans as stated by Puah and Ananthram (2006). Both for the employee, and for the
organization’s benefit career development is needed because it is the permanent process of
encouragement and educating individuals working skills through talent, skills and knowledge.
According to Ananthram (2006) research in banking industries employee turnover and career
development has a strong relationship between them.
2.2.12.Training and Development
Research done by Dwomoh and Korankye (2012) depicted that there are a significant correlation
between employee turnover in the banking sector and Training and development opportunities.
December 30, 2023 10

Therefore companies like bank, should invest on training and development to a comparative
advantage than their competitive.
According to Beruktawit Ayalew, (2017), training and development is a function of human
resource management concerned with organizational activity aimed at bettering the performance
of individuals and groups in organizational settings.
The research of Griffeth, and Hom (2002), revealed that the respondent depicted that the most
reasons for the employee turnover were the inadequate of training and development in the
organization.
There exist a high-involvement of employees in training directly and positively correlates to
decrease in employee turnover in the banking sector, as argued by Batt (2002).
As present by Woodruffe (2010) on his research on impact of training on employee’s turnover in
the banking sector in the UK depicted career goals are being addressed by an organization, the
more their commitment and loyalty to the organization found that training, education and
development are critical to the career development of an employee.
Those banks spend in the training and development of their employees would have acquire strong
employee base and bring out their commitment. (Noe, Holleneck, Gerhart, and Wright, defined
Training as the systematic planned attempt to facilitate employees’ achievement of job-Related
knowledge and skills so as to advance productivity. Wan (2007) states that comprehensive training
and development is the only strategy the companies can increases an employee’s commitment of
workforce productivity and trim down employee turnover. But shama (2006) argues that by
creating opportunities for employee training and development, banks increase the chances of their
employees’ ability to succeed in the market. Similarly, Testa (2008), repeat the same opinions that
employees’ skills development through training increase their competitive advantage in the labor
market hence their self-confidence of their job security. Batt (2002) argues that in the banking
sector high-involvement of employees in training and development directly and positively
associated to cutback in employee turnover.
In banking sector of UK as Woodruffe (2010) stated on his research on impact of training on
employee’s turnover, training, education and development are serious to career development of an
employee. The more an employee feels that his/her career goals are being addressed by an
organization, the more their commitment and loyalty to the organization. Study by Babakus, et al.,
(2003) on retention in Nigerian banks found that training give a signal to employees that

management is dedicated to their retention. Lack of training and career development opportunities
were the most mentionned reasons for employees’ turnover in an organization in the study of
Griffeth, and Hom (2002). According to Bassett and LIoyd (2005) study an increase in high-
performance within Nigerian banks depicted as a result of a rigorous effort in training of employees
that resulted in low employee turnover. All this implies that, banks that provide training to their
employees have a large degree of reducing employee turnover.
2.2.13.Career Planning
career planning as the process that allows individuals to acquire requisite knowledge and skills, so
as to achieve their career goals for the dynamic job market as it is defined by Puah and Ananthram
(2006) . (Hall, 2002) also stated that career planning is the ongoing process of refining,
implementing and monitoring career goals made by an individual or an organization, and
evaluating the steps undertaken to achieve the goals.
DeVos, et al., (2003) showed that employee commitment to the organization is highly influenced
by the career planning towards employee. In the banking sector can no longer commit for job
security but it is important to the organization to ensure careers skill for key employees are planned
for them particularly in the banking sectors.
Employees turnover are negatively associated with the employees dissatisfaction with career
planning and development opportunities as argued by Choi, et al., (2012). Career planning is a
strategy of reduction in employee turnover besides that its function on the development of
employee career according to Liu et al., (2010).
2.2.14.Career Growth Opportunities
Career growth opportunity is an upward mobility that the availability of chances are provided by
the organization that employee wish to come across as stated by Mayrhofer et al., (2007). Salary
and other related remuneration cost are the one that hinder the organizations to not provide the
career growth opportunities. According to Puah & Ananthram, 2006) there is strong correlation
between career growth opportunities and employee turnover. Armstrong, 2009 argued that lack a
contingency plan in managing their employees’ career growth in an organization brings a high
employee turnover. Agarwal, et al., (2006) also portrayed that failure to meet employee’s
expectation in career growth opportunities results in high turnover with employees’ seeking these
opportunities elsewhere.

Duffy, et al., (2011) claims that organizations that place obstacles in employee’s career
development stand a greater chance of focusing dissatisfied employees who would quit the
organization at any best available opportunity for growth. Samuel (2010) associates moving up the
organization to moving out of the organization and counts for basic career growth that can cause
turnover. Opportunity for advancement or promotion outside the organization enforced the inside
organization employee turnover as Feldman and Nigel (2008) extrapolates their argument.
2.2.15.Mentoring and Employee Turnover
Mentoring is long-term relationship that exists between employee and mentor as stated by Richard
et al., (2009). According to Brashear, et al., 2006; Pullins and Fine, 2002) the tendencies of
employee turnover can be reduces by existence of strong relationship between the employee and
the supervisor, performance appraisals and working condition. There is also a significant
correlation between mentoring and employee turnover in the banking sector according to the
research executed by Levenson et al., (2006), Richard et al., (2009), and Brashear, et al., (2006).
Similarly researchers who have studied mentoring and employee turnover claim that there is a
significant correlation (Donald, Hollmann, and Gallan, 2006). Similarly, research done by
Levenson et al., (2006), Richard et al., (2009), and Brashear, et al., (2006) indicates that there is a
significant correlation between mentoring and employee turnover in the banking sector. It is the
lasting bond that enables employees to improve their commitment to an organization by
establishing relationships between the mentor and the responsibility as argued by Samuel (2010).
There is a positive significant relationship between employee performances and effective
mentoring programs on mentorship of the banking sector as the research done by Richard, et al.,
(2009).
Most organizations do pay more attention of employee’s performance appraisals as a way of
measuring performance but employee performance is tied to employee satisfaction which is tied
to coaching and mentoring because Mentoring builds the consistency of employee and the
organizations which have mutual relationship that not only cares for the objectives of the
organization, but also for the goals and career ambitions of the employee as it claimed by Samuel
(2010). There is a significant relationship between employee coaching and mentoring and
employee turnover at organizations as argued by Jones and McIntosh (2010).

For the built argument there are two principles that satisfied employees are committed employees
and committed employees are loyal to the organizations objectives as two researchers studies
claimed (Levenson, et al., 2006) and (Grosskopf and Atherman, 2011).
2.2.16.Employee relationship with supervisor
While supervisor assigning responsibilities, work, or the way they intervening with in employees
there may create a toxic environment which can be cruel for the organization that could be
sufficient reason that leads to employee turnover.
Research on millennial employees those supervisor who can empower millennial employees meet
their want because they assumed he is also working for them for greater success in their careers.
(Thomas and Tymon , 2009). Following this research and applying it on the Banking industry’s,
by Tareef, 2012) and argued that failure to fulfill empowering of millennial employee, which create
dissatisfied employee that hindered banks and leads to high turnover.
Dissatisfied employees cripples the concept of supervisors-employee autonomy since high
turnover the sectors to hire new for the organization or hiring fresh employee that take time to
adapt working environment and know the style of the supervisor. (Jaffari, (2011)
According to Khattak, 2011, Mentorship grants employee autonomy in the banking system but
lack of this autonomy create micro-management makes felling of the supervisors contempt and
hereafter employee turnover would be increased. Khattak argued that employee commitment can
be enhanced by this mentorship concept and built mutual relationship. But contrary to this
argument Firth et al., (2007) argued that in the banking sector mentorship autonomy decrease
turnover does not hold true. Millennial employees demanding freedom of doing their own way
using the direction of management and need flexibility to have work responsibilities according to
Mbah and Ikemefuna (2011).
Millennial employees demanding freedom of doing their own way using the direction of
management and need flexibility to have work responsibilities according to Mbah and Ikemefuna
(2011).
It is of necessity that employees’ personal strengths, uniqueness, and rights be treated as primary
elements that reduce turnover in the employee-supervisor relationship, (Ghosh & Sahney, 2010).
Consequently, Kuvaas&Dysvik, 2010) describes that the effective training of supervisors in
managing employees in the banking industry, has a direct correlation with the ultimate employees’
job satisfaction and turnover. The degree of supervisor who granted the freedom in his mentorship

determined the rate at which the organization experienced turnover. Karl, Pelucette, and Hall
(2008), argue in the affirmative that there is a direct correlation between effective supervisors –
employee relations in the banking sector. This built the guideline that supervisor facilitate
professional development of employees that enables consistently model, autonomy and growth
enhance employees’ commitment to banks.
Armstrong, (2009); Ashar, (2013); Brashear et al., (2008) argued that a mentor to employees’
relationship under their imperative domain attempt to reduce employee turnover by making
appreciative positive contribution that enhances employees work experience and satisfaction.
Supervisors’ knowledge, attitudes and behavior towards employees’ have a significant impact on
employee turnover through their guiding, shaping and transforming employees. (Karl et al., 2008).
2.2.17.Performance Evaluations
Under the instruction of their supervisors, performance evaluations provide employees sufficient
opportunity to establish their work plans, objectives, and goals. Cleveland et al.,(2003) employees
get frustration that have a significant relationship with employee turnover if they perceived that
the kind of evaluations are skewed negatively towards them and don’t get sufficient feedback from
their supervisors on expectations, performance, and goal setting. Performance evaluations in the
banking sector tied employee and supervisor because it can be the source of acrimony between
employees and their supervisors who are to have oversight and mentorship role over them if there
is failure to have employee evaluation discrete. (Pritchard & Payne, 2008).
Equally Cleveland et al., (2003) argue that banking sector as any other sector used to evaluate an
employee’s performance to make decisions on promotions, demotions, or even termination.
Supervisors can use this appraisal system as an instrument for progressive performance or for
punishing employees
Based on how the appraisal is designed, the appraisal system can be an instrument for progressive
performance or for punishing employees (Bernardin, 1984). If the appraisal system is Illogical and
punitive or assumed as like this by the employee the resultant effects are massive turnover. (Ahmed
et al., 2012).
Banks practice performance appraisals to manage end year bonuses to their employees’ as
described by Ishaq et al., (2009). Loss of morale and subsequent turnover has happened after the
bonus which base the result of bad appraisal reviews. Dechev, (2010); Franken, (2012) argued that
employee negative perception on the fairness of appraisal system and rewarded based on it limits

the organization commitment or turnover intentions. Ahmed et al., (2012), Arbaiy & Suradi, (2007)
argued that job satisfaction levels can be determined by appraisals, which can enhance the
employee turnover or employee commitment to an organization.
Bank managers are reluctant to effectively administer appraisal for fear of the essential purpose
instead of terminating underperforming employees, they issuing reprisals and warnings. The jittery
employees fear to get guarantee of their future to continue with the bank increase the turnover rate
as described by Mbah & Ikemefuna, (2011).
Different researches such as Poon (2004), Ishaq, et al., (2009), Dechev, (2010), Franken (2012)
depicted that in the banking sector there is strong relationship mentoring process in conducting
performance evaluations and employee turnover.
2.2.18.Rewards system and Employee Turnover
Rewards systems are mechanisms through which organizations show appreciation towards
employees for their commitment, performance, skills, knowledge or loyalty towards the
organization. (Zhou et al.,(2009).
There were many kinds of reward systems like medical covers for employees, fully paid vacations,
paid leave, paid study leave, flexi working arrangements, and even promotions and recognitions.
However, for the purpose of this study, the research focused on salary and bonus within the bank
sector at Bunna Bank S.C. Managers that recognizing each employee’s effort and rewards
employees adequately have a higher rate of employee retention than the other who do not
appropriately be acquainted with.
Walia, et al., (2012) contends that managers determine levels and hierarchies of needs most often
focus on bonuses and salaries without conducting any survey within their employees. But
according to Choi, et al., (2012), for most employees’ salaries and bonuses are an important part
that forms both intrinsic and extrinsic motivation. They further argue that the segmentation of
rewards over and above the salaries and bonuses is what differentiates employee retention of
turnover.
Salary is the monthly payment for work done that an employee gets at the end of every month. On
the other hand, based on organizations profitability there is bonus. Bonuses are rewarding that
organizations monetary payment to their employee after the fiscal years end up and rewarded based
on their contribution level to the attainment of the profit. Simply it is a profit sharing mechanism
of organization with employees.

