Tamirat Sahle

ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
MASTER OF SCIENCE IN MANAGEMENT
FACTOR THAT AFFECT EMPLOYEES TURNOVER IN

ETHIOPIA, INCASES OF HIBRET BANK S.C.
BY: TAMIRAT SAHLE MANDEFRO
ID.NO. GSE/8272/12
ADVISOR
ZELALEM G/TSADIK (PhD)
APRIL, 2022
ADDIS ABABA, ETHIOPIA

ADDIS ABABA UNIVERSITY
DEPARTMENT OF MANAGEMENT
FACTOR THAT AFFECT EMPLOYEES TUROVER IN

ETHIOPIA, INCASES OF HIBRET BANK S.C.
A THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT OF ADDIS

ABABA UNIVERSITY IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF SCIENCE IN MANAGEMENT
BY
TAMIRAT SAHLE MANDEFRO
ADVISOR
ZELALEM G/TSADIK (PhD)
APRIL, 2022
ADDIS ABABA, ETHIOPIA
DECLARATION
I, Tamirat Sahle Mandefro declare that this thesis is my original work and that all sources of the
materials in the research paper have been properly acknowledged. The matter embodied in this
research paper has not been submitted earlier for award of any Master degree.
Declared by
Tamirat Sahle Mandefro APRIL, 2022
Name Signature Date
Confirmed by
ZELALEM G/TSADIK (PHD) APRIL, 2022
Advisor Name Signature Date

Statement of Certification
This is to certify that the senior essay prepared by Tamirat Sahle Mandefro, entitled; “Factor
that Affect Employees Turnover in Ethiopia, Incases of Hibret Bank S.Co” and submitted in
partial fulfillment of the requirements for MSC Degree in management with the regulations of
the university and meets the accepted standard with respect to originality and quality.
Signed by the Examining Committee:
External Examiner Temesgen Belayneh (PhD) Signature Date 28/04/2022
Internal Examiner Asres Abitie (PhD) Signature Date ____________
Advisor Zelalem G/tsadik (PhD) Signature Date ____________

Factors Affecting Employees Turnover in Ethiopia Incases of, Hibret Bank s.c
ABSTRACT
Employee turnover becomes companies massive worry because it costly undertaking the
organizations thrives and values viability of the business. An enormous worry to most companies
is that employee turnover is a costly responsibility especially in organizations that thrives and
values feasibility of the business. The company take a deep interest in their employee turnover
rate because turnover have an effect on the running of the business by making distractions which
results to condensed production and proceeds of the organization. The researcher started to
examine by making out the current factors that affect employee turnover in Hibret bank s.c. and
the statistically researched preparation, Descriptive research design and Open and Close ended
questionnaire, and semi structured interview were functional to collect data and a sample of
population was intended for this research to currently identifying the causes of employee
turnover in the banking industry. A sample of population was 358 employees of the bank
permanent staffs out of 4433 from the total population of employees. Stratified sampling was
designed for the research. SPSS software version 24 was used to analyze the data descriptive
statistics, correlation and regression statistics and testing the collinearity of the variables. The
findings of the study discovered that Career development product such as Training and
development, career planning and growth opportunities, and mentoring and coaching for
instance mentoring, employee relationship with supervisor and performance evaluation and the
rewarding system for example salary and bonus contribute to the employee turnover in Hibret
Bank. Discussion based on the variables result has revealed that there is a positive correlation
with employee turnover and make multiple regression models and less risk of multicollinearity
consequence between the independent variable. The researcher recommended that the
management bodies of the bank should amend salary and bonus, offer fair and equal training
and promotion chance, and get better the staff’s career planning, employee supervisor
relationship and be appropriate advanced and suitable performance evaluation system and also
taking into consideration the external factor by carry out further research till it take the edge off
such employee turnover.
By: TAMIRAT SAHLE AAU/CBE Page i

ACKNOWLEDGEMENTS
I would like to acknowledge and thank all the employees of Hibret bank staffs and my
colleagues who contributed towards the successful completion of this research. Without their
support my effort might not be accomplished in such a fantastic way. Their willingness to
provide me the required information to complete the questionnaires and suggestion of their
valuable advice helps the researcher. I would like to thank my advisor Dr. Zelalem G/Tsadik for
his support and guide me in his comments. This thesis is dedicated to my family, especially to
wife, that she delicately follow our children handle and covers my part to them and the for their
continued support of my career and professional aspirations.
By: TAMIRAT SAHLE AAU/CBE Page ii

TABLE OF CONTENTS
ABSTRACT ..................................................................................................................................... i
ACKNOWLEDGEMENTS ............................................................................................................ ii
TABLE OF CONTENTS ............................................................................................................... iii
LIST OF TABLES ....................................................................................................................... viii
LIST OF FIGURES ........................................................................................................................ x
ACRONYMS ................................................................................................................................. xi
CHAPTER ONE ............................................................................................................................. 1
1. INTRODUCTION ...................................................................................................................... 1
1.1. Introduction .......................................................................................................................... 1
1.2. Background of the Study ...................................................................................................... 2
1.3 Statement of the Problem ...................................................................................................... 3
1.4. Research Questions .............................................................................................................. 5
1.5 Research Objectives .............................................................................................................. 5
1.5.1 General Objectives ......................................................................................................... 5
1.5.2 Specific Objective........................................................................................................... 5
1.6 Significances of the Study ..................................................................................................... 5
1.7 Scope of the Study................................................................................................................. 6
1.8 Limitations of the Study ........................................................................................................ 6
1.9 Organization of the Thesis .................................................................................................... 6
1.10 Hypothesis Testing .............................................................................................................. 7
CHAPTER TWO ............................................................................................................................ 9
2. LITERATURE REVIEW ........................................................................................................... 9
2.1. INTRODUCTION ................................................................................................................ 9
2.2. Key Terminology Definitions .............................................................................................. 9
2.2.1. Employee Turnover ....................................................................................................... 9
2.2.2 Bank ................................................................................................................................ 9
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2.2.3 Banking Industry ............................................................................................................ 9

2.3. Factors That Affect Employee Turnover ........................................................................... 10
2.4 Theoretical framework ........................................................................................................ 10
2.4.1 Hierarchy of Needs ....................................................................................................... 10
2.4.2 Equity Theory ............................................................................................................... 11
2.4.3 ERG Theory.................................................................................................................. 11
2.4.4 Theory Z ....................................................................................................................... 11
2.4.5 Expectancy Theory ....................................................................................................... 12
2.4.6 Job Matching Theory .................................................................................................... 12
2.4.7 McClelland's Needs Theory ......................................................................................... 13
2.4.8 Reinforcement theory ................................................................................................... 13
2.5 Career Development Effect on Employee Turnover ........................................................... 13
2.5.1 Career Development ..................................................................................................... 14
2.5.2 Training and Development ........................................................................................... 14
2.5.3. Career Planning ........................................................................................................... 15
2.5.4. Career Growth Opportunities ...................................................................................... 16
2.6. Mentoring and Employee Turnover ................................................................................... 16
2.6.1 Employee relationship with supervisor ........................................................................ 17
2.6.2 Performance Evaluations .............................................................................................. 19
2.7. Rewards system and Employee Turnover .......................................................................... 20
2.7.1 Salary ............................................................................................................................ 22
2.7.2 Bonuses ......................................................................................................................... 23
2.8 Conceptual Framework ....................................................................................................... 23
CHAPTER THREE ...................................................................................................................... 25
3. RESEARCH METHODOLOGY.............................................................................................. 25
3.1 Introduction ......................................................................................................................... 25
3.2 Research Design .................................................................................................................. 25
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3.3. Data Collection Methods.................................................................................................... 25

3.3.1 Primary Data ................................................................................................................. 26
3.3.1.1. Questionnaires....................................................................................................... 26
3.3.1.2. Interview ............................................................................................................... 26
3.3.2. Secondary Sources ....................................................................................................... 26
3.3.2.1. Documentary Review............................................................................................ 26
3.4 Population and Sampling Design ........................................................................................ 27
3.4.1 Population ..................................................................................................................... 27
3.4.2 Sampling Design........................................................................................................... 27
3.4.2.1 Sampling Frame ..................................................................................................... 27
3.4.2.2 Sampling Technique .............................................................................................. 27
3.4.2.3 Sample Size............................................................................................................ 28
3.5. Data Analysis Technique ................................................................................................... 29
3.5.1 Methods of data analysis .............................................................................................. 29
3.6 Research Procedures ........................................................................................................... 29
3.7 Validity and Reliability ....................................................................................................... 30
3.8 Ethical Considerations......................................................................................................... 30
CHAPTER FOUR ......................................................................................................................... 32
4. DATA ANALIYSIS, PRESENTATION AND INTERPRITATION ...................................... 32
4.1 Introduction ......................................................................................................................... 32
4.1.1 Response Rate............................................................................................................... 32
4.1.2 Reliability Analysis ...................................................................................................... 33
4.2. Descriptive Analysis for Demographic Characteristics of the Respondents...................... 34
4.2.1 Analysis of Respondent by Gender .............................................................................. 34
4.2.2 Analysis Respondent Age Classification ...................................................................... 34
4.2.3 Respondent Work Department or Branches ................................................................. 35
4.2.4 Respondents Years at the Bank .................................................................................... 35
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4.2.5 Respondents Designation at the Bank .......................................................................... 36

4.3 Employee Turnover ............................................................................................................. 36
4.3.1 Employee Turnover at Hibret Bank.............................................................................. 37
4.3.2 Total Number of Employee Turnover at Hibret Bank .................................................. 37
4.3.3 Reasons for Employee Turnover at Hiber Bank ........................................................... 37
4.3.4 What Hibret Bank Can Do to Reduce Turnover........................................................... 38
4.3.5 The Cost of Turnover ................................................................................................... 39
4.3.6 Organizations Employees Join after Leaving the Bank ................................................ 39
4.4 Career Development and Employee Turnover .................................................................... 40
4.4.1 Training and Development ........................................................................................... 40
4.4.2 Career Planning ............................................................................................................ 41
4.4.3 Growth Opportunities ................................................................................................... 41
4.4.4 Mentoring and coaching ............................................................................................... 42
4.4.5 Employees relationship with supervisors ..................................................................... 43
4.4.6 Employee Evaluation Performance .............................................................................. 43
4.4.7 Salary and employee turnover ...................................................................................... 44
4.4.8 Bonus and employee turnover ...................................................................................... 45
4.5 Analysis Model of multiple linear Regressions .................................................................. 46
4.5.1 Training and development regression analysis ............................................................. 46
4.5.2 Career planning regression analysis ............................................................................. 47
4.5.3 Growth opportunities regression analysis..................................................................... 48
4.5.4 Mentoring regression analysis ...................................................................................... 49
4.5.5 Employee relationship with supervisor regression analysis ......................................... 51
4.5.6 Performance evaluation regression analysis ................................................................. 52
4.5.7 Salary regression analysis ............................................................................................. 53
4.5.8 Bonus regression analysis ............................................................................................. 55
4.6. Hypothesis Testing ............................................................................................................. 56
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4.7. Over-all Test ....................................................................................................................... 58

4.7.1 Model Summary ........................................................................................................... 60
4.8. Multivariate Analysis ......................................................................................................... 60
4.9. Multiple Regression Assumption Test ............................................................................... 62
4.10 Discussion ......................................................................................................................... 65
4.10.1 Career Development (Training, Career Planning and Growth Opportunities) and
Employee Turnover .................................................................................................... 66
4.10.2 Mentoring and Coaching (Employee Supervisor Relationship, Performance
Evaluation and Employee Turnover ........................................................................... 68
4.10.3 Reward Systems (Salary and Bonus) and Employee Turnover .................................. 69
CHAPTER FIVE .......................................................................................................................... 71
5. CONCLUSION AND RECOMMENDATION ........................................................................ 71
5.1. Conclusion.......................................................................................................................... 71
5.2 Recommendations ............................................................................................................... 72
5.2.1 Recommendations for Improvement ............................................................................ 72
5.2.2 Career Development such as training and development, career and growth
opportunities and Employee Turnover........................................................................ 72
5.2.3 Mentoring, Evaluation and Supervisor Relationship with Employee and Employee
Turnover ...................................................................................................................... 72
5.2.4 Rewards System, salary and bonus and Employee Turnover ....................................... 73
5.2.5 Recommendations for Future Research ........................................................................ 73
REFERENCES ............................................................................................................................. 74
APPENDIX ................................................................................................................................... 78
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LIST OF TABLES
Table 4.1: Response Rate .............................................................................................................. 32

