SCHOOL OF POSTGRADUATE STUDIES

BUSINESS ADMINISTRATION PROGRAM

THE EFFECT OF PROFESSIONAL EMPLOYEES TURNOVER

AND RETENTION PRACTICES IN CASE OF ETHIOPIAN
PUBLIC SECTOR ORGANIZATIONS OF AUTHORITY FOR
CIVIL SOCIETY ORGANIZATIONS (ACSO)

TESFALIDET NASIR ABDULKADIR

ADDIS ABABA, ETHIOPIA

JUNE, 2024
 SCHOOL OF POSTGRADUATE STUDIES

BUSINESS ADMINISTRATION PROGRAM

THE EFFECT OF PROFESSIONAL EMPLOYEES TURNOVER

AND RETENTION PRACTICES IN CASE OF ETHIOPIAN
PUBLIC SECTOR ORGANIZATIONS OF AUTHORITY FOR
CIVIL SOCIETY ORGANIZATIONS (ACSO)

A REASEARCH PAPER SUBMITTED TO THE SCHOOL OF

POSTGRADUATE STUDIES PRESENTED IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION (MBA)

BY :TESFALIDET NASIR ABDULKADIR

ADVISOR: -EYASU HAGOS (PHD)

ADDIS ABABA, ETHIOPIA

JUNE, 2024

Table of Contents
Abstract..........................................................................................................................................i
CHAPTER ONE............................................................................................................................5
INTRODUCTION.........................................................................................................................5
1.1. Background of the Study....................................................................................................5
1.2. Organization Background...................................................................................................6
1.3. Statement of Problem.........................................................................................................8
1.4. Research Question..............................................................................................................8
1.5. Objectives of the Study......................................................................................................9
1.5.1 General Objective.............................................................................................................9
1.5.2 Specific objective.............................................................................................................9
1.6. Operational Definition of Terms........................................................................................9
1.7. Significance of the Study....................................................................................................9
1.8. Scope of the Study............................................................................................................10
1.9. Organization of the Study.................................................................................................10
CHAPTER TWO.........................................................................................................................11
REVIEW OF RELATED LITERATURES................................................................................11
2.3. Overview of Effect of employees turnover and retention................................................11
2.3.1. Definition of the effect professional employee turnover...........................................11
2.3.2. Definition of employee retention..............................................................................11
2.3.3. Relationship between recruitment sources, retention and turnover...........................13
2.4. Factors affecting employee turnover................................................................................14
2.4.1. Demographic Factors.................................................................................................15
2.4.2. Personal Factors.........................................................................................................15
2.2.3. Push Factors / Controlled Factors:............................................................................15
2.4.3.1. Organizational Factors............................................................................................16
2.4.3.2. Attitude Factors......................................................................................................16
2.4.3.3. Organizational Commitment..................................................................................16
2.5. Reasons for employee turnover........................................................................................17
2.6. Costs associated with employee turnover.........................................................................19
2.7. Measuring employee turnover..........................................................................................21
2.8. Retentions Strategy...........................................................................................................22
2.9. Empirical Studies..............................................................................................................24
CHAPTER THREE.....................................................................................................................26
RESEARCH DESIGNE AND METHODOLOGY....................................................................26
3.1. Research Design...............................................................................................................26
3.2. Population and Sampling Technique................................................................................26
3.3. Sources of Data and Data Collection Tools Used............................................................27
3.4. Data analysis technique....................................................................................................27
3.5. Ethical Issues of the Study...............................................................................................28
CHAPTER FOUR.......................................................................................................................29
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS.........................29
4.1. Document Analysis..........................................................................................................29
4.1.1. Trend of Employee Turnover at ACSO....................................................................29
4.2. Exit interview...................................................................................................................30
4.3. Interview results with HR department team leader of ACSO..........................................30
4.4. Costs and Retention Mechanisms of Turnover at ACSO.................................................31
4.5. Demographic Information of Ex-Employees of ACSO...................................................32
CHAPTER FIVE.........................................................................................................................47
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS........................47
5.1. Summary of findings........................................................................................................47
5.2. Conclusions......................................................................................................................49
5.3. Recommendations............................................................................................................50
Reference.......................................................................................................................................1
Appendix 1....................................................................................................................................5
Appendix 2....................................................................................................................................4
Appendix 3....................................................................................................................................7
 Abstract
The study assessed the effect of professional employees’ turnover and retention practices
in case of Ethiopian public sector organizations authority for civil society organizations
(ACSO). Employees are main sources for organizations in meeting objectives in both
public and private sector organizations. Therefore, giving emphasis for employees
becomes a big issue for any organization. The effect of Professional employees' turnover
and retention practies in public sector organizations like ACSO. This study was therefore
conducted to assess how serious the problem is. Theoretical framework and models of
other scholars was used by modifying in our country context to know the real causes of
Effect of turnover.

Both qualitative and quantitative method are employed the present study. Through the
utilization of a questionnaire and interviews. In order to collect primary data, a questionnaire is
designed and administered to both current and ex-employees of the organization. In addition,
interview was conducted with the management of the organization and the HR department
personnel. The SPSS version 17.00 for windows is used to process the primary data collected
through questionnaire. This research investigated the effect of Professional employee turnover
and retention Practies in the organization. Hence, the study revealed that the effect of
employees turn over associated to cost Turnover can be costly due to expenses associated with
recruiting, hiring, and training new employees, knowledge Loss of knowledge, skills, and
expertise, morale and Culture High turnover rates can negatively impact morale among
remaining employees, loss of Customer Satisfaction; new employees may take time to build
rapport and understand customer needs, skills Gap Depending on the specific skills of departing
employees, turnover may aggravate skills gaps within the organization. All these factors are the
effect of professional employee turnover in the organization. It is, therefore, recommended that
by using these retention practise reduce turnover, and create a more positive and productive
work environment for the organization like Competitive Compensation and Benefits,
Opportunities for Career Growth and Development, Recognition and Appreciation, Work-Life
Balance, Positive Work Environment, Employee Engagement, Strong Leadership and
Management, Clear Path for Advancement, Regular Check-Ins and Feedback and Promote
Diversity and Inclusion by implementing these strategies, organizations can increase employee
satisfaction.
Key words: the effect of Professional Employees, Turnover, Retention practise in ACSO
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 CHAPTER ONE

INTRODUCTION
1.1. Background of the Study
The effect of Professional employees' turnover is an important and pervasive feature of the
organization. We are living in the world of stiff business competitions and business process
outsourcing 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, finding skilled employees can be difficult, and investments in training are less
secure. Therefore, at this time, in a competitive environment, turnover is not just a human resources
issue because it has its own impacts on the company positively and negatively (Wood, 2007).

Companies and organizations strive to develop a workforce of committed employees based on the
belief that organizations with committed employees achieve superior long-term performance
(Luchak & Gellatly, 2007). Committed employees are characterized as loyal, productive members
of work organizations (Porter, Steers, Mowday and Boulien, 1974) who identify with
organizational goals and values (Buchanan, 1974). Employees attach to their organizations
emotionally as they become to believe in its value and vision (Mulki, Jaramillo and Locander,
2006). The notion of commitment has been broken down into three levels: affective, continuance,
and normative. Ideally for organizations, employees will have affective level of commitment.
Affective commitment refers to the employees' emotional attachment to, identification with, and
involvement in the organization.

Employees with a strong affective commitment continue employment with organization because
they want to do so. Continuance commitment refers to awareness of the costs associated with
leaving the organization. Employees that exhibit continuance commitment remain with
organization because they need to do so. Finally, normative commitment refers to employees that
feel they ought to remain with the organization (Meyer and Allen, 1991).

A wide array of desirable outcomes has been linked to work-related commitment including
employee retention, job performance, attendance work quality, and personal sacrifice on behalf of
the organization (London, 1983). Steers (1983b) reported substantial negative relationship between
organizational commitment and intent to turnover.
There are two types of turnover: voluntary and involuntary turnover. When the organization
initiates the turnover, the result is involuntary turnover. As examples we can mention terminating
an employee for disciplinary case and lying off employees. When the employees initiate the
turnover, it is voluntary turnover. Employees may leave for retirement or to take a job with a
different organization. Noe and Gerher (2003) stated that Organizations try to avoid the need for
involuntary turnover and to minimize voluntary turnover, especially those efficient and good
performers.

Therefore, the present study is done on authority for civil society organizations (ACSO) because of
employees turnover is a big issue in the organization. Currently, most young employees are leaving
the organization due to unknown reasons. Hence, this study clearly identified the causes of
employees' turnover and its management or retention Practise will help in developing appropriate
policy and training program for the organization of ACSO.

1.2. Organization Background

Ethiopia has a long history of traditional community-based organizations (iddir, equb, debo etc…).
[1] However, according to some documents the emergence of formal civil society organizations in
the 1960s, during Emperor Haile Selassie’s reign. In the last years of the Emperor, a growing
number of modern CSO s were established; including trade unions, professional associations, and
relief organizations. In the period between 1960-1975, some historical records indicated that CSOs
were named as Charities and associations and registered in the government institution via the
Ministry of Interior under the proclamation number 321/1967. When the militaristic Derg[2]
regime deposed the Emperor through brutal coup d’état and hold sway the country, it has fully
striped the right to organize and form an association. Consequently, this irresponsible action
reversed all progress towards CSOs and barred any kind of CSO registration. Nonetheless, RRC
(Relief and Rehabilitation Commission) and Children Commission gave some sort of recognition to
indigenous and foreign CSOs that focus only on charities and children-related issues.

