Thesis Title፡ Factors affecting employee turnover

intention: Case of Hibret Bank

Student Name: Merertu Mitiku

Advisor Name: Dr Gashaw Tibebe

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 Outline
Chapter One: Introduction
• Background of the study
• Statement of the Problem
• Research Questions
• Hypothesis of the study
• Objectives of the study
• Scope of the Study
Chapter Two: Conceptual framework of the study, if any
Chapter Three: Methodology of the study
• Research Design and Approach
• Sampling Design
• Data Sources and Method of Collection
• Method of Data Analysis
Chapter Four: Results and Discussion
Chapter Five: Conclusions, Recommendations and Direction for further research

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 Chapter One: Introduction

Background of the study

• According to (Harris and Cameron,2005), turnover is the process of a person
leaving their place of employment, Either a job to job transition or a job to non-
employment transition is made possible by the turnover decision.
• Employee turnover has become a worldwide issue that has puzzled organizations,
researchers and practitioners for years. Currently, employee turnover influence most of
the organizations in both developed and developing nations (Tariq et al, 2013).
• Employee turnover intention was reported to be a conscious, decided, deliberate and
willingness to discontinue one's present employment (Tett & Meyer, 1993). It is thinking
about quitting one's present occupation and it is the best indicator of real turnover
behavior.
• According to Billah (2009) found that the reasons for an employee turnover fall under
three classes, namely job dissatisfaction, mistakes in employee selection and poor
management. The most well-known reason for turnover is job satisfaction (Shukla & sinha
,2013).
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 Background contd…

• Today, for organizations employee turnover is an extreme cost, particularly in a

low paying organization that the turnover rate is high.

• Many researchers tried to study about the factors affecting employee turnover
intention. Up to the researcher knowledge there is no research done in the area
of employee turnover intention in the organization accordingly, this study
determines the factors affecting employee turnover intention, as well as coming
up with recommendations that significantly reducing it and enhancing staff
retention at HB.

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 Statement of the Problem
• The most valuable resources in any company are its people When
employees frequently leave, it is an indication that the organization is
in failure. (Pillay, 2009).

• If employee turnover intention is not addressed, it can have a negative

impact on organizations through the loss of highly skilled employees.

• HB is one of the pioneer private banks in Ethiopia that contribute for

the socio economic development of the country. HB reached 5,386
(according to organizational profile up to June, 2023) employees
including managerial supervisory and support staff. But time to time
the number of employee leaving HB to another bank and organization
is increasing for various reasons.

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 Statement of the Problem ..contd
Total number Annual
employee turnover rate
(%)
No. of staff
Fiscal years
Leave

Jul 1, 2020. – Jun 30,2021 4708 3.6%

173
Jul 1. 2021 – Jun 30 ,2022 4.8%
4,972
243

Jul 1, 2022 – Jun 30, 2023 5386 7.8%

422

Annual turnover rate of HB

Source: - organizational profile of June, 2021,
June 2022, June 2023

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 Research questions
• How does job satisfaction affect employee turnover intention in HB?

• To what extent do salary & benefit affect employee turnover intention in HB?

• How does promotion opportunity affect employee turnover intention in HB?

• How do Employee Relationship with Management Influence Employee Turnover

Intention in Hibret Bank?

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 Hypothesis of the study
Hypothesis that tested in this research is mentioned below:-
H0: Job satisfaction has no significant relationship with employee turnover intention
H1: job Satisfaction has significant relationship with employee turnover intention
H0: Benefit & Salary has no significant relationship with employee turnover intention
H1: Benefit & Salary has significant relationship with employee turnover intention
H0: Promotion Opportunity has no significant relationship with employee turnover
intentionH1: Promotion Opportunity has significant relationship with employee turnover
intention
H0: Employee Relation with Management has no significant relationship with employee
turnover intention
H1: Employee Relation with Management has significant relationship with employee
turnover intention

