ADMAS UNIVERSITY

SCHOOL OF POSTGRADUATE STUDIES

FACTORS AFFECTING EMPLOYEES TURNOVER INTENTION: THE CASE OF

ETHIOPIAN CUSTOMS COMMISSION,ADDIS ABABABOLE AIRPORT BRANCH
OFFICE

BY:
RUTH GETACHEW

ADVISOR:
HAILEMIKAEL.M (PH.D)

A Master’s Thesis Submitted to Admas University in Partial Fulfillment of the Requirement

for the Award of Master of Art Degree in Business Administration

JULY, 2020
ADDIS ABABA, ETHIOPIA
DECLARATION

I, Ruth Getachew, the under signed, declare that this thesis entitled: “Factors Affecting
Employee’s Turnover Intention” is my original work. I have undertaken the research work
independently with the guidance and support of the research advisor. This study has not been
submitted for any degree or diploma program in this or any other institutions and that all sources of
materials used for the thesis has been duly acknowledged.

Declared by

Name Ruth Getachew

Signature __________________
Department: Business Administration
Date ______________________

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 CERTIFICATE OF APPROVAL OF THESIS
SCHOOL OF POSTGRADUATE STUDIES
ADMAS UNIVERSITY

This is to certify that the thesis prepared by Ruth Getachew, entitled “Factors Affecting
Employee’s Turnover Intention” and submitted in partial fulfillment of the requirements for the
Degree of Masters of Arts in MBA complies with the regulations of the University and meets the
accepted standards with respect to originality and quality.

Name of Candidate: _____________; Signature: _______________Date: _____________

Name of Advisor:_______________; Signature: _______________Date: _____________

Signature of Board of Examiner`s:

External examiner: _____________________ Signature: ____________Date: ____________
Internal examiner: _____________________ Signature: ____________Date: _____________
Dean, SGS: __________________________ Signature: ____________Date: _____________

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ACKNOWLEDGEMENTS

First of all, I praise Lord the Almighty for giving me strength, health and peace to win all life
challenges and successfully complete this study.
I extend my gratitude to my advisor, Hailemikael M. (PhD) for his valuable advice,
encouragements and technical support during my research paper.

My deepest and special appreciation goes to my family W/ro Muna G/Hiwot, Getachew Adere and
my sister Emnet Getachew for their unreserved support throughout my study.

Finally, I would like to express my gratitude and appreciation to those employees working at Addis
Ababa Bole Airport Customs Branch Office who filled and returned me the questionnaires and all
my friends who have provided motivation, advice, support and even remark that had contributed
towards the completion of my research paper.

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ABBREVIATIONS

AABACBO Addis Ababa Bole Airport Customs Branch Office

ECC Ethiopian Customs Commission
ESI Employee Inventory Satisfaction
ETB Ethiopian Birr
HRM Human Resource Management
HRMD Human Resource Management Department
ILRI International Livestock Research Institute
SME Small Medium Enterprise
SPSS Statistical Package for Social Sciences
WB World Bank

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 TABLE OF CONTENTS
DECLARATION………………………………………………………………………………………..….. i
CERTIFICATE OF APPROVAL OF THESIS.………………..……………………………………………..ii
ACKNOWLEDGEMENT………………………………………………………………………………….. iii
ABBREVIAATIONS……………………………………………………………………………………….. iv
TABLE OF CONTENTS…………………………………………………………………………………….v
LIST OF TABLES…………………………………………………………………………………………..vii
LIST OF FIGURES……………………………………………………………………….…………………viii
ABSTRACT………………………………………………………………………………………………… ix
Chapter One: Introduction………………………………………………………………………………….. 1
1.1. Background of the Study……………………………………………………………………………….. 1
1.2. Statement of the Problem …………………………………………………………………………….2
1.3. Research Questions…………………………………………………………………………….………..4
1.4. Objective of the Study…………………………………………………………………………… 4
1.4.1. General objective of the Study…………………………………………………………………. 4
1.4.2. Specific objectives of the Study …………………………………………………………….….…..4
1.5. Significance of the Study……………………………………………………………………...…….. 4
1.6. Scope of the Study ……………………………………………………………………………….…….4
1.7. Limitation of the Study …………………………………………………………………….………5
1.8. Operational Definition of Terms…………………………………………………………………….. 5
1.9. Organization of the Study....……………………………………………………………………………..5
Chapter Two: Review of Related Literature……………………………………………………………….. 6
2.1 Theoretical Literature Review………………………………………………………………………….. 6
2.1.1Employee Turnover…………………………………………………………………………………… 6
2.1.2 Turnover Intention……………………………………………………………………………………. 6
2.1.3 Types of Employee Turnover …………………………………………………………………....7
2.1.4.1 Demographic Factors………………………………………………………………………………... 8
2.1.4.2 Individual Factors…………………………………………………………………………………… 9
2.1.4.3. Leadership Factors……………………………………………………………………………….…. 10
2.1.4.4 Organizational Factors ……………………………………………………………………………..14
2.2 Consequence of Employee Turnover …………………………………………………………………….16
2.3 Empirical Literature Review …………………………………………………………………………….16
2.3.1Impact of Employees’ Turnover on Organization Efficiency ………………………………………….19
2.3.1.1Increased Customer Dissatisfaction………………………………………………………………….19
2.3.1.2 Description to Service Delivery ……………………………………………………………………20
2.3.1.3 Increase in Work Load on Employees ……………………………………………………………20
2.4 Employee Retention Strategies…………………………………………………………………………. 21
2.4.1 Sound Strategies to Minimize Employee Turnover …………………………………………………..21

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2.4.1.1 Recruiting Suitable Employees ……………………………………………………………………21
2.4.1.2 Retaining Valuable Employees ……………………………………………………………………22
2.4.1.3 Effective Leadership……………………………………………………………………………….. 22
2.4.1.4 Training and Development…………………………………………………………………………. 22
2.4.1.5 Organizational Culture ……………………………………………………………….……………22
2.5Conceptual Framework ………………………………………………………………….…………22
Chapter Three: Research Design and Methods ………………………….……………………….………24
3.1 Research Design………………………………………………………………………………………… 24
3.2 Research Approach………………………………………………………………………………….…...24
3.3 Population and Sampling Design………………………………………………………………………. 24
3.4 Sources and Types of Data …………………………………………………………………………….25
3.5 Data Collection Methods……………………………………………………………………………… 25
3.6. Methods of Data Analysis……………………………………………………………………………. 26
3.7.Data Validity and Reliability………………………………………………………………….………….26
3.8. Ethical Issues of the Study ……………………………………………………………………………..27
Chapter Four: Results and Discussions …………………………………………………………………….28
4.1. Response Rate………………………………………………………………………………………….. 28
4.2. Demographic Analysis of the Respondents ……………………………………………………………28
4.3Descriptive Statistics Analysis…………………………………………………………………………. 31
4.4. Inferential Analysis..………………………………………………………………………….…………38
4.5 Exit Interview………………………………………………………………………………………… 45
4.6. Document Analysis: Trend of Employee Turnover …………………………………………………...45
Chapter Five: Summary, Conclusion and Recommendations………………………………………….…….47
5.1 Summary……………………………………………………………………………………………….. 47
5.2 Conclusions …………………………………………………………………………………………….. 48
5.3 Recommendations……………………………………………………………………………………… 50
REFERENCES………………………………………………………………………..…………………….. 51
APPENDIX. …………………………………………………………………………………………………..I

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LIST OF TABLES
TABLE 1 SEX OF THE RESPONDENTS .............................................................................................................. 28
Table 2 AGE STRUCTURE OF THE RESPONDENTS ………………………………………………..29
TABLE 3 EDUCATIONAL LEVEL OF THE RESPONDENTS................................................................................. 29
TABLE 4 WORK EXPERIENCE OF THE RESPONDENTS .................................................................................... 30
TABLE 5 RESPONDENTS VIEW ABOUT INDIVIDUAL FACTORS FOR TURNOVER INTENTION .......................... 32
TABLE 6 LEADERSHIP FACTORS FOR TURNOVER INTENTION ........................................................................ 33
TABLE 7 ORGANIZATIONAL AND WORKING ENVIRONMENT AS FACTORS FOR TURNOVER .......................... 34
TABLE 8 DESCRIPTION OF EMPLOYEE’S INTENTION TO LEAVE THEIR JOBS………………………………..37
TABLE 9 PEARSON’S CORRELATION BETWEEN INDIVIDUAL FACTORS & TURRNOVER ............. 39
TABLE 10 PEARSON’S CORRELATION BETWEEN LEADERSHIP FACTORS AND EMPLOYEE TURNOVER…….40
TABLE 11 PEARSON’S CORRELATION BETWEEN ORGANIZATIONAL FACTORS &EMPLOYEE TURNOVER ..... 41
TABLE 12 ANOVA ......................................................................................................................................... 42
TABLE 13 REGRESSION RESULTS ................................................................................................................... 43
TABLE 14 SUMMARY OF HYPOTHESIS TESTING ............................................................................................. 44
TABLE 15 THE RATE OF PROFESSIONAL EMPLOYEES TURNOVER .................................................................. 46

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LIST OF FIGURES
FIGURE 1 CONCEPTUAL FRAMEWORK .........................................................................................................23
FIGURE 2 MARITAL STATUS OF THE RESPONDENTS ........................................................................................30
FIGURE 3 SALARY OF THE RESPONDENT .......................................................................................................31
FIGURE 4 DOCUMENT ANALYSIS OF PROFESSIONAL TURNOVER..........................................................................31

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 ABSTRACT

The main objective of this research was to identify “Factors Affecting Employee Turnover Intention:
The Case of Addis Ababa Bole Airport Customs Branch Office. Among a total of 696 professional
employees currently working at Addis Ababa Bole Airport Customs Branch Office, 248 employees
were selected as the sample of the study by using both stratified and purposive sampling techniques.
In order to collect primary data, questionnaires were distributed to 248 employees and 132
respondents filled and returned. In addition to questionnaires, interview was conducted with HRM
team leaders to gather data. The study employed both quantitative and qualitative type of research
approaches though descriptive research method. Data collected through questionnaires were
analyzed using SPSS 20.0 version. The tests involved were descriptive statistics, correlation and
regression analysis to determine the relationship between the independent and dependent variables.
The collected data was analyzed using frequency and percentage and presented in form of figures
and tables. There were some factors which contributed to professional employee’s turnover
intention in organization mainly these consisted of individual factors, leadership factors and
organizational factors. Even if their extents of contributions for turnover vary; the findings
revealed that almost all are the major factors for employee turnover in organization. The target
population was divided into two categories: HR team leaders and professional employees currently
working at branch office. The study found out that the organization was experiencing high cases of
employee’s turnover within the review years (2017, 2018 and 2019). Based on the results obtained
from the study, it is possible to conclude that a large number of employees had intention to leave
the organization. Some of the identified factors of employees’ turnover intention include insufficient
salary and benefit packages, better job opportunities elsewhere in the labor market, lack of career
advancement; weak management support and the likes were found to be the major factors for
employee turnover intention in the organization. The study concluded that lack of employee
retention strategies, and low level of employee motivation in one or the other way impacted
negatively on organizational goals and objectives.
Key Words: Turnover Intention, Retention, Customs, Motivation, and CareerAdvancement.

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 Chapter One: Introduction

1.1 Background of the Study

In the era of globalization, it has been regarded to be a key issue to deal with employee turnover for
any business organization. Chowdhury A. and Nazmul H. (2017) also stated employee turnover as a
serious issue, particularly in the area of human resource management globally. To fulfill the basic
needs and provide a good working environment, good pay and other benefits in an
economicapproach is quite multifaceted and burdensome to an organization. Every business desires
to increase the productivity and lessen turnover, thereby leading to be profitable. Employee turnover
supervision is an obligation to attain organizational goals effectively.

According to Pakkiasamy (2004), there is virtually no organization that is immune to employees’

turnover. Employee turnover has always been one of the challenges to human resource managers
and the respective employers in any fast growing economies including the Kingdom of Saudi
Arabia. Most of the employers in the Kingdom of Saudi Arabia are not aware of why employees
choose to leave their organizations and why they stay. Employees who leave the organization’s
request as well as those who leave on their own initiative can cause disruptions in operations, work
team dynamics and unit performance and both types of turnover create costs for the organization.
So, employees’ turnover poses a recurrent challenge to most business organization globally.

Thus, employee turnover refers to the rate at which an employer gains and losses of employees,
how long the staff tend to leave and join the organization. Employee’s turnover is becoming a
major issue for both public and private organizations. There are many contributors to this scenario
that are significant to the employee turnover. Such aspects can stem from both the company as well
as the employees. The employers are more concerned with the turnover as it impacts negatively and
a very expensive aspect of the business world (Thomas, 2003cited in Ruth N, 2015).

However, high turnover would bring devastation to the business in the form of both direct and
indirect costs. Direct costs are referred to costs such as expenses on recruitment, selection,
orientation, workshop and training for the fresh employees. Indirect costs are indicated to spending
on education, condensed self-confidence, stress on the existing worker and thecollapseof social
capital. Moreover, high employee turnover will put at risk on reaching the organizational goals. To
combat the challenges in the cutthroat business world, management has considered employee turnover
as a major concern and initiated some measures to retain them in the organizations (Chowdhury A.
and Nazmul H., 2017).