In the socialist Derg regime (1974-1991), registration and issuance of licenses to indigenous and
foreign CSOs were completely halted. However, the 1984 famine that claims the lives of many
Ethiopians compelled the regime to sign a general agreement via RRC with a limited number of
foreign charitable and humanitarian organizations. Before they became operative in the country, the
foreign charitable and humanitarian organizations were required to present a legality certificates
from their homeland along with proper documentation to commence the work. Though RRC was
not given a legal base to register foreign CSOs, it has coordinated its function throughout the
country particularly in the famine hotspot areas.
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Since the collapse of the Derg regime in 1991 and seizure of power by EPRDF, CSOs started to
blossom again due to unbolting the country’s political space. In addition to this, the government
enabled CSOs to expand the radius of operation from relief to rehabilitation and then to
participatory development programs. To this effect, between 1991 to 1995 registration of CSOs
was accomplished through the government institution-Ministry of Interior. In 1995, proclamation
number 4/1995 officially granted the legal right to FDRE Ministry of Justice for registration of
religious institutions, philanthropic organizations, NGOs, and associations. Ministry of Justice
continued the aforementioned functions by further proclamation number 471/2006 up until 2009.

In 2009, the Ministry of Justice conducted study-based structural reform and came up with the idea
of establishing a separate implementing agency particularly for handling charitable organizations
and associations. The momentum gained acceptance by the lawmakers and proclamation number
621/2009 was issued with a new mandate and separate implementing entity called “Charities and
Societies Agency.”

ACSO currently working in line with the new CSO Law Proclamation 1113/2009 and ensure the exercise of
constitutional rights to freedom of expression, association, and assembly through establishing a system of
accountability, transparency, and efficient operation to the maximum public benefit. ACSO enabled CSOs to
contribute their fair share to the holistic development of the country through creating a conducive
environment for registration and operation of CSOs, building the capacity of CSOs, and facilitating the
smooth working relationship between CSOs and government entities.

The major causes of employee’s turnover were identified through carried out different studies with
retentions strategies that organizations should follow by various researchers (Ongori, 2007;
Achoui and Mansour, 2007; Kumar, 2011; Rehman, 2012 & Gabriel and Thomas, 2012). These
studies were carried out in different countries and organizations. According to the results of these
researches, turnover causes may vary from countries to countries since those countries may be
categorized under developing or developed countries (Koys, 2001). Beside the countries, the
organization sectors the study were conducted may be the factor to the turnover causes. Johns
(2001) also stressed how culture plays a role in the causes of individual withdrawal within
organizations. Though several studies were addressing the cause of employee turnover in other
industries, very little has been done to address the causes of employee turnover in
governmental institutes.

A recent study conducted by Wesonga, Alice, Noah and Makworo (2011) is evident that
significant costs are involved in hiring, training and retaining new employees. Hence, it is
extremely crucial for the organization to retain its employees. Moreover, it becomes imperative that
7
management of the organization must identify the causes to minimize employee turnover at all
costs since it affects the organization efficiency and effectiveness (Glebberk & Bax, 2004).

ACSO set maximum attrition rate in its strategic planning as 5 percent. The actual attrition
rate of professional employees excluding of nonprofessional employees for the fiscal year 2005,
2006, 2007, 2008 are 7%, 22%, 18% and 13% respectively. This shows that it is above doubled
than the attrition rate set by the organization. Hence, the recent trend reflects that ACSO is facing
frequent turnover of professional employees. However, the causes of ACSO professional
employees leaving the organization voluntarily are not identified since as far as the knowledge of
the researcher studies have not been conducting on ACSO in this regard. Hence, this research is
intended to address the causes of professional employees’ turnover and employee’s retention
practice at ACSO.

1.3. Statement of Problem

Various studies were carried out to understand the effect of professional employees’ turnover
and retentions Practies that organizations should develop. Most of these studies were carried
out by developed countries and few developing countries. Some studies indicate that every
aspect of organizations is employees because effect of professional turnover of employee
leads to incurring of costs.

ACSO is a national body established Register and to oversee civil society

organizations (CSOs) and their activities.

Effect of turnover has become a major problem for both private and governmental
organizations. Well experienced and qualified professionals leave positions that they held in
government offices. Ethiopian Authority for Civil Society organization is one victims of
this high professional employee turnover, currently. ACSO is facing frequent turnover of
staff, and as such the high turnover is costing the Authority office in terms of productivity
(performance), money and time.
This study, therefore primarily focuses on answering the following basic/research questions.

1.4. Research Question

To adders the problem sated above this study tried to answer the following research questions.

1. What is the main effect of employee turnover in the organization?

2. What employee retention Practise are exercised by the organization to minimize staff
turnover?

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 3. What is the trend of staff turnover in the organization?
4. What are the possible causes of staff turnover?
5. Which category of professional are staffs is more susceptible for turnover?

1.5. Objectives of the Study

1.5.1 General Objective

The main objective of this research is to investigate the effect of professional employees’ turnover
on organizational performance

1.5.2 Specific objective

The specific objectives of the study are:
• To understand the effect of professional employee turnover in the organization.
• To identify Retention Practise
• To explore what employee retention Practise are exercised by the organization to minimize.
• To see whether the incentive system of the organization is a factor for turnover
• To identify the category of professional staff susceptible for turnover.
1.6. Operational Definition of Terms
1. 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.

2. Professional employees:-refers to employees typically to individuals who possess specialized

knowledge, skills, and expertise in their respective fields.
3. Effect of professional employees turn over: refers to the consequences or impacts that result
from professional employees leaving their positions within an organization.
4. Employee retention: - refers to the efforts and strategies employed by organizations to retain
their employees and reduce turnover rates.

1.7. Significance of the Study

Governmental and public sector organizations success can be measured mainly through delivery of
quality service to their beneficiaries. This can be achieved through well formulated plans and
programs, allocation of resources, assignment and retention of committed and competent staffs.
However, in ACSO it is not as explained above. Since skilled manpower turnover rate is high the
organization's intended objectives and expected results are not achieves. Therefore, the researcher
highly anticipated that the results of this study have the following significance.

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■ Provides knowledge and understanding on employees and organizations to be inseparable. It
serve as base for interested researchers on the issue in conducting future and detail study in the
area.
■ It provides information for public and private sector organizations how effective retention of
employees contributes for organizational performance and help to design feasible strategic plan.

1.8. Scope of the Study

Delimitation

Because of time and budget constraint, this research was delimited to geographical location and the
sample was restricted to one branch of ACSO at Addis Ababa Head Office. This research is also
delimited itself on the effect of professional employees turnover and retention Practise focuses on
professionals or those technically qualified personnel who do have both managerial and non-
managerial positions in ACSO.

Limitations to Research

Limitations of this study includes: challenges of implementing effective retention of employees was
not be included, there are also little empirical studies that have been done in Ethiopian context on
the issue particularly on this sector, difficulty of getting ex-employees of the organization this leads
to depend on few and not the representative of ex-employees.

1.9. Organization of the Study

This research report will comprises five chapters. The first chapter contains background of the
study, statement of the problem, research questions, and objectives of the study, operational
definition of terms, significance of the study and Delimitation (Scope) and Limitation of the Study.
The second chapter reveals a gap in the literature pertaining to turnover causes in the organization
Ethiopian Revenues and Customs Authority Eastern Addis Ababa Branch Office context. The third
part offers a detailed description of design of the study, population and sampling techniques, the
type of data and tools/instruments of data collection employed, the and the methods of data analysis
used and reliability and validity of data collection tools and Ethical Issues of the Study . The forth
chapter includes the presentation of findings of the study with interpretation and analysis. The last
chapter comprises three sections, which include summary of findings, conclusions, and
recommendations.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURES

2.3. Overview of Effect of employees turnover and retention

2.3.1. Definition of the effect professional employee turnover

Employee turnover occurs when employees leave their jobs and must be replaced. Since employee
turnover has become the most widely studied phenomenon in organizational behaviour research,
there are many definitions in the literature regarding the term employee turnover. Indeed, thousands
of researches have been conducted on employee turnover (Cohen, Granot, Shilovsky &Yishai,
2007; Vakola, Tsaousis & Nikolaou, 2004).The term employee turnover is often used to describe
the in and out of the employee in the organization. However, Rion (2009:8) and Beam (2009) had
defined employee turnover as a ratio comparison of the number of employees an organization must
replace in a given time period to the average number of total employees.

Turnover can be classed as internal or external. Internal turnover involves employees leaving their
current position, and taking a new position with the same organization. Both positive enforcement
(such as increased employee motivation and commitment) and negative consequences (such as
research/relational disruption) of internal turnover exist, and thus this form of turnover may be as
important to monitor as its external counterpart. Internal turnover might be moderated and
controlled by typical human resource Practise, such as an internal recruitment policy or formal
succession planning (Wikipedia, the free encyclopedia 2006).

2.3.2. Definition of employee retention

Retention is a voluntary move by an organization to create an environment which engages
employees for long term. According to Chaminade (2007: 1), this attachment relationship should be
durable and constant and link the employee to the organization by common values and by the way
in which the organization responds to the needs of the employees. The main purpose of retention is
to prevent the loss of competent employees from the organization, which could have an adverse
effect on productivity and service delivery. Also, retention allows senior and line managers to
attract and effectively retain critical skills and high performing employees. This is achieved by
providing these managers with information on retention and retention strategies that will ensure that
the goals and objectives of the organization are realized.

11
Creating a retention strategy means placing the employees' needs and expectations at the Centre of
the organization's long-term agenda in order to ensure the professional satisfaction of the employee
and create a trusted relationship. In this stable relationship, the employee remains in the
organization by personal choice based on free will and considered decision. Retention of employees
is crucial to the overall success of any organization.

Talented and high performing employees should be encouraged to remain in the organization by
designing retention policies that will provide individual employees with opportunities to
demonstrate their skills and ensure that they are matched with the right jobs. Such retention policies
should, in the view of Nyoka (2006: 2) also include strategies that will enable employees to balance
their work life demand with their family life by establishing family friendly policies and enabling
flexible work arrangements to accommodate essential personal commitments. With such effective
retention policies in place, managers are able to keep the employee turnover at a manageable rate.