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 Objective of the Study

General Objective
• The general objective of the study was to determine the factors affecting
employees Turnover intention in HB.
Specific Objective
• To find out how job satisfaction affect employee turnover intention in HB.
• To determine the extent to which salary and benefit affect employee turnover
intention in HB.
• To find out how promotion opportunity affect employee turnover intention in HB.
• To find out how Employee Relationship with Management affect employee
turnover intention in HB

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 Scope of the Study

• The scope of the study is designed to determine factors that affect employee
turnover intention in case of HB. The study will be limited only in Head office
and special branch of Hibret bank, Hibir Tower Branch located in Addis Ababa.
This study will also be limited to the Bank’s employees belonging to the
category of “Clerical” staffs.

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 Chapter Two: Conceptual framework of the study

Independent Variables Dependent

Factors affecting employee turnover intention

 Benefit & Salary.
 Promotion opportunity.
 Employee Relationship with Management
Employee Turnover Intention
 Job Satisfaction.

Conceptual frame work

Source : Adopted from (Abdul, 2009)

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 Chapter Three: Methodology of the Study

Research Design and Approach

• The type of research conducted in this thesis is explanatory research design.

• The researcher used quantitative research approach and cross sectional

research design because the study will conduct only one time.

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 Sampling Design
• In sample size determination, population of employees of the organization sample
using the scientific formula (Yamen, 1967).
n= N/ (1+N (e) 2)
n= 417/ (1+417 (0.05)2)
n= 417/2.0425= 204.16
n≈204
Where, n= sample size,
N=population size, e= margin of error (5%)
• The researcher used probability sampling. From probability sampling parts, simple
random sampling techniques are used. In simple random sampling method, each
unit included in the sample has equal chance of inclusion in the sample in
Addition Simple random sampling, decrease expense, less time spent, and it help
to reduce personal bias while gathering, analyzing, and interpreting the collected
data (Robert, 2004).

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 Data Sources and Method of Collection

• The researcher used both primary and secondary data. The primary
data was obtained through organized questionnaires. Secondary
sources of data were obtained from Related Articles, previously done
researches on the topic, Internal Records, Published Journals, Books,
The Internet, and Relevant Documents (documents related the study)
were extensively reviewed as references.

• Questionnaires distributed to employees (clerical staffs) of HB Head

office and Hibir tower branch. In order to collect the primary data the
researcher used questionnaire method. The questionnaires were
organized in close ended.

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 Method of Data Analysis

• Once pertinent data collected from respondent , the researcher cleaned and
categorized it to make it ready for analysis. The collected data was imported
in to SPSS V23 for analysis. This was done in order to guarantee the accuracy,
consistency, and reliability of the respondents’ data. The researcher then
summarized the key findings of the study came to conclusion and
recommendation based on the data analysis.

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 Reliability and validity of data

• The reliability of the data was

• The degree to which an
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accessed in this study using
crobach’s alpha reliability test. In
social science research, an alpha
value between 0 and 1 is
considered normal, and a value
above 0.7 is considered
acceptable (Gliem, 2003).
instrument measures what it is
intended to assess is known as its
validity (Dawson, 2007). One Sign
of a measurement is high
dependability. A procedure is
probably invalid if it isn’t
dependable.
 Chapter Four: Results and Discussion

Overview
• the presentation, analysis and interpretation of data gathered from employees of HB
Head office and Hibir Tower branch using questionnaires. As stated under the
methodology part, to collect the data from employees, questionnaires were prepared
and distributed to HB Head office and Hibir tower branch employees. In this study
204 questionnaires were distributed and 197 were returned.
• While making interpretation of the results of the mean the scales were assigned as
follows. :- Range
1-1.8 Strongly Disagree
1.81-2.6 Disagree
2.6-3.4 Neutral
3.4-4.20 Agree
4.2-5 Strongly Agree

Source (Best, 1977, as cited by Birhanu, 2017)

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 Results and Discussion
Descriptive Analysis