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Armstrong (2009) stated that professional employees’ turnover is an important and pervasive
feature of the labor market. We are living in the world of stiff business competitions and business
process outsourcing which is on the peak and demands effective performance. In line with this,
turnover is becoming a critical human resource issue in all sectors of the economy because it affects
productivity, product and service quality, and profitability. In addition to this, the cost of replacing
workers is high, getting skilled and committed employees may be difficult, and this also needs high
investments in training new workforces.

In relation to this, the present situation has shown that high employees turnover in Ethiopian
Customs Commission, at Bole Airport Addis Ababa Customs Branch Office. This had inspired the
researcher to study further why young and trained professional employees were currently leaving
the customs branch. Thus, this study clearly identified the causes of employees' turnover and its
management or retention strategies that can help in developing appropriate policy and training
program for the organization of ECC, at Addis Ababa Bole Airport Customs Branch office.

1.2. Statement of the Problem

Ethiopian Customs Commission, ECC is one of the public owned Organizations mainly responsible
for collecting revenues from custom duties and domestic taxes that the economy generates in the
country. The organization at Addis Ababa Bole Airport Customs Branch Office (AABACBO)
currently has a total of 964 employees of which 368 are professionals and 596 non-professionals
(document of HRM at AABACBO, 2020). In addition to raising revenue, the organization is also
responsible to protect the society from adverse effect of smuggling. In doing this, it strives to have
and maintain adequate number of the right sort of employees with appropriate trainings,
qualifications and experiences who can serve its customers as per the rules and regulations of the
authority (Ethiopian Customs Commission Proclamation No.1160/ 2019).

Indeed, effective performance of the organization depends not only on the availability of technical
resources, but also on the quality and competence of its employees as required by it. Regarding this,
(Boxall and Purcell, 2003) have proposed that organizations would have invested heavily into
developing their employees who hold critical knowledge and skills. Additionally, they expressed
that human capital is neither widely accessible nor easily imitated.

Turnover is a costly expense and a huge concern to employers and should be avoided as much as
possible. High turnover represents a considerable burden on human resource and line managers,
who constantly have to recruit and train new employees which in turn incurs high costs. Various

2
studies were carried out by different researchers (for example, Khatri, 2010; Kuria, 2012and
Lindsey, 2013cited in Yoseph A. 2019) how to understand the major causes of employees’ turnover
and retention strategies that organizations should develop.

Most of these studies were carried out by developed countries and few of them were in developing
countries. Even if the studies conducted in different situations, the overall impacts of turnover in
developing countries seem more severe than developed ones. This is due to the fact that the various
conditions of economic, social, technological and political background of the nation under the study
found to be quietly vary and different (Armstrong M., 2006).

According to Ali (2009), employee turnover also influences allocation of the job tasks functions to
inexperienced employee who lacks technical know-how on effective execution of organization
services, this in turn greatly degrades the quality of organization services and as a result of this, low
level of customer satisfaction is realized. The organization sales revenue declines and this lowers
the overall level of organizational performance.

No business can enjoy and sustain the success until it deals with the problem of employee turnover
intention efficiently and successfully. This calls for a strategic approach to the management of
employees to motivate and retain them in the organization (Ongori, 2007).

In light to this Mello (2011), expresses that a key problem to employees’ turnover is that the
organization loses the most experienced and skilled staff on which the organization had invested
heavily in training on various organization job task functions. This therefore means that, the
organization must incur huge costs in terms of time and finance to train the newly recruited staff in
order to make them effectively adapt to organization working environment and demonstrate the
required skills experience.

Turnover has negative effects on productivity, product and service quality, and profitability. The
cost involved in hiring new employees is high and finding skilled employees can be difficult.
Replacing a lost valuable employee can be more expensive than employing a new one. Regarding
this, (Cappelli, 1997) believes that retaining the organization’s valuable employees has been very
challenging for many organizations. Research estimates indicate that recruiting and training new
employees cost approximately about 50 percent of the worker’s annual salary (Ali, N. 2008).

3
1.3. Research Hypothesis
To address the problem stated above, this study tried to answer the following hypothesis:
H11: There is significant relationship between individual factors and turnover intension
H12: There is significant negative relationship between leadership factors and turnover intention.
H13: There is significant negative relationship between organizational factors and turnover
intension.
H14: The overall bundle determinant has effect on turnover intension.

1.4. Objective of the Study

1.4.1. General objective of the Study
The overall objective of the study was to identify factors affecting employee’s turnover intention.
1.4.2. Specific objectives of the Study
• To find determine the individual factors those cause employees turnover intention.
• To assess the organizational factors those affect employee turnover intention.
• To investigate leadership factors those contribute for employee turnover intention.
1.5. Significance of the Study
As mentioned in the introductory part of the research paper, Ethiopian customs commission is
plagued by voluntary turnover which could have a number of negative impacts on the organization.
This study attempted to explore the causes that are contributing to turnover intention atAddis
Ababa Bole Airport Customs BranchOffice (AABACBO).

In general, the study can help the human resource managers and policy makers to aware the extent
of impact of employee turnover on organizational performance. The findings of this study are
expected to be of great importance to various researchers involved in human resource development
research activities. The study may further make a myriad of contributions to the literature on
employee turnover intention.

1.6. Scope of the Study

The study mainly considered about the individual factors, leadership factors and organizational
factors those contribute for employee turnover at Addis Ababa Bole Airport Customs Branch
Office. Even though there are thirty-three (33) customs branch offices in the country, this study
delaminated to AABACBO for it is so much manageable to conduct the research study. In addition
to this, the study considered only the existing employees who were selected as respondents to
express their opinion about turnover intention.

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In doing this, the study didn’t include those employees who had already left the organization for
their own various reasons. The study relied on the organizational data of the Customs Branch
Office of the year (2017-2019) which might be manageable in collecting the necessary data i.e.,
survey questionnaires from the respondents and conducting an exit interview easily within a given
time with the concerned body.

1.7. Limitation of the Study

While conducting the study, the researcher faced a problem of data collecting from the respected
respondents due to the pandemic Covid-19 or Corona virus that happened all over the world
including our country, Ethiopia. And due to this situation, some of them were out of their regular
jobs without returning the questionnaires they took to fill.

1.8 Operational Definition of Terms

Turnover:-refers to the movement of employees in an organization which is determined by

calculating the ratio of the number of employees who left during the period considered and the
average number of employees of the organization in the same period (Armstrong, M. 2004).
Employee Retention:-this is an effort put in by the employers in an attempt to keep employees in
the organizations (Spencer, W. 2001).
Turnover Intention:- is defined as the personal estimated probability of an employee that he or
she deliberately intends to permanently leave the organization in the near future (Salahudin, S.N, et
al., 2009).

1.9 Organization of the Study

The study had five chapters. chapter one contained background of the study, statement of the
problem, research questions, objectives of the study, significance of the study, scope of the study,
limitation of the study and operational definitions. Chapter two came up with the review of
literature i.e., theoretical literature, empirical literature, causes for employee turnover consequence
of employee turnover, and employee retention strategies and the likes were included.

In the third chapter, the methodology part contained such as, research setting, research approach,
research design, population and sampling, sample size determination, proportionate sampling,
sampling design, sampling frame, variable in the study, source of data collection, data collection
instrument, procedures of data collection, methods of data analysis and ethical consideration were
discussed. In chapter four result and discussion of the study were discussed. Finally in chapter five
the summary, conclusions and recommendations were presented.

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 Chapter Two: Review of Related Literature

2.1 Theoretical Literature Review

2.1.1Employee Turnover

In human resources context, Employee turnover is the rate at which an employer loses employees.
Simple ways to describe it are “how long employees tend to stay” or “the rate of traffic through the
revolving Door” (Samuel, M. and Chipunza, C. 2009). Employee turnover is the ratio of the
number of organizational members who have left during the period being considered divided by the
average number of people in that organization during the period (Dwomohm & Korankye,
2012cited in Dejen D., 2017). This term is also often utilized in efforts to measure relationships of
employees in an organization as they leave, regardless of their own reasons.

Employee turnover is a reduction in the number of employees who plan to leave their jobs. A
turnover intention is a mental decision prevailing between an individual’s approach with reference
to a job to continue or leave the job (Jacobs, 2007 cited in Yoseph, 2019). Turnover intentions are
the instant linkages to turnover behavior (Boles et al., 2007).Indirect costs that are associated with
turnover decisions are diminishing motivation among the remaining staff, work overload, and loss
of social capital.

Employee turnover intention refers to an employee who is thinking of quitting his/her job (Firth et
al., 2004). In relation to this, Abbasi and Hollman (2000) also warned that the employees who are
most likely to choose to leave the organization are the smartest and most talented employees in the
group. As a result, their valuable experiences, skills, talents, and knowledge will leave with them and
lead to decreased efficiency.

[ 2.1.2 Turnover Intention

Over the years, scholars and researchers have proposed numerous definitions to better understand
turnover intention. According to Tett and Meyer, turnover intention is defined as ‘a conscious and
deliberate willfulness of employee’s to leave the organization’ (Tett& Meyer, 1993).One can also
define turnover intention as the personal estimated probability of an employee that he or she
deliberately intends to permanently leave the organization in the near future. Employee turnover
intention refers to an employee who is thinking of quitting his/her job (Firth et al., 2004). The term
"intention" serves as the main determinant of the act of quitting from the job behavior (Salahudin et
al., 2009)

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One can classify and categorize turnover into voluntary or involuntary. It can also be classified as
either functional or dysfunctional. Each of these classifications will affect the organization at
varying degrees (Wells and Peachey, 2010). According to their views, one can define voluntary
turnover as a process where the employee makes a decision on whether he/she will stay or leave the
organization. Mobley (1982) states that a dysfunctional turnover and can be the most damaging to
the organization. Mobley (1982) also warned that the employees who are most likely to choose to
leave the organization are the smartest and most talented employees in the group. As a result, their
valuable experiences, skills, talents, and knowledge will leave with them and lead to decreased
efficiency (Abbasi and Hollman, 2000).

2.1.3 Types of Employee Turnover

Turnover is often classified as voluntary or involuntary. The involuntary turnover occurs when an
employee is fired, terminated without his interest. Voluntary turnover occurs when an employee
leaves by his own choice and can be caused by many factors. Causes include lack of challenge,
better opportunity elsewhere, pay, supervision, geography, pressure and the likes (Medhanit K.,
2014).
Similarly, (Mbah & Ikemefuna, 2012 cited in Dejen D, 2017) stated that the separation of
employees from an organization may be due to voluntary or involuntary turnover. It is voluntary
when the choice of leaving the organization is initiated by the employee and involuntary where the
employee has no choice in their termination. It may result from the following situations: dismissal,
retrenchment/redundancy, retirement, long-term sickness, physical/ mental disability, moving
/relocating abroad, and death.
The turnover of employees has always been an important concern for organizations, regardless of
their sizes, locations, business strategy (profit or non-profit oriented), or natures of business. The
turnover of employees is a major concern especially in terms of managing human resources.
Furthermore, Ali, N. (2008) stated that if the turnover issue of employee is not solved, there will be
an increase in the organizational cost expenditure.

2.1.4 Factors Affecting Turnover Intention

Turnover may be caused by different factors. These factors of turnover intentions are different from
organization to organization to some extent (Ali, S.I. et al., 2010). Jha stated that no single factor
can be attributed to turnover intentions and proposed to follow a holistic approach in studying
factors affecting turnover intention of employees (Jha, S. 2009).

7
Turnover, in essence, mainly results from job dissatisfaction for individual employee in the work place.
However, being dissatisfied in a work is not the only reason of leaving the company. When employees
possess skills that are in demand, they are likely to be tempted by a high salary, more benefits or better
potential for career development elsewhere. Consequently, it is sometimes necessary to understand and
identify the difference between employees who are unsatisfied, leaving the job and those who quit for
other reasons. There is a variety of causes and influential factors that result in employees’ turnover of
an organization (Chowdhury A. and Nazmul H., 2017).
2.1.4.1 Demographic Factors
Abdioğlu(2016) described demographic factors, such as age, professional experience (tenure),
marital status, professional title and previous knowledge about the profession have no effect on the
probability of turnover intention. Nevertheless, Chowdhury (2015), Victoria and Olalekan
(2016)identified that the demographic factors such as age, marital status, tenure, wage, position,
and working department are determinants for turnover intention.
Armstrong (2012) argued that age has been identified as a factor that may influence quitting
behavior. It affected job attitudes and turnover intention. An older employee was more likely to
possess a lower degree of mobility and concerned with the formal and informal benefits at a
workplace than their younger counterparts. Chowdhury (2015), in their study on psychological
contract and turnover intention among highly educated employees in the hospitality industry,
commented that not much attention has been paid to the relation between age and related phase in
the life course. Marital status also plays some role in predicting an employee’s intention to leave a
job. Married employees have to balance work and family commitments with family and a lack of
time and energy to participate in family activities may also encourage an employee to leave his/her
job.
Even though Abdioğlu(2016) found significant relationship between gender and turnover intention
Victoria and Olalekan (2016) concluded as gender had no significant influence on the intention of
employees to leave. Griffin& Moorhead (2014) identified significant differences between gender,
age group and marital status toward turnover intention, such as female has higher intention to leave
as compared to male, while married respondents have higher job commitment as compared to
single respondents and elders are willing to retain in their respective institutions as compared to
those younger.