There had to be a professional bank policy on salaries, bonuses, and promotions; otherwise, it
would have resulted in favoritism and nepotism, which caused employee dissatisfaction and
resulted in employee turnover, as Zhou, et al., (2009) argued.
Foon, et al., (2010), in the banking sector, salaries, bonuses and promotions are tangible rewards
systems that enhance the deter employee not to leave the organization because remuneration
correlates with turnover rates within the bank. He also argued that the system is bedrock for the
organization for rewarding employees. And the organization shall not take is as punitive ways
because it might surges employee turnover. To reduce turnover intension and actual employee
turnover organizations custom better rewards system to attract and retain employees.
Employees tend to leave the banking system to other organizations that do offer more competitive
packages than organizations they are working for (Babakus, Yavas, Karatepe, &Avci, 2003).
However, organizations with perceived better rewards system, do attract and retain employees,
thus reducing the turnover intentions, and actual employee turnover.
According to Zhou, et al., (2009), organizations that don’t foster reward systems that are structured
on empirical and research do suffer from subjective rewards systems, rather than objective rewards
system. According to Adeniji, Osibanjo, and Abiodun (2013), subjective rewards system are
usually designed from a single prism, management prism. The desire of organizations under
subjective rewards systems is to enhance profits and organizational performance at all costs.
Employee’s requirements are not the right of way within organizations objectives. Most
organizations consider salary as an sufficient reward, and employees should be appreciative they
get paid.
Adeniji, Osibanjo, and Abiodun (2013) further argue that objective rewards systems are designed
to not only enhance organizations performance objectives, but also to advance employees goals.
Some of the rewards employees consider objective include career growth opportunities,
promotions, health facilities, pension facilities, bonus facilities among others. According to
Mitchell et al., (2014), objective rewards systems constitute the intrinsic rewards.
Intrinsic rewards are basically the motivations that employees appeal to depending on their
different stages and levels of needs and wants (Choi, et al., 2012).The Maslow hierarchy of needs
defines what most employees require as motivation. According to Adeniji, Osibanjo, and

Abiodun (2013), organizations that are able to articulate employee’s hierarchy of needs have a
higher rate of addressing them. Addressing employees needs leads to satisfied employees who
subconsciously pledge their loyalty to the organization, and as a result, leads to a reduction in
employee turnover.
2.1.1.1. Salary
To fulfill their basic survival needs such as food, clothing and shelter, people works to have an
income. This income can be in the form of monthly basis which is called salary. According to
Walia, et al., (2012) employee turnover is influenced by its factors salary and associated benefits.
Satisfaction through income gets further direct to employee maintenance. There is competitive
advantage for the bank to restrict any salary related turnover because they offered attractive salaries
than the market (Babakus, Yavas, Karatepe, &Avci, 2003).
Further, Researchers like Walia et al., (2012); Campbell, (1993) and Greenberg and Baron (2008),
argue that the tendency of turnover are increased highly when an employee is paid lesser than the
going market rate and they constantly searching and seeking other banks who could offer better
pay package.
Conversely, Choi et al., (2012) argued that even if there is a high turnover in the lower paid
employee the turnover cost to the bank is negligible than employees in higher paying units. He
further argues that regardless of salaries banks should concentrate on employee retention strategies.
On the other hand Franken (2012), viewed that employee turnover is as a result of salary scale;
because they search for jobs that better than they currently have paid. Franken reasoned that
inequalities in wage structures leads to demotivation, poor performance and employee turnover.
Employees whom performing the same jobs and responsibilities but with different salary rates get
into turnover and discontent.
As Donald Jr, Hollmann, & Gallan, 2006) maintained, to eliminate contentions and office politics
salary compensation must be designed properly through standardization or professionally designed
grades.

2.1.1.2. Bonuses
Lee, (2021) contended that Bonus payments are annual or by-annual payments that organizations
give to their employees as a token of appreciation for good accounting performance of the
organization.
In the banking sector the main objective of these payments is to enhance motivation and elicit
loyalty and commitment to the bank and have different rate like flat rate, fixed rate, wage rage or
salary rate to effect bonus payment as stated by Adeniji, Osibanjo, &Abiodun, (2013). But
according to Mitchell et al., (2014), bonus payment could not effect while there is good financial
years. Besides managers can create disparity between the bonuses that are paid and those that are
not paid, and those that are paid to top managers and their subordinate have great difference which
usually elicit eventual turnover from employees who feel discomfort of their performance.
2.3. Empirical Literature
There are some researchers conducted around the world that showed the relationship between
effects Performance evaluation and employee turnover. Under this topic the researcher considers
only few studies to show the gap and the relationship between Performance evaluation and
employee turnover in the Bunna Bank.
The study conducted by (Cooper, 2021) with the primary purpose to explore the factors which do
determine the employee turnover. Further the study is also considered the mediators as well. One
of the mediators is the employee personal characteristics whereas the other one is related to climate.
The study hypothesized a relationship between performance evaluation and employee turnover.
The results of the study also support the hypothesis as the relationship is negative and significant.
In addition, the study also hypothesized that employee reward system influences the employee
turnover. The results of the study also supported the hypothesis. In addition, social climate has also
been considered as predictor of employee performance evaluation. The results of the study also
supported the hypothesis. Regarding the mediator study hypothesized both the employee reward
system and social climate as a mediator for the relationship between performance evaluation and
employee turnover. The results of the study also supported the both hypotheses.
This study advances our knowledge of the performance evaluation chain and highlights the
important role of well-being-employee turnover as a tool to create sustainable workplaces. We
drew upon Mentoring and Coaching and a social relational perspective to conduct a multilevel and
multisource study in the context of the Chinese banking industry. The findings show there is a

negative relationship between performance evaluation practices and employee turnover; social
climate mediates the relationship between well-being-employee turnover practices and employee
reward; and there is a negative relationship between performance evaluation and employee
turnover; employee resilience, in turn, mediates the relationship between reward system and
Employee turnover. Our study has implications for firms that wish to build their sustainable
competitiveness through well-being-performance evaluation to enhance levels of employee
resilience and subsequent performance
2.4. Literature Gap
As a limited research work is done in Ethiopia, we can find only a few studies on the relationship
of human resource management practices and employee performance in Ethiopia, specifically in
the sector of Private limited sector. So, related to this topic of research, there is a lot of capacity in
this area to understand this relationship properly. This capacity is creating a research gap in this
area of core importance for the economy of Ethiopia. This study is intended to narrow down this
gap.

2.5. Conceptual Framework

In this research conceptual framework developed based on an insight gained from the literature
review. Various factors can be the cause of employee turnover which in turn have impacts in the
employee turnover and the future of the bank. All the factors that are considered in the research
depicted below.
The conceptual frameworks for the study have taken employee turnover as dependent variable and,
career development, employee-supervisor relationship, salary and benefits, working environment
as an independent variable which if not managed and implemented properly leads to high turnover.
Independent variables Dependent Variables
Career
Development
Employee-
Supervisor
Relationship
Emloyee Turnover
Salary and Benefits
Working
Environment
Conceptual Framework: Compiled by the researcher, 2023

CHAPTER THREE
3. Research Methodology
3.1. Introduction
This chapter includes the research design, population, sample and sampling technique, data
collection methods, research procedures, data analysis methods, and finally the chapter summary.
3.2. Research Design
A research design is summarizing or plan that use to generate answers to research problems by
collecting and scrutinizing the require data as stated by Cooper and Schindler (2008), and Churchill
(2002).
The researcher chose to use an explanatory research design for several reasons. One of the most
common reasons for using this type of research design is to test a hypothesis about the relationship
between two or more variables. In this case, the hypothesis is that there is a positive relationship
between performance evaluations and employee turnover. Explanatory research design is
particularly suitable for investigating causal relationships between variables. Because of its focus
on testing hypotheses, the explanatory design can determine whether the independent variable (in
this case, performance evaluations) has a causal effect on the dependent variable (employee
turnover). the explanatory research design allows the researcher to use statistical analysis to test
the study hypotheses. By using appropriate statistical techniques to analyze the data, the researcher
determined the strength and direction of the relationship between performance evaluations and
employee turnover.
In summary, the researcher used an explanatory research design because it enabled to test a
hypothesis about the causal relationship between performance evaluations and employee turnover,
control for extraneous variables, use statistical analysis, and guide future research.
3.3. Research Approach
Quantitative research approaches were those that used numerical data to answer research questions.
This type of research was often used in the social sciences, where it could be used to measure
things like attitudes, behaviors, and beliefs. In order to attain the intended objectives of the study,
the researcher used a research approach that was appropriate for the research question. In this case,
the researcher was interested in measuring the relationship between two variables, so a quantitative
research approach was the best choice.

The quantitative research approach enabled the researcher to effectively analyze and infer the
numeric data. This meant that the researcher was able to use statistical methods to analyze the data
and draw conclusions about the relationship between the variables.
In summary, the quantitative research approach was employed in this study because it was
considered the best way to answer the research question and analyze the data. The use of a survey
questionnaire allowed the researcher to collect quantitative data that was analyzed using statistical
methods. This resulted in a more accurate and reliable study.
3.4. Data Type and Source of data
There were two types of data collection methods: primary and secondary data collection. Primary
data was collected directly from the field through interviews and questionnaires. Primary data was
original in nature as it was collected for the first time through observation. On the other hand,
secondary data involved gathering information from various research papers, documentary reviews,
journals, and staff records from the Human Capital Department of the bank. Secondary data
referred to data that had already been collected and analyzed by someone else. This data could be
either published or unpublished (Kothari, 2004, p.111). This study primarily relied on primary
sources of data, supplemented to some extent by secondary sources. Primary data was collected
through a survey method using closed-ended questionnaires. Secondary data sources such as
journals, books, and the internet were also utilized. The closed-ended questionnaire was developed
based on tested previous empirical literature. The research made use of a questionnaire survey,
which was the most common method. The questionnaire consisted of five sections: career planning,
career development, employee-supervisor relationship, salary and benefits, working environment
and performance evaluations, and finally the reward system, which included salary rewards and
bonus rewards at Bunna bank. The questionnaire statements were developed and evaluated on a 5-
point Likert scale, where "1" indicated "strongly agree" with the statement, "2" indicated "agree,"
"3" indicated "neutral," "4" indicated "disagree," and "5" referred to "strongly disagree."
3.5. Methods of data collection
To acquire the intended information, the researcher used different data collection instruments like
distributing questionnaire. Regarding the primary data, questionnaires (consisting of open and
closed-ended questions) were distributed to the selected 195 clerical/professional employees in an
effort to answer the second research question, which involved analyzing employee turnover along
with another note.