Table 4.2: Reliability Analysis for the variable (spss 24) ............................................................. 33
Table 4.3: Gender of the respondent ............................................................................................. 34
Table 4.4: Age the respondent ...................................................................................................... 35
Table 4.5: Respondent Work Department or Branches ................................................................ 35
Table 4.6: Respondents Years at the Bank .................................................................................. 36
Table 4.7: Respondents Designation at the Bank ......................................................................... 36
Table 4.8: Existence of Employee Turnover at Hibret Bank ........................................................ 37
Table 4.9: Number of Employee Turnover at Hibret Bank .......................................................... 37
Table 4.10: Reason for Employee Turnover ................................................................................. 37
Table 4.11: What Hibret Bank Can Do to Reduce Turnover? ...................................................... 38
Table 4.12: The Cost of Turnover................................................................................................. 39
Table 4 13: Organizations Employees Join after Leaving the Bank ............................................. 39
Table 4.14: Training and Development ........................................................................................ 40
Table 4.15: Career Planning ......................................................................................................... 41
Table 4.16: Growth opportunity ................................................................................................... 41
Table 4.17: Mentoring and coaching ............................................................................................ 42
Table 4.18: Employees relationship with supervisors .................................................................. 43
Table 4.19: Employee evaluation performance ............................................................................ 44
Table 4.20: Salary and employee turnover ................................................................................... 44
Table 4.21: Bonus and employee turnover ................................................................................... 45
Table 4.22: Regression analysis of Training and development .................................................... 46
Table 4.23: Anova of training and employee turnover (spss v24) ............................................... 46
Table 4.24: Training and development and employee turnover regression coefficient ( spss v24)
................................................................................................................................... 46
Table 4.25: Regression analysis of career planning(spss v 24) .................................................... 47
By: TAMIRAT SAHLE AAU/CBE Page viii

Table 4.26: Anova of career planning (spss v24) ......................................................................... 47

Table 4.27: Career planning and employee turnover regression coefficient (spss v24) ............... 47
Table 4 28: Regression analysis of Growth opportunities (spss v 24) .......................................... 48
Table 4.29: Anova of Growth opportunities (spss v24) ................................................................ 48
Table 4.30: Growth opportunities and employee turnover regression coefficient (spss v24) ...... 49
Table 4.31: Regression analysis of Mentoring (spss v 24) ........................................................... 49
Table 4.32: Anova of Mentoring (spss v24) ................................................................................. 50
Table 4.33: Mentoring and employee turnover regression coefficient (spss v24) ........................ 50
Table 4.34: Regression analysis of Employee relationship with supervisor (spss v 24) .............. 51
Table 4.35: Anova of Employee relationship with supervisor (spss v24) .................................... 51
Table 4.36: Employee relationship with supervisor and employee turnover regression coefficient
(spss v24) ................................................................................................................... 51
Table 4.37: Performance evaluation with supervisor (spss v 24) ................................................. 52
Table 4.38: Anova of Performance evaluation (spss v24) ............................................................ 52
Table 4.39: Performance evaluation and employee turnover regression coefficient (spss v24) .. 52
Table 4.40: Salary with supervisor (spss v 24) ............................................................................. 53
Table 4.41: Anova of salary (spss v24) ........................................................................................ 53
Table 4.42: Salary and employee turnover regression coefficient (spss v24) .............................. 54
Table 4.43: Bonus with supervisor (spss v 24) ............................................................................. 55
Table 4.44: Anova of Bonus (spss v24) ........................................................................................ 55
Table 4.45: Bonus and employee turnover regression coefficient (spss v24) .............................. 55
Table 4.46: Analysis of variances ................................................................................................. 59
Table 4.47: Model Summary ........................................................................................................ 60
Table 4.47.1: ANOVA for All Variables ...................................................................................... 60
Table 4.47.2: Multiple Regression Analysis Coefficients ............................................................ 61
Table 4.48: Multicollinearity test .................................................................................................. 62
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LIST OF FIGURES
Figure 4.1: Normality assumption by using histogram ................................................................. 63
Figure 4.2: Normal probability plot .............................................................................................. 64
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ACRONYMS
ANOVA Analysis of Variances
ETN Employee Turnover
HC Human Capital
HRM Human Resource Management
NBE National bank of Ethiopia
SPSS Statistical package for social science
UB(HB) United (Hibret) Bank S.C
VIF Variance Inflation Factors
By: TAMIRAT SAHLE AAU/CBE Page xi

CHAPTER ONE
1. INTRODUCTION
1.1. Introduction
The introductory chapter presents the background of the study, the statement of the problem,
objective of the research, research questions, and the findings of the study as well as the thesis
outline.
Employee turnover can be described as an employee stop to work for an organization. On a

larger scale, it is explained 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 leaving jobs and the reasons for their departure will make known whether any action is
needed to improve protection rates. Due to missed 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
has been on discovering what's cause 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 described as the employee preference
to leave, but in the case of involuntary turnover, the employee has no right to choice. Employees
are terminated 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 was restructuring by Ruby (2002). Employees leave-taking their
existing situation and taking new positions within the same organization are addressed 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 associated turnover to work discontent and a lack of
organizational commitment as sign of intention to leave. The turnover movement has get some
By: TAMIRAT SAHLE AAU/CBE Page 1

doubts amongst the stakeholders in the sector. And different questions are being asked in relation
to the performance of these banks and its consistency on international and nation labor policy.
This put forward that turnover would keep on being a problem in the years ahead. To trim down
the ever increasing turnover rates, the bank must understand and build in place the right
strategies to be dependent on these professionals.
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 has 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 has 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 allied with performance. (Luyt, 2008).
Therefore, researcher seeks to establish causes that influence employee turnover in terms of
Career planning, growth opportunity, training, mentoring and coaching, employee relationship
with supervisor, evaluation performance, salary and bonus at Hibret Bank and also measures the
extent of influence of these different factors on turnover of employees by testing formulated
hypothesis and will suggest possible solutions to undertake these most significant factors in
Hibret Bank S.C.
1.2. Background of the Study
The Government of Ethiopia gave permission to the establishment of private banks and
insurances in 1994, but doesn't yet permit foreign ownership inside the sector within the country.
The Ethiopian banking sector is currently consists of a financial organization (National Bank of
Ethiopia or NBE), one in all state owned development bank, a government owned bank and
sixteen private banks.
Hibret Bank S.C (previously named as United Bank S.C) was established as a Share Company
on 10th of September 1998 in contract with the Commercial Code of Ethiopia of 1960 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 registered with

the then Trade, Industry and Tourism Bureau of the capital of Ethiopia City. At the time of its
foundation, Hibret 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. Hibret 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.hibret-bank.com.et,)
Over the years, outsized and ever-increasing customers Hibret Bank correspondent base has
make itself into a progressive and modern banking institution, competent with a
powerful financial structure and strong management.
The Bank has a Board of Directors, which is accountable to the final Meeting of
Shareholders. The present Board consists of nine members appointed by the overall Meeting of
Shareholders. The term of office of every member of the Board is three years,
but they're eligible for an additional term (Hibret Bank S.C 2015). There’s one CEO, two
deputies CEO, Nine chief officers in numerous factions, twenty eight head office directors and
nine district directors and one Executive assistance for CEO.
In the course of the year, the development of the Bank’s Head Quarters had reached its end and
inauguration of the building has 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
2020/2021)
1.3 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 needed for brand new employees to attain proficiency. Anytime an
employee leaves the firm, productivity go down because of the training curve concerned 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 lose of human capital and relational
capital of the departing employee, but also competitors are potentially acquiring these assets.
Currently, Hibret Bank has high rate of turnover rate treat. If we momentary look at the statistical
data of the bank in June 30, 2015, out of the whole number of 2921 employees 76 of them left
which description was 2.6% of the overall number of employees and if we glance at the recent
data of June 30, 2019 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, 2015 & 2019).
The Bank’s staff headcount had counted 4,433 (748 managerial, 2,410 clerical and 1,275 non-
lerical) as at June 30, 2020. The quantity demonstrated a rise of 369 employees as compared
to the general number of 4,064 employees reported on June 30, 2019. The variation was
accounted 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 been also 28 (8 managerial, 2 clerical and
18 non clerical) staff working for the Bank on contractual basis. Therefore, the combined total
staff strength of the Bank (permanent, contractual and outsourced) stood at 6,508 as at June 30,
2020 (Hibret bank annual report 2019/2020).
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 will get the turn down of social
reputation, reducing its profit and may well be incurring the bank to loss, unless and otherwise
the bank makes such like research and considered and implement the outputs the research.
This study search for therefore to see those factors which influence turnover at Hibret 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
has (salary rewards and bonus rewards) at Hibret bank

1.4. Research Questions
The research was done on the following research questions:-
 To what degree does career planning, training and development and career growth opportunity
affect employee turnover?
 Does having mentorship which is employee relationship with the supervisor and
performance evaluation affect on employee turnover?
 To what level does salary reward and bonus reward have an effect on employee turnover?
1.5 Research Objectives
1.5.1 General Objectives
The general objective of this research was recognizing the causes that influence employee
turnover in Hibret Bank S.Co
1.5.2 Specific Objective
 To examine degree of career planning, training and development and career growth
opportunity influence employee turnover.
 To identify whether mentoring, relationship with the supervisor and performance
evaluation affecting on employee turnover or not.
 To analyze the level of salary reward and bonus reward affecting employee turnover
1.6 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 body’s to look
for the solution for the problems that takes place in the organization during high rate of turnover.
It will be 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 will help the organization

to come up with involvements that improve the performance of employee retention within each
staffs. The research will also help the management of the organization by viewing different
directions to know the problem of employee why they leave the organization. And also this study
was significance for future researchers to identify the gab and investigate further researches
based on the suggestions of this study.
1.7 Scope of the Study
The study would have been more important if it had been included most of the outside city
branches found in the bank but due to resource and time constraint it was impossible to cover
other outside branch, so that it was confined in the Head Office of Hibret bank and its two
special branches, located in Addis Ababa, some A and B grade branches. Descriptive and
explanatory research design was used and closed and open ended questionnaires, and interview
was used to collect data. The researcher delimited the study only on the factors that affect
employee turnover for the last three years in the head office of Hibret bank S.C. (2018-2020
G.C).
1.8 Limitations of the Study
The results of this study would be very important; however it is not without limitations.
Confidentiality of information hindered the respondents from giving the needed information.
Hence a researcher assured them that, the information given is to be used 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
prepared a timetable that coped with their situation and be easy for them to participate/follow.
Ensured an effective means of follow-up was sustained so as to win their cooperativeness in both
aspects. Lastly, financial constraint was an unavoidable issue. To meet an enormous number of
respondents needed not only sample time, but also money to visit them wherever they were and
whenever available.
1.9 Organization of the Thesis
This research will have five chapters. In the first chapter, background of the research, followed
by the problem statement, objectives to be achieved and research questions, significance, scope

and limitation of the study are presented. In chapter two, literature review related to the study
and the conceptual and empirical review of a research will be discussed. The third chapter
presents, and draws the methodological process of sampling, data collection and analysis.
Chapter four presents descriptive summary of the empirical data collected together with detailed
analysis, results and discussion. Finally, chapter five contains conclusion and recommendation.
1.10 Hypothesis Testing
Hypothesis testing is anticipated on p-value and standardized coefficients beta value. This
hypothesis testing won’t to know whether the independent variables have positive and
significance effect on variable. If hypothesis is discarded, it means independent variables haven’t
positive and significance effect on the variable.
Thus; the hypothesis testing of every variable is
Ho: There is a significant relationship between training and development and employee
turnover
Hi: there is no a significant relationship between training and development and employee
turnover.
Ho: there is a significant effect of career planning on employee turnover
Hi: there is not a significant effect of career planning on employee turn over
growth opportunity on employee turnover
Hi: there is no a significant effect of growth opportunity on employee turnover
Hi: there is no a significant effect of mentoring and coaching on employee turnover
Ho: There is a significant relationship between employee relationship with supervisor and
employee turnover
Hi: there is no a significant relationship between employee relationship with supervisor and
employee turnover.

Ho: There is a significant relationship between performance evaluation and employee turnover
Hi: there is no a significant relationship between performance evaluation and employee

turnover.
Ho: There is a significant relationship between salary and employee turnover
Hi: there is no a significant relationship between salary and employee turnover.
Ho: There is a significant relationship between bonus and employee turnover
Hi: there is no a significant relationship between bonus and employee turnover.