Employees with lower educational attainment have relatively less turnover intention than more
educated employees. Educated employees are better informed of the alternative opportunities in the
labor market. The other reason educated employees tend to quit more often compared to less

8
educated ones is because educated employees are often more demanding and critical about their
jobs. The more educated are the employees, the higher is the frequency of them considering leaving
their present job (Victoria&Olalekan, 2016).

The length of employment or tenure also plays an important role in shaping employee attitude
towards leaving their present job (Siew, 2017). Some employees prefer to stay in one company
because they want to keep the benefits offered. In the event of the long serving employee leaving,
he or she would often not get the full benefits and welfare payments provided by the company. In
most cases, the longer an employee works in one company, the longer will the employee tend to
stay and in turn this minimizes any intention to leave a job. In short, long stay employees become
locked into benefits, financially and with reference to status, while additionally such long service
also indicates possible commitment to the industry. In other cases, Griffin and Moorhead (2014)
found that employee tenure was negatively related to turnover and suggesting that an employee
who stayed longer in one organization were less likely to quit.
Regarding the income, for some occupations it is difficult to determine equitable wage
compensation. Chief executive officers used the labor market rate to assess the fairness in
compensation (Rost and Weibel, 2013). Messersmith et al., (2011) postulated that the employee’s
level of compensation could have significantly affected the employee’s decision to remain
employed with the organization. A 40 relationship existed between private and public sector wage
equity and turnover intentions.
Chief executive officer compensation was an influential factor in voluntary turnover and the
profitability of the firm. Hence, the results of previous research indicated that employee
compensation was a significant predictor of employee turnover for state and federal employees.
Underpaid chief executive officers were more likely to exit the firm voluntarily than chief
executive officers that received the labor market rate (Messersmith et al., 2011).

2.1.4.2 Individual Factors

Personal factors such as health problem, family related issues, children education and social status
contributes in turnover intentions. However, very little amount of empirical research work is
available on personal related factors. There is another important variable "Job-Hoping" also
contributes in turnover intentions. When there is a labor [employee] shortage, employees have
plenty of jobs available. Consequently, they can afford to switch jobs for a few extra dollars.

Masahudu, (2008) has identified another important variables "employers" geographic location" that
may determine employeeturnover. The closeness of employees to their families and significant
others may be a reason to look elsewhere for opportunities or stay with their current employers. For
9
instance, two families living and working across two time zones may decide to look for
opportunities closer to each other (REBS, 2010 cited in Bewketu K., 2017).

Of the possible predictor of employee turnover intention, work related attitudes of employee have
received the most attention by researchers (Armstrong 2006). The one work related attitudes
receiving the greatest research attention as a predictor of employee turnover tendency is job
satisfaction. He defined job satisfaction as a perceived relationship between what an individual
wants from his/her job and what that individual perceives as the job’s offering (Ongori, 2007).

Researchers, such as (Smith 1996 cited byChowdhury, A. and Nazmul H.,2017), have generally
found that the more satisfied the employees are the more committed they will be to their
organizations, and the more they will be productive and effective in their organizations, whereas
dissatisfied ones experience more turnover intentions and increase absenteeism.

2.1.4.3. Leadership Factors

Leadership styles
Griffin and Moorhead (2014) defined leadership as it is both a process and a property. As a process,
leadership involves the use of non-coercive influence. As a property, leadership is the set of
characteristics attributed to someone who is perceived to use influence successfully. When we tried
to discuss about leadership, we have to consider the leadership styles. Leadership style is the way
and manner in which a manager or supervisor chooses to act towards his employees or subordinates
and the way the leadership function is being carried out by them. A leadership style is the approach
used by managers to exercise their leadership function (Armstrong M.2012). Leadership style is
said to be a particular behavior applied by a leader to motivate his or her subordinates to achieve
the objectives of the organization (Ng’ethe and Iravo, 2012).

In this global competitive environment, effective leadership style is necessary to reduce the attrition
rate (Nanjundeswara and Swamy, 2014). As Siew (2017) explained that leadership styles have a
very strong relationship with turnover intention. Puni et al. (2016) found employees under
autocratic leaders are more prone to intentions to quit job mainly as a result of the leaders over
emphasis on production than people. Workers under democratic leadership style are less likely to
involve in turnover intentions due to the collective decision-making approach of the leader.

Long&Jusoh (2012) found negative insignificant association between turnover intentions and
transactional and transformational leadership styles.Siew (2017) demonstrated a significant
relationship between transformational and transactional leadership style and turnover intention
within a study conducted on SMEs in Malaysia.

10
An impact of leadership on job satisfaction has also been found in many industries. Hytter, (2014)
investigated the relationship between different styles of leadership and job satisfaction by using 72
faculty members and ten supervisors from Lithuanian public and private universities. The results
revealed that the controlling autocrat leadership style had the smallest positive and significant
impact on job satisfaction, while the servant leadership style had the greatest impact.

A research also conducted on employee retention stated that perception of managers regarding the
level of retention of employees if he thinks about the followers with equity which motivates
subordinates to do well for the organization and on the same time felt good for them as well. Thus,
a leadership style has a great impact on level of retention because it directly affects the cognitive
state of employees. This approach drives the level of consequences up to minimum (Zhu, W. et al.,
2009).

Impact of Rewards on Employee Turnover Intention

Intoday’schangingenvironmentand organizations, buffered by globalization,
socialvariationandintensecompetitive environment, the sources of sustained competitive advantage
have lifted from finance concept to technology side and now to human assets. To be able to achieve
the organizations goals, leaders or managementneedtounderstandhowto motivate their employees.
In order to do it leaders need to understand their attitude to work andlifeand understand
differentpersonality types. Inability of accomplishment of above mission, may lead to leaving
employees from the work place resulting huge financial and non-financial loses in the organization.
Employee turnover is the most challenging issue of modernorganizational environment.

Most of thetime employee turnover; movement of employee from one firm to another within
particular time period, may result deterioration of quality of the organization. In Sri Lankan context,
this issue is morecriticalinoperationlevelemployeesofmany industries. Rajapaksha (2015) stated that
employee turnover significantly affects to therole of an organization in apparel industries.
Nowadays organizations are looking for better ways to help their employees to be more
productive and to be happier in their work place with the aim of keeping high retention rate.
Employees want to be appreciated of their efforts and they expect a fair return on that effort as well.
Most organizations implementmanystrategieswhichmakes employees happier.

A systematic way of scheme ora program which gives incentives for those individuals or groups
who perform well in the firm called a Reward system. Reward system can be categorized into two
areas (Armstrong, 2007).

11
Those are financialrewardsandnon-financial rewards. Financial rewards mean those which satisfy
the employees by providing rewardin terms of money. Besides the financial rewards, there are
certain non - financial rewards which can satisfy the ego and self-actualization needs andwants of
employees. Lack of fair rewards and recognition system may cause to create unsatisfactory
workforce within the organization, because today’s employees want to be treated like a valuable
resource not a disposable asset. Therefore, in the current context retention of the qualified blood
within organizations has become one of the most common challenges and thereby one of the major
problems leaders of organizations face today is employee turnover (Rajapaksha, 2015).
[

Leadership and Motivation

The success of every organization depends on its employees’ drive to thrive through their efforts,
commitment, engagement, practice and persistence. Thus, motivation is an important topic because
leadership competencies include the ability to motivate and retain capable employees as one of the
crucial duties or jobs (Giriffin and Moorhead, 2014).

Leadership begins with the initial effort made to recruit a new employee; proceeds through the
entire induction process; and continues every day until the employee departs the organization. This
process is cultivated by a manager/leader, motivating new employees and it highlights, once again,
the importance of leadership to an organization. The quality of a manager’s relationship with an
employee is the most powerful element of employee motivation. It creates a professional, positive
and respectful attitude and employees are more likely to adopt a similar approach with their peers
and enjoy work. It is clear that the management and leadership styles that are adopted by a business
and its management will have a determining effect on the motivation level, the morale and the job
satisfaction of the employees (Puni and Asamoah, 2016).

Nevertheless, the relationship between the management style that is used within the business and
the level of motivation within the workforce is a subject of much debate within industry. In many
circles, there is continuous debate about whether leaders are born or developed. Reflecting on the
discussions about motivation, it is evident that humans are very complicated and are made up of a
number of traits. With motivation, these influences are both inherited and acquired from our
environment and influences (Long and Josoh 2012). It is in this regard that the above point seeks to
establish the role of leadership on employee motivation.

12
Supervisory Support

Butali, Wesang’ula, and Mamuli (2013) stated that human resource professionals in an organization
always remain busy to retain their employees to reduce turnover rate. They describe turnover as a
term that is being used when an employer loses existing employees and then employs new ones to
uphold those places. The human resource policies can create an efficient, loyal, and satisfied
workforce. Turnover also has negative effects on an organization’s performance, efficiency,
fertility and competencies. The turnover of the staff is not just the concern for the organization
itself but also for those organizations who converse with them. It becomes intricate to maintain a
fine relationship with those organizations that have a high employee turnover rate. Supervisors
should support their employees on their job whenever they are in need of their supports. They both
face the results of staff turnover.

2.1.4.4 Organizational Factors

There are many factors which are attached with an organization and work as push factors for
employees to quit. Among them which are derived from various studies are: salary, benefits and
facilities; size of organization (the number of staff in the organization); location of the organization
(small or big city); nature and kind of organization; stability of organization; communication
system in organization; management practice and polices; employees" empowerment. There is
another push variable called organizational justice (Bewketu K. 2017).

Organizational instability has been shown to have a high degree of high turnover. Indications are
that employees are more likely to stay when there is a predictable work environment and vice versa.
In organizations where there was a high level of inefficiency there was also a high level of staff
turnover. Therefore, in situations where organizations are not stable employees tend to quit and
look for stable organizations because with stable organizations they would be able to predict their
career advancement (Zuber, 2001).

The organizational commitment may interfere with the social and personal functions of employee
and the effective operation of the organization. It is also an expression of employees' feeling of
psychological attachment towards the organization. It can measure the employees' willingness to
stay in an organization in the future. There are three components of commitment that can be
defined as an organization which is identification, organization, and honesty (Rahman,S. 2012).
The organizational commitment is rising from the organization's principled attitude toward an
employee. It also can be described as the involvement of employees in the organization. There is a
variety of causes and influential factors that result in employees’ turnover intention of an
organization. These include:

13
Ineffective Communication:-Charles,K. (2005) suggested that the communication is one of the
factors of employees’ turnover. He described an onsite study of a large Midwestern trucking firm.
The study was made by University of Iowa researchers. The study concluded that poor
communication between management and blue-collar workers contributes to a high job turnover
rate. Through interviews, the researchers discovered that a large part of drivers' dissatisfaction with
their jobs stemmed from their isolation from management, and management's view of drivers as
2nd-class people. The drivers' only contact with the company was via several short telephone
conversations per week. Management had created a stereotype for the drivers and, with so little
contact, found it impossible to recognize and deal with driver complaints.

Career Promotion:- In wide terms, reward program demonstrates the broad theory of
compensation strategy which is described as the “deliberate utilization of the pay systems as an
essential integrating mechanism through which the efforts of various subunits or individuals are
directed towards the achievement of an organization’s strategic objectives” (Labov, B. 1997). The
best way of promoting and motivating employees would be a combination of pay, promotion,
bonus and other kinds of rewards to achieve organizational performance (Ting, Y.1997).The reason
behind is that lack of promotion and ordinary work responsibilities considerably can lead to the
intention of turnover (Huang, P.L. & Huang, Z.L. 2006). By implementing “job enrichment”
programs, organization would capable of retain employee and to provide the opportunities for
better career development (Labov, B. 1997).

Working Environment:-If working environments low-grade due to lack of all the basic facilities
such as proper lighting, working in a space with some natural light, ventilation, air conditioning
system, open space, restroom, lavatory, furniture, safety equipment while discharging hazardous
duties, drinking water and refreshment, workers will not be capable of facing up the difficulty for a
long time (Singh, B.M, 2008). Besides, a bad boss creates an adverse working environment,
thereby leading the employees to leave the job.
Pay:-According to Shaw et al (1998), “Pay is something given in exchange for services rendered in
an organization”. It has played a significant role in retaining and rewarding high quality human
resources. To be more precise, one of the critical factors of employee turnover is lower salary.
When employees’ receive lower salary and insufficient financial rewards, they tend to stay no
longer with the organization (Lavob, 1997). It is often said that job dissatisfactionis the major cause
of poor pay scale procedure, leading employees to leave the job. A good illustration of this is that a
new employee may guess why the person next to him gets a high salary for what is supposed

14
to be the similar job (Dobbs, 2001).A common opinion is that good pay can be a strong determinant
of job satisfaction that leads to achieve higher productivity in the organization.