It is imperative for organizations through the employment process, to attract quality employees to
the organization. However, it is more important for managers to device strategies with which to
retain these talented employees in the service of their organizations in order for employers to
benefit from the investment already made in them. Employee retention is one of the most critical
issues facing organizational managers as a result of the shortage of skilled manpower, economic
growth and high employee turnover. Retention is a critical element of an organization's more
general approach to talent management, which is defined as "the implementation of integrated
strategies or systems designed to increase workplace productivity by developing improved
processes for attracting, developing, retaining, and utilizing people with the required skills and
aptitude to meet current and future business needs" (Lockwood, 2006, p. 2). These strategies,
according to Czakan (2005: 8) include career growth and development, competitive compensation
benefits, opportunities for training and supportive management. Apart from the strategies
mentioned above, employers should use a flexible approach to encourage retention and this
approach should consider a number of value-adding components. Such components, Brown (2006:
2) contends include mentoring/coaching, opportunities for skill and career development, as well as
flexibility around the frequency and size of performance rewards and incentives. The whole process
of retention is to ensure that employees are retained in the organization, especially employees with
valued or needed skills or experience in a scarce/critical field (where recruitment is difficult)
competitive advantage. Turnover is a costly expense and a huge concern to employers and must be
avoided. High turnover represents a considerable burden on human resource and line managers,
who constantly have to recruit and train new employees.

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2.3.3. Relationship between recruitment sources, retention and turnover
Employee retention stems from the employment process. Three employment processes
(recruitment, selection & placement) predetermines the effectiveness of retention strategy. For
employee retention to be successful, it has to be linked positively to the processes and practices of
recruitment and the sources from which job candidates are recruited. Recruitment practice and
empirical research suggests that employees may differ in their propensity to quit depending on the
source from which they are recruited. Two rather different approaches to recruitment identified by
Wanous (1975) as cited in Raub and Streit (2006: 279) are the "traditional" approach which
suggests that the ultimate goal of recruitment is to attract a maximum number of applicants to the
recruiting organization. In the traditional approach, providing incomplete or even biased
information about the job and/ or the organization may be an acceptable means for reaching this
goal. The other approach is the "realistic" approach which suggests that a "realistic job preview"
whereby recruiters provide balanced and honest information about both the negative and positive
aspects of the job and the organization is undertaken.

The traditional approach was criticized by researchers such as Wanous (1975,1978) cited in Raub
and Streit (2006: 279) who hypothesized that its benefits in terms of attracting a large number of
candidates may be more than outweighed by its negative consequences for the selection and
retention of those candidates. Following Wanous's criticism, many HRM scholars like Raub and
Streit (2006: 279) posit that an unrealistic presentation of job-related information may lead to a
"rude awakening" when newly hired employees discover the reality of the job. The larger the gap
between what has been promised during recruitment and what the employees experience during
their first weeks and months on the job, the higher the propensity to quit. The resultant effect is that
the new appointees will be frustrated, dissatisfied, and unproductive and in the end they may quit
rapidly.

Similarly, Lee (2006:1) proposes two mediators to recruitment theory as they affect turnover. These
are the "realism" with which the candidate comes into the job and the job fit, i.e. the extent to
which the employee feels that the job accords with his/ her personality, ability and so on. Lee
(2006: 1) contends that if various recruitment sources can be found to have different realism and
job-fit, and these in turn affect turnover, then retention strategies can be crafted around these
recruitment techniques.

A large number of empirical studies have confirmed that realistic recruitment does indeed lead to a
reduction in turnover. Dean and Wanous (1984), Phillips and Meglino (1987) cited in Raub and
Streit (2006: 280) explain that realistic recruitment does not mean that recruiters should
13
communicate positive information only. Indeed, a combination of both "reduction" (i.e. negative)
and "enhancement" (i.e. positive) previews seems to work best. The message source seems to play
an important role in employee turnover. According to Colarelli (1984) cited in Raub and Streit
(2006: 281), information received from job incumbents is perceived as more credible than
information from other sources.

It is crucial to attribute great importance to providing realistic information about the job and the
organization; and to this extent, HR practitioners or recruitment agencies must be familiar with the
working conditions in the organizations they are recruiting for. Raub and Streit (2006: 283) stress
that recruiters must be honest about the job-related information they give to job candidates at
interview level. For example, when recruiting candidates for a manufacturing organization,
recruiters must be willing to disclose details about certain hazards that are associated with the
manufacturing process such as industrial accidents, polluted working environment, and the general
work context. The general work context may be characterized by long working hours, restrictive
overtime regulations, and several limitations to the number of days off. This information may assist
job applicants to decide if these working conditions fit into their career aspiration and help their
decision making process on whether to accept or reject the job offer.

2.4. Factors affecting employee turnover

Employee turnover is a gradual process. Employees move from one organization to the other and
from one industry to the other for different reasons. Sometimes it is the attraction of a new job or
the prospect of a period outside the workforce which 'pulls' them like higher salary or better
benefits; on other occasions they are 'pushed' due to dissatisfaction in their present jobs to seek
alternative employment.

According to the recent research conducted by CIPD in 2006 in UK, push factors play a major role
in most resignations than pull factors. CIPD also emphasized that it is relatively rare for people to
leave jobs in which they are happy, even when offered higher pay elsewhere. In general, employees
leave on their own accord or they are discharged. Every separation of an employee from an
organization whether voluntary or involuntary is serious problem for the organization. Though
some degree of staff turnover is acceptable, it affect the well-functioning of an organization if they
have excess staff's turnover, (Loquercio, et al, 2006, pp. 1).

They also further elaborated that unavoidable causes are not fault of management but due to other
factors which are not under organizations control like employees personal betterment, domestic
affairs such as marriage and pregnancy, illness, retirement, death, etc. and avoidable causes are like

14
employees dissatisfaction with job, low remuneration, long hour of work and poor working
conditions, bad relation with supervisors and fellow workers and redundancy of activities, (Yared
D. (2007, p13-14).

Large organizations can provide employees with better chances for advancement and higher wages
and hence ensure organizational attachment (Idson and Feaster 1990). Trevor (2001) argues that
local unemployment rates interact with job satisfaction to predict turnover in the market. Role
stressors also lead to employees" turnover. The results of each study were different as each study
was carried out in different countries (having different socioeconomic and culture), in different
setting, for different organizations and used different independent variables. Review of various
research studies indicated that employees resign for a variety of reasons, the researchers classified
into the following:

2.4.1. Demographic Factors

Various studies focus on the demographic factors to see turnover across the age, marital status,
gender, education, experience, employment tenure, REBS (2010, pp. 169,).

2.4.2. Personal 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 "JobHoping" 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 turnover. 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 instance, two
families living and working across two time zones may decide to look for opportunities closer to
each other, REBS (2010, pp. 169-170,)

2.2.3. Push Factors / Controlled Factors:

Push factors are aspects that push the employee towards the exit door. In the literature it is also
called controlled factors because these factors are internal and can be controlled by organizations,
REBS (2010, pp. 170,) According to Loquercio (2006) it is relatively rare for people to leave jobs
in which they are happy, even when offered higher pay elsewhere. Most staff has a preference for
stability. However, some time employees are 'pushed' due to dissatisfaction in their present jobs to
seek alternative employment. On the basis of available literature, push factor can be classified into:

15
2.4.3.1. 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.

2.4.3.2. Attitude Factors

In the literature, attitude is another kind of push factor which is mostly attach with employee
behaviour. Attitude factors are further classified into job satisfaction and job stress. Job satisfaction
is a collection of positive and/or negative feelings that an individual holds towards his or her job.
Satisfied employees are less likely to quit.

Job satisfaction is further divided into extrinsic factors and intrinsic factors. Extrinsic factors
include variables such as job security, physical conditions/working environment, fringe benefits,
and pay. Intrinsic factors include variables such as recognition, freedom, position advancement,
learning opportunities, nature, and kind of job and social status (workers with a high hierarchical
position who link their social position with their job want to retain it). Job stress includes variables
such as role ambiguity (e.g. my job responsibilities are not clear to me), role conflict (e.g. to satisfy
some people at my job, I have to upset others) and work-overload (e.g. it seems to me that I have
more work at my job than I can handle), REBS (2010, pp. 171) [sic].

2.4.3.3. Organizational Commitment

There are many factors which are attached with employee and organization and work as push
factors for employee to quit. Organizations are interested in no only finding high performing
employees, but those who will be committed to the organization. Similarly employees are also
interested to work in an organization which is committed to pursue their carriers and benefits.
Organizational commitment is recognized as a key factor in the employment relationship and it is
widely accepted that strengthening employment commitment, reduce turnover (Mohammad, 2006).

According to Ugboro (2006) identified three types of organizational commitment: affective,

continuance and normative, detail of which is given below:

❖ Affective commitment is employee emotional attachment to the organization, results from and is
induced by an individual and organizational value congruency. It is almost natural for the

16
individual to become emotionally attached to and enjoy continuing membership in the
organizations.

❖ Continuance commitment is willingness of employee to remain in an organization because of

personal investment in the form of non-transferable investments such as close working
relationships with co-workers, retirement investments and career investments, acquired job skills
which are unique to a particular organization, years of employment in a particular organization,
involvement in the community in which the employer is located, and other benefits that make it too
costly for one to leave and seek employment elsewhere.

❖ Normative commitment is induced by a feeling of obligation to remain with an organization.

According to Ongori (2007), organizational commitment is an effective response to the whole

organization and the degree of attachment or loyalty employees feel towards the organization. It is
important to note that the factors they are listed above can be classified as being within or beyond
the control of the employing organization. In order to actively participate in reducing costs
associated with turnover, organizations need to identify those factors over which they do have some
control and initiate necessary changes to reduce turnover attributable to these "controllable" factors.