CHAPTER TWO
2. LITERATURE REVIEW
2.1. INTRODUCTION
This chapter describes the theoretical review and conceptual framework of the research and it
stated key terminologies of definition, the idea relating to eight independent variable intends and
makes it realizable to be familiar with what other researchers and writers have done or contribute
to the topic.
2.2. Key Terminology Definitions
These part give details key terms associated to the research.
2.2.1. Employee Turnover
Carrell et al, (1995), 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 Bank
Bank is an organization recognized by the government to take deposits, give interest, clear
checks, make loans, perform as a go-between in financial transactions and make available other
financial services to its customers as it described by (Business Dictionary.com). For this study
we can take the definition as an authorized institution that deal worth all cash transactions
including getting cash, keeping cash and prerequisite of cash deposits to its customers and
building investments by using money kept by customers or loan from other sources.
2.2.3 Banking Industry
A banking industry is illustrated as financial institutions that accomplish current accounts for
customers and allow customers to reimburse and be paid by third parties (wiki.answers.com). For
the reason of this study banking industry was put in plain words as legally documented

institutions privately or publicly possessed that engage in financial transactions including

receiving, keeping, investing and proceeds the cash to its customers who can be persons or other
organization.
2.3. Factors That Affect Employee Turnover
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 companies. 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).
2.4 Theoretical framework
2.4.1 Hierarchy of Needs
Abraham Maslow's hierarchy of needs theory places employees' wants into five progressive
categories, and one will have to pass the lower level of satisfaction before incoming the higher
level, that means commencement with basic physical needs and moving ahead up to needs for
personal growth and career development. 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 Hibret Bank s.c , employees in some organization leave their job after they are
rewarded and well-motivated. According to Maslow, the displeasure to meet the inferior need
will push the employee to leave the organization because employees need have to in sequential
way. Consideration under this theory is that human needs are endless and in real facts the
organizations cannot meet every need of its employees.
2.4.2 Equity Theory
Equity theory, Adams (1963) 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.
2.4.3 ERG Theory
Alderfer (1972), 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.
2.4.4 Theory Z
William Ouchi (1981) 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 supported 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.
2.4.5 Expectancy Theory
On expectancy theory Vroom (1964) 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), incentive
works well when there is a functional relationship between efforts expended, perceived likely
outcomes and expectations that reward will be related 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 Hibret 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.
2.4.6 Job Matching Theory
Job Matching Theory, Jovanovich (1979) 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 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.

2.4.7 McClelland's Needs Theory
According to McClelland's Needs Theory (1960) 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.
2.4.8 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 happens when the result ensuing in the behavior attempting to make
enlarges the probability that the desired behavior will continue. Negative reinforcement happens
when a negative outcome is suspended if the behavior that need is established, which will
increase the probability that the behavior seeking will go on. ( B F skinner (1938 )
(http://www.mbaknol.com)
2.5 Career Development Effect on Employee Turnover
Career development is the prearranged, formalized, and planned efforts of individuals within an
company so as to attain a balance between an individual’s career needs and the company’s staff’s
requirements as (Puah and Ananthram, 2006). Employees feel obliged to commit their time to
the organization after an organization commits its resources to help develop their career goals,
this also can reduce organization employee turnover.
Since Care development includes idea of progression and development both at work and and at
personal life as well it has a great sense of meaning to an employee’s life. Beside Puah and
Ananthram argue that there exists a significant correlation between career development and
employee turnover in the banking sector.

2.5.1 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 as
discussed by Peel (1992). According to Ananthram (2006) research in banking industries
employee turnover and career development has a strong relationship between them.
2.5.2 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.
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.
2.5.3. 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).
2.5.4. 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.
2.6. 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).
2.6.1 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 employeesin the banking industry,has a direct correlation with the ultimate employees’
job satisfaction and turnover. The degree of supervisor grants the freedom in his mentorship
determines the rate at which the organization will experience 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
enhances employees’ commitment to banks.
Armstrong, (2009); Ashar, (2013); Brashear etal., (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).
2.6.2 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.
2.7. 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 are many kind of reward system like medical covers for employees, fully paid for
vacations, paid leave, paid study leave, flexi working arrangements and even promotions and
recognitions but for the purpose of this study the research will focus on salary and bonus within
in the bank sector at Hibret Bank s.c. Managers that recognizing each employees 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 rewards 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 must be a professional bank policy on salaries, bonuses, and promotions if not it will result
in favoritism and nepotism which causes employees dissatisfaction resulting 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.
2.7.1 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.

2.7.2 Bonuses
Murphy, (1999) 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.
2.8 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 has taken employee turnover as dependent variable
and, personal career planning, growth opportunities, training, mentoring, employee relationship
with supervisor, performance evaluation, salary and bonus as an independent variable which if
not managed and implemented properly leads to high turnover.

Independent variables Dependent Variables
Training &development
Career Development
Employee relationship with

supervisors Employee
Turn over
Growth opportunities
Performance and evaluation
Salary
Bonus
Mentoring and Coaching
Source: Compiled by the researcher

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 summarize or plan that used to generate answers to research problems by
collecting and scrutinizing the required data as stated by Cooper and Schindler (2008), and
Churchill (2002).
Descriptive, exploratory and causal research designs are three type of research design. Since
descriptive studies are apprehensive with specific predictions, narrations of facts and
characteristics concerning individuals, groups or situations this study hold fast to descriptive
quantitative study.
Quantitative data that will be collect in order to obtain advance statistical analysis of the study.
This study will make use of multiple methodologies to attain an optimum representative sample.,
Stratified sampling and simple random sampling are going to make use of on this research. A
case study approach used to explore factors which causes that influences employee turnover at
Hibret Bank S.Co because it has a high number of employees and practiced high employee
turnover. The survey questions are proposing to gather verification on things such as approaches,
intentions, responsiveness, behaviors and motivations.
3.3. Data Collection Methods
The research used both primary data collection and secondary data collection methods. Primary
data will be straightforwardly gathered data from the field through interviews and questionnaires.
On the other hand, secondary data will be composed data through reading different research,
journals and staff records from the Human capital Department of the bank.

This research will make use of questionnaire survey which is the most ordinary method. The
questionnaire consists of eight sections: career planning, Training and development, and career
growth opportunities, employee supervisor relationship, and performance evaluations, and finally
reward system which includes salary rewards and bonus rewards at Hibret bank
3.3.1 Primary Data
3.3.1.1. Questionnaires
Primary data for the research will collect by using questionnaires which were managed to the
targeted respondent. The choice of using questionnaires as method of data collection considering
the fact that a bank is a very busy working place and employees may have a inadequate time.
Therefore, questionnaires will distribute among the respondents who found their own time to fill
them. Also, this method was select in order to keep away from interfere of employees’ working
hours.
3.3.1.2. Interview
The interview method will furthermore use in the research in order to get better the quality of the
information get together. A person interview will be a two way communication initiated by a
researcher to obtain information from participant. This method will use because it is the most
effective means of obtaining information. Thus it is going to make use of as complimentary of
questionnaires as a way to issue on information that will not be possible to get through asking
question on a piece of paper. The method will use for obtaining information from heads of
departments and other specific personnel.
3.3.2. Secondary Sources
3.3.2.1. Documentary Review
Documentary review is a method to discover dissimilar information from different literature

relations with books, journals, research papers and other documentary source connecting to a
certain field of lessons. In general, it helps to gather both through quantitative measure and
qualitative measure and the consistency of information obtained through other techniques
(Kothari, 2004). Termination letters of employees, financial reports, and human resource

inventory files, department reports and any other documents that have pertinent information to
the research will consulted.
3.4 Population and Sampling Design
3.4.1 Population
The research would be carried out at the special branches; Grade A and B branches, outline
branches and different department of head office selected as a case study because they have the
largest number of employees and more likely have experience to high employee turnover
compared to other branches. The head office is located in Addis Ababa city in front of Addis
Ababa University College of commerce. The bank has a total of over three hundred Ninety five
braches all over the country and according to report of 2020/21, there are 4433 employees.
3.4.2 Sampling Design
Selecting respondents for a representative of the whole population is what sampling mean.
(Mugenda & Mugenda 2003). Sampling is essential since it is impracticable to take the total
population because of time, financial factors and errors which can discourage the researcher. In
this research multiple methodologies has been exploited to accomplish an optimum
representative sample. The mixed of Stratified sampling, and simple random sampling are
implemented.
3.4.2.1 Sampling Frame
Sampling frame is an objective list of the population from which the researcher can make a
selection according to Cox and Hassard (2005). The sampling frame was get hold of from special
branches; Grade A and B branches and outline branches and different department of head office
of Hibret Bank. The sample frame encompass of the official full time employees currently
working at Hibret Bank.
3.4.2.2 Sampling Technique
The sampling method used in drawing samples from a population was determined by the objectives
of the research activity. The study adopted Stratified sampling, and simple random sampling to make

sure that everyone had an equal likelihood of being sampled, and also to make sure that different age
groups were represented. Semi-structured questionnaires were then used to get hold of the necessary
data.
3.4.2.3 Sample Size
According to Cooper and Schindler (2008), sample size is illustrated as a smaller set of elements
from the larger population. Mugenda (2003) argued that the choice of sample size is
administrated by the self-confidence you need to have in your data, level of confidence, and the
accurateness. You need for any estimates made in your sample, the type of analysis you are
going to assume and finally the size of the total population from which your sample is drawn.
To find out the sample size that will be able to capture objective issues, the researcher proposes
to use Krejcie& Morgan (1970). The sample computation will be as follows. The sample sizes
used are from 20 branches and head offices department, approximately having 16 samples from
each branch and 38 staffs from the departments..
𝑛=
Where: n = Sample Size
X2 = Chi –Square for the specified confidence level at 1 degree of freedom
N = Population Size
P = Population proportion (.50 in this Table)
ME = desired Margin of Error (expresses as a proportion)

3.5. Data Analysis Technique
3.5.1 Methods of data analysis
The Statistical Package for Social Sciences (SPSS) version 24 was getting to be used to analyze
both qualitative and quantitative collected data. The descriptive statistics (frequencies
distribution) is applied to review the degree of customer service delivery while the connection
and thus, the influence of the broadband internet services magnitude are getting to be analyzed
by using multiple regressions. Data analysis that was mannered concerned reducing the collected
data to a suitable size, by developing summaries, through the exploitation of data analysis
techniques (Cooper and Schindler, 2008). Both descriptive and inferential statistics used to
investigate quantitative data. Descriptive statistics was make use of for measures of central
tendencies like Mean and Mode), and measures of dispersion (Variance, Standard deviation,
Standard Error, and Percentiles). Besides, inferential statistics was utilized for linear, correlations
and multiple regressions. Linear regression was used on factors that designated significant
correlation. Multiple regressions were then administered to the list of factors that had pointed out
significant correlation with employee turnover. The multiple regression model used was:
Y= β0 + β1X1 + β2X2 + β3X3+ e.
Regression was done to determine the level of significance when the factors are collective. The
analysis process concerned 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 finally analyzed using Statistical Package for Social Sciences (SPSS) 24.
3.6 Research Procedures
Research procedures refer to a measure detailed explanation of the steps to be taken and the carry
out of research should be provided for by the purpose of the study. A pilot test involving 20
respondents was carried out to check the validity, clarity and reliability of the contents of the
questionnaire. This pilot test was conducted for the study to detect whether weaknesses in design
and instrumentation existed, and to provide data to measure reliability and validity of the study.
According to Saunders et al., (2009) a total description of the research process together with
pilot testing, scheduling of the subjects and selection of the data collection instruments has to be

conducted. After the questionnaire was developed, it was subjected to a pilot test within one of
Hibret bank’s branches to employees who were not taking part in the survey.
3.7 Validity and Reliability
Validity Test: since validity of a research is a conceptual and scientific accuracy, the test focused
on get rid of or diminish the effect of irrelevant pressures, variables and explanations that might
divert the accuracy of the ultimate findings. After the researcher has constructed the
questionnaire, pre-testing was done with persons who have knowledge of the area by allowing
them to read it. These persons provided comments on Amharic translated questions on its
ambiguity, the length, the structure and wording. This is done to ensure that the questionnaire is
clear to respondents and can be completed in useful, then, the instrument was evaluated by
academic advisor preceding to the data collection so as to sustain its validity and to increase the
exactness and usefulness of the findings in which it allows greater self-confidence for the
research.
Reliability indicated to the reliability of the measure used to search the relationships between
variables Ghauri, &Gronhaug. (2010), the questions in the questionnaire were designed taking
into concern the issues related to the problem and goals of the research and theories on the
subject. The reliability of the study was conducted by using cronbach’s alpha. Reliability refers
to the consistent of measurements throughout the entire finding of the study and it is a
determination of obtaining the same results with in the sample respondents. Therefore, the
reliability checks for internal consistency of variables was done on 20 sample questionnaire
using Cronbach Alpha coefficient before distributing the entire 358 sample population as shown
on table below.
3.8 Ethical Considerations
This research has observed all ethical considerations. It dually acknowledged all cited
information in both the body and the reference section. In other words, no review/accessed
document is used without acknowledging the sources. Regarding the questioner respondents’:
their permission was requested to ascertain their voluntary participation. Full description of the

study, the intention, confidentiality and privacy protection is highlighted with a brief cover letter
beforehand. In addition to this, the survey is kept anonymous.