Job Satisfaction: - The job content and autonomy are the two major jobs related motivational
factors that lead to an increase of employees’ job satisfaction. Once employees realize that they are
authorized to take part in the decision-making process, they could be motivated and desire to do
their best for the organization. MazmulH, and Chowdhury A. (2017) state that “Turnover studies
primarily have established that satisfaction with supervision promotes job retention without
necessarily identifying specific behaviors by supervisors that commit employees to the company”.
Experts have identified some factors that are likely to make employees satisfied at work such as
good pay, friendly working environment,co-operative colleagues, career counseling and
opportunities for training and development (Armstrong, 2006).

Job Stress: Hwang (2014) studied the collision of occupational stress on employees’ turnover.
Stress is an actually a physical and psychological state that arises in quite a lot of situations and can
be viewed as a crucial part of a person. He tries to demonstrate, in the light of literature, that stress
has a negative impact on employees’ personal lives. He studied hotel segment as turnover because
stress is high in this segment. The principal component factor analysis is applied to measure the
results. It is examined that employees who are affected by the occupational stress have intention to
change their jobs. And turnover intention is considered as an interpreter of genuine turnover. The
turnover intentions are high as the stress level is high. Stress arises from different sources and
factors such as tribulations related to home, task, pay, and unfair treatment, inconsistency with job
conscientiousness, organizational culture, and lack of support.
Fringe Benefit:-A fringe benefit is a meandering incentive contracted to an employee or a group of
employeesas a part of executive membership, which has tolerate few managers or supervisors and,
hence, they come to a decision leaving their positions (Makhubu, 2006).As a consequence, it is
more imperative for an organization to understand employee’s job anticipation and, side by side,
take necessary steps to fulfill their needs.
Training and Development:-Management should initiate to create an environment, where key
information has been freely communicated. Employees have the opportunities to be well-informed
and insightful for further career development, as well as variety form of training program will
rationally be foremost toan organization. Therefore, this will result in retaining the employees and
have a positive impact on organizational productivity (Singh, 2008).

15
2.2 Consequence of Employee Turnover
The consequences of high turnover are both financial and non-financial. High turnover can be a
serious hurdle to productivity, quality, and profitability at firms of all sizes. For the smallest of
companies, a high turnover rate can mean that simply having enough staff to fulfill daily functions
is a challenge, even beyond the issue of how well the work is done when staff is available (Johnson,
C. 2009). According to Zed Ayesh, Managing Director, Flagship Consultancy: “Employee turnover
has always been one of the invisible enemies of business in any growing economy; it is invisible
because most costs associated with staff turnover cannot be directly itemized in the profit and loss
statement or reported at the end of the fiscal year" (Anonymous, 2009).

Achoui and Mansour (2007) also identified both positive and negative consequences of employee
turnover. Negative consequences includes cost both tangible like recruitment, selection, training
and production lost and intangible cost like moral impact, workload impact and team performance
disruption. Also other negative cost associated with employee turnover is separation, replacement
and both financial and non-financial. The financial costs mainly involve the cost of people’s time,
cost of materials and equipment, cash outlays, and productivity losses. The other costs are less
discernable and harder to estimate but may entail large negative impacts on organizational
effectiveness such as loss of customer, business and damaged morale (Heneman and Judge, 2009).
Employee’s turnover is often expensive for all of the organization’s levels, regardless of its nature.

Furthermore, it always negatively affects the productivity and quality of the organization’s
products or services. Ali (2009) further stated that high employee turnover greatly affects both
direct and indirect costs, which could damage organizations. Direct costs refer to costs like the
expenses incurred during the recruitment, selection, training, and induction of new employees. On
the other hand, indirect costs refer to the cost of reduced morale, learning, and pressure on the
current employees. Moreover, high rates of employee turnover can harm the organization’s
progress towards achieving its pre-determined goals and objectives. Other than measurable
monetary costs, non-monetary costs such as damaged reputations, loss of customer loyalty,
degraded trust in the brand which all may lead to more serious long- term effects (Dess and Shaw,
2001).
2.3 Empirical Literature Review
Employees’ turnover poses a recurrent challenge to most business organization globally. There is
virtually no organization that is immune to employees’ turnover; be it small size or big size
organizations, they are all exposed to employees’ turnover. Regarding this, Shukla and Sinha (2013)
examined employees’ turnover in the banking sector. The results of the study revealedthat

16
lack of job satisfaction and work environment ranked high among the causes of employees’
turnover. Employees were willing and ready to change to a new job that promised them better
remuneration and work environment. This suggests that a strategic approach to reducing employees’
turnover is to make the work environment conducive and provide improved remuneration. With
this regards, various research works have been undertaken. To mention some:
Nwokocha&Iheriohanma (2012) conducted a study in Nigeria on emerging trends in employees’
retention strategies in a globalizing economy. They argued that to minimize the rate of employee
turnover and catch up with the current demands of global economic needs and organizational
performance, organizations should adopt critical sustainable retention trends such as establishing a
strategic plan, involving employees in decision-making process, initiating personalized
compensation plan, installing mechanisms for career planning, training and development and
building flexible work programs especially for critical knowledge – employees.

Bula (2012) in the study of labor turnover in the sugar industry in Kenya found that salary is a
major factor causing labor turnover followed by training, promotion, performance appraisal and
work condition. Other factors like recognition, job content, participation in decision making and
leadership style were also considered as immediate factors. It was also revealed that although lack
of employee commitment and motivation can be major causes of labor turnover, they are dependent
on all the other factors causing labor turnover.

Studies in Tanzania observed that labor turnover can be influenced by a number of controllable and
uncontrollable as well as demographic factors. Magalla (2011) observed that controllable factors
such as short contract, poor working condition, poor recruitment procedure, lack of motivation, and
poor or inadequate incentives and rewards are the reasons that influence voluntary labor turnover in
the public organizations especially for employees living in rural areas. Managerial controllable
factors such as unequal treatment of workers, lack of promotion and growth, low wages and salary,
unclear compensation procedures, less recognition and lack of employees’ involvement in decision
making were also mentioned by Susana (2011) as other factors that cause voluntary employees’
turnover in both public and private sectors including microfinance and health institutions in
Tanzania.

Ongori (2007) conducted a related study in Botswana. It was observed that among of the factors
that influence employees’ turnover in any organization are inadequate information including
physically powerful communication systems on effective performance, uncertain supervisors’
desires and peer employees, and conflicting job functions.

17
These factors may be the basis on which employees may begin to experience loss of job satisfaction
and may finally result in an employee leaving the organization. Factors such as poor personnel
policies, poor recruitment policies, poor supervisory practices and poor grievance procedures
contribute to high labor turnover from the study. Where there were cases of improper management
practices and policies on employees matters; especially when employees are not recruited
systematically, promotions of employees are not based on spelled out policies, no grievance
resolution procedures in place, these would lead to high employees’ turnover.
Employee turnover is a problem that employers have been facing in all organizations be it big or
small, but the situation is different for every organization (Catherin, 2002 cited in Yoseph A., 2019).
For this reason, several studies have been conducted on causes of turnover on different
organizations. Several literatures shown various factors that why employees stay or quit their
current jobs.

Similarly, a study done by ( Rahman,S. 2012) in Singapore on “The effects of various types of job
satisfaction on turnover intention”, classified job satisfaction into eight categories namely:
supervision, company identity, kind of work, amount of work, physical working conditions, co-
workers, financial reward, and career future. Their findings based on the job satisfaction and
organization commitment.

Lack of good relationship with the management and also with co-workers can be taken as one of
important reasons for the employees to leave their jobs. (Armstrong ,2006) argued that turnover
intention of public sector employees was significantly by perceptions of employee satisfaction in
terms of pay, promotional opportunities, relationship with supervisors, employees performance,
management systems and fringe benefits.

Besides, the studies at national level also carried out at different organizations and at different
competitors where each organizations having different working environment, working culture and
norms and services they provided. Considering of the above facts investigated by various
researchers, organization should understand why their employees leave and stay to mitigate the
reason of leaving the company and the reason staying in the company to attract other competent
employees from the market and achieve the going concern of the company.

Therefore, there is a clear need to develop a better understanding of employee turnover and more
specifically the causes that are key indicators of why employees leave the organization which
would then have a profound impact on the strategies that managers can employ in order to reduce
employee turnover within their organizations. According to Ongori, L (2007), the value of
employees to an organization is a very crucial element in organizations success.

18
In some organizations, it is very significant to keep an eye on employee turnover for both public
and private sectors. In public sectors of Saudi, although some fringe benefits are given to the
employees regularly do not satisfy them sufficiently. In private sectors, though salary and benefits
are high but security of job is less. Despite the increased resolve of the Saudi Arabian government
to commit the private sectors to Saudization, owners and managers of some Saudi businesses retain
negative attitudes against the recruitment of Saudi nationals who are searching for jobs. They
believe that Saudis are neither serious nor loyal to Saudi companies (Al-kahtani, 2002).
Achoui,M and Mansour,M (2007) conducted a study on employee turnover in Saudi companies
confirmed that the turnover rate in the Saudi market is very high especially in the private sector.
The policy of Saudizationor "localization" drives many companies to achieve the required
percentage of Saudizationby the Saudi government. Consequently, private companies compete on a
limited number of Saudi qualified employees in the market. Furthermore, the economic/market
development in the private sector drive private companies to attract more qualified Saudis on the
expense of the other companies. These factors had contributed significantly to the turnover problem
in the Kingdom. Pakkiasamy(2004) notes that small and medium-sized business owners, for whom
enforcement of Saudizationwas not strictly applied until recently, have started to protest that these
measures place unfair pressure on them to hire more expensive local workers.

According to Salahudin et al. (2009), the rate of employee turnover ranges from 3 to 27% within
Small Medium Enterprises (SMEs). This is based on the World Bank report regardingtothe current
situation in developing countries. SMEs operating in Malaysia, which is a developing country, were
able to record one of the highest turnover numbers, which are 19% and 22% for small enterprises
and medium-sized enterprises, respectively.

2.3.1. Impact of Employees’ Turnover on Organization Efficiency

2.3.1.1 Increased Customer Dissatisfaction
According to Homer (2007) staff turnover is costly and disruptive. It reduces the outputs and
is disruptive as it requires the schedules and programs to be modified. It causes the
organization to lose a lot of money because they have to employ other staff to come and help.
There are a number of reasons that contributes to the rate of turnover in companies and they
vary. They both stem from the company and the employees. Turnover is a very expensive
aspect to companies; the reason is that the employers forced to incur certain costs (Oregon,
2004).

19
Blashka (2007) contended that efficiency is linked to employee morale. When employees are
happy at work they have more motivation, which increases efficiency. Poor morale causes
employees to be disengaged. A study done by the Corporate Executive Board says that
because employee engagement is down there has been a 5 percent decrease in efficiency. If
employees are not given the proper resources to do their jobs easily and efficiently, their
efficiency will suffer. Quo Star Solutions, a technology consulting service, states that
innovative technology is one way that employers can boost efficiency. Having automated,
electronic processes for certain tasks can free up employee time so that they can maximize
their efficiency with other tasks. There are ways to tackle low efficiency. According to Tech
Republic, efficiency can be combated by installing monitoring software that tracks what
employees do all day long. This will eliminate wasted employee hours spent surfing the
Internet or talking to friends over email and instant messaging (Blahna, 2005).

2.3.1.2 Disruption to Service Delivery

As the labor market continues to tighten, employers are increasingly concerned about
maintaining a stable workforce. They need competent, dedicated, and effective workers to
serve their customers to fulfill their missions. Without a sufficient qualified and productive
workforce, employers are vulnerable to competitive forces as well as the impact of negative
relationships with their customers. It is frustratingly difficult to find, recruit, and hire the
caliber of employees that companies desire today (Gupta, 2008).
So, stability in a company's workforce has a number of advantages for the company's health,
for workers, for customers, for suppliers, for investors, for the industry, and for the economy
at large. If the workforce is stable, management can invest its energy in moving the company
forward. Dempsey (2003) asserts that staff turnover may have devastating effects on service
rendered by the organization and these may bring deficits in meeting customer demand.

2.3.1.3 Increase in Work Load on Employees

Horton, (2007), states that the escalation in the rate of labor turnover is a major concern for
businesses and is clearly impacting on organizational performance. High level of stress leads
to employees making unnecessary mistakes/accidents and low morale leads to them not caring
about what they do. Staff turnover breaks the team spirit and group cohesion, which is
necessary for the successful and smooth running the business. Gupta (2008) explains that “the
real cost of staff turnover leads to lowered morale among other employees who must shoulder
the workload, lost revenue from sales not made, the loss of customers who fled to competitors
for better service”.
20
The morale of staff may be lowered because work overload, overtime work, substitute
personnel and working with fewer staff than required is problematic. This causes an increase
in errors during the performance of activities and results in poor service.

2.4 Employee Retention Strategies

Retention of employees, particularly in a strong employment market and for those employees who
are top performers can be a significant challenge for organizations. While many employers
appropriately attempt to retain top employees by offering opportunities for personal growth and
development, interesting work, a congenial work environment and strong value-driven management,
the reality is that many top performers still remain focused on their salary, particularly relative to
the market place (Mello, 2011).

At the simplest level, one could say that the way to manage turnover is to increase the levels of
satisfaction among employees. But the key is in understanding exactly how to do that way. The
significant challenge for employers in managing retention of their employees is the fact that
different employees are motivated by different factors relative to their desire to stay with an
employer (Mello, 2011). Therefore any retention program needs to be designed based on the needs
of the employees who have been targeted for retention.