2.5. Reasons for employee turnover

Recent research by the British Chartered Institute of Personnel and Development (2006: 1) shows
that push factors are a great deal more significant in most resignations than most managers
appreciate. The research contends that it is relatively rare for people to leave jobs in which they are
happy, even when offered higher pay elsewhere. Research conducted by the Hay group and
reported by Sharman et al. (2006: 22) reveals that about one third of the millions of employees
surveyed worldwide plan to quit their jobs within two years.

Many reasons explain why employees withdraw from an organization especially in an economy
where skills are relatively scarce and recruitment is costly, or where it takes several months to fill
vacant positions as the present situation in the Ethiopian public sector. Employees voluntarily
resign their appointments in organizations for various reasons which can be classified into two: pull
and push factors. The pull factors, according to Sherratt (2000: 38) include the attraction of a new
job especially in a growing economy. In such cases, it is the availability of alternative jobs that
attracts an employee to withdraw from a particular organization. Sherratt (2000: 38) also explains
that the push factor may be dissatisfaction with the present job that motivates an employee to seek
alternative employment elsewhere. Sometimes, it is a mixture of both the pull and push factors.

17
However, some reasons for leaving are entirely explained by domestic circumstances outside the
control of any employer, as is the case when employees relocate with their spouses or partners.

Some employers attract job applicants with unrealistic and non-existent conditions of service
during interviews. However, when these new employees get on board and the conditions of service
promised by the employers are not fort coming, such employees immediately update their resumes
and quit for other jobs. The British Chartered Institute of Personnel and Development (2006: 2)
notes that a great deal of employee turnover consists of people resigning or being dismissed in the
first few months of employment. This is due to poor recruitment and selection decisions, both on
the part of the employee and employer.

Expectations are high during the recruitment process, leading applicants to compete for and accept
jobs for which they are mostly not suited. Organizations do this in order to ensure that they fill their
vacancies with sufficient numbers of well qualified candidates as quickly as possible. However,
over the longer term, the practice becomes counter- productive as it leads to costly but avoidable
turnover and the development of a poor reputation in the local labour market.

According to a study by the Chartered Institute of Personnel and Development (2006: 2) in the
United Kingdom (UK), there are factors that are specific to the individual that can influence early
turnover. These include both personal and trait-based factors. Personal factors include changes in
family situation, a desire to learn a new skill or trade, or an unsolicited job offer. In addition to
these personal factors, there are also trait-based or personality features that are associated with
turnover.

These personality traits are some of the same characteristics that predict job performance and
counter- productive behaviours such as loafing, absenteeism, theft, substance abuse on the job, and
sabotage of employer's equipment or production. Most environmental contributors to turnover can
be traced to management practices. Turnover tends to be higher in environments where employees
feel they are taken advantage of, feel undervalued and inadequately compensated. Management
practices that promote inequity, inefficiency and lack of foresight and ability to provide purposeful
leadership will encourage skilled and professional employees to leave the organization. Kinnear
and Sutherland (2001: 17) further argue that skilled employees need space to act independently and
freedom to plan and execute work the best way they choose. This requires progressive
organizational leadership which allows for independent judgment by employees. Managers can

18
help to address this by removing organizational policies that restrict innovative thinking and
practice within the organization.

Certain jobs have peculiar characteristics that contribute to turnover. According to Lanyon (2007:
45) some jobs are characteristically more attractive than others. Someone who enjoys travelling
long distances will find sales job attractive while a personality with a strong ability to convince
others through argument may find satisfaction in advocacy jobs. However, if these personalities
engage in jobs with characteristics other than those peculiar to them, they may not find job
satisfaction, which will lead to turnover. Sherratt (2000: 38) posits that there is turnover that is
demographically specific, particularly for women who are balancing significant work and family
duties at the same time. Employees may choose to leave an organization instead of sacrificing their
other interests and responsibilities in order to make the job work out. Some women elect to quit
their jobs after the birth of a child, rather than simply take maternity leave while some relocate with
their spouses. These factors translate into higher turnover rates for women in most organizations.

Empirical evidence has shown that all the factors enumerated above act individually or collectively
to inform an employee's decision to quit or remain in an organization. Over time, money is
considered as the most critical determinant of turnover. However, that assumption has changed.
The new breed of professionals and highly skilled employees now place other factors such as career
growth, skills development and training opportunities in the form of motivational variables that
determine which organization to work for. For organizations to attract and retain quality employees,
these variables must be evaluated and integrated into an effective employee retention program of
the organization. It is thus important for organizations to first of all recognize what motivates an
individual employee before a meaningful retention practice can be developed.

The concepts of turnover and retention are closely related to costs and no meaningful evaluation of
the subject will be complete without examining both direct and indirect costs that are usually
associated with the two. The following section will discuss costs that are usually associated with
retention and turnover in organizations.

2.6. Costs associated with employee turnover

The extent of the impact of turnover on an organization cannot be fully understood if there is no
attempt to quantify the costs. The more complex approaches to costing turnover give a more
accurate and higher estimate of the costs. Such approaches often take into account the costs
associated with lost productivity (i.e. the productivity of a new employee during their first few

19
weeks or months in the role and that of resignation during the notice period) and the effect on
morale of the remaining work.

In their analyses of turnover costs, Schultz and Schultz (2006: 242) conclude that employee
turnover is costly for organizations. Every time an employee quits, a replacement must be recruited,
selected, trained, and permitted time on the job to gain experience.

Phillips and Connell (2003: 1) concur and enumerate the costs of turnover to include, recruiting
costs, selection and or employment costs, orientation costs, training costs, lost wages/salaries,
administrative costs, lost productivity, loss of human capital, and customer satisfaction issues. It is
important for management to know why employees, particularly high performing employees resign
from the organization. The common way of investigating employee's resignation is by conducting
an exit interview which also is another cost to the organization.

In conducting an exit interview, some costs are involved and they must be taken into consideration
when calculating turnover costs. Bliss (2007: 1) lists these costs to include the time of the person
conducting the interview and the administrative costs involved in processing the resignation letter,
including stationery and printing. Before a recruitment process is initiated, a job analysis is
necessary to determine the job content of the vacant position. A job analysis expert will have to be
consulted to evaluate outstanding work and job requirements of the vacant position. These costs
also represent turnover costs and must be considered.

Training and re-training of employees constitute one of the most crucial aspects of management in
both the public and private sector organizations. According to Choo and Bowley (2007: 341) new
employees normally undertake on- the-job training, and in some cases, they are sent abroad to
acquire a specialized skill. These costs are enormous and when a highly trained employee resigns
without justifying these huge training expenses, organizations stand to lose all the investments
already made. Organizations also suffer productivity loss when an employee quits. When a new
employee is hired and trained, Bliss (2007: 1) estimates such employee's contribution to the
productivity level at 25% for the first 2-4 weeks of employment.

Productivity loss is therefore 75% of the new employee's full salary. For example, if a new
employee is hired and placed on a monthly salary of Birr 20000; the organization will be losing the
sum of Birr 15000 as productivity loss every month because the new employee is not adding full
value to the organization yet. This will however improve progressively between weeks 5 to 12
when the employee will be contributing 75% productivity level thereby reducing productivity loss
to 25% of the new employee's full salary during the period.
20
While the new employee is undergoing on-the-job training, the supervisor and other employees in
the department will be involved in bringing the new employee to speed. The supervisor and the
other employees' time will be lost in the process; this lost time must be quantified in monetary
terms. It is also expected that the new employee, in the course of on the- job training, will make
mistakes which may lead to damage to equipment, disrupt production, or delay a delivery schedule.
Such mistakes must be expressed in monetary terms and treated as part of turnover costs to the
organization. A substantial cost is incurred in productivity when a management employee quits;
such an employee will no longer be available to guide and direct departmental employees who are
responsible to the departed manager.

In organizations where sales persons are employed with a sales territory allocated to them, lost
sales in respect of these category of employees is calculated as dividing the budgeted sales revenue
for the particular sales territory into weekly amounts (Bliss (2007: 1). The weekly amount is
multiplied for the number of weeks the sales territory is vacant, including training time when the
vacancy is subsequently filled, until the new sales representative begins to add value to the
organization. For non-sales employees, the revenue per employee is calculated by dividing the total
organizational revenue by the average number of employees in a given year. It does not matter
whether an employee contributes directly or indirectly to the generation of revenue, their purpose is
to provide a defined set of responsibilities that are necessary for revenue generation. To calculate
lost revenue when an employee quits, the number of weeks the position is vacant is multiplied by
the average weekly revenue per employee.

In view of the above analyses, Bliss (2007: 1) concludes that the costs and negative impact of
employee turnover on organizations can be significant. Sherman et al. (2006: 22) also concur by
stating that direct and indirect costs associated with turnover include the cost of advertisement,
vacancy costs- which are a temporary loss of productivity occasioned by the voluntary withdrawal
of an employee. Apart from the above mentioned direct costs, there are also indirect costs which
include loss of goodwill, lost sales, and customer defection. Given the high costs of turnover and its
negative impact on running a business, a well thought-out program designed to retain employees
must be put in place by managers in order to reduce unnecessary turnover.

2.7. Measuring employee turnover

The commonly used formula to calculate a basic turnover rate for any given period is described as
shown below by the United Kingdom based Chartered Institute of Personnel & Development CIPD
(2007:1).

21
 leavers
Total number of period
a
×100
employed
Average number of employees period
a

The total figure includes all leavers, even people who leave voluntarily, dismissal, redundancy or
retirement. The weakness of this method is that it does not distinguish between categories of
employees, e.g. by length of service, or whether turnover was voluntary or involuntary. It is also
important for organizational practitioners to take a record of the retention rate for experienced
employees. This is also referred to as the Stability Index (SI) and is calculated as:

Number of staff with one∨more years∈service

×100
Number employed a year ago

The stability index formula stated above is consistent with the one developed by the CIPD which is
calculated as follows:

Number of employees withone year ' s service (¿ more )now

×100=SI
Number of employees one year ago

The stability index is most useful in comparisons over a period or with other similar organizations.
Measuring employee retention rate and the costs of turnover to the organization is vital in building
a business case for thorough and effective recruitment and retention initiatives. This costing can be
a part of performance appraisal ratings especially for line managers and gain top management
support for employee management activities.