Respondents Opinion on Job Satisfaction Respondents Opinion on Benefit & Salary

No Statament N Mean Std No Statement N Mean Std.Deviatio

deviation n
1 I feel I am being paid a fair amount for
1 I am satisfied With My 197 197 2.2132 1.05716
the work I do.
2.7513 1.24296
current Job 2 I am satisfied with the benefit I receive
197 2.2589 .94166
2 My job is enjoyable 197 The amounts of pay I receive for my
3
2.6751 1.24378 job in HBis equal to others doing
similar work in other banks 197 2.2081 1.05576
3 I feel motivated 197
2.680 1.2265
4 I feel that benefits of the bank is fair
197 2.3046 1.07790
4 I feel happy when I think 197
about my job. 5 The benefits we receive are as good as
2.4873 1.20208
most other Organizations offer. 197 2.3807 1.04600
Valid N 197 6 I feel appreciated by the organization
when I think about what they pay me. 197 2.4264 1.04046

7 I feel satisfied with my chances for

Average
2.6484 1.2288 salary increases. 197 2.3198 1.00217
≈2.65 ≈1.23 8 Salary and other benefits motivate
you to stay in the bank 2.1878 1.06438
197

Valid N
197
Average 1.0356≈1.0
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4
 Results and Discussion…..contd

Respondents Opinion on Promotion Respondents Opinion on Employee relation

opportunity with management
No Statement N Mean Std.Deviatio No Statement N Mean Std.Deviati
n on
1 There is an opportunity for 1 My supervisor treats me fairly and
197 2.3553 1.08121 197 3.1777 1.29517
promotion in HB respectful.
2 Those who do well on the job stand 2 My supervisors share his/ her
a fair chance of being 197 3.3350 1.23282
197 2.3503 1.11765 experience for me.
Promoted.
3 My supervisor helps me whenever
3 There is equal promotion 197 3.4162 1.20346
problems occur on work
opportunity for employee in the 197 2.3553 1.09992 4 I have great relationship with my
same stage of working. supervisor so I would like to work
4 in my current position for long 3.1827 1.29248
I am satisfied with my chances for time 197
197 2.3807 1.13039
promotion.
5 5 My supervisor keeps me well
Promotion opportunity of HB is the
197 2.2792 1.25284 197 3.2538 1.25623
same as to another Bank. informed on work issues
Valid N Valid N
197 197
Average Average 1.256032
1.136402≈1 3.27608≈3.28
2.34416≈2.34 ≈1.26
.14

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 Results and Discussion…..contd
Inferential Analysis
Correlations

Employee Employee
Promotion relation with turnover
Job satisfaction Benefit& Salary Opportunity management intention
Job satisfaction Pearson Correlation
1 .737** .617** .508** -.708**
Sig. (2-tailed) .000 .000 .000 .000
N 197 197 197 197 197
Benefit& Salary Pearson Correlation
.737** 1 .687** .375** -.753**
Sig. (2-tailed) .000 .000 .000 .000
N 197 197 197 197 197
Promotion Pearson Correlation
.617** .687** 1 .305** -.694**
Opportunity
Sig. (2-tailed) .000 .000 .000 .000
N 197 197 197 197 197
Employee relation Pearson Correlation
.508** .375** .305** 1 -.510**
with management
Sig. (2-tailed) .000 .000 .000 .000
N 197 197 197 197 197
Employee turnover Pearson Correlation
-.708** -.753** -.694** -.510** 1
intention
Sig. (2-tailed) .000 .000 .000 .000
N 197 197 197 197 197
**. Correlation is significant at the 0.01 level (2-tailed).
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 Results and Discussion…..contd