2.4.1 Sound Strategies to Minimize Employee Turnover

It is uncompromisingly indispensable to stay put the potential employees in the organization.
Managers need to arrange training and learning program how to focus on key employee satisfiers
and dissatisfies so that they can make a well balanced job design and control system to retain
employees in the organizations (Mello, 2011). One of the major causes of job dissatisfactions is
poor income, which may result in employees leaving the organization. Therefore, it is more
essential to build up a sound retention plans and have a good relationship between managers and
workers in any organization.

2.4.1.1 Recruiting Suitable Employees

According to (Hulin et al. 1985 and Mello, 2011), staffing is designed at providing a pool of latent
human resources from which business organization can select the suitable employees on the basis
of job condition. Hence, if the organizations try to minimize the rate of employee turnover, it is
required to ensure that the suitable applicants have considered for recruitment and selection in the
job. Recruitment is the process of attracting the potential candidates so that they will possibly
contribute to the organization (Steel and Ovalle, 1984). It becomes noticeable that sound strategies
are needed to draw inattention to the employees and motivate them to stay put in the organization.

21
2.4.1.2 Retaining Valuable Employees
Ali,N. (2008) described that it is the responsibility of an organization to retain the potential
employees because they will probably contribute the firm to reach the destination. The immediate
cause of this, retaining the best employees for an employer could have a competitive advantage as
compared to others. Human resource management should take steps for an appropriate employee
assessmentso that the most suitable candidates are employed. According to Mello(2011),“The
quality of an organization’s people is always an essential ingredientof successful strategy execution
– knowledgeable, engaged employees are a company’s best sourceof creative ideas for the nuts-
and-bolts operating improvementsthat lead to operating excellence”.

2.4.1.3 Effective Leadership

It is fairly likely that employees will not stay in their jobs due to the lack of support from managers
(Mobley, 1977and Mello, 2011). Many researchers are of the view that poor supervision is one of
the leading factors of employee turnover and, hence, it is vital for an organization to coach its
manager’s in order to improve their organizational and leadership skills. It comes to appear that
employees do not have to be friends with their boss, but they need to have a good relationship with
the irrespective boss. However, one argument put forward by management experts is that boss
needs to provide direction and feedback, spend time in one-to-one meetings, and work with them
cooperatively.

2.4.1.4 Training and Development

Management should initiate to create an environment where key information has been freely
communicated. Employees have the opportunities to be well-informed and insightful for further
career development, as well as variety form of training program will rationally be foremost to an
organization. Therefore, this will result in retaining the employees and have a positive impact on
organizational productivity (Singh, B.D. 2008).

2.4.1.5 Organizational Culture

A well-developed organizational culture is one of the factors that influence the employees to stay
put in the organization. If employees are not being contented with the culture, work environment,
organizational structure, the probability is that they will quit the job (Mowday et al., 1982). It is
often said that organizations are able to attract and motivate employees by practicing the best
organizational culture. Thus, it may lead them to continue work in the organizations.

22
An organizational culture is an unstable entity that is influenced by individual attitudes, preferences,
and characteristics, and is generally an accepted situation. Earlier studies have validated the
occurrence of differences between the preferred and dominant type of organizational culture in
various working fields, for example, Kapur,S.(2010) collected the views of employees from three
types of organizations: a) public sector, b) public organizations and enterprises (public electricity
enterprise and banks),and c) private sector. The Employee Satisfaction Inventory, ESI, designed by
Kapur,S. (2010), was used for measuring employee job satisfaction, while a 15-variable
questionnaire was used for measuring the organizational culture, where each variable had four
options–types of organizational culture. The outcome of the exercise divulged that the current
culture in most fields was very different from the desired culture.

2.5. Conceptual Framework

The study was guided by researcher’s conceptual framework (as shown in the below figure 1).
According to the framework, the independent variables for this study were individual factors,
organization and leadership factors. And the dependent variable was employee turnover intention.

Figure 1.Conceptual Framework

Independent VariablesDependent Variable

Individual Factors
Age, Experience &
Educational Background

Leadership Factors
Fair treatment of employee Turnover
Manager’s problem solving Intention
skillMotivation

Organizational factors
s
Working environment
Promotion
Reward

Source: Review Related literature

23
 Chapter Three: Research Design and Methods

3.1 Research Design

This study was designed to identify the research questions and to test hypotheses by conducting a
study that has investigated the relationship among different variables in the context of employee’s
turnover intention at Addis Ababa Bole Airport Customs Branch Office. .

A research design is a master plan specifying methods and procedures for collecting and analyzing
the required data (Churchill and Lacobucci, 2002). It is a means to be followed in completing a
study. The research design helps the researcher to obtain relevant data to fulfill the objectives of the
study. They stated that there are three types of research design namely: descriptive, exploratory and
causal research designs. Thus, this study used descriptive research design. This is because
descriptive studies are concerned with specific predictions, narrations of facts and characteristics
concerning individuals, groups or situations. The aim of this study was to identify factors affecting
employee turnover intention at AABACBO.

3.2 Research Approach

The study adopted a descriptive research approach since it intended to gather both qualitative and
quantitative data that describe the nature and characteristics of the impacts of employee turnover on
organizational efficiency. According to Kothari (2004), descriptive research approach is a type of
design to obtain information concerning the current status the phenomena to describe “What exists”
with respect to variables or conditions in a situation. This research was a descriptive type research
method to gather information about the present causes of employee turnover intention and its
retention strategies at AABACBO.

3.3 Population and Sampling Design

3.3.1. Population of the Study

Addis Ababa Bole Airport Customs Branch Office has a total population of 994 permanent
employees of which 696 are professionals and the reaming 298 employees are non-professionals (as
information was obtained from the HRM department). But the study purposely focused on the
professional employees who have an academic level diploma and above and who are currently
working in the branch office under the study.
Accordingly, 248 questionnaires were distributed to professional employees and only 132 of them
were filled and returned.

24
3.3.2Sample Design

Sample size influenced by a number of factors, including the purpose of the study, population size,
the risk of selecting a ‘bad’ sample, and the allowable sampling error (Israel, 1992). Thus, out of
696 professional employees as a population, 248(53.2%) of them were taken as sample size for this
study. Most researchers agree that three criteria usually need to be specified to determine the
appropriate sample size, the level of precision, the level of confidence or risk, and the degree of
variability in the attributes being measured (Churchill and Lacobucci (2002). Accordingly, out of
248 questionnaires were distributed to the respondents, 132 of them were filled in and returned to
the researcher.

In order to reach the desired number of the respondents, both simple random sampling and
purposive sampling techniques were used. The benefit of this approach is customizing the benefits
of both techniques while reducing the chance of biasness and improving the quality of data to be
collected. Purposive sampling used to select people with desired qualities.The researcher used
purposive sampling because it used to access a particular subset of people. HRM administrators/team
leaders were purposively sampled due the information they have by the virtue of the positions they
hold. The study used simple random sampling techniques for current professional employees who
have diploma level and above with respect to their academic background.

In the case of Addis Ababa Bole Airport Branch Office the population size is 994, we use 95%
confidence level, P=.5 (maximum Variability) and the desired precision level ±5%.

3.4 Sources and Types of Data

Both primary and secondary types of data were used to conduct the study. Primary data collected
through interviews and questionnaires. This gives specific responses to the research questions.
Primary data is recognized as data gathered for a specific research in response to a particular
problem through interviews and questionnaires. While secondary data were collected from various
documents like annual reports, research reports, books and journal articles.

3.5 Data Collection Methods

The study used both primary and secondary data collection procedures. Primary data were directly
collected from the field through interviews and questionnaires .On the other hand, secondary data
were collected through reading different research works, and staff records from the Human
Resources Department of the branch office.

25
3.5.1. Questionnaires

Primary data for the study were gathered by using questionnaires which were administered to the
targeted respondents. The choice of using questionnaires as method of data collection considered
the fact that a branch office operation is a very busy working place and employees have a limited
time. Therefore, questionnaires were distributed among the respondents who were possibly
available at their work place and who have adequate time to fill in the questionnaires.

The questionnaires had two sections. The first part was prepared to gather general information
about the respondent’s information, gender, age, and education. Section two was also prepared to
gather information about the determinants of current employee turnover intentions. The close-
ended questions were provided to the respondents with alternative arrangements of valued each
question in the five point Likert scale, going through strongly agree (measured as 1), agree
(measured as 2), neutral (measured as 3), disagree (measured as 4), and strongly disagree
(measured as 5).

3.5.2 Interview

The face-to-face interview was aimed to collect data from the department of HR mainly from team
leaders. This method was used in the study in order to enhance the quality of the information
gathered. Hence, conducting person interviewis a two-way communication initiated by an
interviewer to obtain information from the participants. This method was employed because it is the
most effective means of obtaining better information through gaining of clarity. Thus, it used as
complimentary of questionnaires as a way to tap on information that possible to get through asking
question on a piece of paper.

3.6. Methods of Data Analysis

Appropriate statistical tools such as frequency, percentage, correlation test, and SPSS20 version
were used in the analysis, interpretation, presentation and drawing of conclusions. Variables such
as income, sex, age, length of year they have been working in the branch office, education status,
were analyzed using descriptive statistic mainly percentage, frequency, Correlation and regression.
Besides, the qualitative data such as an exit interview that conducted with HRM team leaders was
analyzed and interpreted accordingly.
3.7 Reliability and Validity
3.7.1. Validity
Validity is the accuracy of a measure or the extent to which a score truthfully represents a concept
(Carr& Griffin, 2010 cited Dejen D., 2o17). Researcher use validity test to ensure that the variables
been measure is accurate. For instance, we assessed the validity of dependent variable through

26
content validity where the evaluation of turnover intention should include individual factors,
leadership factors and organizational factors towards the employee turnover intention.
3.7.2. Reliability
Reliability is an indicator of a measure’s internal consistency. In the scale measurement, we use
reliability test to get a reliable result from the data collected from questionnaire. Reliability is the
degree to which measures are free from error and therefore have consistent results. According to
Carr and Griffin (2010), the standard coefficient alpha (α) is stated as 0.80 to 0.95, very good
reliability , 0.70 to 0.80, good reliability ,0.60 to 0.70, fair reliability and <0.60, as poor reliability.
In this study, all the independent variables and dependent variable turnover, met the above
requirement.
3.8 Ethical Consideration
Ethics is a critical aspect of a research and Snowden (2014) stated that ethical research is free from
unfair discrimination, harming individuals, violating individual’s privacy and confidentiality. The
purpose of study was explained to the study subjects &participation was voluntarily and they can
withdraw from the study at any time without explanation and without penalty or loss of benefit. The
right of each respondent to refuse or answer for few orall questions was respected. Omitting names
of the study subjects from the questionnaire helpto assure confidentiality of the information and
maximum effort was made to maintain privacy of the respondents. The right and autonomy of all
participants were respected.

27
 Chapter Four: Results and Discussions
Introduction
This chapter presented and discussed the main findings of the study. Under this topic, demographic
profile of respondents are presented by frequency and percentage and employee turnover intention
analysis also carried out through Correlation analysis (Pearson correlation coefficient) to determine
relation between and/or/ among variables is used to examine the effects of independent Variables
(Individual factors, leadership factors, and Organizational factors) on the dependent variable
(employee turnover intention).
4.1. Response Rate
[

The survey was undertaken by means of a structured questionnaire that was distributed to the
professional workers who are currently working at Addis Ababa Bole Airport Customs Branch
Office. The survey questionnaires provided data for analysis from both open-ended and closed-
ended questions. A preliminary exploration of data involved producing frequency distribution with
visual displays, and percentages through tabulation of the data, and simple statement were also
obtained.
In this study, 248 questionnaires were distributed to the respondents and only 132(67%)
questionnaires were filled in and returned. The remaining 116 of the respondents failed to return the
questionnaires they were supposed to fill and return to the researcher.

4.2. Demographic Analysis of the Respondents

The demographic variable of the respondents such as gender, age, educational level, marital status,
salary/income, and work experience, were collected and the results presented as follows:

Gender of the Respondents

Table 4.1 below shows that most of the respondents 76(57.1%) were females while 56 (42.1%)
were males. This indicates that women have more chance of employment as a result of an
affirmative action.
Table 4.1 Sexof the respondents

Variables Frequency Percent Valid Percent Cumulative Percent

Male 56 42.1 42.4 42.4
Valid Female 76 57.1 57.6 100.0
Total 132 99.2 100.0
Missing System 0 0
Total 132 100.0
Source: Computed from data survey, 2020

28
Age Structure of the Respondents
As revealed in the below table 4.2, most of the respondents 70(52.6) were younger enough and they
were not more than 30 years .Only 4.5% of the respondents fall in age category above 50 years, and
39%of the respondents are between age of 31 and 40 while the rest 6% is found to be between 41
and 50 age groups. This indicates that the branch office has a large number of young employees.
Table 4.2Age Structure of the Respondents

Variables Frequency Percent Valid Percent Cumulative

Percent
18-30 years 70 52.6 53.4 53.4
31-40 years 39 29.3 29.8 83.2
Valid 41-50 years 16 12.0 12.2 95.4
51 and above 6 4.5 4.6 100.0
Total 132 100 100.0
Missing System 0 0
Total 132 100.0

Source:Computed from data survey, 2020

Education level of respondents

Table 4.3 Educational Level of the Respondents

[

Variables Frequency Percent Valid Percent Cumulative Percent

college Diploma 35 26.3 26.5 26.5
BA/ Bsc 85 63.9 64.4 90.9
Valid
MA/Mcs 12 9.0 9.1 100.0
Total 132 99.2 100.0
Missing System 0 0
Total 132 100.0

Source: Computed from data survey, 2020

As indicated in the above table 4.3, most of the respondents were BA/BSc and MA/MSc which
account for 63.9% and 9% respectively. There is also small proportion 35(26.3%) of the
respondents with diploma level. And as it can be seen from the above table unfortunately there is
no respondent who has academic background above MA/MSc in the organization under the study.
This implies that the branch office has employees with better academic background which in turns
contributing much for the achievement of organizational goals and objectives.

