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