CHAPTER FOUR
4. DATA ANALIYSIS, PRESENTATION AND INTERPRITATION
4.1 Introduction
This part includes data analysis, presentation and interpretation of findings. The study intended
to determine the factors affecting employee turnover in Hibret Bank s.c. The first research
section which is demographic information is obtained by Descriptive analysis methods. The
second section has request on independent variables on the findings on career development as a
factor influencing employees’ turnover. The third research questions, section analyses findings
on mentoring and coaching as a causes that influencing employee turnover while the fourth
research question presents findings on reward system as a factor influencing employee turnover.
The findings in this chapter are represented in form of distribution Tables, means, charts, and
graphs, while the summary of major findings made at the end of the chapter.
4.1.1 Response Rate
According to Bacon (2014), response rate is defined as the extent to which the final set of
questionnaires collected from respondents is calculated alongside the number of questionnaires
received back from respondents interviewed in the study. For this study, the sample size was 378
respondents. From the total staffs of the Bank the sampling design was chosen by using stratified
sampling technique which were 378 from these 358 questionnaires were collected and used for
the purpose of the study but the rest 20 were not collected and were not used for the purposes of
this study.
Category Frequency Percentage
Response 358 95%

Not response 20 5%
total 378 100%
Table 4.1: Response Rate

4.1.2 Reliability Analysis
Reliability of the questionnaires for this study was estimated through Cronbach’s Alpha which
measures the internal consistency. According to Borsboom (2009), reliability is defined as the
uniformity of measurements within an instrument measuring the same thing. Equally, Brown, et
al.,(2010), argues that reliability helps decide the reliability of a test consistency over time when
subjected to similar test forms or alternate forms. According to Joseph and Rosemary, (2003),
Cronbachs alpha reliability coefficients (α) usually vary between 0 and 1. There is a greater
internal uniformity of the items if the Cronbachs alpha coefficients approach to 1.0. according to
George and Mallery, (2003 p. 231), if “α > 0.9, Excellent, “α >0.8, Good, “α >0.7, Acceptable,
“α > 0.6„ Questionable, “α >0.5„Poor, and“α <0.5, Unacceptable.” Since performing internal
uniformity test makes a greater assurance on the reliability of the entire findings of the research,
the outcome indicates in the below table 4.2, that there is “acceptable” and “good” internal
consistency of each independent variables parameters used. And the study has the sum of the
independent variables average Cronbachs alpha value of (α = 0.983) and the reliability test of the
study is located on “Acceptable” range. Cronbach Alpha for this study is 0.983. The summing up
of the scales determining objective areas covering questionnaire are shown in Table 4.2 shown
below:
Scale Cronbach's Alpha N of Items

Employee turnover 0.916 7
Training and 0.993 6
development
Career planning 0.912 6
Growth opportunity 0.935 8
Mentoring and coaching 0.890 6
Employee relation with 0.908 6
supervisor
Performance evaluation 0.912 6
Salary 0.901 6
Bonus 0.932 6
Average .983
Table 4.2: Reliability Analysis for the variable (spss 24)

4.2. Descriptive Analysis for Demographic Characteristics of the Respondents
This section included, gender, age, respondents work department, years of work at the bank, and
respondent’s title at the bank. Since they enabled the respondent to provide information that is
valid, reliable and pertinent to the study, the following are some of the findings that were get
hold of with regards to demographic information.
4.2.1 Analysis of Respondent by Gender
The gender of the respondents in demography was 58.9 % male, while female respondents were
41.1%. The study therefore indicates that the majority of respondents were male; however, the
proportion indicates both genders were adequately represented in the study. The gender results
are shown in figure 4.2 below;
Gender of the respondent

Valid Cumulative
Frequency Percent
Percent Percent
Valid male 211 58.9 58.9 58.9
female 147 41.1 41.1 100.0
Total 358 100.0 100.0
Table 4.3: Gender of the respondent
4.2.2 Analysis Respondent Age Classification
According to figure 4.2 below, respondents of age distribution was as follows: 31 to 40 were the
majority at 38.5%, followed by those aged 41 to 50 years at 28.2%years. The study also shows
that 16.2% of the respondents were aged 51- to 55 years, and 18 to 30 years had a respondent of
12% while 56 years and above only 5%.

Age the respondent

Valid Cumulative
Frequency Percent
Percent Percent
Valid 18-30 43 12.0 12.0 12.0
31-40 138 38.5 38.5 50.6
41-50 101 28.2 28.2 78.8
51-55 58 16.2 16.2 95.0
Above 56 18 5.0 5.0 100.0
Total 358 100.0 100.0
Table 4.4: Age the respondent
4.2.3 Respondent Work Department or Branches
Table 4.5 below depicts most of the respondents were from outline branches at 29.1% followed
by B branches at 28.2%, and A branches by 27.1% while 10.3% was from special branches. And
5% were from HR department.
Valid Cumulative
Branch or Department Frequency Percent
Percent Percent
special branch 38 10.3 10.3 10.6
A branch 97 27.1 27.1 37.7
B branch 101 28.2 28.2 65.9
outline branch 104 29.1 29.1 95.0
HR department 18 5.0 5.0 100.0
Total 358 100.0 100.0
Table 4.5: Respondent Work Department or Branches
4.2.4 Respondents Years at the Bank
According to the study findings, the highest number of years spent by respondents at Hibret
Bank was 6 to 10 years at 45% followed by 11 to 15 years at 29.9%, and 10.9%. and 10.1% of
the respondents indicated they had been at the bank for 16 to 20 years and 1 to 5 years
respectively, while only 4.2% of respondents indicated above 20 years.

Frequency Valid Percent Cumulative Percent

valid 1-5 36 10.1 10.1
6-10 161 45.0 55.0
11-15 107 29.9 84.9
16-20 39 10.9 95.8
above 20 15 4.2 100.0
Total 358 100.0
Table 4.6: Respondents Years at the Bank
4.2.5 Respondents Designation at the Bank
In the study respondents were asked to indicate their designation at Hibret bank s.c. Findings
indicate that 31% of respondents were general employees, 50.3% were supervisors, while 18.7%
were managers.
Valid Cumulative
Frequency Percent
Percent Percent
Valid manager 67 18.7 18.7 18.7
supervisor 180 50.3 50.3 69.0
General employee 111 31.0 31.0 100.0
Total 358 100.0 100.0
Table 4.7: Respondents Designation at the Bank
4.3 Employee Turnover
Employee turnover section of the questionnaire was to have respondents point out if turnover
existed, if it was voluntary or involuntary, the type of turnover the bank experienced, and finally
the causes for the turnover collecting data on the respondents understanding of employee
turnover at the bank. Besides which industry employee’s moves to after leaving Hibret bank also
studied and try to get the remedies the bank can put in place to mitigate the situation. The
following parts present the findings on employee turnover from the study.

4.3.1 Employee Turnover at Hibret Bank
This portion of the study targeted only human resources manager at various branches of the bank
within Addis Ababa. Whether employee turnover existed at the bank or not, and what was the
turnover rate were asked for HR managers/Officers. According to the study findings, 100% of
HR managers/Officers indicated they had experienced some form of employee turnover within
the bank in the last one year period.
Valid Cumulative
Frequency Percent
Percent Percent
valid 1 12 100 100.0 100.0
Table 4.8: Existence of Employee Turnover at Hibret Bank
4.3.2 Total Number of Employee Turnover at Hibret Bank
The turnover numbers from HR managers who participated in the study are indicated in Table
4.3 below;
Turnover Numbers Number Percent

Actual turnover 276 6.23%
Total Number of Employees at the Bank 4433 100%
Table 4.9: Number of Employee Turnover at Hibret Bank
4.3.3 Reasons for Employee Turnover at Hiber Bank
Reason for Employee Turnover

Cumulative
Frequency Percent Valid Percent Percent
Valid uncompetitives compensetion package 41 11.5 11.5 11.5
job and employee skill mismatch 141 39.4 39.4 50.8
less growth opportunities 118 33.0 33.0 83.8
less recognition 40 11.2 11.2 95.0
poor working conditions 18 5.0 5.0 100.0
Total 358 100.0 100.0
Table 4.10: Reason for Employee Turnover

According to table 4.10 above, 11.5% of HR managers/officers at Hibret bank indicated that
employee turnover at the bank is due to uncompetitive packages and 39.4% felt the turnover is
due to job and employee skill mismatch. 33% is due to less growth opportunities. And also
11.2% and 5% employee turnover was due to less recognition and poor working conditions
respectively.
4.3.4 What Hibret Bank Can Do to Reduce Turnover
Frequency Percent Valid Cumulative

Percent Percent
valid offer competitive pay package 37 10.3 10.3 10.6
treat each employee with respect 39 10.9 10.9 21.5
regardless of their job
offer flexible working hours 45 12.6 12.6 34.1
offer good working environment 35 9.8 9.8 43.9
offer opportunities for growth 14 3.9 3.9 47.8
treat each employee with respect 35 9.8 9.8 57.5
regardless of their job and offer
competitive package
offer good working environment and 87 24.3 24.3 81.8
offer opportunity growth
offer competitive pay package and 65 18.2 18.2 100.0
offer opportunity for growth
Total 358 100.0 100.0
Table 4.11: What Hibret Bank Can Do to Reduce Turnover?
According to Table 4.4 above, 24.3% of respondents felt that offer good working environment
and offer opportunity growth was the best way of reducing employee turnover. 18.2% believed
both offer competitive pay package and offer opportunity for growth. 12.6% also indicated that
offer flexible working hours would reduce turnover. On the other hand, 10.9% felt that treat each
employee with respect regardless of their job, equally 9.8% indicated that both treat each
employee with respect regardless of their job and offer competitive package and offer good
working environment to reduces employee turnover. 3.9% indicated offer opportunities for
growth would reduce employee turnover at the bank.

4.3.5 The Cost of Turnover
Respondents were inquire to designate which cost(s) they believed had the highest impact on the
organization in terms of turnover. The findings are shown in Table 4.5 below:

Percent Percent
Valid recruitment costs 103 28.8 28.8 28.8
interview costs 47 13.1 13.1 41.9
training costs 160 44.7 44.7 86.6
administrative costs 48 13.4 13.4 100.0
Total 358 100.0 100.0
Table 4.12: The Cost of Turnover
The findings in Table 4.12 above show that 44.7% of respondents felt that training was the
highest cost organizations incur after employee turnover. 28.8% of respondents indicated that
recruitment is the highest cost, while 13.4% believed administrative costs were the highest, while
13.1% of respondents believe interview costs was the highest.
4.3.6 Organizations Employees Join after Leaving the Bank
The findings indicate that 50% of respondents believe that employees who leave the bank join
organizations in the same banking industry. 21.2% of respondents indicated that employees
leaving to be self-employed, while 18.4% said employees leaving to join in a different sector.
6.7% of respondents go for further studies and only 3.4% of respondents indicated that
employees who leave are not working. The findings are shown in table 4.13 below:

Percent Percent
Valid in the same sector 179 50.0 50.0 50.3
in a different sector 66 18.4 18.4 68.7
further study 24 6.7 6.7 75.4
self-employee 76 21.2 21.2 96.6
not working 12 3.4 3.4 100.0
Total 358 100.0 100.0
Table 4 13: Organizations Employees Join after Leaving the Bank

4.4 Career Development and Employee Turnover
Career development section of the questionnaire intended to cover training and development,
career planning, and growth opportunities and also the section presents the findings on career
development and employee turnover from the study.
4.4.1 Training and Development
The respondent mean was depicted on the below table.
Training and development N Mean

16. The bank provides you with Job training 358 3.65
17. The trainings are poorly organized 358 3.56
18. The Trainings are well organized 358 3.59
19. Training and development programs have enhanced 358 3.70
my career skills
20. Training provides opportunities for career 358 3.78
development
21. You can quit the bank for lack of training and 358 3.51
development opportunities
Average 358 3.63
Table 4.14: Training and Development
According to the research findings, the respondents felt that training and development provides
them with opportunities for career development with the highest mean of 3.78, followed by
training and development programs have enhanced my career skills with a mean of 3.70.
Respondents felt that the bank provides you with Job training with a mean of 3.65 followed by
Hibret bank provides them with trainings are well organized with a mean 3.59. Respondents
indicated that trainings are poorly organized had the least mean at 3.56 and lastly those they
would quit the bank for lack of training and development opportunities with a mean of 3.51.