Regression Analysis ANOVAa

Sum of Mean
Model Summary b
Model Squares df Square F Sig.
1 Regressi 106.2
Std. Error 146.356 4 36.589 .000b
on 19
Mod R Adjusted R of the Durbin-
el R Square Square Estimate Watson Residual 66.137 192 .344
1 .830a .689 .682 .58691 1.939 Total 212.493 196
a. Predictors: (Constant), Job satisfaction, employee relation with a. Dependent Variable: Employee’s turnover intention
management, promotion opportunity, benefit & salary
b. Predictors: (Constant), Job satisfaction, employee relation
a. Dependent Variable: Employee’s turnover intention with management , promotion Opportunity, Benefit & Salary
Source: Data collected by the researcher through Questionnaire,
Source: Data collected by the researcher through
2023
Table 18 Regression Analysis Questionnaire, 2023
Table 19 Anova table

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 Results and Discussion…..contd

Coefficientsa
Standardi
zed
Unstandardized Coefficie
Coefficients nts
Model B Std. Error Beta t Sig.
1 (Constant) 6.478 .157 41.201 .000
Job
-.155 .062 -.163 -2.490 .014
satisfaction
Benefit &
-.453 .083 -.363 -5.477 .000
Salary
Promotion
-.298 .060 -.281 -4.947 .000
Opportunity
Employee
relation with -.204 .046 -.205 -4.381 .000
management

Y= 6.478 - .453x1- .298x2 - .204x3 -.155 x4 + e

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 Results and Discussion…..contd
Hypothesis Testing
H0: Job satisfaction has no significant relationship with employee turnover intention
H1: job Satisfaction has significant relationship with employee turnover intention

As above table show Job satisfaction variable P value is 0.014 so p value is <0.05, B=-
0.155. Therefore the second hypothesis, H1 says “Job satisfaction has significant
relationship with employee turnover intention” So H1 is accepted Thus, this finding is
consistent with the findings of (Ali, 2008).
H0: Benefit & Salary has no significant relationship with employee turnover intention.
H1: Benefit & Salary has significant relationship with employee turnover intention
Benefit and Salary is one of variable that affect employees turnover intention p Value of
this variable is 0.000 p< 0.05, B=-0.453 Therefore the null hypothesis is rejected and H1
is accepted Therefore this finding is consistent with the finding of (Karote K, 2019).

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 Results and Discussion…..contd
H0: Promotion Opportunity has no significant relationship with employee turnover
intention
H1: Promotion Opportunity has significant relationship with employee turnover
intention
Promotion opportunity p value is 0.000 P<0.05, and B=-0.298 Therefore the null
hypothesis is rejected and H1 accepted promotion opportunity has negative significant
relationship with employee turnover intentionthis finding is consistent with the finding
of (Teseema & Soeters, 2006),.
H0: Employee Relation with Management has no significant relationship with employee
turnover intention
H1: Employee Relation with Management has significant relationship with employee
turnover intention
As shown in above table employee relation with management P value is 0.000 P<0.05 t
value is -4.381 B=-0.204 Therefore the null hypothesis is rejected and H1 accepted
Employee Relation with Management has negative significant relationship with
employee turnover intention this finding is consistent with the finding of (Mackenzie,
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 Chapter Five
Conclusions, Recommendations and Direction for further research

Conclusion
• the researcher discloses that, the current employees of HB think that the influence of
Job satisfaction, benefit & Salary, promotion opportunity and employee relation with
management are adequate and these can be causes to employee turnover intention
that leads to employee turnover.
• from those variables benefit and salary highly affect employee turnover intention.
Employees are highly dissatisfied on their Benefit& salary

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 Recommendations

• HR of HB should revise Benefit& salary scale

• Management of HB should improve promotion opportunity for employee
• Management of HB should improve employee relation with management.
• Management of HB should enhance job satisfaction by revisiting job description if
there is no match between employee and the job.

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 Direction for Future Research

I recommend other researcher to study factors affecting of employee turnover

intention with other variables. Since independent variables (Job satisfaction, Benefit &
Salary, promotion opportunity and employee relation with management) explained in
this study is 68.9% as regression analysis indicates so the remaining 31.1% are not
explained in this study so that I recommend other researcher to study with other
variables that not used in this study.

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Thank You

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