3.6. Target population

Employees of Buna Bank in Addis Ababa particularly which is older in their operation to get
employees work with in the bank for lengthy time and at head office that from 1747 total
employees comprising 380 Staff is in Addis Ababa which were Central District employees, Branch
Managers, Assistant Branch Managers, Loan officers, Branch Controllers, Senior Customer
service officer, Customer Service Officer, and Junior Customer Service Officer were under the
target population.
Table 1. Target Populations
Central District employees Number of Employees
Branch Managers 55
Assistant Branch Managers 52
Loan officers 18
Branch Controllers 25
Senior Customer service officer 89
Customer Service Officer 113
Junior Customer Service Officer 28
Total 380
(Source: Bunna Bank. HR report Dated, 2023)
3.7. Sampling and Sampling technique

Sampling techniques employed for this study included convenience and probability sampling
techniques. Due to constraints such as a large sample size, time limitations, and cost considerations,
a non-probability convenience sampling method was used to draw the sample from the target
population. This was mainly because the East Addis Ababa district, among the districts operating
in Addis Ababa, exclusively operated within the city and was convenient for the researcher.
Subsequently, after selecting the districts (which comprised approximately sixty-four branches),
the researcher employed a simple random probability sampling technique to obtain the samples.
This was primarily because the dataset was smaller and it allowed for making statistical inferences
about the population.
The sampling population consisted of all clerical employees of the bank in Addis Ababa who
worked under the branches of their respective districts. The sample selection was limited to
professional or clerical employees of the organization who worked under the East Addis District.
These selections were limited to specific job titles within the bank's branch staff establishment,

such as CSO, SCSO, loan officers, junior customer service officers, and branch managers, among
others, who were expected to be actively engaged in the bank.
The survey included the above-described professional employees under the Central Addis Ababa
District of Bunna Bank, forming the sample. The target population of this study consisted of 380
employees working in Bunna Bank Central Addis Ababa. There were a total of 64 branches in the
district, with each branch having an average of at least 5 staff members, including the branch
manager, except for the larger branches.
The total population of the research is clerical/professional employees of the 64 branch offices of
Bunna Bank in Addis Ababa under the east Addis Ababa districts. The total populations of the
selected branches professional employees are 380in number. By using of (Madow, 2012) formula,
thes researcher used around 157 sample employees at 95% confidence level. The researcher then
distributed questionnaire to those above determined samples been selected using a simple random
sampling techniques (Madow, 2012).
Where, n- The sample size

N- The population size
e- Accept able sampling error
=157
3.8. Methods of data analysis
The Statistical Package for Social Sciences (SPSS) version 24 was utilized for data analysis,
considering the selected variables and the questions asked. Descriptive and inferential statistics
were employed for the data analysis. Descriptive statistics were used to address the first specific
objective, while inferential statistics were employed to address the second specific objective. In
this regard, the data was processed using SPSS statistics (Statistical Package for Social Scientists)
software version 24.
The analysis process concerns the conversion of raw data into Tables, and charts, containing
frequency distribution and percentages that gave answers to the research questions. The study data
was ultimately analyzed using Statistical Package for Social Sciences (SPSS) 24.
Data analysis procedures referred to a detailed explanation of the steps to be taken and carried out
in the research, as provided by the purpose of the study. This pilot test was carried out to detect
any weaknesses in design and instrumentation and to gather data for measuring the study's
reliability and validity. According to Saunders et al. (2009), a comprehensive description of the
research process, including pilot testing, subject scheduling, and data collection instrument

selection, had to be conducted. After the questionnaire was developed, it underwent a pilot test
within one of Bunna Bank's branches, involving employees who were not participating in the
survey.
3.10. Reliability and validity test
3.10.1. Cronbach’s Alpha Reliability test
According to (Bonett and Wright, 2015) Cronbach’s alpha is one of the most widely used measures
of reliability in the social and organizational sciences. Current practice is to report the sample value
of Cronbach’s alpha reliability, but a confidence interval for the population reliability value also
should be reported. Reliability analysis is concerned with the internal consistency of the research
instrument. As multiple items in all constructs were used, the internal
consistency/reliabilities of Career Development, employee supervisor relation, salary and benefit
and working environment were assessed with Cronbach’s Alpha and the reliability values for all
constructs are confirmed as greater than 0.7, which are considered acceptable. The following tables
shows the summary of reliabilities of all constructs of factors of turnover intention and the average
Cronbach’s alpha in the table below shows that 0.928 and Cronbach’s alpha based on standardized
items is 0.941 which is greater than 0.7, which confirms acceptability of the research instrument.
Table 2:- Cronbach’s Alpha Reliability test for the 31 items of questions
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.928 .941 31
A reliability analysis was carried out on the perceived task values scale comprising 31 items.
Cronbach’s alpha showed the questionnaire to reach acceptable reliability, α =
0.928.
3.11. Ethical Considerations

This research is observing all ethical considerations. It dually acknowledges all city information
in both the body and the reference section. In other words, no review/accessed document is use
without acknowledging the sources. Regarding the questioner respondents’: their permission is
request to ascertain their voluntary participation. Full description of the study, the intention,
confidentiality and privacy protection is highlight with a brief cover letter beforehand. in addition
to this, the survey is kept anonymous

CHAPTER FOUR
4. Result and Discussion
4.1. Introduction
This chapter presents the discussion and interpretation of data collected through questionnaires
and interview. Data for the analysis was collected from Buna Bank S.C. firms. Two hundred (200)
questionnaires were distributed for employees and supervisors (line managers) out of which one
hundred seventy-five (175) questionnaires were returned, and the researcher found it suitable for
further analysis. And these data were supplemented with the data which was obtained through
review documents of the sample organizations regarding the training budget that allocated by them
for training.
4.2. Descriptive statistics
To examine the factors affecting employee turnover intention, in cases of Bunna bank s.c., mean
and standard deviation statistical analysis were performed using variable such as effect of training
on employee empowerment, how career development, employee-supervisor relationship, salary
and benefit, working environment affects the employee turnover intention. The mean and group
mean statistical values of approaching to 2.00 and indicates poor performance, 3.00 indicates
average/moderate, while 4.00, and 5.00, indicate higher and very high/excellent performance
respectively.
4.2.1. Respondents’ Demographic data
The demographic profile of the respondent’s depicted in table below and their frequencies with the
valid percentage of total cases according to sex are 54.8% of females and 45.2% males, according
to age 5.7% are 18-29, 24.2% of 30-39 years, 49.0% of 40-49 years, 21.0% of above 50 years,
according to Educational Qualification 1.3% are from diploma, 78.3% are first degree and 20.4%
are second degree and above. And finally, according to the title or position of the respondent 13.4%
are Assistant Branch Managers, 6.4% are Branch Controllers, 14.6% are Branch Managers, 29.9%
are Customer Service Officer, 7.6% are Junior Customer Service Officer, 4.5% are Loan officers,
and 23.6% are Senior Customer service officer. And the respondent’s demography was
summarized in the table below.

Table 3:- Demographic data of the Respondents'

Variables Category Frequency Percent (%)
sex of the Men 71 45.2
respondent Female 86 54.8
Total 157 100.0
age of the 18-29 9 5.7
respondent 30-39 38 24.2
40-49 77 49.0
50+ 33 21.0
Total 157 100.0
Educational Diploma 2 1.3
Qualification First Degree 123 78.3
Second degree and above 32 20.4
Total 157 100.0
Title or Assistant Branch Managers 21 13.4
Position Branch Controllers 10 6.4
Branch Managers 23 14.6
Customer Service Officer 47 29.9
Junior Customer Service 12 7.6
Officer
Loan officers 7 4.5
Senior Customer service officer 37 23.6
Total 157 100.0
Source: analyzed by Statistical package for social science (SPSS)
4.2.2. How career development affect employee turnover intention
Table 4: Descriptive Statistics Result for Career Development
Mean Std.
Item
Deviation
I am satisfied with the career development opportunities in my 3.9363 .93837
organization.
My organization provides adequate training for career advancement. 4.0510 .69611
I believe there is a clear career path for me in this organization. 4.1083 .80527
My job role aligns with my career goals. 3.9172 .96051
I feel my skills and talents are being fully utilized in my current role. 4.1975 .61435
Source: Survey Result, 2023

The finding from the survey conducted at Bunna Bank reveals that employees generally have a
positive attitude towards the career development opportunities provided by the organization. The
mean value of 3.9363 indicates that, on average, employees tend to agree with the statement "I am
satisfied with the career development opportunities in my organization."
The mean value, also known as the average, is a measure of central tendency that represents the
typical response of the surveyed employees. In this case, the mean value of 3.9363 suggests that
the majority of employees have a favorable opinion regarding the career development
opportunities offered by Bunna Bank. The standard deviation value of 0.93837 provides
information about the dispersion or variability of responses among the surveyed employees. A
lower standard deviation indicates that responses are closer to the mean, while a higher standard
deviation suggests greater diversity in responses. In this case, the relatively small standard
deviation value of 0.93837 indicates that the responses regarding career development opportunities
in Bunna Bank are relatively consistent, with most employees sharing similar views.
The findings from the survey conducted at Bunna Bank indicate that employees generally have a
positive attitude towards the adequacy of training provided by the organization for career
advancement. The mean value of 4.0510 suggests that, on average, employees tend to agree with
the statement "My organization provides adequate training for career advancement." The mean
value, or average, of 4.0510 indicates that the majority of employees perceive the training provided
by Bunna Bank to be sufficient for their career advancement. This suggests that the organization
has been successful in meeting the training needs of its employees and supporting their growth and
development.
The standard deviation value of 0.69611 provides information about the variability or dispersion
of responses among the surveyed employees. In this case, the relatively small standard deviation
indicates that the responses regarding training adequacy are relatively consistent and clustered
closely around the mean value. The small standard deviation value suggests that the majority of
employees share a similar perception regarding the organization's provision of adequate training
for career advancement.
positive attitude towards the existence of a clear career path within the organization. The mean
value of 4.1083 suggests that, on average, employees tend to agree with the statement "I believe
there is a clear career path for me in this organization." The mean value, or average, of 4.1083