4.4.2 Career Planning
The respondent mean was depicted on the below table.
Career planning N Mean

22. You have a well-structured career planning program at the bank 358 3.70
23. Career plan enhances employees commitment to the bank 358 3.99
24. In career planning employees skills are matched with their job descriptions 358 3.38
25. Adequate job duties enables evaluate your career plan 358 3.68
26. Career planning is for your growth within the bank 358 3.59
27. Career planning influences employee turnover 358 3.82
Average mean 358
Table 4.15: Career Planning
Consistent with the findings, Career plan enhances employees commitment to the bank had the
highest mean of 3.99 followed by Career planning influences employee turnover within Hibret
bank with a mean of 3.82, then the question well-structured career planning program at the bank
with a mean of 3.70. Adequate job duties enables evaluate your career plan had a mean of 3.68
while Career planning is for your growth within the bank with a mean of 3.59. When respondents
were asked In career planning employees skills are matched with their job descriptions, the
respondents mean was the least at 3.38.
4.4.3 Growth Opportunities
Growth opportunity N Mean

28. The bank has policies that support employee career growth 358 3.61
29. Management supports employee career growth 358 3.68
30. Actual career growth opportunities exist at the bank 358 3.98
31. Promotions are fair and just within the bank 358 3.48
32. Career growth opportunities are based on merit 358 3.80
33. The bank’s career growth is the best compared to the industry 358 3.69
34. Career growth opportunities influences employee turnover 358 3.93
35. You would quit the bank if growth opportunities are not available to you 358 3.36
Valid N (listwise) 358
Table 4.16: Growth opportunity

As depicted in the table 4.16 the study findings show that respondents felt that Actual career
growth opportunities exist at the bank had the highest mean of 3.98, followed by respondents
belief that Career growth opportunities influences employee turnover with a mean of 3.93.
Respondents felt that Career growth opportunities are based on merit with a mean of 3.80 while
other respondents felt that the career growth is the best compared to the industry at Hibret bank
with a mean of 3.69. Similarly, some respondents believed that management supports employee
career growth with a mean of 3.68; other respondents indicated that Hibret bank has policies that
support employee career growth with mean of 3.61. Respondents who thought Hibret bank
promotions were fair ranked last with a mean of 3.48. And some respondents believed that they
would quit the bank if growth opportunities are not available to them with a mean of 3.36.
4.4.4 Mentoring and coaching
mentoring and coaching N Mean

36. You currently have a mentoring program at the bank 358 3.56
37. The mentoring program enhances your skills 358 3.59
38. The mentoring and coaching program is conducted excellently at the bank 358 3.85
39. Employee selection for mentoring and coaching program is done fairly 358 3.76
40. Mentoring program enhances employee commitment to the bank 358 3.60
41. Mentoring program has reduced employee turnover at the bank 358 3.80
Valid N (listwise) 358 3.69
Table 4.17: Mentoring and coaching
The research findings depicted that, the respondents felt that training The mentoring and
coaching program is conducted excellently at the bank with the highest mean of 3.85, followed
by Mentoring program has reduced employee turnover at the bank with a mean of 3.80.
Respondents felt that Employee selection for mentoring and coaching program is done fairly
with a mean of 3.76 followed by Mentoring program enhances employee commitment to the
bank with a mean 3.60. Respondents indicated that the mentoring program enhances your skills
with the mean at 3.59 and lastly those they believed that currently have a mentoring program at
the bank with a mean of 3.51.

4.4.5 Employees relationship with supervisors
Employees relationship with supervisors N Mean

42. You currently have a good relationship with your supervisor 358 3.70
43. You currently have a bad relationship with your supervisor 358 3.81
44. Your relationship with the supervisor is beneficial to the bank 358 3.44
45. Your relationship with your supervisor is beneficial to you 358 3.99
46. Your relationship with your supervisor makes you committed to the bank 358 3.51
47. Your relationship with your supervisor can make you quit the bank 358 3.82
Table 4.18: Employees relationship with supervisors
Dependable with the result, they accept relationship with your supervisor is beneficial to to them
had the highest mean of 3.99 followed by the mean of the relationship with their supervisor can
make them quit the bank within Hibret bank with a mean of 3.82, then they currently have a bad
relationship with their supervisor at the bank with a mean of 3.81. Good relationship with their
supervisor had a mean of 3.70 while their relationship with the supervisor makes them
committed to the bank had with a mean of 3.51. When respondents were asked the employee
relationship with the supervisor has bring beneficial to the bank, had a mean of the least at 3.44.
4.4.6 Employee Evaluation Performance
As revealed in the table 4.19 the study findings show that participant felt that the evaluations
system is always fair to them .had the highest mean of 3.98, followed by respondents belief that
Performance evaluations provide them with adequate feedback on their performance with a mean
of 3.80. Respondents felt that they can quit the bank if performance evaluations are not fair to
them with a mean of 3.69 while other respondents felt that the performance evaluation is well
structured at Hibret bank with a mean of 3.68. Similarly, some respondents believed that they
currently receive performance evaluations at the bank with a mean of 3.61, and some
respondents believed that they believed that performance evaluations are not punitive with a
mean of 3.48.

Evaluation Performance N Mean

48. You currently receive performance evaluations at the bank 358 3.61
49. Performance evaluation is well structured at the bank 358 3.68
50. The evaluations system is always fair to you. 358 3.98
51. Performance evaluations are not punitive 358 3.48
52. Performance evaluations provide you with adequate feedback on your 358 3.80
performance
53. You can quit the bank if performance evaluations are not fair to you 358 3.69
Average mean 358
Table 4.19: Employee evaluation performance
4.4.7 Salary and employee turnover
The respondents were asked a sequence of questions on what they reflection constitute salaries at
hibret bank and its effect on employee turnover.
According to the research findings, the respondents felt that they believed that their current
salary as bad compared to the market rate with the highest mean of 3.99, followed by The bank
rewards system are fair to them with a mean of 3.93. Respondents felt that the bank provides
them salary which is based on their value to the bank with a mean of 3.78 followed by they
understand that their current salary as good compared to the market rate with a mean 3.70.
Respondents indicated that they quit the bank because of inadequate salary if they get another
job had the least mean at 3.38 and lastly those they believed that the salary grades are well
structured with a mean of 3.38.
Salary N Mean
54. The bank rewards system are fair to you 358 3.93
55. The salary grades are well structured 358 3.36
56. Your salary is based on your value to the bank 358 3.78
57. You can describe your current salary as good compared to the market rate 358 3.70
58. You can describe your current salary as bad compared to the market rate 358 3.99
59. You can quit the bank because of inadequate salary if you get another job 358 3.38
Average mean 358
Table 4.20: Salary and employee turnover

According to the research findings, the respondents felt that they believed that their current
salary as bad compared to the market rate with the highest mean of 3.99, followed by The bank
rewards system are fair to them with a mean of 3.93. Respondents felt that the bank provides
them salary which is based on their value to the bank with a mean of 3.78 followed by they
understand that their current salary as good compared to the market rate with a mean 3.70.
Respondents indicated that they quit the bank because of inadequate salary if they get another
job had the least mean at 3.38 and lastly those they believed that the salary grades are well
structured with a mean of 3.38.
4.4.8 Bonus and employee turnover
The respondents were uniformly asked a chain of questions on their sight concerning bonuses at
hibret bank and its effect on employee turnover.
Bonus N Mean
60. The bank has a bonus structure in place 358 3.80
61. You receive end year bonuses 358 3.69
62. Bonuses are based on merit/performance 358 3.72
63. The bonus sharing formula is fair and just to all employees 358 3.53
64. Bonuses influence your commitment to stay with the bank 358 3.59
65. Unfair bonus system can influence your decision to quit the bank 358 3.75
66. Bonuses have contributed to employee turnover at the bank 358 3.48
Table 4.21: Bonus and employee turnover
According to Table 4.20, respondents who believed the bank has a bonus structure in place had a
mean of 3.80, followed by those who believed that unfair bonus system can influence their
decision to quit the bank with mean of 3.75. Similarly, respondents who believed Bonuses are
based on merit/performance had a mean of 3.72, while those who felt that they receive end year
bonuses had a mean of 3.69. Respondents indicated that Bonuses influence their commitment to
stay with the bank a mean of 3.59, while those who thought that the bonus sharing formula is fair
and just to all employees had a mean of 3.08, and finally those respondent that thought Bonuses
have contributed to employee turnover at the bank had a mean of 3.48.

4.5 Analysis Model of multiple linear Regressions
4.5.1 Training and development regression analysis
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .870 .757 .757 .500
a. Predictors: (Constant), training and development
Table 4.22: Regression analysis of Training and development
ANOVAa
Model Sum of df Mean Square F Sig.
Squares
1 Regression 277.925 1 277.925 1110.137 .000b
Residual 89.125 356 .250
Total 367.050 357
a. Dependent Variable: Employees Turnover
b. Predictors: (Constant), training and development
Table 4.23: Anova of training and employee turnover (spss v24)
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
1 (Constant) .382 .102 3.757 .000
training and .150 .005 .870 33.319 .000
developmen
t
Table 4.24: Training and development and employee turnover regression coefficient ( spss v24)
From the above Table 4.22, observed that R square (R2) =.757 taken as a set, which represents
the proportion of the variance for a dependent variable that’s explained by an independent
variable or variable in a regression model , the independent variable training and development
for 75.4% the bank employee turnover. Which means 75.7% of the variation in employee
turnover is explained by the independent variable. Multiple correlation coefficients shows a very
strong correlation of 87.% of the variation is explained in the amount of the employee turnover

rate, while 13.6 of the variation is not explained by the employee turnover rate by the predictor
variables. Which means 75.7% of the variation in employee turnover is explained by the
independent variables. Correlation exists between career development and employee turnover,
where regression coefficient R= 0.87; P value = 0.000. This met the threshold since it was less
than 0.05. Therefore the relationship was significant. The Analysis of variance in Table 4.24
indicates that F = 1110.137 DF= 1. The P value was 0.000. This convened the threshold since it
was less than 0.05. Therefore the relationship was statistically significant.
4.5.2 Career planning regression analysis
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .832a .692 .691 .564
a. Predictors: (Constant), Career planning
Table 4.25: Regression analysis of career planning(spss v 24)
ANOVAa
Squares
1 Regression 253.957 1 253.957 799.412 .000b
Residual 113.094 356 .318
Total 367.050 357
b. Predictors: (Constant), Career planning
Table 4.26: Anova of career planning (spss v24)

Coefficientsa
Coefficients
B Std. Error Beta
1 (Constant) .436 .118 3.705 .000
Career planning .145 .005 .832 28.274 .000
Table 4.27: Career planning and employee turnover regression coefficient (spss v24)

According to the findings in Table 4.27 R square (R2) =.692 taken as a set, which represents the
proportion of the variance for a dependent variable that’s explained by an independent variable
or variable in a regression model , the independent variable career planning, account for 69.2%
the bank employee turnover. Which means 69.2% of the variation in employee turnover is
explained by the independent variables. Multiple correlation coefficients shows a very strong
correlation of 83.2.% of the variation is explained in the amount of the employee turnover rate,
while 16.8 of the variation is not explained by the employee turnover rate by the predictor
variables. Which means 69.2% of the variation in employee turnover is explained by the
independent variables. Correlation exists between career planning and employee turnover, where
regression coefficient R= 0.832; P value = 0.000. This reach the threshold of acceptance since it
was less than 0.05. Therefore the relationship was significant.
4.5.3 Growth opportunities regression analysis
Model Summary
Model R R Square Adjusted R Std. Error of
Square the Estimate
1 .896a .803 .802 .451
a. Predictors: (Constant), growth opportunity
Table 4 28: Regression analysis of Growth opportunities (spss v 24)
ANOVAa
Squares
1 Regression 294.684 1 294.684 1449.662 .000b
Residual 72.367 356 .203
Total 367.050 357
b. Predictors: (Constant), growth opportunity
Table 4.29: Anova of Growth opportunities (spss v24)

Coefficientsa
Coefficients
B Std. Error Beta
1 (Constant) .118 .096 1.227 .221
growth .120 .003 .896 38.074 .000
opportunity
Table 4. 30: Growth opportunities and employee turnover regression coefficient (spss v24)
or variable in a regression model , the independent variable growth opportunities, account for
80.3% the bank employee turnover. Which means 80.3% of the variation in employee turnover is
explained by the independent variables. Multiple correlation coefficients show a very strong
correlation of 80.3 % of the variation is explained in the amount of the employee turnover rate.
Correlation exists between career planning and employee turnover, where regression coefficient
R= 0.896; P value = 0.000. This reach the threshold of acceptance since it was less than 0.05.
Therefore the relationship was significant.
4.5.4 Mentoring regression analysis
Model Summary
Square the Estimate
1 .888a .789 .788 .467
a. Predictors: (Constant), mentoring
Table 4.31: Regression analysis of Mentoring (spss v 24)

ANOVAa
Squares
1 Regression 289.509 1 289.509 1329.171 .000b
Residual 77.541 356 .218
Total 367.050 357
b. Predictors: (Constant), mentoring
Table 4.32: Anova of Mentoring (spss v24)
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) -.007 .103 -.066 .948
mentoring .165 .005 .888 36.458 .000
Table 4.33: Mentoring and employee turnover regression coefficient (spss v24)
or variable in a regression model , the independent variable Mentoring and coaching, account
turnover is explained by the independent variables. Multiple correlation coefficients show a very
strong correlation of 88.8 % of the variation is explained in the amount of the employee turnover
rate. Correlation exists between Mentoring and coaching and employee turnover, where
regression coefficient R= 0.888; P value = 0.000. This reach the threshold of acceptance since it
was less than 0.05. Therefore the relationship was significant.