However, it is not all turnovers that attract costs to the organization; some are indeed beneficial and
cost effective as discussed in the next section.

However, Loquercio, (2006; 4) suggest that number of leavers should encompasses all leavers,
including people who left due to dismissal, redundancy, or retirement, but it typically excludes
those leaving at the end of fixed contract. The main purpose of excluding fixed term employees
from the calculation is that it does not indicate the real problem of the organization. The above total
figure includes all leavers, even people who leave voluntarily, dismissal, redundancy or retirement.

2.8. Retentions Strategy

At this time, organizations need to be concerned about retaining their workers since retaining
valuable employee is one of the important issues for competitive organizations as hiring is not an
easy process and recruiting the right candidate is a time consuming process, an organization invests
time and money in training an individual and make them ready to work and understand the
22
corporate culture. To retain employees, the organizations must review their career plans and
reorganize those plans according to the market so that intelligent and talented employees could
serve more and would beneficial in the long run (Nadeem et al, 2011). Besides, today employees
are the most valuable assets in any company (Ongori, 2007); hence, it is better for organizations to
continue working with their current employees than to encourage labor turnover by hiring new
employees. This is may be akin with the Amharic proverb the devil you know is better than the
angel you do not know.

To be effectively retaining workers, employers must know what factors motivate their employees to
stay in the organization and what factors cause them to leave. So, reducing employee turnover is a
primary goal for almost every human resource professional (Catherine, 2002). By reducing
employee turnover, organizations save money on recruitment and training, as well as encouraging a
stable and experienced workforce. Since retention of employees is one of the most important
ongoing practices of human resource management, efforts to increase employee retention start with
improving the recruitment and training process, but continue on to providing challenging,
interesting work, a cooperative work environment, and comparable compensation programs (Irshad,
2009). Additional factors that contribute to reducing employee turnover include opportunities for
professional growth, additional training, and organizational stability. Therefore, it is always
important to keep professional employees in any organization in order to improve the kind of
service that is provided to the relevant customers (Nadeem et al. 2011).

As retention strategies are complex and are not easy to implement, a review of literature indicates a
wide and diverse range of potential retention strategies. In order to in effect the retention strategies,
the employees, and their managers or supervisors need to be actively involved in the development
and implementation of the strategies. Managers need to have a clear understanding of the needs,
abilities, goals and preferences of the workforce (Pendulwa, 2011). In line with this, more effort
should be done to improve retention by taking in to consideration of the many factors such as better
recruitment effort, review job content, compensation practices, leadership and supervision, career
planning and development, alternative work schedule, working conditions, non-work factors, team
building, centralization, organization communication and commitment, counseling leavers, flexible
working hours, compressed work week, employee involvement, proper exit interview policies for
turnover, and recognitions (Rehman, 2012 & Achoui and Mansour,2007).In addition to the above,
given the growing needs for organizations to retain best employees they face a competition. Samuel
and Chipunza (2009) in their findings suggest that, certain variables are crucial in influencing
employees' decision to either leave or remain in an organization. Such variables include training

23
and development, recognition/reward for good performance, a competitive salary package and job
security. Nonetheless, the importance of other variables should not be under estimated when
formulating a retention policy. It is only a comprehensive blend of intrinsic and extrinsic
motivational variables that can enhance retention and reduce the high rate of employee turnover in
various organizations (Nadeemet al.2011). So, for those organizations who are struggling of
retaining employees they must understand the requirements of the employees.

2.9. Empirical Studies

Employee turnover is a problem that employers have been facing in all industries, but the
situation is different for every industry (Catherin, 2002). Due to this, various studies were
conducted on causes of turnover on various industries. Several literatures indicated various
factors that why employees stay or quit their job. There are also many discussions in
international and national level study on the relationship between various factors of turnover and its
effect. For example, Ongori (2007) focused on sources of employee turnover, effects and forwards
some strategies on how to minimize employee turnover in organizations. Rehman (2012)
worked on employee turnover and retention strategy. Samuel and Chipunza (2009) also
identified intrinsic and extrinsic motivational variables influenced the retention and reduction of
employee turnover in both public and private sector organizations. A research was conducted in
Saudi company to identify the main turnover factors in some Saudi business companies and
to suggest some employee retention strategies within the Saudi context (Achoui and Mansour,
2007). Nadeem, Yasir and Hussain (2011) in their study elaborate the retention of employees its
benefits and factors that may help to retain the best talent of the organization in the case of textile
sector.

At national level, in Ethiopia, employee turnover and its retention activity in governmental institute
spatially in ACSO appears not have been extensively researched and documented. But the
researcher have got little empirical studies in the area of professional employee turnover in the
public and privet sectors. Among those studies I refer some of the research maintained below.
Yohannes Melaku (2014) study factors affecting employee turnover and its impact on Ethiopian
Evangelical church of mekan eyesuse. Yezina Tsega Tiruneh (2014) Assessment of Impact of
Employee Turnover on TVET Institution. Beruk Wallelegn (2013) study on Assessment of
Professional Employee turnover in the cases of Bank of Abyssinia. Solomon (2007) study skilled
manpower turnover and its management in the case of Ethiopian road authority.

The result of each study were came up with the same result even if each study was carried
out in different countries where each countries having different socio-economic and culture,
24
in different setting for different organizations and used different independent variables. 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 (Kevin, MM, Joan, LC& Adrian, 2004). According to Ongori (2007) the value of
employees to an organization is a very crucial element in organizations success. This value is
intangible and cannot be easily replicated; therefore, it becomes very important that managers
should control employee turnover for the benefit of the organization.

25
 CHAPTER THREE

RESEARCH DESIGNE AND METHODOLOGY

3.1. Research Design

This research has a clear objective derived from research questions and specifies the source from
which researcher collected data. The major purpose of this research, therefore, is to describe the
professional employee turnover and its retention practices of ACSO.

This research was a descriptive type of research method to gather information about the present
causes of employee turnover and its retention activity at ACSO. This method has been also used
some qualitative information to know the current conditions of ACSO with regard to professional
employee's turnover and its retention. In attempt to address the assessment of turnover and its
management practice and to provide possible recommendations, the researcher uses both primary
and secondary data sources. With regard to primary data, the data collected through questionnaire
were filled by the terminated and existing employees and interview were conducted with
management and other concerned body. In addition HRM books and literatures, websites (internet)
and other available sources were collected from the organization, farther more Departmental
documents and records were analyzed to explore turnover trends of the organization. Then, all the
data were collected and identified the causes that contribute to professional employee turnover and
its retention among ACSO employee's interpretation is also conducted. Finally, conclusions and
recommendations were forwarded.

3.2. Population and Sampling Technique

Yamane (1967:886) provides a simplified formula to calculate sample sizes. This formula was used
to calculate the sample sizes

N
n= 2
1+ N ( e )

where n is sample size

N is the population size and e is the level of precision.

244
n= 2
1+244 ( 0.5 )

n=152

26
Therefore based on this the sample size 152 population constituted the sample. The organization
has about 396 employees only in Addis Ababa branch office level among those who fulfill the
criteria of professional employees are 244 and questionnaires was distributed to 152 employees
who are select based on this Yamane formula from the total professional employees of the
organization.

Regarding the terminated employees the researcher used convenience sampling methods to select
the respondents. The reason of selecting convenience sampling methods by the researcher is that it
is easy to reach the respondents. The accessible population of the ex- employees refers to 211
professional employees who left the organization during the period under review. Those accessible
populations refer to one that meets the criteria and would be available for a study (Everitt, 2006 and
LoBiondo-Wood & Haber, 2006). Accordingly, the target populations 21 will be selected to fill the
questionnaires. Therefore, 10% of the ex- employees from the total populations are involved to fill
the questionnaires.

3.3. Sources of Data and Data Collection Tools Used

In attempting to address the assessment of turnover and its management practice and to provide
possible recommendations, the researcher has used both primary and secondary data sources. With
regard to primary data, the data was collected through questionnaire filled by the ex-employees and
existing employees and interview conducted with management. The questionnaires was designed
accordance with to Likert-scale type that respondents have to indicate whether they strongly agree,
agree, neutral, disagree, and strongly disagree for each statement. Numeric values (5, strongly
disagree and 1 strongly agree) was assigned to enable the quantitative analysis of the results.
Descriptive statistics frequency, percentage and mean scores used to present and analysis the data
gathered through the questionnaire.

Besides the history of terminated and existing employees the data were collected from Human
Resource Management (HRM) department. As far as secondary data was concerned, relevant data
was collected from the organization HRM department reports and previous documents about ex-
employees data, HRM books and published and unpublished materials" reports organization
website and other available sources were consulted (referred).

3.4. Data analysis technique

Data analysis means the categorizing, ordering and summarizing of data to get answers to
research questions (De Vos, AS, Strydom, H, Fouche, CB & Delport, CSL, 2005).
27
 Editing the collected data involved going through the questionnaires to see if respondents
responded to questions and see using tabulation if there are blank responses. Tabulation
involved counting the number of cases that fall into various categories. A simple tabulation
was used. Descriptive statistics data analysis method was applied to analyse quantitative data
where data is scored by calculating the number and percentages. Qualitative data analysis
method was also employed to analyse qualitative data gathered using the interview check list
and documents from the department. Hence, after editing is completed the researcher obtained
data through responses of questionnaires was collated then encode into the SPSS version 17.00
for windows is used to process the primary data collected from structured questionnaire and
interview were analysed using SPSS particularly descriptive statistics like frequency, percentage
method, which clearly show Effect of staff turnover and its retention practices using different
variables explained above through questionnaire and compiled at first.