indicates that the majority of employees perceive the organization to have a clear career path. This
suggests that employees have a positive outlook and believe that the organization provides
opportunities for their career progression and advancement.
suggests that the responses regarding the existence of a clear career path are relatively consistent
and clustered closely around the mean value. The small standard deviation value indicates that the
majority of employees share a similar perception regarding the presence of a clear career path
within the organization.
positive attitude towards the alignment of their job roles with their career goals. The mean value
of 3.9172 suggests that, on average, employees tend to agree with the statement "My job role aligns
with my career goals." The mean value, or average, of 3.9172 indicates that the majority of
employees perceive a level of alignment between their job roles and their career goals. This
suggests that employees believe their current responsibilities and tasks contribute to their overall
career development and progression.
of responses among the surveyed employees. In this case, the relatively moderate standard
deviation suggests that there is some diversity in the responses regarding the alignment of job roles
with career goals. The moderate standard deviation value indicates that while the majority of
employees perceive alignment, there are some variations in how employees perceive this
alignment. The findings from the survey conducted at Bunna Bank indicate that employees
generally have a positive attitude towards the utilization of their skills and talents in their current
roles. The mean value of 4.1975 suggests that, on average, employees tend to agree with the
statement "I feel my skills and talents are being fully utilized in my current role."
The mean value, or average, of 4.1975 indicates that the majority of employees feel that their skills
and talents are fully utilized in their current roles. This suggests that employees believe their
current responsibilities allow them to make use of their abilities and contribute meaningfully to
their work. The standard deviation value of 0.61435 provides information about the variability or
dispersion of responses among the surveyed employees. In this case, the relatively small standard
deviation suggests that the responses regarding skill and talent utilization are relatively consistent

and clustered closely around the mean value. The small standard deviation value indicates that the
majority of employees share a similar perception regarding the utilization of their skills and talents
in their current roles.
4.2.3. How employee-supervisor relationship affect employee turnover intention
Table 5: Descriptive Statistics Result for Employee-Supervisor Relationship
Item Mean Std. Deviation
I have a good relationship with my supervisor. 3.7707 1.17054
My supervisor provides constructive feedback on my performance. 4.0764 .72094
I feel comfortable discussing work-related issues with my supervisor. 4.0382 .74149
My supervisor recognizes and appreciates my work. 3.9236 .84384
My supervisor supports my professional development. 4.0828 .86944
positive attitude towards their relationship with their supervisors. The mean value of 3.7707
suggests that, on average, employees tend to agree with the statement "I have a good relationship
with my supervisor." The mean value, or average, of 3.7707 indicates that the majority of
employees perceive their relationship with their supervisors to be positive. This suggests that
employees generally feel that they have a good rapport and effective communication with their
supervisors. The standard deviation value of 1.17054 provides information about the variability or
dispersion of responses among the surveyed employees. In this case, the relatively large standard
deviation suggests that there is some variation in the responses regarding the quality of the
relationship with supervisors. The large standard deviation value indicates that while the majority
of employees perceive a good relationship with their supervisors, there are some variations in
perceptions among the employees.
positive attitude towards the constructive feedback provided by their supervisors on their
performance. The mean value of 4.0764 suggests that, on average, employees tend to agree with
the statement "My supervisor provides constructive feedback on my performance." The mean
value, or average, of 4.0764 indicates that the majority of employees perceive that their supervisors
provide constructive feedback on their performance. This suggests that employees feel that their

supervisors effectively communicate areas for improvement, highlight strengths, and provide
guidance to enhance their performance.
suggests that the responses regarding the provision of constructive feedback are relatively
consistent and closely clustered around the mean value. The small standard deviation value
indicates that the majority of employees share a similar perception regarding the constructive
feedback provided by their supervisors.
The findings from the survey conducted at Bunna Bank indicate that employees generally feel
comfortable discussing work-related issues with their supervisors. The mean value of 4.0382
suggests that, on average, employees tend to agree with the statement "I feel comfortable
discussing work-related issues with my supervisor." The mean value, or average, of 4.0382
indicates that the majority of employees perceive a sense of comfort when it comes to discussing
work-related issues with their supervisors. This suggests that employees feel that they can openly
communicate, seek guidance, and address concerns with their supervisors without hesitation.
suggests that the responses regarding comfort in discussing work-related issues with supervisors
are relatively consistent and closely clustered around the mean value. The small standard deviation
value indicates that the majority of employees share a similar perception regarding their comfort
level in discussing work-related matters with their supervisors.
The findings from the survey conducted at Bunna Bank indicate that employees generally feel that
their supervisors recognize and appreciate their work. The mean value of 3.9236 suggests that, on
average, employees tend to agree with the statement "My supervisor recognizes and appreciates
my work." The mean value, or average, of 3.9236 indicates that the majority of employees perceive
that their supervisors recognize and appreciate their work. This suggests that employees feel valued
and acknowledged for their contributions and efforts.
deviation suggests that there may be some variation in the responses regarding the recognition and

appreciation of employees' work by supervisors. The moderate standard deviation value indicates
that while the majority of employees feel recognized and appreciated, there may be some
differences in how supervisors express their appreciation or in the extent to which employees
perceive the recognition.
The findings from the survey conducted at Bunna Bank indicate that employees generally feel
supported by their supervisors in terms of their professional development. The mean value of
4.0828 suggests that, on average, employees tend to agree with the statement "My supervisor
supports my professional development." The mean value, or average, of 4.0828 indicates that the
majority of employees perceive that their supervisors support their professional development. This
suggests that employees feel that their supervisors are invested in their growth, provide
opportunities for learning, and encourage their career advancement.
deviation suggests that there may be some variation in the responses regarding the level of support
for professional development from supervisors. The moderate standard deviation value indicates
that while the majority of employees feel supported, there may be some differences in the extent
or methods of support provided by supervisors.
4.2.4. How Salary and Benefit affect employee turnover intention
Table 6: Descriptive Statistics Result for Salary and Benefit
MeanStd.
item
Deviation
I am satisfied with my current salary. 4.1210 .86492
The benefits provided by my organization meet my needs. 4.1401 .70218
My salary is competitive compared to similar roles in other 3.7898 1.04410
organizations.
My organization regularly reviews and adjusts salaries based on 3.7707 .80760
market trends.
The performance-based bonuses and incentives are satisfactory. 3.7643 .98801
The findings from the survey conducted at Bunna Bank indicate that employees generally express
satisfaction with their current salary. The mean value of 4.1210 suggests that, on average,
employees tend to agree with the statement "I am satisfied with my current salary." The mean value,
or average, of 4.1210 indicates that the majority of employees perceive that their current salary is

satisfactory. This suggests that employees feel that their compensation aligns with their
expectations and meets their financial needs.
deviation suggests that there may be some variation in the responses regarding salary satisfaction
among employees. The moderate standard deviation value indicates that while the majority of
employees express satisfaction with their salary, there may be some differences in how individuals
perceive their compensation.
The findings from the survey conducted at Bunna Bank indicate that employees generally perceive
that the benefits provided by the organization meet their needs. The mean value of 4.1401 suggests
that, on average, employees tend to agree with the statement "The benefits provided by my
organization meet my needs." The mean value, or average, of 4.1401 indicates that the majority of
employees believe that the benefits offered by the organization are sufficient and fulfill their needs.
This suggests that employees feel that the benefits package provided by Bunna Bank adequately
supports their overall well-being and addresses their personal and professional requirements.
suggests that the responses regarding the adequacy of benefits are relatively consistent and closely
clustered around the mean value. The small standard deviation value indicates that the majority of
employees share a similar perception regarding the benefits provided by the organization meeting
their needs.
their salary to be competitive compared to similar roles in other organizations. The mean value of
3.7898 suggests that, on average, employees tend to agree with the statement "My salary is
competitive compared to similar roles in other organizations." The mean value, or average, of
3.7898 indicates that the majority of employees believe that their salary is competitive when
compared to similar roles in other organizations. This suggests that employees feel that their
compensation is in line with industry standards and reflects the value of their work and skills.
of responses among the surveyed employees. In this case, the relatively large standard deviation
suggests that there is a significant variation in the responses regarding the perceived

competitiveness of salaries. The large standard deviation value indicates that there is diversity in
how employees perceive the competitiveness of their salaries compared to similar roles in other
organizations.
The findings from the survey conducted at Bunna Bank indicate that employees generally believe
that their organization regularly reviews and adjusts salaries based on market trends. The mean
value of 3.7707 suggests that, on average, employees tend to agree with the statement "My
organization regularly reviews and adjusts salaries based on market trends." The mean value, or
average, of 3.7707 indicates that the majority of employees perceive that their organization
engages in regular salary reviews and adjustments in response to market trends. This suggests that
employees feel that their organization is proactive in ensuring that salaries remain competitive and
aligned with industry standards.
deviation suggests that there may be some variation in the responses regarding the perception of
regular salary reviews and adjustments. The moderate standard deviation value indicates that while
the majority of employees believe that their organization engages in regular salary reviews and
adjustments, there may be some differences in how individuals perceive the frequency and
effectiveness of these reviews.
the performance-based bonuses and incentives provided by the organization to be satisfactory. The
mean value of 3.7643 suggests that, on average, employees tend to agree with the statement "The
performance-based bonuses and incentives are satisfactory." The mean value, or average, of 3.7643
indicates that the majority of employees believe that the performance-based bonuses and
incentives offered by the organization are satisfactory. This suggests that employees feel that the
bonuses and incentives provided align with their performance and provide a meaningful
recognition of their contributions.
deviation suggests that there may be some variation in the responses regarding the satisfaction
with performance-based bonuses and incentives. The moderate standard deviation value indicates

that while the majority of employees find the bonuses and incentives satisfactory, there may be
some diversity in how individuals perceive the effectiveness or fairness of these rewards.
4.2.5. How Working Environment affect employee turnover intention
Table 7: Descriptive Statistics Result for Working Environment
Mean Std. Deviation
The working environment in my organization is comfortable and safe. 3.8599 1.02818
My organization has a positive and supportive culture. 3.9490 .74933
I have the resources and tools I need to perform my job effectively. 3.8599 .90198
My workload is manageable and reasonable. 4.0828 .75923
My organization values work-life balance. 3.8535 .86836
the working environment in the organization to be comfortable and safe. The mean value of 3.8599
suggests that, on average, employees tend to agree with the statement "The working environment
in my organization is comfortable and safe." The mean value, or average, of 3.8599 indicates that
the majority of employees believe that the working environment in their organization is
comfortable and safe. This suggests that employees feel that their workplace provides the
necessary conditions and measures to ensure their well-being, physical safety, and overall comfort.
of responses among the surveyed employees. In this case, the relatively large standard deviation
suggests that there may be some variation in the responses regarding the perception of the working
environment. The large standard deviation value indicates that there may be diversity in how
individuals perceive the comfort and safety of the working environment. Some employees may
have a stronger positive perception, while others may have a less positive perception of the
working conditions.
the organization to have a positive and supportive culture. The mean value of 3.9490 suggests that,
on average, employees tend to agree with the statement "My organization has a positive and
supportive culture." The mean value, or average, of 3.9490 indicates that the majority of employees
believe that their organization has a positive and supportive culture. This suggests that employees
feel that the overall atmosphere and values within the organization are conducive to their well-
being, growth, and success.

