A Revolving Door Paradox of Textile Industry in Ethiopia: Quantitative and Qualitative Analyses of High Labor Turnover
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Date
2020-06
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A.A.U
Abstract
Labor-intensive industries are highly encouraged in the economic policy of Ethiopia primarily to create jobs for the masses of unemployed youth and to contribute to the transformation process of the economy. Abundant and cheap labor in the country is assumed to be an opportunity to obtain competitive advantages for the industrial sector. However, there is a growing concern that employees in the industrial sector of Ethiopia demonstrate high turnover. Specifically, while the textile and garment industry, the leading sectors in the country, employed a considerable number of workers, the problem of high turnover is severe. No rigorous research has been undertaken on turnover, except for some narrative explanations. To assess the determinants of the problem, a sample of four companies were included in the study from four different Regional States (Tigray, Amhara, Oromia, and SNNPR). The principal sources of the data were employees, key informants, and employers in the textile manufacturing enterprise. A structured questionnaire with CSpro software was used to gather the information. A Probit Econometric Regression analysis was applied to analyze the data and draw a conclusion. The findings of the study revealed that workers' dissatisfaction with their job, work environment, and salary dissatisfaction have a significant and positive relationships to their intension to leave the companies. However, as expected, supervisors' good relationship with the workers has a significant effect to reduce the probability of the worker's intension to leave the company. Compared to males, female workers are more likely to intend to leave. This could be associated with inconvenient work schedule and works stress. The result of the analysis also shows that the larger the family sizes, the less likely are the workers intend to leave their company which could be associated to fear of risk against the family livelihood. Thus, revising management style, considering the demand of the workers related to their job, working environment as well as matching the wage rate with the effort they put in the workload are among key recommendations to the company owners (managers).
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Keywords
Employee turnover, Intention to leave, Textile and Garment industry