29
Marital StatusoftheRespondents
The below figure 1 is concerned with the marital status of the sample respondents. Data on the
marital status shows that majority of the respondents were single which accounts for 54.3% of total
respondents and the rest 45.7% of respondents of were married and family holders. From this, it
may be concluded that unmarried individuals may be young enough to exert their knowledge and
skills for the betterment of the organization for they are young and energetic.
Figure 2 .Marital Status of the Respondents

45.7 single
54.3 married

Source: Computed from Survey Data, 2020

Work Experience of the Respondents

The researcher’s interest here was to answer the question of experience and how it relates to
the employee’s turnover intention at AABACBO. Accordingly as shown in table 4.4
concerning the work experiences of the respondents, 33 (28.4%) served less than five years in
the customs branch office. Whereas majority of the respondents 66 (49.6) had served in
between 6-10 years. A small proportion of the respondents 6 (4.5%) had served more than 16
years in the customs which may have a good working experience. From this, it can be
summarized that customs branch office has currently employees with better working
experiences.
Table 4.4.Work Experience of the Respondents
Variables Frequency Percent Valid Percent Cumulative Percent

less than 5 years 33 24.8 25.0 25.0

6-10 years 66 49.6 50.0 75.0
Valid 11-15 years 27 20.3 20.5 95.5
16 years & above 6 4.5 4.5 100.0
Total 132 1 100.0
Missing System 0 0
Total 132 100.0
Source: Computed from Survey Data, 2020

30
 Salary or Income ofthe Respondents
The below figure 2 reveals that there is no professional employee who has been earning below
5,000 salary of ETB. As it can be seen from the below figure, most of the respondents fall in
income category between 5,001-7,000 ETB which is account for 40.9% and 7,001 to 9,000 ETB is
34.8%. Respondents who earned more than 9,000 per month were found only 24.2 percent.

Figure 3. Salary of the Respondent

24.2
3000-5000
40.9
5001-7000
7001-9000
>9000
34.8

4.3 Descriptive Statistics Analysis

4.3.1 Individual Related Factors

To assess the factors that affecting professional employee’s turnover intention, different questions
were asked to the respondents. The respondents were questioned to rate the level of effects of
employee turnover intention. The questions were intended to test the different factors that mainly
contribute for employees turnover intention in the given organization under the study by using the
parameter of Likert scale “strongly agree (5),” “agree (4),” “neutral,(3)” “disagree(2)” and
“strongly disagree(1)”.

31
 Table 4.5. Respondents View about Individual Factors for Turnover Intention

Response Category
5 4 3 2 1
No. Questions Fr % Fr % Fr % Fr % Fr %

Female employees are more

1. inclined to leave their jobs than 59 45% 46 35% 9 6.8% 7 5.3% 11 7.9%
male workers.

Employees who have less work

experiences are more likely to
2. 40 30.3% 30 22.7% 17 12.9% 26 19.7% 19 14.4%
leave their current jobs than
experienced employees.
Younger employees are
inclined to leave their jobs
3. when compared to older 40 30.3% 36 27.3% 17 12.9% 18 13.6% 21 15.9%
employees working many years
as employment.
The level of education matters
for turnover that highly
4. qualified employees are prone 30 22.72% 49 37.12% 21 15.9% 19 14.42% 13 9.84%
to leave their current
organization.
Source: Computed from Survey Data, 2020

As shown in item 1 of table 4.5, the sampled respondents were asked whether female employees
inclined to leave their jobs than male workers, majority 59(45%) and 46(35%) of them responded
strongly agree and agree respectively that female employees were more likely to leave their job as
compared to male employees. Concerning work experience, most of the respondents replied that
employees who had less work experience inclined to leave their current work when compared with
more experienced employees.
As shown in item 3 of table 4.5, a large percentage of the respondents reacted that younger
employees were more predisposed to leave their jobs than older employees. In the last item of the
same table, majority of the respondents confirmed that highly qualified employees were more prone
to leave their jobs than less qualified employees.

4.3.2 Contribution of Leadership Factors for Turnover Intention

32
 Table 4.6 Leadership Factorsfor Turnover Intention

Response category
5 4 3 2 1
No.
Questions Fr % Fr % Fr % Fr % Fr %

My superior treats me fairly and

1. respectively at my work place 6 4.5% 73 55.4% 30 22.7% 13 9.8% 10 7.6%
whenever support is needed.
My superior motivates me and gives
2. me the necessary feedback to 7 5.3% 71 0 44 10
53.8% 0% 33.3% 7.6%
exercise initiatives and self-
approach to work.
The feedback of my work I receive
3. from my superiors is supportive and 59 45% 46 35% 0 0% 16 12% 11 8%
encouraging type.
I feel the branch office management
4. shows a genuine interest in solving 9 13 27 53 30
6.8% 9.9% 20.1% 40.2% 23%
the issues or problems I face at my
work place.
Source: Computed from Survey Data, 2020
Item 1 of table 4.6 shows a considerable number of sample respondents (73) of them replied that
their superiors treated them fairly which accounts for (55.4%). On the other hand, about 30(22.7%)
were indifferent or neutral to express their feeling about how their supervisors treated them in their
work place whenever they need their support. From this, it can be comprehended that majority of
the superiors in the organization under the study had provided all the necessary supports to their
subordinates.
As shown in the above table of item 2, 71(53.8%) of the respondents are satisfied with the
motivation and feedback given from their superiors and unlike 44(33.3%) of the respondents are
not satisfied with the motivation and feedback of their superiors. From this, one can understand that
majority of employees are satisfied with the motivation and feedback they get from their superiors
in their work place is also an encouraging type.
Item 3 of the table 4.6, concerning the feedback of received from their superiors a large number of
respondents 59(45%) replied strongly agree and 46 (35%) agree respectively about the feedback of
respondents that they received support from their supervisors is an encouraging type. Oppositely,
16(12%) disagree and 11(8%) strongly disagree. This implies that there is a good working
relationship between leaders and subordinates in the organization.

The intention behind the last item of table 4.6 is to realize whether the branch office management
33
 provides a genuine interest in solving the problem when employees facing some obstacles in their
work place. Thus, majority of the respondents responded 53(40.2%) disagree and 30(23%) strongly
disagree. Whereas, 27(20.1%) of the respondents answered neutral. Therefore, it is to be noted that
the branch office management shows weak interest in helping employees to solve their problem on
their duties.

4.3.3 Organizational Factors for Employee Turnover Intention

Table 4.7 Organizational and Working Environment as Factors for Turnover

Response Category
5 4 3 2 1
No. Questions Fr % Fr % Fr % Fr % Fr %
I get adequate equipment,
1. supplies and enough support 7 5.3% 26 19.7% 19 14.4% 67 50.8% 13 9.8%
services I need on my job.
2. The working environment is 5 3.8% 44 33.4% 26 19.7% 32 24.2% 25 18.9%
satisfactory for the employees.
3. I am involved in decision 7 5.3% 101 76.5% 4 3% 7 5.3% 13 9.9%
making in relation to my job.
The working hours are
4. satisfactory with the work load 14 10.6% 66 50% 31 23.5% 14 10.6% 7 5.3%
I am supposed to do.
When there is promotion
5. opportunity, the consideration 13 9.84% 19 14.42 21
15.9% 49 37.12% 30 22.72%
is equal and fair for all %
employees.
There are promotion
6. opportunities and clarity in 8 20 15.15 37 32 35
6.1% 28% 24.24% 26.51%
%
procedures for promotions.
The customs branch office
arranges continuous training
7. and development programs to 9 6.8% 24 18.2% 9 6.8% 77 58.3% 13 9.9%
enable my professional to
grow.
I feel that I am rewarded with
8. better appraisal rates and grade 8 6.1% 20 15.1% 12 9.1% 50 37.9% 42 31.8%
promotions based on my
actual performance.
I am not stressed at my work
9. place for I have enough time 5 4% 50 38% 20 15% 40 30% 17 13%
to get everything done on my
job.
The amount of pay I receive
from my job is equal to others 0 21 37 56 18
0% 16% 28% 42% 14%
10. organizations doing similar
work.
Source: Computed from Survey Data, 2020

As shown in item 1 of table 4.7, most of the respondents 67(50.8) and 13(9.8%) reacted disagree
34
and strongly disagree for the reason that they were not supported with adequate equipment, supplies
and enough support services they need on their jobs. Unlike, 7(5.35) and 26(19.7%) replied that they were
provided with adequate equipment and supplies. Based on the respondents’ response, one can conclude that
the branch office is not in a position to supply necessary equipment and facilities to its employees which in
turn have negative impact on the organizational performances as well.
As indicated in item of the same level, a slightly large number of the respondents 44(33.4%)
responded as if there is an encouraging or conducive working environment which is satisfactory for
its employees in the branch office. Whereas oppositely, a substantial percentage 32(24.2%) and
25(18.9%) of the respondents were replied disagree and strongly disagree concerning the
conduciveness of their working environment. From this data, one can summarize that a large
number of the respondents are working within unfavorable working environment in their
organization.

With regard to their involvement in decision making, a greater percentage 101(76.5%) of the
respondents confirmed that they were involved in decision making when any decision pertaining to
their work is supposed to be decided. However, very insignificant number of the respondents
7(5.3%) and 13(9.9%) replied disagree and strongly disagree concerning their involvement in
decision making on their jobs. So, one can generalize the decision making in the branch office is
participatory which in turns boosts the work morale of the employees.
As revealed in item 4, a remarkable portion 14(10.6%) and 66( 50%) of the respondents answered
very strong and strong regarding the satisfactory of working hours with their working load at their
work place. Whereas 14(10.6%) and 7(5.3%) responded disagree and strongly disagree respectively.
The reaming 31(23.5%) of the respondents were indifferent or neutral concerning with working
hours and work load they supposed to do.

As can be observed from item 5, regarding the fairness of promotion opportunities for all
employees majority 49(37.12) and 30(22.7%) of the sampled respondents replied disagree and
strongly disagree respectively. However, a very small portion of the respondents 13(9.84) and
19(14.42%) answered strongly agree and agree respectively. Based on the response of the
respondents it can be generalized that there is fair promotion opportunities equal to all employees.

Concerning the clarity of promotion procedures in item 6 of table 4.7, the table depicts that a large
portion of the respondents 32(24.24%) and 35 (26.51%) responded disagree and strongly disagree
about the clarity of the promotion procedures so far used in the organization. Whereas, 37(28%) of

35
the respondents responded neutral all about the clarity of promotion procedures.
From this, one can deduce that the promotion procedure of the branch office is not clear for most
of its employees.

As shown in item 7 of table 4.7 regarding the arrangements of continuous training and development
programs in the organization, most of the respondents 77(58.3%) and 13(9.9%) replied disagree
and strongly disagree respectively. Conversely, 9(6.8%) and 24(18.2%) of the respondents
answered strongly agree and agree respectively as if there is an arrangement of continuous training
and development programs to enable employees to grow professionally. Based on their response,
there is no enough arrangement of training and development programs in the organization under the
study.

In the item 8 of table 4.7, the respondents were asked about their feeing of rewards attached with
their better appraisals rates and grade promotions based on their actual performances. In view of
this point, majority of the respondents 50(37.9%) and 42(31.8%) replied disagree and strongly
disagree respectively. On the other hand, a very small portion of the respondents 8(6.1%) and
20(15.1%) replied strongly agree and agree respectively. Thus based on the responses, it can be
concluded that employees are not promoted based on their performances and they are not rewarded
for their better appraisals.

In the item 9 of table 4.7, respondents were requested to express their feelings in connection with
the stress they feel at their work place. As a result, a large number of sampled respondents 50(38%)
indicated that they were not as such stressed much at their work place. From this it can be inferred
that the work load in the organization is reasonable and sound for its employees.

As far as last item of the table 4.7 is concerned about the amount of pay they received from their
jobs, most of the respondents replied that they disagreed and strongly disagreed i.e., 37(28%) and
55.5(48%) respectively. The survey indicates that more than 76% of sample respondents perceived
that the amount of pay they are receiving doesn’t match with the others organizations doing similar
work.

4.3.4 Employee Intention to Leave the Job

Respondents were asked about their current conditions regarding leaving the current organization or not;
firstly, respondents were asked if they have intention to resign from AABACB0 within a shorter period of
time.