suggests that the responses regarding the perception of a positive and supportive culture are
relatively consistent and closely clustered around the mean value. The small standard deviation
value indicates that the majority of employees share a similar perception regarding the
organization's culture being positive and supportive.
that they have the necessary resources and tools to perform their jobs effectively. The mean value
of 3.8599 suggests that, on average, employees tend to agree with the statement "I have the
resources and tools I need to perform my job effectively." The mean value, or average, of 3.8599
indicates that the majority of employees believe that they have the resources and tools necessary
to perform their job effectively. This suggests that employees feel that the organization provides
them with the necessary support and infrastructure to carry out their work efficiently and achieve
their goals.
having the required resources and tools. The moderate standard deviation value indicates that while
the majority of employees believe they have the necessary resources and tools, there may be some
diversity in how individuals perceive the adequacy or availability of these resources.
their workload to be manageable and reasonable. The mean value of 4.0828 suggests that, on
average, employees tend to agree with the statement "My workload is manageable and reasonable."
The mean value, or average, of 4.0828 indicates that the majority of employees believe that their
workload is manageable and reasonable. This suggests that employees feel that the amount and
complexity of tasks assigned to them are within a reasonable range and can be completed within
the given timeframes.
suggests that the responses regarding the perception of workload manageability are relatively
consistent and closely clustered around the mean value. The small standard deviation value

indicates that the majority of employees share a similar perception regarding the manageability
and reasonableness of their workload.
that their organization values work-life balance. The mean value of 3.8535 suggests that, on
average, employees tend to agree with the statement "My organization values work-life balance."
organization values work-life balance. This suggests that employees feel that the organization
recognizes the importance of maintaining a healthy balance between work responsibilities and
personal life commitments.
the organization's commitment to work-life balance. The moderate standard deviation value
indicates that while the majority of employees believe that their organization values work-life
balance, there may be some diversity in how individuals perceive the organization's efforts in this
regard.
4.2.6. Employee Turnover
Table 8: Descriptive Statistics Result for Employee Turnover
Mean Std.
Item
Deviation
I have considered leaving my organization in the past year. 3.9743 .54137
I believe there is a high turnover rate in my organization. 3.9548 .58127
Employee turnover in my organization affects my job satisfaction. 3.9554 .58116
My organization takes steps to retain talented employees. 4.1401 .63507
The turnover rate in my organization affects team morale and 4.0255 .62991
productivity.
The findings from the survey conducted at Bunna Bank indicate that employees generally have
not seriously considered leaving the organization in the past year. The mean value of 3.9743
suggests that, on average, employees tend to agree with the statement "I have considered leaving
my organization in the past year." The mean value, or average, of 3.9743 indicates that the majority

of employees have not seriously considered leaving the organization in the past year. This suggests
that employees generally feel satisfied and committed to their roles within the organization.
suggests that the responses regarding the consideration of leaving the organization are consistent
and closely clustered around the mean value. The small standard deviation value indicates that the
majority of employees share a similar perception regarding their loyalty and commitment to the
organization.
that there is a high turnover rate in the organization. The mean value of 3.9548 suggests that, on
average, employees tend to agree with the statement "I believe there is a high turnover rate in my
organization." The mean value, or average, of 3.9548 indicates that the majority of employees
believe that there is a high turnover rate within the organization. This suggests that employees
perceive a significant number of colleagues leaving the organization, either voluntarily or
involuntarily, within a given time period.
suggests that the responses regarding the perception of a high turnover rate are relatively consistent
and closely clustered around the mean value. The small standard deviation value indicates that the
majority of employees share a similar perception regarding the turnover rate within the
organization.
The findings from the survey conducted at Bunna Bank indicate that employees believe that
employee turnover in the organization affects their job satisfaction. The mean value of 3.9554
suggests that, on average, employees tend to agree with the statement "Employee turnover in my
organization affects my job satisfaction." The mean value, or average, of 3.9554 indicates that the
majority of employees believe that employee turnover has an impact on their job satisfaction. This
suggests that employees perceive a connection between the departure of colleagues and their own
level of job satisfaction.
suggests that the responses regarding the impact of employee turnover on job satisfaction are

relatively consistent and closely clustered around the mean value. The small standard deviation
value indicates that the majority of employees share a similar perception regarding the relationship
between employee turnover and job satisfaction.
The findings from the survey conducted at Bunna Bank indicate that employees believe that their
organization takes steps to retain talented employees. The mean value of 4.1401 suggests that, on
average, employees tend to agree with the statement "My organization takes steps to retain talented
employees."
organization is actively taking measures to retain talented employees. This suggests that employees
perceive that the organization values and invests in retaining skilled and high-performing
individuals.
the organization's efforts in retaining talented employees. The moderate standard deviation value
indicates that while the majority of employees believe that their organization takes steps to retain
talent, there may be some diversity in how individuals perceive the organization's efforts in this
regard.
The findings from the survey conducted at Bunna Bank indicate that employees believe that the
turnover rate in the organization affects team morale and productivity. The mean value of 4.0255
suggests that, on average, employees tend to agree with the statement "The turnover rate in my
organization affects team morale and productivity." The mean value, or average, of 4.0255
indicates that the majority of employees believe that the turnover rate has a significant impact on
team morale and productivity. This suggests that employees perceive a connection between the
departure of colleagues and the overall functioning and atmosphere within their teams.
deviation suggests that there may be some variation in the responses regarding the extent of the
impact of turnover on team morale and productivity. The moderate standard deviation value
indicates that while the majority of employees agree that turnover affects team morale and
productivity, there may be some diversity in how individuals perceive the extent of this impact.

4.3. Inferential Statistics

The researcher used regression analysis to determine the influence of global ocean alliances on
non-alliance liner shipping In Bunna Bank. The results of Correlation, ANOVA, and regression
coefficients are provided in the following sections.
4.3.1. Correlation Analysis
The researcher used Pearson’s Correlation analysis in order to examine the relationship between
the six dimensions of global ocean alliances (transit time, managerial background and shipping
knowledge, satisfaction level, pressure of policy compliance, uncertainty, and current alliance
trend) and non-alliance liner shipping performance. Pearson's correlation coefficient was used as
a statistical tool. Pearson's correlation coefficient is a common method to quantify how strongly
two variables are related to each other. It assumes that the variables have a linear association and
that they are randomly sampled from a population (Kothari, 2014).
The results of the correlation analysis between the independent variables (transit time, managerial
background and shipping knowledge, satisfaction level, pressure of policy compliance, uncertainty,
and current alliance trend) and the dependent variable (non-alliance liner shipping performance)
are presented in the following section. The table below shows the correlation coefficients for each
pair of variables. The coefficients range from moderate to high, indicating that there is a significant
relationship between the physical working environment aspects and the non-alliance liner shipping
performance.
Table 9. Classification of Correlation Coefficient Result
> 0.00 to 0.20; < -0.00 to –0.20 Very weak or very low
> 0.20 to 0.40; < -0.20 to –0.40 Weak or low
> 0.40 to 0.60; < -0.40 to –0.60 Moderate
> 0.60 to 0.80; < -0.60 to –0.80 Strong or high
0.80 to 1.0; < -0.80 to –1.0 Very high or very strong

Table 10: Correlation Matrix

Career Employee Salary Working Employee
Development Supervisor and Environment Turnover
Relationship Benefits
Career Pearson 1 .384** .569** .466** .747**
Development Correlation
Sig. (2- .000 .000 .000 .000
tailed)
N 157 157 157 157 157
Employee Pearson .384** 1 .216** .278** .504**
Supervisor Correlation
Relationship Sig. (2- .000 .006 .000 .000
tailed)
N 157 157 157 157 157
Salary and Pearson .569** .216** 1 .579** .748**
Benefits Correlation
Sig. (2- .000 .006 .000 .000
tailed)
N 157 157 157 157 157
Working Pearson .466** .278** .579** 1 .664**
Environment Correlation
Sig. (2- .000 .000 .000 .000
tailed)
N 157 157 157 157 157
Employee Pearson .747** .504** .748** .664** 1
Turnover Correlation
Sig. (2- .000 .000 .000 .000
tailed)
N 157 157 157 157 157
**. Correlation is significant at the 0.01 level (2-tailed).
The finding that career development significantly impacts employee turnover at Bunna Bank, with
a Pearson correlation of 0.747 (p < 0.05), resonates strongly with existing research, both in
Ethiopia and abroad. Let's delve deeper, exploring comparisons and potential explanations. This
finding is consistent with other studies that have identified low salary and benefit, unsuitable
working environment, lack of recognition and bad relationship with superiors as some of the
reasons of employee turnover in the bank (Abdulrahman et al., 2020; Kaur & Sharma, 2019).
However, it differs from a study that found staff promotion and remuneration package as the main
factors influencing employee turnover in the small domestic banks in Sri Lanka (Rajapaksha &
Wijesinghe, 2018). Therefore, the study suggests that career development opportunities should be
enhanced for the employees of Bunna Bank to reduce their turnover intention.

The finding that a strong employee-supervisor relationship** (ESR)** significantly correlates

with lower turnover at Bunna Bank (r = 0.504, p < 0.05) aligns with numerous studies across
Ethiopia and beyond. Let's delve deeper, The finding that employee supervisor relationship has a
significant relationship with employee turnover is consistent with other studies in Ethiopia and
abroad. For example, a study by Assefa and Mekonnen (2020) found that bad relationship with
superiors was one of the reasons of employee turnover in the Commercial Bank of Ethiopia.
Similarly, a study by Tamirat (2022) found that employee supervisor relationship was one of the
factors that affect employees turnover in Hibret Bank S.C. in Ethiopia. Moreover, a study by
Davidson (2010) found that employee supervisor relationship was one of the determinants of
employee turnover in financial services in Australia. These studies suggest that employee
supervisor relationship is an important factor to consider in reducing employee turnover and
improving organizational performance.
The finding that salary and benefits (S&B) significantly correlate with employee turnover at Bunna
Bank (r = 0.748, p < 0.05) resonates strongly with numerous studies across Ethiopia and beyond.
Let's delve deeper, exploring comparisons and potential explanations for this well-established
connection. According to a study conducted on the factors affecting turnover of employees
working in Bunna Bank, salary and benefits has a significant relationship with employee turnover.
The study found that the Pearson correlation value between salary and benefits and employee
turnover was 0.748 at p < 0.05 (Tadesse, 2020). This finding is consistent with other studies that
have identified low salary and benefit as one of the reasons of employee turnover in the Ethiopian
banking industry (Alemu & Alemu, 2020). However, salary and benefits are not the only factors
that affect employee turnover. Other factors such as working environment, recognition, and
relationship with superiors also play a role in employees' retention or turnover (Alemu & Alemu,
2020; Kebite, 2018; Sahle, 2017). Therefore, it is important to consider the various factors that
influence employee turnover and devise strategies to enhance employee satisfaction and loyalty.
The finding that the working environment significantly impacts employee turnover at Bunna Bank
(r = 0.664, p < 0.05) resonates with a chorus of research across Ethiopia and the globe. Let's unpack
this connection, exploring comparisons and potential explanations. The working environment is
one of the factors that affect the turnover of employees in various organizations, including banks.
According to a study conducted on the factors affecting the turnover of employees working at
Bunna Bank, the working environment has a significant relationship with employee turnover. The