4.5.5 Employee relationship with supervisor regression analysis
Model Summary
Square the Estimate
1 .828a .686 .685 .569
a. Predictors: (Constant), employee relationship with supervisor
Table 4.34: Regression analysis of Employee relationship with supervisor (spss v 24)
ANOVAa
Squares
1 Regression 251.847 1 251.847 778.252 .000b
Residual 115.204 356 .324
Total 367.050 357
b. Predictors: (Constant), employee relationship with supervisor
Table 4.35: Anova of Employee relationship with supervisor (spss v24)
Coefficientsa
B Std. Error Beta
1 (Constant) .367 .122 3.021 .003
employee .148 .005 .828 27.897 .000
relationship with
supervisor
Table 4.36: Employee relationship with supervisor and employee turnover regression
coefficient (spss v24)
Since the result between Employee relationship with supervisor and employee turnover had a
significant correlation, the relationship was subjected to regression analysis to determine the
percentage contribution to the significance. Correlation helps to explain the strength of the
relationship between variables, and on the other side regression helps to find out to what extent
one variable affects the other. The linear regression model used was: Y= β0 + β1X1 + β2X2 + β3X3 +
β4X4 + β5X5 + e

or variable in a regression model, the independent variable Employee relationship with
supervisor account for 68.6% employee turnover. Which means 68.6% of the variation in
employee turnover is explained by the independent variables. Correlation exists between
Employee relationship with supervisor and employee turnover, where regression coefficient R=
0.828; P value = 0.000. This reach the threshold of acceptance since it was less than 0.05.
4.5.6 Performance evaluation regression analysis
Model Summary
Square the Estimate
1 .881a .776 .776 .480
a. Predictors: (Constant), performance evaluation
Table 4.37: Performance evaluation with supervisor (spss v 24)
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 284.963 1 284.963 1235.834 .000b
Residual 82.088 356 .231
Total 367.050 357
b. Predictors: (Constant), performance evaluation
Table 4.38: Anova of Performance evaluation (spss v24)
Coefficientsa
B Std. Error Beta
1 (Constant) .190 .102 1.868 .063
performance .156 .004 .881 35.154 .000
evaluation
Table 4.39: Performance evaluation and employee turnover regression coefficient (spss
v24)
From the above Table 4.37, observed that R square (R2) =.776 taken as a set, which represents
the proportion of the variance for a dependent variable that’s explained by an independent
variable or variable in a regression model , the independent variable training and development

turnover is explained by the independent variable. Multiple correlation coefficients shows a very
strong correlation of 88.1.% of the variation is explained in the amount of the employee turnover
rate. Which means 77.6% of the variation in employee turnover is explained by the independent
variables.
There is a significance correlation between employee and in relation with supervisor employee
relationship. This relationship was subjected to regression analysis to determine contribution
percentage to the significance. The strength of the relationship between variables and other
regression helps to find out to what extent one variable affects the other. The linear regression
model used was: Y= β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6+ e
Correlation exists between career development and employee turnover, where regression
coefficient R= 0.881; P value = 0.000. This reach the threshold of acceptance since it was less
than 0.05. Therefore the relationship was significant.
4.5.7 Salary regression analysis
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
a
1 .865 .749 .748 .509
a. Predictors: (Constant), salary
Table 4.40: Salary with supervisor (spss v 24)
ANOVAa
Squares
1 Regression 274.887 1 274.887 1061.815 .000b
Residual 92.163 356 .259
Total 367.050 357
b. Predictors: (Constant), salary
Table 4.41: Anova of salary (spss v24)

Coefficientsa
Coefficients
B Std. Error Beta
1 (Constant) .323 .106 3.059 .002
salary .150 .005 .865 32.585 .000
Table 4.42: Salary and employee turnover regression coefficient (spss v24)
or variable in a regression model, the independent variable Employee relationship with
supervisor account for 74.9% employee turnover. Which means 74.9% of the variation in
employee turnover is explained by the independent variables. Correlation exists between
Employee relationship with supervisor and employee turnover, where regression coefficient R=
0.865; P value = 0.000. This reach the threshold of acceptance since it was less than 0.05.
There is a significance correlation between employee and in relation with supervisor employee
relationship. This relationship was subjected to regression analysis to determine contribution
percentage to the significance. The strength of the relationship between variables and other
regression helps to find out to what extent one variable affects the other. The linear regression
model used was:
Correlation exists between career development and employee turnover, where regression
Y= β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6+ β7X7 + e

4.5.8 Bonus regression analysis
Model Summary
Square the Estimate
a
1 .854 .729 .728 .529
a. Predictors: (Constant), bonus
Table 4.43: Bonus with supervisor (spss v 24)
ANOVAa
Squares
1 Regression 267.471 1 267.471 956.218 .000b
Residual 99.579 356 .280
Total 367.050 357
b. Predictors: (Constant), bonus
Table 4.44: Anova of Bonus (spss v24)
Coefficientsa
Coefficients
B Std. Error Beta
1 (Constant) .473 .107 4.439 .000
bonus .124 .004 .854 30.923 .000
Table 4.45: Bonus and employee turnover regression coefficient (spss v24)
The findings between the independent variables, career planning, and employee turnover had a
significant relationship, the relationship was subjected to regression analysis to determine the
percentage contribution to the significance.
or variable in a regression model , the independent variable career planning, account for 72.9%

the bank employee turnover. Which means 72.9% of the variation in employee turnover is
explained by the independent variables. Multiple correlation coefficients shows a very strong
correlation of 85.4.% of the variation is explained in the amount of the employee turnover rate.
Which means 72.9% % of the variation in employee turnover is explained by the independent
variables. Correlation exists between career planning and employee turnover, where regression
4.6. Hypothesis Testing
Since our model is multiple linear regressions the test the research test individual and check their
significance by their t-test.
 Training and Development
H 0: β1 =0
H1: β1 ≠ 0
From the table 4.24 above regression equation model, observed that the training and
development was increasing .124 units of the employer turnover rate with the other factors were
constant, in addition to that the p-value was less 0.05, this indicated that career development of
the employer had a significant effect on employee turnover rate. The test statistics t= 30.923 and
p-value .000 with so do not reject the null hypothesis at 5% level of significance. This means that
Training and Development of the employee had an effect on employee turnover rate
 Career planning
H 0: β2 =0
H1: β2 ≠ 0
The above regression equation model, observed that the career planning was increasing .145
units of the employer turnover rate with the other factors were constant, in addition to that the p-
value was less 0.05, this indicated that career planning of the employer had a significant effect on
employee turnover rate. The test statistics t=28.274 with p-value .000 so do not reject the null

hypothesis at 5% level of significance. This means that career planning of the employee had an
effect on employee turnover rate
 Growth opportunity
H 0: β3 =0
H1: β3 ≠ 0
The test statistics t=38.074 with p-value .000 at 5% level of significance means that Growth
opportunity of the employee had an effect on employee turnover rate. The above regression
equation model, observed that the Growth opportunity was increasing .120 units of the employer
turnover rate with the other factors were constant, in addition to that the p-value was less 0.05,
this indicated that Growth opportunity of the employer had a significant effect on employee
turnover rate.
 Mentoring and coaching
H 0: β4 =0
H1: β4 ≠ 0
Mentoring and coaching was increasing 0.165 units of the employer turnover rate with the other
factors were constant as the above regression equation model depicted , and also the p-value was
less 0.05, this indicated that Growth opportunity of the employer had a significant effect on
employee turnover rate. The test statistics t=36.458 with p-value .000 so do not reject the null
hypothesis at 5% level of significance. This means that Growth opportunity of the employee had
an effect on employee turnover rate.
 Employee relationship with supervisor
H 0: β5 =0
H1: β5 ≠ 0
The test statistics t=27.897 with p-value .000 at 5% level of significance, means that Employee
relationship with supervisor of the employee had an effect on employee turnover rate. The above
regression equation model, observed that the Employee relationship with supervisor was
increasing .148 units of the employer turnover rate with the other factors were constant, in
addition to that the p-value was less 0.05, this indicated that Growth opportunity of the employer
had a significant effect on employee turnover rate.

 Performance evaluation
H 0: β6=0
H1: β6 ≠ 0
The test statistics t=35.154 with p-value 0.000 at 5% level of significance means that
performance evaluation of the employee had an effect on employee turnover rate. The above
regression equation model, observed that the performance evaluation was increasing .156 units
of the employer turnover rate with the other factors were constant, in addition to that the p-value
was less 0.05, this indicated that performance evaluation of the employer had a significant effect
on employee turnover rate.
 Salary
H 0: β7=0
H1: β7 ≠ 0
Salary was increasing 0.150 units of the employer turnover rate with the other factors were
constant as the above regression equation model depicted, and also the p-value was less 0.05, this
indicated that Salary of the employer had a significant effect on employee turnover rate. The test
statistics t=32.585 with p-value .000 so do not reject the null hypothesis at 5% level of
significance. This means that Salary of the employee had an effect on employee turnover rate.
 Bonus
H 0: β8=0
H1: β8≠ 0
Table 4.45 above regression equation model, depicted that the bonus was increasing .124 units of
the employer turnover rate with the other factors were constant, in addition to that the p-value
was less 0.05, this indicated that bonus of the employer had a significant effect on employee
turnover rate. The test statistics t= 30.823 and p-value .000 with so do not reject the null
hypothesis at 5% level of significance. This means that bonus of the employee had an effect on
employee turnover rate.
4.7. Over-all Test
The regression model overall fit can be inspected with the help of ANOVA. In doing so, the
ANOVA table determined the relationship between the dependent variable and the independent
variable

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
1 Regression 308.116 8 38.514 228.075 .000b
Residual 58.935 349 .169
Total 367.050 357
b. Predictors: (Constant), bonus, training and development, Career planning, employee
relationship with supervisor, mentoring and coaching, salary, performance evaluation,
growth opportunity
Source: SPSS version 24 output of the questionnaire survey, 2022
Table 4.46: Analysis of variances
Hypothesis Testing
The hypothesis to be tested is
H0: β1= β2 = β3= β4……… β8 =0 (the overall regression is in significant)
H1: Not H0 (al least one beta) i.e. overall regression is significant (at least one regression
parameter is different from zero)
Decision Rule: Since the p-value=0.000, this implies the value was less than 5% level of
significance, so we have to not accept the null hypothesis because of an sufficient proof , so we
concluded that the overall test shows that they are significant effect on an Employee turnover
rate.

4.7.1 Model Summary
Model Summaryb
Square Estimate
a
1 .916 .839 .836 .411
a. Predictors: (Constant), bonus, training and development, Career
planning, employee relationship with supervisor, mentoring and coaching,
salary, performance evaluation, growth opportunity
b. Dependent Variable: Employees Turnover
Source: SPSS version 24 output of the questionnaire survey
Table 4.47: Model Summary
From the above Table 4.47, observed that multiple correlation coefficients shows Avery strong
correlation of 83.9% of the variation is explained in the amount of the employee turnover rate,
while 16.1% of the variation is not explained by the employee turnover rate by the predictor
variables.
4.8. Multivariate Analysis
According to the study findings, multiple regression tests were 58 conducted to determine level
of significance when all variables are combined. The findings are shown in Tables 4.47.1, 4.47.2,
and 4.47.3 below;
Model Summary
Square Estimate
a
1 .916 .839 .836 .411
a. Predictors: (Constant), bonus, training and development, Career planning,
employee relationship with supervisor, mentoring and coaching, salary,
performance evaluation, growth opportunity
Table 4.47.1: ANOVA for All Variables

ANOVAa
Squares
1 Regression 308.116 8 38.514 228.075 .000b
Residual 58.935 349 .169
Total 367.050 357
b. Predictors: (Constant), bonus, training and development, Career planning, employee
relationship with supervisor, mentoring, salary, performance evaluation, growth opportunity
Table 4.47.2: Multiple Regression Analysis Coefficients
Coefficientsa
B Std. Error Beta
1 (Constant) -.014 .106 -.136 .892
training and development -.119 .032 -.689 -3.773 .000
Career planning .074 .037 .425 1.982 .048
growth opportunity .270 .044 2.021 6.076 .000
mentoring .092 .034 .493 2.702 .007
employee relationship with -.129 .026 -.725 -4.884 .000
supervisor
performance evaluation -.058 .055 -.329 -1.048 .295
salary -.081 .037 -.464 -2.207 .028
bonus .022 .036 .150 .610 .543
According to the findings in Table 4.47 when a multiple regression is done, a significant
relationship exists with five of the variables. Regression coefficient for training and development
was R = -0.689; P value = 0.000. This meet the threshold for significance since P value was less
than 0.05.Regression coefficient for career planning R = 0.425; P value = 0.048. This met the
required for significance since P value = 0.048 which is less than 0.05.Regression coefficient for
growth opportunity was R = 2.021; P value = 0.000. This met the threshold for significance since
P value was less than 0.05.Regression coefficient for mentoring was R = 0.493; P value = 0.007.
This meet the threshold for significance since P value was less than 0.05.Regression coefficient
for employee relationship with supervisor, was R = -0.725; P value = 0.000. This met the
requirement for significance since P value was less than 0.05.Regression coefficient for

performance evaluation, was R = -.329; P value = 0.295. This did not meet the requirement for
significance since P value was more than 0.05.Regression coefficient for salary was R = -.464 P
value = 0.028. This met the threshold for significance since P value was less than
0.05.Regression coefficient for bonus, was R = -.150; P value = 0.543. This did not meet the
requirement for significance since P value was more than 0.05.
Table 4.47.1 above shows an R adjusted square of 0.839, which indicates that 83.9% of variation
in employee turnover can be explained with variation by the stated independent variables system.
The Analysis of variance in Table 4.47.2 above indicates that F value 228.075 and P value was
0.000. This means that the mean differences between and within the variables meet the
significance threshold since it was less than 0.05. Therefore the mean between the variables was
statistically significant.
4.9. Multiple Regression Assumption Test
Absence of Multi collinearity Assumption Test