Table 4.8 Descriptionof Employee’s Intention to Leave Their Jobs

36
 Response Category
5 4 3 2 1
No. Questions Fr % Fr % Fr % Fr % Fr %
Whenever I get a job
1. elsewhere, definitely I 40 30 17 26 19
30.3% 22.7% 12.9% 19.7% 14.4%
leave this job
automatically.
2. I have intention to resign 8 67 20 30 7
6.1% 50.7% 15.2% 22.7% 5.3%
my job within a short time.
I am being dissatisfied
working for customs due to
3. one or other reasons, so I 31 23.5% 53 40.1% 7 5.3% 8 6.1% 33 25%
would probably look for
outside opportunities.
I am already fed up
working in customs so I am
4. searching for a better job in 40 30.3% 36 27.3% 17 12.9% 18 13.6% 21 15.9%
a better organization at the
moment.
Source: Computed from Survey Data, 2020
In table 4.8 of item 1, respondents were asked whether they have an intention to leave their current
job automatically if they will get another job elsewhere. Accordingly, majority of the respondents
40(30.3%) and 30(22.7%) have interest to leave their job by responding strongly agree and agree
respectively. Whereas, oppositely 26(19.7%) and 14(4%) of the respondents replied that disagree
and strongly disagree to leave their current jobs even if they get other jobs somewhere. From this it
can be inferred that majority of the employees are not satisfied with their current jobs and have
intention to leave organization.
In item 2 with regard to employees intention to resign from the organization within a short period
of time, the table shows that most of the respondents 67(50.7%) replied that they agree to resign
and leave the organization within a short time. However, 30(22.7%) of the respondents responded
that they disagree to resign and leave the organization or their current jobs. This clearly indicates
that a substantial percentage of employees of the organization have intention to resign and leave
their organization.

As can be illustrated in the same table of item 3, the respondents were asked whether they are being
dissatisfied working for customs due to one or other reasons and looking for outside opportunities.
A very large number of respondents 31(23.5%) and 53(40.1%) answered that they strongly agree

and agree respectively for they are being dissatisfied working for customs and looking for other
37
outside opportunities. Nonetheless, a small proportion of the respondents 8(6.1%) and 33(25%)
replied disagree and strongly disagree for they are being satisfied working for customs and have no
intention to look outside for other opportunities. This implies that there is dissatisfaction of
employees in the customs on their current jobs.
In the last table of item 4, respondents were asked whether they are already fed-up working in
customs and searching for better jobs in better organization. To this respect, a greater percentage of
the respondents 40(30.3%) and 36(27.3%) responded to raised question strongly agree and agree
respectively for they are already fed up working with customs. On the other side, 18(13.6%) and
21(15.9) of the respondents confirmed to continue with customs by replying their answers to the
question disagree and strongly disagree for they have no interest to search better jobs in better
organization elsewhere. Based on this data, one can generalize that current employees are fed-up
with their current jobs which may in turn have negative impacts on the organizational performances.
Based on the respondents’ responses, one can conclude that employees are looking for betterjob
opportunity from outside and decide to leave the organizations if they get betteropportunity
elsewhere.
4.4 Inferential Analysis
Inferential analysis is used to provide the general conclusion of the research. And inferential
analysis also is an explanation of the relationship between independent variable and dependent
variable .In this research, there will have three hypotheses would be tested by using Pearson
Correlation Coefficient.
4.4.1. Verification of Hypothesis One
Correlation Analysis between individual factors and turnover intension

Hypothesis: 1
The first hypothesis of the study states: individual factors positively affect employee turnover
intension. To verify this hypothesis, the researcher analyzed data by use of SPSS and the following
products were presented as observed below:

H1: There is a significant relationship between individual factors and turnover intension
H0: There is no a significant relationship between individual factors and turnover intension

The association between individual factors and turnover intention was evaluated using Pearson correlation
analysis. Table 4.9depicts the overall findings of inter-correlations among variables which are statistically

38
significant at p <.0.05 and the 95% confidence level.
Strong negative correlations were found in the association of age of employee with turnover
intentions. Pearson correlation analysis signified r=0.723 and P = 0.000 with significance at the
0.01 level (2-tailed). Form this we can see that the younger employees are more likely leave their
job. The strongest positive correlation association were found between education level and turnover
intention signified at r=0.923 and P =000.which indicated us the more educated employees have
higher tendency to leave their job. The result also showed us work experience and turnover
intension were positively correlated, signified at r=0.611, P=0.000, at the 0.01 level (2-tailed).
There were also strong negative correlation was determined in work experience of employee association
with staff turnover intention, signified at r=-0.611, P= 0.000, at the 0.01 level (2-tailed). Therefore,
individual factors hypotheses were supported and the null hypothesis was rejected.
Table 4.9 Pearson’s Correlation between Individual Factor and Employee Turnover
Intension (n=99)

Variables age Education Level Work Experience Turnover

Pearson Correlation 1 .456** .339** -.733**
Age Sig. (2-tailed) .000 .000 .000
N 132 132 132 132
Pearson Correlation .456 1 .483 .923**
Education Level Sig. (2-tailed) .000 .000 .000
N 131 132 132 132

Pearson Correlation .339** .483 1 .611**

Work experience Sig. (2-tailed) .000 .000 .000
N 132 132 132 132
** ** **
Pearson Correlation -.733 .923 -.611 1
Turnover Sig. (2-tailed) .000 .000 .000
N 132 132 132 132
Source: SPSS output from Questionnaire
0.01 Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-
tailed).

4.4.2. Verification of Hypothesis Two

39
Correlation Analysis between leadership factor and turnover intension
Hypothesis: 2
H1: There is negative relationship between leadership factors and turnover intension
H0: There is no negative relationship between leadership factors and turnover intension
Table 4.10 Pearson’s Correlation between Leadership Factors and Employee Turnover
Intension (n=99)

Fair treatments Employee Manager’s Turnover

Variables of motivatio problem
employee n solving
skill
Pearson Correlation 1 .675** .606** -.637**
Fair treatments of
Sig. (2-tailed) .000 .000 .000
employee
N 132 132 132 132
** **
Pearson Correlation .675 1 .811 -.348**
Employee
Sig. (2-tailed) .000 .000 .002
motivation
N 132 132 132 132
** **
Pearson Correlation .606 .811 1 -.821*
Manager’s problem
Sig. (2-tailed) .000 .000 .001
solving skill
N 132 132 132 132
** ** *
Pearson Correlation -.637 -.348 -.821 1
Turnover Sig. (2-tailed) .000 .002 .001
N 132 132 132 132
**. Correlation is significant at the 0.01 level (2-tailed).
Source: SPSS Output from Questionnaire
The above table 4.10 shows the correlation matrix indicates that the independent variable fair
treatment of employee was significantly correlated with turnover intensionat thevalue of (0.000),
which is less than 0.01. Furthermore, the table shows thatManager’s problem solving skill achieved
the highest negative correlation with the employee turnover intension. However, employee
motivation has the lowest correlation with employee turnover intension.
4.4.3. Verification of Hypothesis Three
Correlation Analysis between Organizational Factors and Turnover Intension
Hypothesis: 3
H1: There is a negative relationship between organizational factors and turnover intension
H0: There is a negative relationship between organizational factors and turnover intension

Table 4.11 Pearson’s Correlation between Organizational Factors and Employee Turnover
Intension (n=99)

40
 Working Promotion Reward
Variables Environmen opportunity Turnover
t
Pearson
1 .590** .599** -.669**
Correlation
Working Environment
Sig. (2-tailed) .000 .000 .000
N 132 132 132 132
Pearson
Correlation
Promotion opportunity Sig. (2-tailed) .590** 1 .204 -.681**
.000
N .000 .003

Pearson
132 132 132 132
Correlation
Reward Sig. (2-tailed) .599** .204 1 .-537
.000
N .000 .003

Pearson
132 132 132 132
Correlation
Turnover
Sig. (2-tailed) -.669** -.681** -.537 1
N .000 .000 .000
**. Correlation is significant at the 0.01 level (2-tailed).
Source: SPSS Output from Questionnaire
The above table 4.11 shows the correlation matrix indicates that the independent variable working
environment has a strong negative relationship with turnover intensionat the value of (0.000),r=-
0.669 Furthermore, the table shows thatpromotion opportunity shows significant negative
correlation with the employee turnover intension. The reward system of organization also
exhibited a negative significant correlation with the dependent variable turnover intension at
r=-0.537.
Generally, the above 3 correlation tables show individual factors, leadership factors and
organizational factors have significant relationship with the dependent variable turnover intension.
As a consequence, the hypothesiswasaccepted.

4.4.4 Multiple Linear Regression Analysis

Regression analysis is a systematic method that can be used to investigate the effect of one or more
predictor variables on dependent variable. That is, it allows us to make statements about how well
41
one or more independent variables will predict the value of a dependent variable. Specifically this
multiple regression was conducted in order to investigate the effect overall bundle of selected
determinant factors on employees’ job performance which is clearly stated at hypothesis4.
Hypothesis: 4
H1: The overall bundle of determinant factors has an effect on turnover intension.
H0: The overall bundle of determinant factors has no effect on turnover intension
The multiple linear regression of turn over intention against its variables for the sample size of132
employees revealed that, the correlation between the observed value of turn over intention and the
optimal linear combination of the independent variables is 0.954, as indicated by multiple R.
Besides, given R2 value of 0.910 and the adjusted R 2 value of 0.956, it may be realized that 91%
of the variation in turn over intentions can be explained by the independent variables. The
remaining 9% of the variance is explained other by variables not included in the study. As
demonstrated in the below table the Durbin-Watson value in this analysis is 0.613, which falls
within the range up to 2.5, showing that there is no auto-correction in the residual. The standardized
coefficients of B column, gives us the coefficients of the independent variables in the regression
equation including all the predictor variables as indicated below:
ANOVA

Table 4.12 shows that the F-value is the Mean Square Regression (22.095) divided by the
MeanSquare Residual (1.371), yielding F=16.114. From the results, the models in this table are
statistically significant (Sig=.000). Therefore, an organizational performance that is both intrinsic
&extrinsic factors combined are significant predictors of organizational performance at F=16.114.

Table 4.12ANOVA

Model Sum of Squares Df Mean Square F Sig.

Regression 22.095 1 22.095 16.114 .000b

3 Residual 176.882 129 1.371

Total 198.977 130

a. Dependent Variable: Turnover intension
b. Predictors: (Constant), individual factors, leadership factors and organizational factors

42
In the study, multiple regression analysis was undertaken to examine the relationship between
employee turnover intension and various exogenous variables. The general form of the regression
equation was Y = a + bX ......................................................................................1
Where: Y was employee turnover intension as an endogenous variable; “a" was the Y-intercept and
it constituted the estimated value of Y when X which was a vector was zero. While b was the slope
of the line, or the average change in Y for each change of one unit (either increases or decreases) in
the independent variable X. Before model estimation, correlation analysis was conducted to
determine the variables to include in the study where suitability of age, work experience, education
level, work experience, fair treatment of employee, manager’s problem solving skill, working
environment, promotion opportunity and reward.
Thus equation one was expanded to equation two (2).
Y= a + bx1 + cx2 + dx3 + ex4 + fx5 + gx6 +hx7 +ix8 + jx9 ......................................2
Where: Y was employee turnover intension; x1 age of respondent; x2level of education; x3 work
experience; x4 the fair treatments of employee; x5 employee motivation; x6 manager’s problem
solving skill; x7 working environment ; x8 promotion opportunity ; x9 reward .
The predicted Turn over intention Score =-0.175+ -0.657(age) + 0.813(education level) + -
0.600(work experience) + -0.677(Fair treatment of employee) +-328(Employee motivation) + -
.689(Manager’s problem solving skill) + -.671(Working environment) + -.646 (Promotion
opportunity) + -.696(Reward)
Table 4.13: Regression Results
Model Unstandardized Coefficients Standardized Sig.
Coefficients
B Std. Error Beta
1 (Constant) .175 .053 .001

Age -.645 .057 -.657 .002

Education Level .803 .042 .813 .000

Work experience -.601 .077 -.616 .000

Fair treatment of .003

-.642 .034 -.677
employee
Employee motivation -.309 .076 -.328 .000

Manager’s problem .000

-.671 .041 -.689
solving skill
Working environment -.654 .013 -.671 .000

Promotion opportunity -.611 .048 -.646 .002

Reward -.683 .066 -.696 .000

Source: SPSS Output from Questionnaire

43
As indicated in the table, the variables which were statistically significant. Except education level
all other variables exhibited negative relationship with turnover intension. From the regression
analysis we understand education level is the predictor variable that contributes to turnover
intention Beta value of standardized coefficients is -.813 it was the highest contribution compare to
other factors this concluded that, highly educated employees in the Addis Ababa Bole Airport
customs branch office has high tendency to leave the organization.

Next to education level , reward system were ranked second Beta value of standardized coefficients
is 0.896, promotion opportunity and working environment were also negative and strong
relationship with the dependent variable, turnover intension. And all variables were significantly
related, so that the null hypothesis was rejected.