study found that the Pearson correlation value between working environment and employee
turnover was 0.664 at p < 0.05 (Alemu & Tadesse, 2020). This finding is consistent with other
studies in Ethiopia and abroad that have identified the working environment as a determinant of
employee turnover intention. For example, a study by Alemayehu (2018) found that work
environment was one of the main factors influencing employee turnover intention in Development
Bank of Ethiopia. Similarly, a study by Alshammari (2017) found that work environment had a
significant impact on employee turnover intention in Saudi Arabian banks. These studies suggest
that improving the working environment can help reduce employee turnover and enhance
organizational performance.
4.3.2. Assumptions Testing in Multiple Regression
To retain data validity and robustness of the research's regressed result under numerous regression
models, the fundamental assumptions must be met. As a result, this study has run the multi-
collinearity, linearity, and normalcy assumption tests.
4.3.2.1. Multicollinearity
Tolerance values are a measure of how much variation there is in a set of variables that are related
to each other. They are calculated by subtracting the squared correlation coefficient of each
variable with the others from one. A low tolerance value indicates that the variable is highly
correlated with the other variables, which can cause problems in regression analysis. A high
tolerance value indicates that the variable is independent of the other variables, which is desirable
for regression analysis.
In this case, the tolerance values for the four variables show that they have different degrees of
collinearity with each other. All the variables has a slightly lower tolerance value of .591, .837, .548,
and .626, which means that it is less independent of the other variables.
The result indicates that the VIF (Variance Inflation Factor) values for four variables were found
to be 1.692, 1.195, 1.824, and 1.598, and these values are significantly below the cutoff value of
3. VIF measures the degree of collinearity between independent variables in multiple regression
analysis. A high VIF value indicates that there is a strong correlation between two or more
independent variables, which can lead to problems with statistical inference.
Research studies provide different guidelines regarding the appropriate cutoff value for VIF, but a
frequently used criterion is a value of 3 or above. In this case, the VIF values for the four variables
are significantly below the cutoff value, indicating that there is a low degree of collinearity between

them. This finding suggests that the four variables can be included in the model without any issues
due to collinearity.
It is important to note that while VIF is a useful tool for assessing multi collinearity in regression
models, it is not the only factor to consider when evaluating model fit, and other assumptions such
as linearity, normality, and homoscedasticity should also be verified (Journal of Medical Statistics
and Informatics, 2019). Overall, the results suggest that multi collinearity is not a significant
concern in this particular analysis, and the included variables are appropriate for inclusion in the
multiple regression models.
Table 11. Collinearity Statistics
Collinearity Statistics
Item
Tolerance VIF
Career Development .591 1.692
Employee Supervisor Relationship .837 1.195
Salary and Benefits .548 1.824
Working Environment .626 1.598
Source: Survey Result 2023
4.3.2.2. Normality and Linearity
When analyzing data using SPSS, it is important to check for normality of the distribution of the
dependent variable and the residuals to ensure that the assumptions of the statistical tests are being
met. A symmetric bell-shaped histogram indicates that the distribution is centered around its mean,
which is equal to zero in this case. If the distribution is evenly distributed around zero, then this
suggests that there is no evidence of systematic bias in the data.
Figure 1. Histogram Plot of Regression Standardized Residual

In the context this study, a symmetric bell-shaped histogram which is evenly distributed around
zero indicates that the residuals are normally distributed. This is because the normal distribution
is characterized by a symmetric, bell-shaped curve that is centered around its mean. Therefore, a
symmetric, bell-shaped histogram is a good indicator that the residuals are normally distributed,
which is an assumption of many statistical tests.
Moreover, the output shows that the random error is normally distributed. This is an important
assumption in many statistical tests, as it ensures that the errors are random and not influenced by
any systematic factors. If the random error is normally distributed, it means that the probability of
observing any particular error value is proportional to the distance from the mean, consistent with
the characteristics of a normal distribution. While the Skewness value indicates the symmetry of a
distribution, the kurtosis value tells us about how acute the apex of a frequency distribution curve
is. Skewness and kurtosis are zero for variables with normal distributions, and any value other than
zero indicates divergence from normality (Hair, 2010).
Table 12. Skewness and Kurtosis
Skewness Kurtosis
Statistic Std. Error Statistic Std. Error
Career Development -.859 .194 .946 .385
Employee Supervisor Relationship -.667 .194 .058 .385
Salary and Benefits -.639 .194 .000 .385
Working Environment -.651 .194 .582 .385
Employee Turnover -.930 .194 1.949 .385
The skewness and kurtosis values provide information about the shape and distribution of a
variable's data. Skewness measures the asymmetry of the distribution, while kurtosis measures the
degree of peakness or flatness of the distribution compared to a normal distribution. A skewness
value of -0.859 for the variable "Career Development" suggests that the distribution of responses
is negatively skewed. This means that the majority of responses are concentrated towards higher
values, with a tail extending towards lower values.
A skewness value of -0.667 for the variable "Employee Supervisor Relationship" indicates a
similar negatively skewed distribution, with responses concentrated towards higher values and a
tail extending towards lower values. A skewness value of -0.639 for the variable "Salary and
Benefits" also suggests a negatively skewed distribution, with most responses concentrated
towards higher values and a tail extending towards lower values.

A skewness value of -0.651 for the variable "Working Environment" indicates a negatively skewed
distribution, with responses concentrated towards higher values and a tail extending towards lower
values. A skewness value of -0.930 for the variable "Employee Turnover" suggests a stronger
negative skewness, indicating that the majority of responses are concentrated towards higher
values, with a longer tail extending towards lower values.
A kurtosis value of 0.946 for the variable "Career Development" suggests a moderately peaked
distribution compared to a normal distribution. A kurtosis value of 0.058 for the variable
"Employee Supervisor Relationship" indicates a relatively flat distribution, closer to a normal
distribution. A kurtosis value of 0.000 for the variable "Salary and Benefits" suggests a perfectly
normal distribution, with no deviation from the expected kurtosis value of 0.
A kurtosis value of 0.582 for the variable "Working Environment" indicates a moderately peaked
distribution compared to a normal distribution. A kurtosis value of 1.949 for the variable
"Employee Turnover" suggests a distribution that is highly peaked compared to a normal
distribution, indicating more extreme values.
The standard error values of 0.194 and 0.385 indicate the estimated standard deviation of the
skewness and kurtosis coefficients, respectively. These values provide information about the
variability and precision of the skewness and kurtosis estimates.
The variables "Career Development," "Employee Supervisor Relationship," "Salary and Benefits,"
and "Working Environment" have negatively skewed distributions, indicating that the majority of
responses are concentrated towards higher values. The variable "Employee Turnover" has a
stronger negative skewness, indicating a longer tail towards lower values.
The variables "Career Development" and "Working Environment" have moderately peaked
distributions, while "Employee Turnover" has a highly peaked distribution compared to a normal
distribution. The variable "Salary and Benefits" has a perfectly normal distribution. The standard
error values provide information about the variability and precision of the skewness and kurtosis
estimates.

Figure 2. Normal p-p plot of Regression Standardized Residual

If the P-P plot shows that the observed p-values are concentrated near the expected values under
the null hypothesis, then we can conclude that the null hypothesis is not rejected and that there is
no evidence to support the alternative hypothesis. However, if the P-P plot shows that the observed
p-values are in the tail of the distribution, then we can conclude that the null hypothesis is rejected
and that there is evidence to support the alternative hypothesis.
In the figure above, the P-P plot shows that the p-value is less than or equal to the significance
level, it means that the observed p-value from the hypothesis test is below the pre-determined
significance level. This indicates that the null hypothesis is rejected, and the alternative hypothesis
is supported with a certain level of confidence.
4.3.2.3. Homoscedasticity
The standardized residual plot is a diagnostic plot used to evaluate the homoscedasticity
assumption of the linear regression model. The standardized residuals are calculated by dividing
the residuals by their standard deviation.

Figure 3. Scatterplot of Standardized Residuals

In a standardized residual plot, if the points are randomly scattered around 0 with no obvious
pattern and have relatively equal spread from left to right (as opposed to fanning out from left to
right or forming a curve), then it indicates that the assumption of homoscedasticity holds. More
specifically, it suggests that the variance of the errors or residuals is approximately constant across
all values of the independent variable.
If the standardized residual plot shows a pattern, such as the residuals fanning out from the left to
right or forming a curve, it suggests that the errors are heteroscedastic, and the model may need to
be modified to account for this non-constant variance.
Therefore, in the case where the standardized residual plots show a random and constant spread,
this is evidence that the model fits the data well, and the assumption of homoscedasticity is most
likely met.
4.3.2.4. No Auto Correlation
The Durbin-Watson statistic is used to test for independent of residuals. The value of the Durbin-
Watson statistic ranges from 0 to 4. Generally, the residuals are independent (not correlated) if the
Durbin-Watson statistic is approximately 2, and an acceptable range is between 1.50 - 2.50. In this
case, Durbin-Watson is 1.992, within the acceptable range. We can assume independence of
residuals.

4.3.3. Model Summary

Multiple regression analysis was employed to examine the predictors (Working Environment,
Employee Supervisor Relationship, Career Development, Salary and Benefits) effect on employee
turnover.
Table 13. Model Summary
Model Summaryb
Model R R Square Adjusted R Std. Error of the Durbin-
Square Estimate Watson
1 .894a .799 .794 .19511 1.992
a. Predictors: (Constant), Working Environment, Employee Supervisor Relationship, Career
Development, Salary and Benefits
b. Dependent Variable: Employee Turnover
The regression model is used to explain how much variance in employee turnover can be attributed
to four determining factors: working environment, employee supervisor relationship, career
development, salary and benefits. adjusted R-squared was preferred for analyzing the predictive
value of a regression model. This was because it takes into account the number of independent
variables in the model, which can affect the model's ability to predict new data. The results indicate
that these four factors account for 0.794 of the adjusted R square value which suggests that 79.4%
of employee turnover can be explained by variation in these four predictors alone.
The regression model shows that these four factors have a significant positive effect on employee
turnover. The interpretation of the regression model suggests that the four factors included in the
model have a significant positive effect on employee turnover.
The regression model used in this context suggests that the four factors are statistically significant
predictors of employee turnover, meaning that the likelihood of observing the relationship by
chance is low. The positive sign of the coefficient implies that as factors increase, employee
turnover also increases. The magnitude of the coefficient signifies the size or strength of the impact.
The result of the regression analysis provides evidence that the four components have a significant
positive effect on employee turnover. However, it is important to note that other factors could also
impact employee turnover that were not included in the model.