3.5. Ethical Issues of the Study

Confidentiality-the respondents were assured that they did not be confused and that their response
has remain confidential. The information they provide is confidential and used for academic
purpose only. Organizational approval -A written letter that explains the research idea as well as a
copy of the research proposal has provided to study the site. The researcher was obtain approval
prior to any research activity at the specified location is carried out.

The general objective of the thesis is to evaluate the project management practices of the UEAP
and make recommendations to enhance the effectiveness and efficiency of the projects.

28
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

This chapter is divided into four parts. The first part of this chapter is deals with the data
obtained from document analysis. In the second part, the exit interview and interview result
forwarded by HRM team leader are given of the organization. The third part discuses Costs
and Retention Mechanisms of Turnover at ACSO. Finally, detailed analysis and discussion of
data collected through the distribution of questionnaires are presented.

4.1. Document Analysis

4.1.1. Trend of Employee Turnover at ACSO

Based on the data that was obtained for this study through the available documents from the
organization such as monthly report, annual report and department document analysis was
carried out to determine the turnover magnitude and trend of the organization. The findings
are presented in the table below.

Table 4.1.The rate of professional staff Turnover from 2012 - 2015 E.C

Year

Category 2012 2013 2014 2015

No % No % No % No %

Managerial 6 27.3 6 7.9 4 6.3 3 6

Officers 16 72.7 70 92.1 59 93.7 47 94

Total leaving professional employee 22 100 76 100 63 100 50 100

Total professional employees 168 178 201 223

Professional employees turnover rate 22 7% 76 22% 63 18% 50 13%

Source:- ACSO office HR document

The data in the above table shows that the magnitude of staff turnover and the trend what it
looks like from the period under review, i.e. from 2012 to 2015. Accordingly, as it is
29
indicated in the table above, the number of staff leaving the organization in 2012E.C is 22,
2013E.C is 76 2014 E.C is 63 and 2015 E.C is 50. Hence, the data reflects ACSO is facing
frequent professional employees turnover. Besides, the data shows that the average number
of employees leaving the organization under review periods is 53 employees per annum. In
the period under review 2012 was the minimum turnover of employees recorded and 2006
was the pick turnover recorded period.

In the strategic planning of the organization the tolerable attrition rate is 5%. However, the
data in table 4.1 above reflects that the professional employee's turnover rate is more than the
attrition rate set by the organization by 2% in 2012E.C, 17% in 2013E.C, 13% and 9% in the
year 2014 & 2015E.C. This shows that the organization faces a high professional employees'
turnover.

From this we understood that the rate of employee turnover is not constant, in the period
2012 it is less than the other periods and in 2015 it is pike. However the organization faces a
high turnover rat under the review periods.

4.2. Exit interview

The cause of turnover as the researcher has tried to collect from the HR department report as
they collect from exit interview sheet shows that employees are leaving the organization due
to the following reasons. Those reasons are due to working department they meet and the
professional they have does not much, high level of stress in the job position, to get better
salary, to do a personal business, to go to abroad, dissatisfaction with the superiors, family
cases, because of no promotion, for education and other better job opportunity is among the
exit interview of most of the employees (Exit interview report of, 2015EC).

Therefore, among the reasons mentioned above most of the employees are leave the
organization for better opportunity. Some of the employees also go to the organization like
commercial bank of Ethiopia, Ethiopian airline, Ethiopian Telecommunication and in
different privet banks are among the choices of the exit employees. So that the organization
will be in danger of losing this potential employees and exposed for additional training cost.

4.3. Interview results with HR department team leader of ACSO

The representative of the HR team leader argues that turnover is an obvious and that turnover
can also be useful as the organization can separate itself from humble performer and make
way for capable employees continue in the organization. However, the management of the
institution is happy if qualified and trained employees not living the organization. To
minimize the frequencies of the turnover outgoing efforts has been done from the responsible
bodies.

30
To the interview question about the reasons employees leaving the organization, He replay us
employees are left the organization due to various reasons but majority of them are left the
organization due to salary and benefits because the above mentioned organizations offer
attractive salary and benefits compering to ACSO. He also mentioned that turnover is an
endless phenomenon in a dynamic atmosphere; hence, the organization tries to set a system
which the current or the new comers of employee should follow. According to him,
employees are not stay lifelong. However, as a management, the top management of the
organization develops and upgraded a substitute through different training and developments
of another employee who is equivalent or better capacity internally. He emphasis that unless
the needs arise and some vacant positions demands higher qualification, the organization is
not look for competent employees externally. According to him, currently the organization
has enough staffs which are qualified and experienced that can substitute their next positions.
In addition, as a retention mechanism the organization review the salary scale and released
very quickly.

According to the HR team leader, exit interviews have been conducted to gather information
on why employees leave the organization. The HR department is aware of the magnitude of
turnover that is the increasing number of employee turnover especially for the last two years
which more experienced and qualified workers are left the organization. This information is
needed in order to gain an understanding of how to address the problems that lead to
employee turnover.

Lastly, the team leader pointed out that, the organization gives due cares to its employees
since the success of the organization is directly related with the contribution of the
employees. It is obvious that without the qualified and experienced staff it is very difficult to
achieve the objective of the organization.

4.4. Costs and Retention Mechanisms of Turnover at ACSO

To get potential and experienced employees ACSO uses different mechanisms of polling
employees to apply for vacant position posted or notified by the organization. The cost
incurred by the organization on includes cost of advertisement via newspaper, interview
costs, training and development costs of new and existing employees etc.

In the eyes of the management and responsible bodies of the organization it is trying to
maintain stable work force through various mechanisms. In the first place full orientation is
given for new employees when they are hired about working condition of the organization,
duties and responsibilities in each one of position will be explained, benefits that they will
get also told to them. In order to improve the benefits employees the organization has
planned and working with different organizations both in the country and abroad. Therefore,
this will reduce turnover of employees when it is implemented. The organization also
requested government bodies to allow increasing salary and other benefits.

4.5. Demographic Information of Ex-Employees of ACSO

Table 4.2. Demographic Profile of Respondents
31
 Number of Ex- Employees Number of Current Employees
Item Response n= 15 Response n= 62

No. % No. %

1 Sex
Male 9 59.4 36 58.1
Female 6 39.6 26 41.9
Total 15 100 62 100
2 Age
Below 25 4 26.8 26 41.9
25-30 7 46.9 22 35.5
31-35 3 20.1 9 14.5
36-40 1 6.6 5 8.00
Above 40 - - 0 -
Total 15 100 62 100
3 Marital States
Married 4 26.8 20 67.7
Single 11 73.3 42 32.3
Total 15 100 62 100
4 Qualification
12+2 - - 0 -
BSC/BA 13 85.8 51 82.3
MSC/MBA 2 14.2 11 17.7
PHD - 0 0 0
Total 15 100 62 100
Length of service year in ACSO

less than 1 year 7 46.2 18 29.0

1 to 2 4 26.4 24 38.7
2 to 5 4 26.4 16 25.8
5 to 10 0 - 4 6.5
More than 10 0 - 0 -
Total 15 100 62 100
Source: Quaternary 2024

Table 4.2 shows the breakdown of the sample respondents selected from the ex-employees
and current employees of ACSO in terms of sex composition, age range, marital status,
educational qualification and length of service.

As indicated in table 4.2, 9(59.4) percent of ex-employees respondents are males

whereas females are 6(39.6) percent. This implies that the majority of the ex-employees are
males who have interest of resignation than that of females. It indicates about sex status of
32
respondents, 36(58.1%) of current employees are males and 26(41.9%) are females.
Based on the data, majority of respondents of current employees working at ACSO are
males than female. But when we see the overall data of the organization female workers are
proportional to that of male.

As shown in table 4.2, 4(26.8) percent of ex-employees respondents are in the age
below 25, between 25 and 30, 7(46.9%) between 31 and 35 3(20.1%) and between 36 and 40
1(6.6); percent. The majority of ex-employees respondents 7(46.9%) percent are between 25
and 30 age group. In the same table age group of ACSO among current employees are below
age group of 30 years and some are above 36 years. Therefore, almost 75% of current
employees of the organization are between age group of below 30 years. So, majority
of respondents of current employees are young and energetic professionals. Therefore age is
consistently and negatively related to turnover. Younger employees are more likely to
resign than older employees. The data shows majority of the respondents are young and
hence more probability of turnover.

As shown in table 4.2 majority of terminated employees are 11 single that is 72.6%
of respondents from ex-employees are single whereas 4(26.4) percent are married. As
indicated in the same table summarizes concerning material status of respondents 67.7% of
respondents working currently at ACSO are single where as 32.3% are married. The overall
figure shows 42(67.7%) and 32(32.3%) respondents are single and married respectively. So,
it can be possible to generalize based on the respondents response obtained employees of the
organization are mostly single. Being single may cause mobility of professional employees in
the organization.

As indicated in table 4.2 of above table, 85.8 percent of ex-employees respondents

were qualified at first degree level and 13.2 percent of ex-employees are qualified at
second degree level. This indicates that almost all of the respondents are first degree
graduates of college and universities. The same table shows concerning the qualification
of respondents who are currently working in the organization about 51 (82.3%), 11
(17.7%), of respondents are first degree level qualification and second degree or masters
degree holders respectively. Depending on respondents response, one can conclude most
employees of the organization are qualified in first degree level.

