Assessment of Causes of Employee Turnover and Intention to Leave in Nib International Bank

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Date

2016-12

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Addis Ababa University

Abstract

The banking industry is exhibiting a notable increase since the sector has been open for private investment some twenty years ago. There is also a continuous branch expansion in the sector which resulted in a growing demand for skilled staff. Staff turnover has been a challenge to the banking sector in general and it is not different in the case of Nib International Bank as well. The current level of turnover in NIB is around 10% while the management has planned to bring it down to 3%. The major challenge of NIB is particularly the turnover of the technical staff. The main objective of this study is to assess the causes of turnover and intention to leave. The study was conducted using both primary and secondary sources of information. The primary data was generated though questionnaire and interview. The study was conducted using both quantitative and qualitative analysis method and is mainly descriptive. Frequency tables, mean and percentage were used to explain some of the factors. T-test and one way ANOVA was also used whenever appropriate. The study revealed that salary, benefits, position change and title change are the main causes of turnover and intention to leave. It also shows that there is a strong level of intention to leave that does not differ between gender, age, job position and years of service. A consistent application of HR policies and procedures particularly in promotion found to be a concern for employees. Factors that are contributing to the intention to leave are found to be mostly internal. The study recommends that NIB should conduct a comprehensive salary and benefit survey to position itself among the best employers in the industry. It should also address the concerns of employees in terms of application of HR policies and procedures in order to curb the situation and persuade employees to change their intention. Key words: Turnover; Intention to leave, HR policies and procedures

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Keywords

Turnover, Intention to leave, HR policies and procedures

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