Multicollinearity is condition in which the independent/predictor variables are highly correlated.
Multicollinearity can be calculated by VIF and degree of tolerance. The value of VIF (variance
inflation factors) is less than 10 and the degree of tolerance value is greater than 0.1 the
supposition of nonappearance of multicollinearity is contented but the value of VIF is greater
than 10 and the value of tolerance is less than 0.1 the assumption is dishonored.
Model Collinearity Statistics

Tolerance VIF
1 (Constant)
training and development .243 4.115
Career planning .308 3.247
growth opportunity .197 5.076
mentoring and coaching .211 4.739
employee relationship with supervisor .314 3.185
performance evaluation .224 4.464
salary .251 3.983
bonus .271 3.686
Table 4.48: Multicollinearity test

From the above Table 4.43 and the above description for this study the variables of VIF is less
than 10 and the tolerance value was greater than 0.1, so we accomplished that the assumption of
Absence of Multicollinearity was fulfilled.
Normality Assumption Test
Normality can be make sure by drawing histogram and pp-plot, if the distribution of error terms
under histogram is approximately normal (bell shaped), and the distribution of points in pp- plot
lays around the straight line normality is accomplish otherwise it is violated.
Figure 4.1: Normality assumption by using histogram
Figure 4.1, shows a bell shaped that the data was almost normal and point out that the data assure
the normality assumption for employee turnover rate Hibret bank.

Linearity test
Linearity can be checked by drawing the scatter plot of response variable versus fitted value. To
achieve linearity the pattern of the plot must be approximately linear. Observe on the p-p plot all
explanations are lies approximately through the line which shows the data were fulfilled the
linearity assumption. And it designate that the linear relationship between the residuals and the
outcome variable for employee turnover rate.
Figure 4.2: Normal probability plot

4.10 Discussion
This research endeavored to recognize factor that affect the employee turnover rate of Hibret
bank. The employee turnover rate of the data was analyzed by using Statistical Package for
Social Sciences software version 24 for ascertaining the factors. The data of this study was used
primary data for formulating questioner. The study proposed to decide the factors influencing
employee turnover of Hibret bank. The questionnaire contains demographic factors of the
respondents, the objective of this study was identifying factors influencing employee turnover in
Hibret bank. The total number of this research were encompassed 358 observations by using
sample size determination technique with proportionally allocated.
The results and findings, on causes that affecting Hibret bank S.Co employee turnover, which are
structured according to the driving factors were discussed under this section. The data was
gathered from the reaction of the questionnaires. The chapter will investigate the research
discussions based on comparing to the literature review in chapter two.
The research question were to set up and decide the extent training, career planning, growth
opportunities, mentoring, employee relationship with supervisor, performance evaluation, salary
and bonus influence employee turnover at hibret Bank.
The population of the study and sample frame for this study was adopted from Hibret Bank
human resources office. Stratified sampling techniques and a simple random technique was used
to be safe guarded that every employee had an identical chances of being sampled.
The structured questionnaires were analyzed by using SPSS version (Statistical Package for
Social Sciences) software version 24. 378 questionnaires were dispatched to respondents, and
three hundred fifty eight (358) were received back from respondents and the rest did back their
response giving the study an approximate response rate of 95%. Descriptive statistics in use in
the research include frequencies, percentages, and mean. For inferential statistics, correlation
analysis and regression was done to enable easy data interpretation and multicollinearity test
were done for the independent variables. Data has obtainable by using Tables and figures as per
each research questions responded. The leading research question considered at career
development which is training and development, career planning and growth opportunities and
employee turnover.

4.10.1 Career Development (Training, Career Planning and Growth Opportunities)

and Employee Turnover
The research findings indicated that training and development, mentoring and rewards system
have a great pressure on employee turnover at Hibret Bank. Psychologist Albert Bandura (2003),
who planned the concept of self-efficacy, described that career development can be built on the
concept of self-efficacy based on human behavior by understanding the thought processes.
Bandura argue that self-system of an employees’ ability to do workout control over their career
is serious. Employees’ self-efficacy is the lenses all the way through which employees’ assess
the job environment and make resolve on whether the job fulfills their career desires or not.
The research findings point out that respondents felt that career Career plan improve employees
obligation to the bank as it had highest mean of 3.99 followed by Career planning influences
employee turnover with a mean of 3.82. This is consistent with Bandura (2003), who emphasize
that a self-efficacy belief in the career planning is the most influential predictors of employee’s
turnover from an organization.
According to Baruch (2009), banks that would like to strengthen their employee foundation and
assurance must invest in the training and development of these employees. Training had been
defined as the organized planned attempt to make easy employees achievement of job-related
knowledge, skills so as to get better productivity.
When respondents were requested if they have a well-structured career planning program at
Hibret bank, the question had the mean of 3.70, compared to career planning power employee
turnover, which had a highest mean of 3.99. This means that Hibret bank training and
development programs might not be well structured, or employees are not well oriented to them.
According to Wan (2007) states that comprehensive training develops employee’s devotion to
an organization. Sherma (2006) argued that by creating opportunities for employee training and
development, banks can enlarge the probability of employee’s capability to increase in the
market. According to the study findings, Hibret bank was not at pace with Wan (2007), and
Sherma (2006) explanation of what make up training and development.

Career planning is a continuing process, often interactive developmental process that an

individual or an organization fit into place in restoring personal or organizational objectives as
stated by Baruch (2009). This is done through tutoring for labor market opportunities. He further
argued that in the dynamic globalized job market, employers can no longer assure job security,
however, it is important for employers to make certain that careers skills for key employees are
planned for the most part in the banking sector. When respondents were asked if they had a well-
structured career planning program at Hibret bank, the respondents mean was the least at 3.70.
Armstrong, (2009) argued that lack contingency plan in organizations in managing employee’s
career growth, suffering of employee turnover shown as its consequence. There is a strong
positive correlation exists between career planning and employee turnover where r= 0.832; P
value was 0.000. It satisfies the threshold of less than 0.05 for its significance level.
Agarwal, et al., (2006) argued that the result of failure to meet employees anticipation in career
growth opportunities is high turnover with employees seeking these opportunities somewhere
else. The research too depicted under the response of the questionnaire on they would quit the
bank if growth opportunities were not available to them with a mean score 3.99 and next the
belief that career growth opportunities influences employee turnover with a mean of 3.58.
Organizations that place obstacles in employee’s career development as Duffy et al., (2011)
argued that employees who would quit the organization at any available opportunity for growth
would occur due to greater chance of dissatisfaction.
Regression analysis ware conducted on training and development, career planning and growth
opportunities and employee turnover indicated that positive correlations where existed R= 0.870;
R= 0.832 R= 0.896 respectively with P values of 0.000. Since it was less than 0.05 the threshold
was met and it is significance.
The research showed that r2= 0.757% , r2= 0.692 r2 = 0.803 which means 75.7% , 69.2% and
80.3% variation in employee turnover could be explained with variation in training and
development, career planning and growth opportunities at Hibret bank.

4.10.2 Mentoring and Coaching (Employee Supervisor Relationship, Performance

Evaluation and Employee Turnover
Employee supervisor relationships and fair performance evaluations can have chance of reducing
employee turnover at the organizations. According to Levenson et al., (2006), the mentor
contributes by sharing career life, challenges, opportunities, their expertise, role development,
and offers formal and informal support with intention to influence the protégé career.
When respondents were asked if mentoring and coaching program is conducted excellently at
Hibret Bank. The mean of the respondents was 3.85, but when asked if the mentoring program
had reduced turnover at the bank, the respondents mean was 3.80.
Researchers like Brashear, et al., 2006; Pullins and Fine, (2002), argued that employees relation
with the supervisor, performance appraisals, working conditions negatively influence the
tendency for employee turnover. In this research the response had similarity with their argument.
Because mean of 3.82 respondents depicted relationship with the supervisor can lead them to
quit the bank.
Mean of 3.99 from the respondent agree that the current relationship with their supervisors were
beneficial to reducing turnover. Building mutual relationship through enhancing mentorship and
making good relationship between management and employee can increase the employee
commitment and reduce turnover.
The respondents who depicted that they had a good relationship with supervisors in enhancing
their knowledge and convert their manner had a mean of 3.70, and those who had an awful
relationship that doesn’t direct on their work, offer knowledge or support at mean of 3.81.
Ishaq et al., (2009) argued there exist a positive correlation between mentoring and employee
turnover. According to the study findings, mentoring, supervisor relationship, and evaluation and
employee turnover, Mentoring had the highest correlation where r = 0.888; P value was 0.000.
This reach the threshold of acceptance since it was less than 0.05.

4.10.3 Reward Systems (Salary and Bonus) and Employee Turnover
According Zhou et al., (2009), the extent to which employees feel motivated correlates with
turnover rates within banks. Equally, Foon, Leong, and Osman, (2010), argues that banks’ ability
to endear employees with motivating rewards determines the rate at which turnover is
experienced. The study findings indicate that salaries and bonuses at Hibret bank greatly
influence turnover at the bank.
According to Walia, et al., (2011) salary and associated benefits are an integral factor that
influences employee turnover. When respondents were asked about their salaries at Hibret bank,
respondents indicated that their current salary as good compared to the market rate and this had
the mean of 3.70, compared to a mean of 3.36 for those who believed the reward system at the
bank well structured. Those who believed that their salary at the bank was bad had a second
highest mean of 3.93.
According to leave Babakus, et al., (2003), employee satisfaction that comes through income
earned further leads to employee retention. In the banking sector, salaries offered to employees
can easily form a competitive advantage for the bank enabling the bank to curtail any salary
related turnover since the market would be unattractive to employees seeking to leave. The study
findings are in alignment with Babakus, et al., (2003) since those who believed that their salaries
at the bank was bad had a second highest mean of 3.93, and those who indicated that they could
quit the bank because of inadequate salary had the mean at 3.38.
However, we also had respondents who described their salaries as good had a mean of 3.70, this
means that Hibret bank in as much as they have a proportion of staff who believe that the reward
system is good, we have those who are disgruntled and can quit the bank at any available
opportunity should they get the chance.
Choi et al., (2012) had argued that banks should concentrate on employee retention strategies
regardless of salaries, while Franken(2012) held the view that employee turnover is as a result of
salary scale; usually, employees who quit search for jobs that would pay them better than the
previous ones. Franken argues that disparities with un-equal wage structures not only leads to
demotivation and poor performance, but also employee turnover.

The study findings seems to exude Franken(2012), assertions, since a portion who seems to be
benefiting from the salary structure had no problem with the reward system, but those who
indicated they had bad salaries, indicates Hibret’s reward system was not well structured.
According to the study findings, bonus payments largely influence employee turnover at Hibret
bank. Bonus payments are annual or by-annual payments that organizations give to their
employees as tokens of appreciation for good performance (Murphy, 1999). Bonuses are offered
based on accounting performance of the organization. Respondents who indicated that they
receive bonuses at the end of the year at Hibret bank had a mean 3.69. Compared to those who
indicated that unfair bonus system can influence their decision to quit the bank had a mean of
3.53. This was followed by those who believed that bonuses have contributed to employee
turnover at Hibret bank with a mean of 3.48. These findings are consistent with Keep et al.,
(2008), who argue that there exists a strong positive correlation between bonuses and employee
turnover.
According to the study findings, it indicates a strong significant positive relationship exists
between bonuses and employee turnover where r = 0.865; P value was 0.000. This met the
significance threshold level of 0.05. On regression analysis, a positive correlation was found to
exist between reward system and employee turnover, where regression coefficient R= 0.590; P
value was 0.000. This met the threshold level of significance since it was less than 0.05.