With regard to the item in the above table of 4.2 summarizes about tenure, of the
respondents in the organization served, ex-employees of the organization served for use than
one year 7(46.2) and 2-5 years of service which accounts 26.4 percent while, 26.4 of
exemployees served for 1 to 2 years. Therefore, it is possible to generalize that almost all
exemployees of the organization served for less than five years. The result from the above
table indicates respondents service year, 18(29.0%), 24(38.7%), 16(25.8%) and 4(6.5%) of
respondents served the organization for less than one year, one to two years, two to five
years and five to ten years respectively. As respondents responded most of respondents of
current employees served the organization for less than five years.
33
As shown in table 4.3, 4(26.8) percent of ex-employees respondents are in the age below 25,
between 25 and 30, 7(46.9%) between 31 and 35 3(20.1%) and between 36 and 40 1(6.6);
percent.

Table 4.3 Respondent's reaction on what they gained consideration of qualification and
expiries and the conduciveness of working environment.

No Item Sample Response Response categories

1 2 3 4 5
Nothing you gained While
1 you were at ACSO 15 F 7 5 3 0 0

% 46.7 33.3 20.0

No consideration of
2 qualification and experience 15 F 5 7 3 0 0

% 33.3 46.7 20.0

Working environment
3 was not conducive 15 F 5 9 1 0 0

% 33.3 60.0 6.7

Source: questionnaire, 2024

Regarding consideration of qualification and experience for promotion, 7(46.7%), 5(33.3%),

3(20.0) percent respectively responded as" strongly agree"," agree", and" neutral". To sum
up, there were no considerations of qualification and experience for promotion. So, most ex-
employees responded as the organization had no practice of considering qualification and
experience for promotion. When considering experience that they obtained while they were
at ACSO, most of them had not any experience due to mismatch between their qualification
and portion in which they were placed. According to the respondents 5(33.3) percent
"strongly agree" about no gain of experience and also 7(46.7) percent responded as they had
not gained experience and 3(20.0) percent has "neutral" towards mismatch between the two
variables. With regard to conduciveness of working environment, 9(60.0) percent of
respondents of ex-employees" agree" in working environment of the organization was no
conductive, 5(33.3) percent also strongly agree in the un favorability of the organization's
working environment, whereas, 1(6.7), percent responded as they are "neutral" in un
favorability of the organization's working environment.

34
Table 4.4 Respondent view on whether they left because of mismatch between there
qualification and the job requirement.

No Item Response categories

Sample Response
1 2 3 4 5

You left the organization 15 F 0 4 4 7 0

because your qualification % 26.7 26.7 46.6
1 did not match your
position

2 If you were at managerial

position you didn't leave the 15 F 0 3 5 7 0
organization.
% 20 33.4 46.6

Source: questionnaire, 2024

As indicated in table 4.4 of item 1 summarizes, employees left the organization due to the
cause of qualification and their positions mismatch. As shown 4(26.7), 4(26.7) and 7(46.6)
percent respectively responded as "agree", "neutral" and "disagree". From the data most of
respondents left the organization is due to mismatch of qualification and position. Therefore,
it is possible to generalize that, some of the employees left the organization because of
mismatch between this qualification and in which they were hold in the position.

So, mismatch between qualification and position cause resignation of the employees.

Regarding position particularly managerial and non-managerial as a means to resign, the ex-
employees responded as 3(20%), 5(33.4%) and 7(46.6%) percent respectively responded
"agrees", "neutral", and "disagree". This indicates, whether they were at managerial position,
they would not like to stay in the organization. Based on the data one can concluded that
employees left the organization not due position they hold were lower level, managerial
position or expertise position.

Table 4.5 Respondents views whither they have sense of belongingness, freedom given to
the organization and weather disciplinary innovation, interpersonal relationship
in measures were laid down properly.

No Item Sample Response Response categories

35
 1 2 3 4 5
15 2 6 5 2 0
1 You had no sense of F
belonging to the
organization
% 13.3 40.0 33.3 13.3

2 The organization hadn't 15 F 5 7 2 1 0

given freedom for % 33.3 46.7 13.3 6.7
innovative thinking

3 Inter personal relationship 15 F 7 6 2 0

was poor in the 0
organization % 46.7 40.0 13.3

4 Disciplinary measures of 15 F 6 8 1 0 0
ACSO were not properly % 40.0 53.3 6.7
laid down
Source: questionnaire, 2024

As shown in table 4.5 above summarizes for item 1, most respondents of ex-employees agree
and disagree as they had no sense of belonging to their ex-organization, which accounts as
2(13.3%), 6(40.0%), 5(33.3%), 2(13.3) percent respectively "strongly agree", "agree",
"neutral", and" disagree" as if they had sense of belonging to their ex-organization. Based on
the data obtained from respondents of ex-employees of the organization some had neutral,
where as some had no sense of belongingness while they were at ACSO.

As item 2 of the same table depicts, concerning provision of freedom for innovative thinking,
5(33.3%), 7(46.7%), 2(13.3%) and 1(6.7%) respectively shows respondents "strongly agree",
"agree", "neutral", and "disagree" extent of respondents. As indicated from the table, most
respondents responded as the organization hadn't given to ex-employees freedom of
innovative thinking few of respondents as they were neutral and few also responded as the
organization was provided them freedom of innovative thinking. Based on response of
respondents 80% of respondents strongly agree and agree as the organization had not given
them freedom of innovative thinking.

From the same table item 3 summarizes about interpersonal relationship of employees, 7
(46.7%), 6(40.0%) and 2(13.3) percent respectively responded "strongly agree" "agree" and
"neutral" for poor interpersonal relationship in the organization before they left the
organization. So, one can generalize or conclude that, there was poor interpersonal
relationship between employees of the organization.

36
When asked extent of agree or disagree level of ex-employees the response from the same
table of item and summarizes about disciplinary measurement handling mechanisms 6(40.0)
percent responded as they are "strongly agree" for in appropriateness disciplinary procedures
laid down, 8(53.3) percent "agree" as disciplinary measures were not also properly laid down
and 1(6.7) percent responded as they are neutral for inappropriate and impartiality of ways of
disciplinary handling mechanisms. Based on the data most exemployees of the organization
agree in unfairness of disciplinary measurement mechanisms of the organization while they
were working at ACSO.

Table 4.6 Respondents opinion on the issues related to the behavior of their managers

Response categories
No Item Sample Response
1 2 3 4 5
15 F 8 5 1 1 0
1 Supervisors were rigid at % 53.3 33.3 6.7 6.7
ACSO
15 F 5 6 3 1 0
There were no good
2 relationship between
% 33.3 40.0 20.0 6.7
management and employees

Source: questionnaire, 2024

As shown in table 4.6 to what extent respondents agree or disagree about supervision rigidity
of ERCA at EABO 8(53.3) percent strongly" agree" in the rigidity of supervisors at the
organization,5(33.3) percent agreed that supervisors of ACSO were rigid, on the other hand,
few of respondents, 1(6.7), 1(6.7) percent respondents responded as they are "neutral", and
"disagree" in the rigidity of supervisors while they were at the ex-organization.

In the same table of item 2 shows about extent of agree or disagree for poor relationship among
management and employees at ERCA of EABO, ex-employees responded as they "agree" in poor
relation 6(40.0) others 5(33.3), 3(20.0) and 1(6.7) percent responded as they are "strongly agree",
"neutral" and "disagree" for poor relationship found between management and employees.
Therefore, one can conclude based on ex-employees response, as then were poor management
employees’ relationships at the organization.

Table 4.7 Respondents views on agreement in training and development in the organization
ACSO.

37
 Response categories
No Item Sample Response
1 2 3 4 5

1 There was good training

15 F 0 2 3 8 2
and development at
ACSO % 13.3 20.0 53.3 13.3

Source: questionnaire, 2024.

As table 4.12 shows respondents extent of good training and development practice of ACSO,
the data indicates, most of ex-employees of the organization responded that they are disagree
in good training and development practice of their ex-organization. While 2(13.3%),
3(20.0%), 8(53.3%) and 2(13.3%) respectively" agree", "neutral", "disagree", and "strongly
disagree" in good training and development practice while they were working at ACSO.
Based on the data, it is possible to say that most ex-employees of the organization perceived
as they had not got a good training and development practice while they were working at
their ex-organization.

Table 4-8 Respondents responses on what forces them to stay with the organization.

Response categories
No Item Sample Response
1 2 3 4 5
The organization is committed to F 0 0 12 44 6
1 provide everything you need 62 %
19.4 70.9 9.7
Salary scale and other benefit
package made you to stay in the F 0 0 15 42 5
2 organization. 62
% 24.2 67.8 8.0

Financial issues attractiveness F 6 4 34 18 0

3 made you to stay at ACSO 62
% 9.7 6.5 54.8 29.0
F 8 10 22 0
4 Promotion bases performance 62 % 12.9 16.1 35.522 35.5

F 4 12 20 26 0
5 The organization provides good 62 % 6.5 19.4 32.2 41.9
terminal benefit and position.

6 Management of the 62 F 7 12 20 23 0
38
 organization providing you % 11.3 19.4 32.3 37.0
chance for career
advancement.

Future hope of getting better 62 F 6 16 19 20 1

7 benefit made you to stay at
the organization % 9.7 25.8 30.6 32.3 1.6
Source: questionnaire, 2024

As table 4.8 item 1 summarizes what extent of respondents "agree" not for the provision of
organization in providing everything they need, 70.9% and 19.4 percent claimed to
"disagree" and "neutral" respectively. Whereas 9.7% of respondents responded as they
"strongly disagree" in provision of organization everything they need. Based on this
response, it can be generalized as the organization is not providing for employees everything
they need for performing their jobs.

In the same table of item 2 indicates on level of agree or disagree of employees in the
organization's good salary scale and other benefit packages almost 2/3 percent of the
respondents said they "disagree" in the organization's good salary and other benefit packages.
In the other case, 24.2 and 8.0 percent of respondents responded as they are "neutral" and
"strongly disagree" in good salary scale and benefit package of the organization respectively
therefore according to the respondent's salary scale and other benefit package of the
organization is not attractive.