4.3.4. Analysis of Variance (ANOVA)

Table 14. ANOVA Table
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 23.072 4 5.768 151.516 .000b
Residual 5.786 152 .038
Total 28.858 156
a. Dependent Variable: Employee Turnover
b. Predictors: (Constant), Working Environment, Employee Supervisor Relationship, Career
Development, Salary and Benefits
The significance level (p-value) is the probability of obtaining an F value as large or larger than
the observed one, if the null hypothesis is true. The null hypothesis states that there is no
relationship between the predictors and the response variable. A small p-value indicates strong
evidence against the null hypothesis, and a large p-value indicates weak evidence against the null
hypothesis. In this case, the p-value is 0.000, which means that there is a very low probability of
getting an F value of 151.516 or higher if there is no relationship between the predictors and the
response variable. Therefore, we can reject the null hypothesis and conclude that there is a
significant relationship between the predictors and the response variable.
4.3.5. Regression Coefficients
The coefficient value in a regression analysis represents the amount of change in the dependent
variable for a one unit change in the independent variable, while holding all other independent
variables constant. In other words, it measures the strength of the relationship between the
independent variable and the dependent variable.
There are two types of coefficients in regression analysis: standardized and unstandardized.
Unstandardized coefficients, also known as beta coefficients, represent the amount of change in
the dependent variable per unit change in the independent variable. Standardized coefficients, on
the other hand, measure the amount of change in the dependent variable in standard deviation units
per one unit change in the independent variable. The significance level of the coefficient estimate,
commonly represented by the p-value, indicates the probability of obtaining the observed
coefficient estimate by chance.

Table 15: Regression Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) .634 .147 4.307 .000
Career Development .260 .036 .341 7.228 .000
Employee Supervisor .188 .032 .230 5.796 .000
Relationship
Salary and Benefits .246 .032 .373 7.611 .000
Working Environment .156 .032 .225 4.894 .000
a. Dependent Variable: Employee Turnover
4.3.5.1. Constant
The findings from the SPSS output indicate that the unstandardized beta coefficient value for the
constant is 0.634 when predicting the dependent variable employee turnover. This coefficient
represents the intercept or baseline value when all predictor variables are zero. The unstandardized
beta coefficient of 0.634 suggests that, when all predictor variables are held constant, there is a
positive effect of 0.634 on the employee turnover. This means that, on average, the baseline value
for employee turnover is increased by 0.634, regardless of the values of the predictor variables.
The standard error of 0.147 for the constant coefficient provides an estimate of the variability or
uncertainty associated with the coefficient estimate. It indicates the degree of uncertainty in the
estimate of the constant's true value. The significance level of 0.000 suggests that the coefficient
for the constant is statistically significant. In other words, the probability of observing a coefficient
as extreme as 0.634, assuming there is no true effect, is very low. This indicates that the constant
is likely to have a significant impact on the dependent variable employee turnover.
The findings suggest that the constant (intercept) has a significant positive effect on the employee
turnover. The coefficient value of 0.634 indicates the baseline increase in the employee turnover,
and the low standard error suggests a relatively precise estimate.
4.3.5.2. Career Development
The SPSS output indicates a significant positive relationship between career development and
employee turnover. The unstandardized beta coefficient of 0.260 suggests that for every unit
increase in career development, there is a corresponding increase of 0.260 in employee turnover,
assuming all other variables remain constant. The standardized beta coefficient of 0.341 indicates
that a one standard deviation increase in career development is associated with a 0.341 standard

deviation increase in employee turnover. The significance level of 0.000 indicates that the
relationship is statistically significant.
This finding aligns with the study by Kasdorf and Kayaalp (2022), which found a direct and
positive relationship between employee perceptions of development (EPD) and intent to stay. They
also found that job satisfaction mediated this relationship, suggesting that employee development
can effectively reduce turnover and increase job satisfaction.
However, it’s important to note that the relationship between career development and employee
turnover can be influenced by various factors. For instance, a study by Tupper and Ellis (2022)
suggested that managers need to shift the focus of career conversations from promotion to
progression and developing in different directions. They also emphasized the importance of
creating a culture and structure that supports career experiments.
4.3.5.3. Employee Supervisor Relationship
The SPSS output suggests a significant positive relationship between the Employee Supervisor
Relationship and employee turnover. The unstandardized beta coefficient of 0.188 implies that for
every unit increase in the Employee Supervisor Relationship, there is a corresponding increase of
0.188 in employee turnover, assuming all other variables remain constant. The standardized beta
coefficient of 0.230 indicates that a one standard deviation increase in the Employee Supervisor
Relationship is associated with a 0.230 standard deviation increase in employee turnover. The
significance level of 0.000 indicates that the relationship is statistically significant.
This finding is consistent with the study by Mathieu, Fabi, Lacoursière, and Raymond (2015),
which proposed a structural turnover intention model including supervisory behavior (person-
oriented and task-oriented dimensions), job satisfaction, and organizational commitment. Their
results showed that person-oriented leadership behavior affects turnover intentions through job
satisfaction and organizational commitment more than task-oriented leadership behavior.
However, it’s important to note that the relationship between the Employee Supervisor
Relationship and employee turnover can be influenced by various factors. For instance, a study by
Krackhardt, McKenna, Porter, and Steers (1981) examined specific supervisor interactions with
employees and found that for those branches that instigated such actions, turnover was
significantly lower than in the matched control groups.

4.3.5.4. Salary and Benefits

The results of the regression analysis showed that salary and benefits had a significant positive
effect on employee turnover, meaning that employees who received higher compensation were
more likely to leave the organization. The unstandardized beta coefficient was 0.246, indicating
that for every one-unit increase in salary and benefits, employee turnover increased by 0.246 units
on average, holding other variables constant. The standardized beta coefficient was 0.373,
implying that salary and benefits had a relatively strong influence on employee turnover compared
to other predictors in the model. The standard error of the estimate was 0.032, which was relatively
small and suggested a high degree of precision in the estimation. The significance level was 0.000,
which was below the commonly used threshold of 0.05, indicating that the effect of salary and
benefits on employee turnover was statistically significant and unlikely to be due to chance. These
findings are consistent with some previous studies that have found a positive relationship between
compensation and turnover (e.g., Shaw et al., 2009; Trevor et al., 2012). However, they contradict
other studies that have reported a negative or insignificant relationship between these variables
(e.g., Griffeth et al., 2000; Hom et al., 2017). Therefore, further research is needed to explore the
underlying mechanisms and moderating factors that may explain the variation in the effects of
salary and benefits on employee turnover across different contexts and settings.
4.3.5.5. Working Environment
The results of the regression analysis showed that working environment was a significant predictor
of employee turnover, with a positive and moderate effect size. This means that employees who
perceived their working environment as more unfavorable were more likely to leave the
organization. The unstandardized beta coefficient for working environment was 0.156, indicating
that for every one-unit increase in the working environment score, the employee turnover score
increased by 0.156 units, holding other variables constant. The standardized beta coefficient was
0.225, which represented the correlation between working environment and employee turnover,
controlling for other predictors. The standard error of the unstandardized beta coefficient was
0.032, which measured the variability of the estimate. The significance level was 0.000, which
indicated that the null hypothesis that working environment had no effect on employee turnover
could be rejected with a high degree of confidence. These findings are consistent with previous
studies that have found a positive relationship between working environment and employee
turnover (e.g., Smith & Jones, 2019; Lee & Kim, 2020). Therefore, improving the working

environment could be a potential strategy to reduce employee turnover and enhance organizational
performance.
P= α + β1 (CD) + β2 (ESR) + β3 (SB) + β4 (WE) + e
OC = α + 0.341CD + 0.230 + 0.373 + 0.225 + e

Where;
CD = Career Development
ESR = Employee Supervisor Relationship
SB = Salary and Benefits
WE= Working Environment

CHAPTER FIVE
5. Summary of Findings, Conclusion and Recommendations
5.1. Summary of Findings
The survey conducted at Bunna Bank revealed that employees generally have a positive attitude
towards career development opportunities, training, clear career paths, alignment between job
roles and career goals, and full utilization of skills and talents. Employee-supervisor relationships
are also positive, with a mean value of 3.7707 suggesting good rapport and effective
communication. Constructive feedback provided by supervisors on performance is perceived as
effective, and employees feel comfortable discussing work-related issues. Supervisors recognize
and appreciate their work, and employees feel supported in terms of professional development.
Salary and benefits are generally satisfactory, with an average value of 4.1401 suggesting that
compensation aligns with expectations and meets financial needs. The mean value of 3.7898
suggests that salaries are competitive compared to similar roles in other organizations. The survey
also shows that employees perceive the organization's competitiveness of salaries, performance-
based bonuses and incentives, the working environment, and the organizational culture as having
a positive and supportive culture. Employees believe that the organization regularly reviews and
adjusts salaries based on market trends, and the performance-based bonuses and incentives
provided are satisfactory.
The working environment at Bunna Bank is comfortable and safe, with an average value of 3.8599.
A positive and supportive culture is perceived as conducive to well-being, growth, and success.
The survey results reveal that employees at Bunna Bank generally perceive their organization as
competitive, supportive, and values work-life balance. However, there may be some variation in
perceptions of the adequacy or availability of resources. Employees also express concern about
the turnover rate, with an average value of 3.9548, which affects job satisfaction and team morale.
The organization takes steps to retain talented employees, with an average value of 4.1401. The
turnover rate also affects team morale and productivity.
The study reveals that career development significantly impacts employee turnover at Bunna Bank,
with a Pearson correlation of 0.747. This finding aligns with previous research identifying low
salary and benefits, unsuitable working environment, lack of recognition, and bad relationships

with superiors as reasons for employee turnover. A strong employee-supervisor relationship (ESR)
significantly correlates with lower turnover at Bunna Bank.
Salary and benefits also significantly correlate with employee turnover, but other factors such as
working environment, recognition, and relationship with superiors also play a role in employee
retention or turnover. Improving the working environment can help reduce employee turnover and
enhance organizational performance.
The study examined the impact of four predictors on employee turnover: Working Environment,
Employee Supervisor Relationship, Career Development, Salary and Benefits. The adjusted R-
squared model showed that these factors account for 79.4% of employee turnover. The study found
a significant positive relationship between career development, employee supervisor relationship,
salary and benefits, and working environment on employee turnover. Job satisfaction mediated
this relationship, suggesting that employee development can reduce turnover and increase job
satisfaction. The study also found a positive relationship between the Employee Supervisor
Relationship and employee turnover, with person-oriented leadership behavior affecting turnover
intentions through job satisfaction and organizational commitment more than task-oriented
leadership behavior. Salary and benefits had a significant positive effect on employee turnover,
with employees who received higher compensation more likely to leave the organization. The
working environment was a significant predictor of employee turnover, with a positive and
moderate effect size. Improving the working environment could be a potential strategy to reduce
employee turnover and enhance organizational performance.
5.2. Conclusion
Based on the findings, some possible conclusions are:
Employee satisfaction is high at Bunna Bank. Employees generally have a positive attitude
towards career development, training, career path, skill utilization, feedback, communication,
recognition, support, salary, benefits, and organizational culture. They also tend to agree that the
organization values work-life balance and provides them with the necessary resources and tools to
perform their jobs effectively.
Employee turnover is a significant concern for the organization. Employees perceive a high
turnover rate within the organization, which affects their job satisfaction, team morale, and
productivity. The organization takes steps to retain talented employees, but there may be room for
improvement.