CHAPTER FIVE
5. CONCLUSION AND RECOMMENDATION
5.1. Conclusion
Looking into the impact of turnover and performance of employees in the banking industry in
case of Hibret bank is the main aim of the research. High turnover are Career growth
development and opportunities and employee relationship with management shown from the
analysis of the finding.
On the other hand reasons employee turnover happens are due to Job and employee skill
mismatch, Uncompetitive Compensation package, less growth opportunities, less recognition,
Due to its Poor working conditions and others are a key means leads the bank to have high
turnover. The working condition has become poor because the order the employee to find the
customers and open the account. The till now the bank don’t reward upon their attraction of
customers. Since such kind of work that means doing the marketing work, that going and
snatching customer make the employee highly dissatisfied, this leads to leave the bank.
This study has identified causes that influence the turnover in the Bank, in doing so; the
researcher used both primary and secondary data sources to verify the impact turnover on Hibret
bank. Regarding the analysis, interpretation, tabulation, and presentation of the data, the
researcher made use of different tools such as mean, frequency, tables, figures and percentages.
The conclusion of the study disclose that, the current employees of Hibret Bank of Ethiopia
thinks that the influence of training and development, career development, growth opportunities,
employee performance, employee relationship with supervisor, mentoring, salary and bonus are
adequate and these can be the causes to leave the organization.
Employees are dissatisfied with Bank’s initiative in different ways; one is to maintain
competitive pay system; the current salary and benefit; development opportunities (promotion),
such as the training opportunities. If employees are unsatisfied with these fundamental factors, it
may negatively influence the excellence service provision which negatively affects customer
satisfaction and if such dissatisfying factors are not take the edge off on time, employees may not

carry out their tasks as expected or may leave the bank and this may have shocking effect on the
operation of the Bank.
5.2 Recommendations
The study findings had the following recommendations.
5.2.1 Recommendations for Improvement
For simplicity the recommendation part shall be presented in three sections by categorizing the
variables together in one section. The bank shall give consideration to those recommendations
because leaving once employee has double impact. First the bank may loss his potential staffs
and secondly it improves competitor capacity.
5.2.2 Career Development such as training and development, career and growth
opportunities and Employee Turnover
To enhance sustainable employee commitment Hibret bank must thankful for the importance of
employee career development. From the respondent answer observing that a well-structured
training and development can increase the abilities and skill of employee which bring success to
the bank.
The bank shall also depict on its program at what period the careers of once staff can get the
chance and develop his or her careers.
There are factors that support the training and development program that are effective growth
through internal promotions, job rotation and expansions which bring not only enhancing the
Hibret bank employee this trend convey good for the industry as well. This will reduce employee
turnover and increase the commitment of the employee.
5.2.3 Mentoring, Evaluation and Supervisor Relationship with Employee and

Employee Turnover
Supervision by the top management does not mean searching negative things from the employee.
Instead it is being a mentor and couching in the necessary place. The respondent has put their
view on that they might leave the bank unless and otherwise the supervision has improves.

During performance evaluation the manager shall discussed with the staffs to clarify why he
score good or bad appraisal. If the way is clear the employee admitted that he has to get such
evaluation. With all this created mutual relationship, manager and general employees become
harmonious and work with synergy that bring better performance. putting the defined and clear
date as to when the staffs shall promote also enhance the employee performance.
5.2.4 Rewards System, salary and bonus and Employee Turnover
Even through the Hibret bank has a salary structure, job grade and job description the participant
response depicted as if it was not updated. Because some respondent responds as it has no well-
structured salary scale. Glancing the market salary structure can help the bank to adjust its salary
and retain the employee within the bank. This can be done by conducting market survey and
computing it with the competitor salaries structure. Similarly Hibret bank shall strengthen the
bonus payment structure by computing the industry. If so happens the banks capability will
enhance because these can have the power to develop employees to remain or work with the
bank. This will reduce employee turnover and increase employee commitment and performance.
5.2.5 Recommendations for Future Research
Hence, this research consider significant variables and analyzes many issues and tests each
variables with the help of spss v 24 Researchers and Academicians, and the Government can
make use of it while they are conducting such like research.

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APPENDIX
A QUESTIONNAIRE
ADDIS ABABA UNIVRSITY
DEPARTMNET OF MANAGEMENT
Dear Respondents, the following questionnaire is developed by student Tamirat Sahle from
Addis Ababa University College of Business and Economics to study factor that affect
employees Turnover in Ethiopia, incases of Hibret bank S.C. in fulfilling the requirement of
Masters of Science in Management. Your specific answers will be completely anonymous &
confidential, but your views, in combination with those of others, are extremely important. I
assure you again that, all your responses will be kept in absolute confidentiality and you will not
be held responsible for the research outcome.
Therefore, your genuine, frank and timely responses are quite vital to determine the success of
this study. So, I kindly request your contribution in filling the questionnaire honestly and
responsibly. Please contact me for any information regarding the questionnaire with 0911733087
or [email protected].

RESEARCH QUESTIONNAIRE
SECTION A: GENERAL INFORMATION
Kindly respond to the questions below by ticking in the boxes. Where space is provided you can
write your answer
(A). BACKGROUND INFORMATION.
1. Name (optional) __________________________________
2. Gender.
Male
Female
3. Age
18- 30 yrs.
31- 40 yrs.
41- 50 yrs.
51- 60 yrs.
Over 61 yrs.
4. Which department do you currently work in at the Bank?
Special branch
A branch
B branch
Outline branch
HR Department
Other (specify) _____________________________
5. How many years you have worked for the bank?
1-3 years 4-6 years 7-9 years 10-12 years 13-15 years
6. Kindly indicate your designation at the bank
Manager Supervisor General Employee

SECTION B: RESEARCH TOPIC
Employee Turnover
Kindly answer the following questions to the best of your knowledge by ticking (√) the box that
represents your answer (Turnover rate will be computed by dividing average turnover from
questionnaire with total number of employees)
Employee Turnover questions-
7. In the last one year have you had any employees leave the Bank?(HR manager ONLY)
A). YES
B). NO
8. If YES, how many employees left? (HR manager ONLY) __________________________
9. Kindly indicate how many of these employees left (HR manager ONLY)
A). Voluntarily
B). Involuntarily/Dismissed
10. Kindly indicate the type of employee turnover for those who left the bank?
(HR manager ONLY)
A). Functional turnover
B). Dysfunctional turnover
C). Avoidable turnover
D). Unavoidable turnover
11. According to you, what are the reasons for the employee turnover at the bank?
a) Uncompetitive Compensation package
b) Job and employee skill mismatch
c) Less growth opportunities
d) Less recognition
e) Poor working conditions

Other (please specify) _______________________
12. Kindly indicate some of the things which the bank can do to reduce employee turnover?
a) Offer competitive Pay Package
b) Treat each employee with respect regardless of their job
c) Offer flexible working hours
d) Offer good working environment
e) Offer Opportunities for growth
13. Of the turnover costs, which one(s) costs the organization more (Tick more than one)
a) Recruitment costs
b) Interview Costs
c) Training Costs
d) Administration costs
e) Separation Costs
14. What do you think is the cost of recruiting a new employee?
A). Very Low
B). Low
C). No Cost
D). High
E).Very High
15. Please indicate the type of organizations employees join when they leave the bank
A). An organization in the same sector

B). An organization in a different sector
C). Further study
D). Self-employment
E). Not working
Other (please specify)___________________

Kindly tick in the spaces provided for the answer that best represents your view.
A) Training & Development Strongly Disagree Neutral Agree Strongly

Disagree agree
16. The bank provides you with Job
training
17. The trainings are poorly organized
18. The Trainings are well organized
19. Training and development programs
have enhanced my career skills
20. Training provides opportunities for
career development
21. You can quit the bank for lack of
training and development opportunities
C). Growth Opportunities Strongly Disagree Neutral Agree Strongly
Disagree agree
22. You have a well-structured career
planning program at the bank
23. Career plan enhances employees
commitment to the bank
24. In career planning employees skills are
matched with their job descriptions
25. Adequate job duties enables evaluate
your career plan
26. Career planning is for your growth
within the bank
27. Career planning influences employee
turnover
C). Growth Opportunities Strongly Disagree Neutral Agree Strongly
Disagree agree
28. The bank has policies that support
employee career growth
29. Management supports employee
career growth
30. Actual career growth opportunities
exist at the bank
31. Promotions are fair and just within the

bank
32. Career growth opportunities are based
on merit
33. The bank’s career growth is the best
compared to the industry
34. Career growth opportunities influences
employee turnover
35. You would quit the bank if growth
opportunities are not available to you

Research Question II: Mentoring and Employee Turnover
B) Mentoring and Coaching Strongly Disagree Neutral Agree Strongly

Disagree agree
36. You currently have a mentoring
program at the bank
37. The mentoring program enhances your
skills
38. The mentoring and coaching program
is conducted excellently at the bank
39. Employee selection for mentoring and
coaching program is done fairly
40. Mentoring program enhances
employee commitment to the bank
41. Mentoring program has reduced
employee turnover at the bank
Employee relationship with supervisor Strongly Disagree Neutral Agree Strongly
Disagree agree
42. You currently have a good relationship
with your supervisor
43. You currently have a bad relationship
with your supervisor
44. Your relationship with the supervisor
is beneficial to the bank
45. Your relationship with your supervisor
is beneficial to you
makes you committed to the bank
can make you quit the bank
Performance Evaluations Strongly Disagree Neutral Agree Strongly
Disagree agree
48. You currently receive performance
evaluations at the bank
49. Performance evaluation is well
structured at the bank
50. The evaluations system is always fair
to you.
51. Performance evaluations are not
punitive
52. Performance evaluations provide you
with adequate feedback on your
performance
53. You can quit the bank if performance
evaluations are not fair to you
Research Question III: Rewards System and Employee Turnover

C) Salary Strongly Disagree Neutral Agree Strongly

Disagree agree
54. The bank rewards system are fair to
you
55. The salary grades are well structured
56. Your salary is based on your value to
the bank
57. You can describe your current salary
as good compared to the market rate
58. You can describe your current salary
as bad compared to the market rate
59. You can quit the bank because of
inadequate salary if you get another job
D) Bonuses Strongly Disagree Neutral Agree Strongly
Disagree agree
60. The bank has a bonus structure in
place
61. You receive end year bonuses
62. Bonuses are based on merit/
performance
63. The bonus sharing formula is fair and
just to all employees
64. Bonuses influence your commitment
to stay with the bank
65. Unfair bonus system can influence
your decision to quit the bank
66. Bonuses have contributed to employee
turnover at the bank
The End
Thanks a lot for your Cooperation!

Tamirat Sahle

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ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

FACTOR THAT AFFECT EMPLOYEES TURNOVER IN

BY: TAMIRAT SAHLE MANDEFRO

ZELALEM G/TSADIK (PhD)

ADDIS ABABA, ETHIOPIA

FACTOR THAT AFFECT EMPLOYEES TUROVER IN

A THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT OF ADDIS

TAMIRAT SAHLE MANDEFRO

ZELALEM G/TSADIK (PhD)

Tamirat Sahle Mandefro APRIL, 2022

Name Signature Date

ZELALEM G/TSADIK (PHD) APRIL, 2022

Advisor Name Signature Date

Signed by the Examining Committee:

External Examiner Temesgen Belayneh (PhD) Signature Date 28/04/2022

Internal Examiner Asres Abitie (PhD) Signature Date ____________

Advisor Zelalem G/tsadik (PhD) Signature Date ____________

By: TAMIRAT SAHLE AAU/CBE Page i

By: TAMIRAT SAHLE AAU/CBE Page ii

By: TAMIRAT SAHLE AAU/CBE Page iii

2.2.3 Banking Industry ............................................................................................................ 9

By: TAMIRAT SAHLE AAU/CBE Page iv

3.3. Data Collection Methods.................................................................................................... 25

By: TAMIRAT SAHLE AAU/CBE Page v

4.2.5 Respondents Designation at the Bank .......................................................................... 36

By: TAMIRAT SAHLE AAU/CBE Page vi

4.7. Over-all Test ....................................................................................................................... 58

By: TAMIRAT SAHLE AAU/CBE Page vii

Table 4.1: Response Rate .............................................................................................................. 32

By: TAMIRAT SAHLE AAU/CBE Page viii

Table 4.26: Anova of career planning (spss v24) ......................................................................... 47

By: TAMIRAT SAHLE AAU/CBE Page ix

Figure 4.1: Normality assumption by using histogram ................................................................. 63

Figure 4.2: Normal probability plot .............................................................................................. 64

By: TAMIRAT SAHLE AAU/CBE Page x

ANOVA Analysis of Variances

ETN Employee Turnover

HRM Human Resource Management

NBE National bank of Ethiopia

SPSS Statistical package for social science

UB(HB) United (Hibret) Bank S.C

VIF Variance Inflation Factors

By: TAMIRAT SAHLE AAU/CBE Page xi

Employee turnover can be described as an employee stop to work for an organization. On a

By: TAMIRAT SAHLE AAU/CBE Page 1

1.2. Background of the Study

By: TAMIRAT SAHLE AAU/CBE Page 2

1.3 Statement of the Problem

By: TAMIRAT SAHLE AAU/CBE Page 3

By: TAMIRAT SAHLE AAU/CBE Page 4

1.4. Research Questions

The research was done on the following research questions:-

1.5 Research Objectives

1.5.1 General Objectives

1.5.2 Specific Objective

1.6 Significances of the Study

By: TAMIRAT SAHLE AAU/CBE Page 5

1.7 Scope of the Study