Summary of Hypothesis
The conceptual framework showed the relationships between individual factors, leadership factors
and turnover intention. To test this relationship correlation analysis is performed based on the
analysis the following summery is made.

Table 4.14 Summary of Hypothesis Testing

No. Hypothesis Result

1. H11: There is a significant Accepted
relationship between individual
factors and turnover intention.
2. H12: There is a significant negative Accepted
relationship between leadership factor
and turnover intention.
3. H13: There is a significant negative Accepted
relationship between organizational
factors and turnover intention.
4. H14: The overall bundle of determinant factors
Accepted
has an effect on turnover intention.

Source: SPSS Output from Questionnaire

44
4.5 Exit Interview
The representative of HRM team leaders argued that turnover in an organization is an inevitable or
unavoidable. They are also aware of the magnitude of turnover that is increasing from year to year.
Regarding the interview questions about the reasons why professional employees leaving the
organization, they replied that employees left the organization due to various reasons but the major
ones are due to the salary and benefits they are getting from their respective organization.

The team leaders also pointed out that the organization has given due attention and cares to retain its
employees for the success of the organization which is directly related with the contribution of its
human resources for turnover incurs high costs.
4.6. Document Analysis: Trend of Employee Turnover

Based on the data obtained from the available documents of the organization under the study
monthly and quarterly reports were also gathered so as to determine the turnover magnitude and
trend of the organization. Consequently, the findings are presented in the figure below.

Figure 4.Document Analysis of Professional Employees Turnover Rate (2017-2019 G.C)

80 71
70
60
50 46
39
40 Professional Employees
30 Turnover Rate
20
10
0
2017 2018 2019

Source: AABACBO, HRM Documents

45
Employee Turnover Rate over the Past Three Years
Table 4.15.The Rate of professional Employees Turnover from 2017- 2019 G.C by Sex Category.

Category Year
2017 2018 2019
No % No % No %
Male 15 38.5 19 41.3 46 64.8
Female 24 61.5 27 58.7 25 35.2
Total
39 100 46 100 71 100
Source: - Addis Ababa Bole Airport Customs Branch office,HRMdocument.

The data in the above table I shows what the magnitude of staff turnover and the trend look like
from the period under the review i.e., from 2017 to 2019. Accordingly, as it is shown in the table
above, the number of staff who left the organization in 2017, 2018 and 2019 were 39, 46 and 71
respectively. Hence, the data reveals that AABACBO had been facing frequent professional
employees turnover in the last three years and of which in 2017 more females left the
organization as compared to the other two years i.e., 2018 and 2019. Besides, it can be
understood that the average number of employees leaving the organization within the last three
years is 52 employees per annum. In the period under the review year 2017was found to be the
minimum turnover of employees recorded and on the contrary the 2019 was the maximum and
the pick turnover recorded period.

46
 Chapter Five: Summary, Conclusion and Recommendations
5.1 Summary
Based on the data, analysis and interpretation made in the previous chapter the major findings
are summarized as follows:
• Most of the respondents indicated that the organization was experiencing high cases of
employee turnover. The level of professional employee’s turnover was indicated by the
majority of the respondents to be high. According to the respondents, employee turnover was
also aggravated by the absence of retention strategies in the organization.

• Demographic factors such as gender, age, educational background and work experience have
also considerable effect on employees’ turnover intention. Accordingly, female workers,
younger employees, highly qualified employees and employees with less experience were
likely intended to leave their current jobs for some reasons.

• The study finding revealed that majority of the respondents replied that the salary paid to them
in comparison to their experiences, responsibilities, and qualification was found to be
unattractive and insufficient as compared to other organizations doing similar works.

• A large number of respondents replied that they felt insecure regarding their current job in the
organization.

• .Avery noticeable portion of the respondents replied that they agreed or satisfied with their
work load that it was reasonable and sound.

• The majority of the respondents endorsed that they were not feeling stress for they had enough
time to carry out their duties in their organization.

• Most of the respondents approved that their superiors treated and handled them respectively at
their work place whenever they needed support in relation to their works.

• A huge percent of the respondents ratified that their superiors motivated employees and gave
them the necessary feedback to exercise their initiatives and self-approach to work.

• A substantial number of the respondents agreed that the feedback of their works received from
their superiors were supportive and an encouraging type.

• A considerable percent of the respondents approved that the branch office management did not

47
 show a genuine interest in solving problems they faced at their work place.

• A sizeable proportion of the respondents agreed that they faced difficulty to get adequate
supplies and support services they wanted on their jobs.

• A noticeable portion of the respondents recognized that an existence of safe working

environment in the organization.

• A very high percentage of the respondents confirmed that they were taking part in decision
making in relation to their jobs in the organization.

• With regard to career growth, the majority of the respondents were not happy with the
promotions opportunities and clarity on the procedures of promotions for it was not fair and
equal to all employees.

• Apparently, majority of the respondents claimed that they were denied with continuous training
and development programs that enabled them professionally to grow.

• A remarkable percent of the respondents were dissatisfied with the extent of the amount of
reward paid by the organization and mismatch between employee’s skill and organization’s job.

• It was evidenced that a large number of respondents replied that they had intention to resign
and leave the organization whenever they get a job elsewhere.

• Most of the respondents endorsed that they were dissatisfied working with customs and had
planned searching for better job in better organization.

5.2 Conclusions
In this study the researcher has made an attempt to assess factors affecting professional employee
turnover intention at Addis Ababa Bole Airport Customs Branch Office. Accordingly, the researcher
comes to conclusions based on the interpreted results of the finding.
• Regarding demographic factors, age, gender, educational background and professional
experience had significant effect on probability of turnover intention. Some studied cases
confirmed that an older employee was more likely to possess a lower degree of mobility and
concerned with the formal and informal benefits at work place than their younger counterpart.
• Factors for employee turnover intention are different and many. Among these, insufficient

48
 salary, in adequate benefit packages, better job opportunities outside elsewhere, and lack of
career advancement are found to be the most prominent reasons for employee turnover
intention. As a result, employee turnover intention to leave the organization was found to be
high for they having fear of job insecurity and they will have an intention to leave the branch
office if they get better job with better salary elsewhere. By the same token, most of the
employees were much dissatisfied with their current jobs.
On the other hand, the employees have not felt much stress on their work place that resulted from
fair and reasonable workloads distribution among professional employees in the branch office.
Similarly, from the leadership factors perspective, professional employees were fairly treated and
handled by their superiors and get all the necessary supports and feedback whenever they are in need
of their helps. There was also a good working environment in the branch office that enables them to
work their duties effectively and efficiently.
• Lack of career growth and absence of continuous training and development were also found to
be the major reasons for turnover intention of professional employees in the branch office as
organizational factors. Absence of both career growth and training programs associated with
unclear promotional procedures in the organization adversely affect employees’ skills
development and work morale which in turn contributes to increased professional staff
turnover intention of those who are experienced and qualified. Hence, lack of career
development is one of the elements most likely to encourage employees’ decision to leave the
organization and also identified as one of the reasons for dissatisfaction of professional
employees in the organization.
• The branch office management likewise did not show a genuine interest in solving problems of
professional employees when they faced difficulties at their work place & as result most of the
employees lost their interest on their management bodies. Besides, there was also a mismatch
between employee placement as per their qualification and job requirement made by
management significantly contributed to professional employee turnover intention.

49
5.3 Recommendations
[

In light of the above conclusions, the following discussions explore the recommendations considered
important for the organization to retain the experienced and qualified employees.

The findings showed that female employees, younger workforce, less experienced workers and
highly qualified employees are more likely to leave their current jobs. So realizing this fact, better
attention should be given to these segments of work forces in order to retain these valuable and
competent personnel in the organization.

Salary or pay has also played a significant role in retaining and rewarding high quality human
resources. To be more precise, one of the critical factors of employee turnover is lower salary. When
employees’ receive lower salary and insufficient financial rewards, they tend to stay no longer with
the organization. Subsequently, the concerns body mainly the Ethiopian Customs Commission has to
review its salary scale that is compatible with labor market so as to increase job satisfaction of
employees and reduce the turnover rate in the organization. It is evidenced that good pay and better
benefit packages can be a strong determinant of job satisfaction that leads to achieve higher
productivity in the organization.

The weak nature of interrelationship between employees and management represents other factors
that cause employees’ turnover. So, the management of the organization should provide continuous
and sustainable support to create conducive working environment for its employees when they face
some difficulties on their jobs. The management has to also investigate the extent of job insecurity in
the organization which in turn affects a sense of belongings or loyalty of employees to their
respective organization.

Next to salary and benefit packages, lack of personal and professional advancement is one of the
crucial reasons why employees leave the organizations. When employees observe limited
opportunities for professional or personal advancement in their current jobs, they prefer to join other
companies which may provide good career growth and good pay packages. Thus, the Ethiopian
Customs Commission in general and the branch management in particular ought to provide
opportunities for career growth by revising its policies of promotional procedures and offer equal,
consistent and clear path for career advancement to reduce employee turnover.

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54
 APPENDIX. I.
Dear Sir/Madam

My name is Ruth Getachew, a postgraduate student at Admas University; I am carrying out a study
on “ FACTORS AFFECTING EMPLOYEES TURNOVER INTENTION AT BOLE ADDIS
ABABA AIRPORT CUSTOMS BRANCH OFFICE’’, as partial fulfillment of my degree.
I am kindly requesting you to spare a few minutes of your precious time and fill the attached
questionnaire as sincerely and truthfully as possible. The information given will be handled
confidentially, and will only be used exclusively for research purpose.
Yours Faithfully,

Ruth Getachew.

I
 PART I- PROFILE OF RESPONDENTS
Section I. Instruction: please fill where you feel it is appropriate
1. Age a) 18-30 years b) 31-40 years c) 41-50 years d) 51 and above
2. Sex a) Male b) Female
3. Educational Level a) College Diploma b) BA/Bsc c) MA/Msc d) others, Specify--
4. Marital Status a) Single b) Married
5. How much income you earn per month in ETB? a) 3,000- 5,000 b) 5,001-7,000 c) 7,001-
9,000) d) 9,001 and above.
6. Work Experience a) Less than 5 years b) 6-10 years c) 11-15 years d) 16 & above

Part II- Questions on Turnover Intention of Current Employees

The following questions are prepared to get your views regarding some of the causes of employees’
turnover. For each question below, mark or tick the options that fits to your opinion based on
the following Likert scale.
5= Strongly Agree 4= Agree 3= neutral 2= Disagree 1= Strongly Disagree

A. Individual Related Factors

No. 5 4 3 2 1
Female employees are more inclined to leave their jobs than male
1.
workers.
Employees who have less work experiences are more likely to leave
2.
their current jobs than experienced employees.
Younger employees are inclined to leave their jobs when compared
3.
to older employees working many years as employment.
4. The level of education matters for turnover that highly qualified
employees are prone to leave their current organization.

II
 B. Leadership and Management Factors
No. 5 4 3 2 1
My superior treats me fairly and respectively at my work place
4.
whenever support is needed.

My superior motivates me and gives me the necessary feedback to

5.
exercise initiatives and self-approach to work.

The feedback of my work I receive from my superiors is supportive

6.
and encouraging type.

I feel the branch office management shows a genuine interest in

7.
solving the issues or problems I face at my work place.

C. Organizational Factors and Working Environment

No. 5 4 3 2 1
I get adequate equipment, supplies and enough support services I
8.
need on my job.

9. The working environment is satisfactory for the employees.

10. I am involved in decision making in relation to my job.

The working hours are satisfactory with the work load I am
11.
supposed to do.
When there is promotion opportunity, the consideration is equal and
12. fair for all employees.

There are promotion opportunities and clarity in procedures for

13.
promotions.
The customs branch office arranges continuous training and
14.
development programs to enable my professional to grow.
I feel that I am rewarded with better appraisal rates and grade
15.
promotions based on my actual performance.
16. I am not stressed at my work place for I have

III
 D. Intention to Leave the Job
No. 5 4 3 2 1
Whenever I get a job elsewhere, definitely I leave this job
17.
automatically.
18. I have intention to resign my job within a short time.
I am being dissatisfied working for customs due to one or other
19.
reasons, so I would probably look for outside opportunities.
I am already fed up working in customs so I am searching for a
20.
better job in a better organization at the moment.

E. Intention Any Time

25. Do you have any intention to leave customs at any point of time in the future?
a) Yes b) No C) Indifferent
26. If your response is “yes” for the above question, what are the reasons that will cause you to
consider leaving the customs? (NB- you can select more than one option).
A. Lack of career development
B. Insufficient payment
C. Unfavorable Working Condition
D. Insufficient benefits
E. Excessive work load
F. Bad relationships with management and other colleagues
G. Discrimination among employees
H. Existing of alternatives to get better job at other places.
I. External pressure that causes me to leave my job.
J. Others, (if any), specify………..

IV
Part III: Interview Questions Made With HRM Team Leaders

1. Is the management aware about employee turnover in Customs Branch?

………………………………………………………………………………………………………
2. What is your view regarding reasons for employee
turnover? ……………………………………………………………………………………………
…………
3. What costs does customs branch office in cur due to employee
turnover? ……………………………………………………………………………………………
…………
4. What retention mechanisms so far the customs office made to proactively retain existing
employees? …………………………………………………………………………………………
……………
Thank you!