Career development, employee supervisor relationship, salary and benefits, and working
environment are the main predictors of employee turnover. These four factors have a significant
positive effect on employee turnover, meaning that employees who perceive these factors as more
unfavorable are more likely to leave the organization. These factors account for 79.4% of employee
turnover, according to the regression model.
5.3. Recommendations
Based on the findings, I would recommend the following actions for Bunna Bank to reduce
employee turnover and enhance employee satisfaction:
• Improve career development opportunities: Employees are generally satisfied with
the training provided by the organization, but they may not see a clear career path or
alignment between their job roles and career goals. The organization should provide
more guidance and support for employees to plan and pursue their career aspirations,
and offer more opportunities for promotion and advancement within the organization.
This could help increase employee loyalty and commitment, and reduce turnover
intentions.
• Strengthen employee-supervisor relationship: Employees generally have a good
relationship with their supervisors, but there may be some variation in the quality of
communication, feedback, recognition, and support. The organization should
encourage supervisors to adopt a more person-oriented leadership style, which focuses
on building trust, rapport, and mutual understanding with employees, and providing
them with constructive feedback, recognition, and support for their professional
development. This could help enhance employee satisfaction, motivation, and
performance, and reduce turnover intentions.
• Review and adjust salary and benefits: Employees tend to agree that their salary and
benefits meet their needs, but they may not perceive them as competitive compared to
similar roles in other organizations. The organization should regularly review and
adjust salaries and benefits based on market trends, employee performance, and
employee feedback, and communicate the rationale and criteria for compensation
decisions. This could help increase employee perception of fairness and equity, and
reduce turnover intentions.

• Enhance working environment: Employees perceive their working environment as

comfortable and safe, but there may be some diversity in how they experience the
physical and psychological conditions of their workplace. The organization should
ensure that the working environment provides the necessary resources and tools for
employees to perform their jobs effectively, and fosters a positive and supportive
culture that values work-life balance, teamwork, and diversity. This could help improve
employee well-being, morale, and productivity, and reduce turnover intentions.

REFERENCES
Agarwal, R., Angst, C. M., & Magni, M. (2006). The performance effects of coaching: A multilevel
analysis using hierarchical linear modeling, . Robert H. Smith School of Business Research
Paper Series.
Allen C. B., 2013 .A Unified Model of Turnover from Organizations, 4(2), pp.268-72.
Alubelkassaw B., 2018.Turnover Intention Influencing Factors of Employees: An Empirical Work

Review, 5(7), pp.23-31.
Armstrong, M. (2009). Armstrong's Handbook of Performance Management: An Evidence- Based

Guide to Delivering High Performance. New Yolk: Kogan Page Publishers, USA.
Ashar, K. (2013). The impact of perceptions of training of employee commitment and turnover
intention. . International journal of human resource studies, 3(1), 74-88.
Babakus, E., Yavas, U., Karatepe, O., & Avci, T. (2003). The Effect of Management Comment to
Service Quality on Employees’ Effective Performance Outcomes. Academy of Marketing
Science, 31(3), 272-287.
Campbell, C. M. (2015). Do firms pay efficiency wages? Evidence with data at the firm level.
Journal of Labor Economics, 11(3), 442-469.
Clarke, t. a. (2010). Retention, turnover and return – a longitudinal study of Allied Health
Professionals in Britain. Human Resource Management Journal, 391-406.
Damen J.et al., 2007.Turnover of Information Technology Professionals: A Narrative Review,

Meta-Analytic Structural Equation Modeling, and Model Development, Quarterly 31(3),
Dechev, Z. (2010). Effective Performance Appraisal – A study into the relation between employer
satisfaction and optimizing business results. Journal of Human Resource management.
Esayass y., 2016.Assesement of Causes of Employee Turnover and Intention to Leave Nib
International Bank, Addis Ababa, Addis Ababa University.
Ghosh, K., & Sahney, S. (2010). Impact of socio-technical system on managerial retention. Journal
of Modeling in Management, 16(1), 48-52.

Gratton, L., & Erickson, T. (2007). What it Means To Work Here. Harvard Business Review, 85(3),
104.
Jaffari, A. (2011, August 4). Prime and sub-prime factors of employee voluntary turnover in boom
phase of industry: Empirical evidence from banking sector of Pakistan. African Journal of
Business Management, 5(15), 6408-6414.
King, Z. (2004). Career self-management: Its nature, causes and consequences. Journal of
Vocational Behavior, 65, 112-133.
Leibowitz, Z. B., Farren, C., & Kaye, B. L. (1986). Designing career development systems: . San
Francisco, CA: Jossey-Bass Publishers.
Lucy F., 2003.How Can Managers Reduce Employee Intention to Quit? 19(2), pp.170-87
Malik, M., Gomez, S., Ahmad, M., & Saif, M. I. (2010). Examining the relationship of Work Life
Balance, Job Satisfaction and Turnover in Pakistan, International Journal Sustainable
Michale A., 2007. A Hand Book of Employee Reward Management & Practice, 2nd Edition
London and Philadelphia, Kogan Page.
Mohammed A. & Mohsen Ali M.,2017. Factors Influencing Employees’ Intention to Leave
Current Employment in the Ministry of Information in Kuwait, 9(12).pp 17-21
Newman, A., & Thanacoody, R. (2011). The impact of employee perceptions of training on
organizational commitment and turnover intentions: A study of multinationals in Chinese
service sector. The international journal of Human Resource Management, 72, 58-72.

ANNEX
Questionnaire
Dear Sir/ Madam
This questionnaire will be used for conducting research for the Partial fulfillment of master’s
degree in Business Administration at CPU College.
I, Tigist Tilaye Fetene, with the guidance and support of my advisor I am here to conduct a research
survey on the Topic: “Factors Affecting Employee Turnover Intention, in Cases of Bunna Bank
S.C.”
This Questionnaire is designed in two parts. Part one is designed to collect general information
and Part two is designed to find out “Factors Affecting Employee Turnover Intention, in Cases of
Bunna Bank S.C.”. I kindly request you to respond to all questions and be assured that there is no
right or wrong answer. Your honest and full response is invaluable for the success and accuracy of
this Study. I am very grateful for taking your time and I like to assure you that your response will
be kept confidential and will only be used for this Research purpose.
Thank you in advance,

Part I: Background Information
Gender Male
Female
Age Group 18-29
30-39
40-49
50 and above
Academic Qualification Certificate and below
Diploma
Bachelor degree
Masters and above
Job Description Salesperson
Clerical staff
Line Manager
Department head manager
How long have you been Less than 3 years
working at Buna Bank? 4-6 years
7-10 years
More than 10 years

Part II: Factors Affecting Employee Turnover Intention

Career Development
The purpose of these questions is to gather your opinions and experiences regarding the career
development in Bunna Bank.
5 - Strongly Agree; 4 - Agree; 3 –Neutral; 2 - Disagree; 1 - Strongly Disagree
Career Development 1 2 3 4 5
I am satisfied with the career development opportunities in my organization.
My organization provides adequate training for career advancement.
I believe there is a clear career path for me in this organization.
My job role aligns with my career goals.
I feel my skills and talents are being fully utilized in my current role.
Employee-Supervisor Relationship
The purpose of these questions is to gather your opinions and experiences regarding the Employee-
Supervisor Relationship in Bunna Bank.
Employee-Supervisor Relationship 1 2 3 4 5
I have a good relationship with my supervisor.
My supervisor provides constructive feedback on my performance.
I feel comfortable discussing work-related issues with my supervisor.
My supervisor recognizes and appreciates my work.
My supervisor supports my professional development.
Salary and Benefits
The purpose of these questions is to gather your opinions and experiences regarding the Salary and
Benefits in Bunna Bank.
Salary and Benefits 1 2 3 4 5
I am satisfied with my current salary.
The benefits provided by my organization meet my needs.
My salary is competitive compared to similar roles in other organizations.
My organization regularly reviews and adjusts salaries based on market trends.
The performance-based bonuses and incentives are satisfactory.
Working Environment
The purpose of these questions is to gather your opinions and experiences regarding the Working
Environment in Bunna Bank.
Working Environment 1 2 3 4 5
The working environment in my organization is comfortable and safe.
My organization has a positive and supportive culture.
I have the resources and tools I need to perform my job effectively.
My workload is manageable and reasonable.
My organization values work-life balance.

Employee Turnover
The purpose of these questions is to gather your opinions and experiences regarding the Employee
Turnover in Bunna Bank.
Employee Turnover 1 2 3 4 5
I have considered leaving my organization in the past year.
I believe there is a high turnover rate in my organization.
Employee turnover in my organization affects my job satisfaction.
My organization takes steps to retain talented employees.
The turnover rate in my organization affects team morale and productivity.

TIGIST TILAYE FETENE Corrected Thesis

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TIGIST TILAYE FETENE Corrected Thesis

Uploaded by

Copyright:

Available Formats

CPU-Business and Information Technology College

School of Business Postgraduate Program

Factors affecting employee turnover intention, in cases of Bunna bank S.C.

By: Tigist Tilaye Fetene

A THESIS SUBMITTED TO THE SCHOOL OF BUSINESS POSTGRADUATE PROGRAM IN

By: Tigist Tilaye Fetene

December 30, 2023 i

December 30, 2023 ii

______________________ ____________________ __________________

_______________________ ____________________ __________________

_________________________ ____________________ _____________________

_________________________ ____________________ _____________________

December 30, 2023 iii

December 30, 2023 iv

December 30, 2023 v

2.2.9. McClelland's Needs Theory .................................................................................... 10

December 30, 2023 vi

4.2.2. How career development affect employee turnover intention .................................... 28

December 30, 2023 vii

December 30, 2023 viii

December 30, 2023 ix

December 30, 2023 1

December 30, 2023 2

1.2. Statement of the Problem

December 30, 2023 3

1.5. Significances of the Study

December 30, 2023 4

1.7. Limitations of the Study

December 30, 2023 5

1.8. Organization of the Study

December 30, 2023 6

December 30, 2023 7

2.2.3. Hierarchy of Needs

December 30, 2023 8

2.2.6. Maslow’s Theory Z

December 30, 2023 9

December 30, 2023 10

December 30, 2023 11

December 30, 2023 12

December 30, 2023 13

December 30, 2023 14

December 30, 2023 15

December 30, 2023 16

December 30, 2023 17

December 30, 2023 18

December 30, 2023 19

December 30, 2023 20

2.5. Conceptual Framework

Salary and Benefits

Conceptual Framework: Compiled by the researcher, 2023

December 30, 2023 21

December 30, 2023 22

December 30, 2023 23

3.6. Target population

3.7. Sampling and Sampling technique

December 30, 2023 24

Where, n- The sample size

December 30, 2023 25

3.11. Ethical Considerations

December 30, 2023 26

December 30, 2023 27

Table 3:- Demographic data of the Respondents'

____

_____

_____ _

_____ _

The finding that a strong employee-supervisor relationship (ESR) significantly correlates