Mekonnen, Worku (PhD)Girmay, Medhane2021-01-212023-11-042021-01-212023-11-042020-06http://etd.aau.edu.et/handle/123456789/24747Compensation practice of an organization is one of the main cause for employees in an organization and able to cause financial and non-financial losses in the organization. The main purpose of the study was to investigate the effect of compensation practice on professional’s turnover in LIB. An explanatory research design and a case study methodology were used. It has been delimited to selected professional employees of head office and Addis Ababa city Branches. Questionnaire and interview were mainly used to collect the intended data. Among the distributed 243 questionnaires about 84.77% has completely filled and returned. Researcher used a quantitative research approached. Descriptive and inferential statistical methods have been implemented in analyzing the collected data. The result showed that there was negatively strong correlation between the compensation practice of LIB and professional employees' turnover. Moreover, the multiple regression analysis result of the study confirmed that the compensation practice of the Bank has about 51% contribution in professional employees’ turnover. Professionals of the Bank had negative attitude toward the compensation practice and were dissatisfied by the practice. In order to minimize professionals' turnover and motivate them to stay for long period of time the researcher recommend the Bank to review its compensation practice at least once in a year. The researcher also recommended new researchers looking in to this study area by integrating with other variables in maintaining highly experience and skilled professional employees in their organizationen-USFinancial CompensationNon-Financial CompensationCompensation practicesThesis