Concerning the overall financial issues attractiveness as it is indicated in the same table of
item 3, 29.0 percent of respondents were are currently working at ACSO perceived it as not
attractive; 9.7, 6.5 and 54.8 percent of employees responded as they are "strongly agree" in
the attractiveness of the whole financial issues, "agree" and "neutral" in the attractiveness of
financial issues of the organization respectively. To sum up, for most employees of the
organization, the overall financial issues attractiveness is low. So, employees are not stayed
in the organization based on attractiveness of the financial issues of the organization. With
regard to respondents level of agree or disagree for performance as a base of promotion, 6.3,
16.7, 37.5 and 39 percent of respondents as they "agree" for the organization is promoting the
employees based on performance, "neutral" "disagree", and "strongly disagree" for
promotion in the organization is based on performance respectively. This data shows
individual respondents way of evaluating as if management of the organization is using
performance as a measure of performance is indifferent for most employees of the
organization.

While asked respondents about the overall organization's good provision of terminal benefit
and pension payment, their extent of agree and disagree in the good provision of terminal
benefit and pension is the same present of respondents for "neutral" and "disagree" 35.5 and
12.9 and 16.1 percent are "strongly agree" and "agree". 6.5%,19.4%,32.2% and 41.9 percent

39
of the respondents responded us they "strongly agree" in provision of terminal and pension
benefit, "agree" "neutral" and "disagree" in good provision of terminal and pension payment
of the organization in the same issue respectively. This response shows respondents are not
feeling good in terminal and pension benefits; which accounts for 41.9 percent of employees
perceive it as not attractive. As table 4.8 of item 6 indicates management the organization's
provision of chance for career development, the respondent extent in agree or not for the
organization is providing chance for career advancement, 11.3%, 19.4%, 32.3%, and 37.0
percent of respondents responded as "strongly agree" in provision of chance for career
development, "agree" "natural" and disagree" because the organization, is not yet giving
chance for the development of career. This data indicates all employees of the organization
consider the willingness of organization in giving chance for career development is different.
Therefore, it is not possible to say the organization has arranged chance of career
development; it depends on individual employee perception.

For the item that summarizes on the respondents extent of agree or disagree that employees
motivated to stay at the organization due to this future hope of getting better benefits, 9.7,
25.8, 30.6, 32.3 and 1.6 percent of respondents said that they agree "strongly agree" in this
stay in the organization for the hope of getting better benefits in the future, "agree" in the
issues "neutral" "disagree" because they are not working and stayed at the organization in
hope of getting future better benefits, and "strongly disagree" respectively. The data shows
some employees have hope of getting better benefits in the future which made them to stay at
the organization, whereas, others have no hope of getting future better benefit that made turn
to stay at the organization.

Table 4-9 Respondents responses on other job alternative.

No Item Sample Response Response category

1 2 ories3 4 5
1 You stayed at ACSO
because you have no other F 14 32 10 6 0
job opportunity 62
% 22.6 51.6 16.1 9.7
Source: questionnaire, 2024.

As shown in table 4.9, to what extent the respondents agree or disagree for staying at
ACSO because of they have no other job opportunities, 22.6%, 51.6%, 16.1% and 9.7 percent
of respondents responded "strongly agree" because they have no other job opportunity that
made them to stay at the organization, "agree", "neutral", and "disagree" respectively. From
this data one can say almost about half of respondents stayed in the organization is due to
lack of other job opportunities. This implies, if they get in the future alternative job, the will
resign from the organization.

40
Table 4.10 Respondents extent of agree or disagree for job match contribution for turnover

Response categories
No Item Sample Response
1 2 3 4 5
1 Your position matches With
the skill and knowledge You F 0 15 13 29 5
62
have.
% 24.2 20.9 46.8 8.0
2 Whether you are managerial F 0 12 17 29 4
or non-managerial position 62
you don't want to leave
% 19.3 27.4 46.8 6.5
ACSO
Source: questionnaire, 2024.

As shown in table 4.10 of item 1, to what extent the respondents skill and knowledge
requirements matches with the job position they hold, 24.2%, 20.9%, 46.8%, and 8.0 percent
of respondents responded as they "agree" with match between their skill with the job and
position they hold, "neutral", "disagree" because their skill and knowledge does not match
with their job, and "strongly disagree" respectively. This indicates majority employees of the
organization are working in the positions that do not match with their skill and knowledge.
Therefore, this mismatch may lead to termination of employees as well as performing below
expectation.
In relation to table 4.20 of item 2, when respondents are asked about to what extent they
agree or not that whether they are at managerial or non-managerial position they want to
leave the organization, 19.3%, 27.4%, 46.8% and 6.5 percent of respondents "agree" in
leaving the organization in whatever position they hold, "neutral" "disagree" which shows if
they are at good and managerial or not they do not want to leave the organization and
"strongly disagree" in leaving the organization based on position they hold. So, based on the
data from respondents, employees have different idea to leave the organization by assuming
or position as a cause of termination.

Table 4.11. Respondents responses on employees and supervisors relationship in the

organization

No Item Sample Response Response categories

1 2 3 4 5
F 7 34 18 3 0
1 ACSO changed the way 62 % 11.3 54.8 29.0 4.9
organization run.
41
 F 0 8 10 30 14
2 There are employees 62 % 12.9 16.1 48.4 22.6
representative in the organization
F 7 12 14 26 3
3 62 % 11.3 19.4 22.6 41.9 4.8
Employees sense of
belongingness to the organization
Freedom of innovative thinking F 0 8 12 18 24
4 62 % 12.9 19.4 29.0 38.7
F 7 18 23 12 2
Interpersonal relation in the
5 organization is better than other 62
% 11.3 29.0 37.1 19 .4 3.2
public organizations

Fairness of disciplinary measures F 0 4 15 34 9

6 62 % 6.5 24.2 54.8 14.5
F 4 8 14 26 10
Impartiality of ACSO for over all
7 benefits 62 % 6.5 12.9 22.6 41.9. 16.1

Working environment F 5 15 28 14 0
8 62 % 8.0 24.2 45.2 22.6
Conduciveness
Awareness of management and F 28 20 8 6 0
9 employees about turnover of 62
Employees % 45.2 32.2 12.9 9.7
F 4 10 28 14 6
Supervision requirement and
10 62
commitment of employees for
supervising employees % 6.5 16.1 45.2 22.6 9.7

Source: questionnaire, 2024

As shown in table 4.11 of above table, when respondents were asked about this extent of agree or
disagree for the organization charged the way it rune, 11.3%, 54.8%, 29.0% and 4.9 percent of
respondents responded as "strongly agree" for ACSO change of the way organization run, "agree",
"neutral", and "disagree" respectively. From the above data obtained, it can be generalized as
respondents of the organization, have agreed in change how organization is running its activities.
So, ACSO is not running it's operational as pervious, rather changed the way it runs its operation.

For item 2 in the same table, when respondents are asked about the presence of employees
representatives in the organization, 12.9%, 16.1%, 48.4% and 22.6 percent of respondents
responded as "agree" in the presence of employees representatives in the organization,
"neutral", "disagree" and "strongly disagree" for presence of employees representatives in the
organization. Based on the response from respondents it is possible to conclude that there is
42
no employee representative in the organization. This absence of employee's representative
could lead to turnover of employees, because management can undertake any decision and
absence of employee's representative in the organization contribute employees to not feel
belongingness to the organization.

As indicated in table 4.11 of item 3, when employees of the organization are asked about
their level of agree or disagree for employees sense of belongingness to their organization,
11.3%, 19.4%, 22.6%, 41.9%, and 4.8 percent of employees responded as "strongly agree"
for their sense of belongingness to their organization "agree" in belonging to the organization
"neutral", "disagree" and "strongly disagree" in their sense to belongings to the organization.
From the above data most of employees of the organization have no sense of belongingness
to the organization. Based on it can generalized as employees of the organization have no
interest to belong in it and want to terminate.

In the same table of item 4, summarizes, when respondents are asked about the extent of
agree or disagree in organization's provision of freedom for innovative thinking, 12.9%,
19.4%, 29.0%, and 38.7 percent of employees responded as they "agree" in the organization's
provision of innovative thinking freedom, "neutral", "disagree" and "strongly disagree" in the
provision freedom for innovative thinking respectively. Therefore, the data obtained shows
the organizations do not provide them freedom of innovative thinking for its employees. If
the problem continuous, professional and skilled employees who have interest on innovative
thinking will terminate from the organization. Concerning the extent of employees agree or
disagree in the good interpersonal relationship of the organization relative to other similar
public organizations, 11.3%, 29.0%, 37.1%, 19.4%, and 3.2 percent of respondents "strongly
agree", "agree", "neutral", "disagree", and "strongly disagree" in the presence of good
interpersonal relationship found in the organization respectively.

As it is indicated in item 6 of the same table, when employees are asked about the extent of
employees agree or not for fairness of disciplinary measures taken by the organization, 6.5%,
24.2%, 54.8%, and 14.5 percent of respondents said as, "agree" in the fairness of disciplinary
measures of the organization, "neutral" "disagree", and "strongly disagree" in the fairness of
disciplinary measures undertaken by the organization. Therefore, most employees of the
organization feel that the organization is not treating employees of the organization fairly.

This could directly affect employees to not stay in the organization.

In table 4.11 of item 7, indicates, when employees of the organization are asked about the
level of agree or disagree in the organization's impartiality in the overall benefit of the
organization, 6.5%, 12.9%, 22.6%, 41.9%, and 16.1 percent of respondents said as "strongly
agree", in impartiality of the organization while providing them overall benefits, "agree",
"neutral", "disagree", and "strongly disagree" for impartiality of the organization. These
shows, most employees of the organization are not equally benefited from the organization's
resources as well as overall benefits it provides for its employees. Data obtained indicates all
employees of the organization are not obtaining equal share of benefits; which may
43
contribute for resignation of employees who feel that they are not sharing equally the
organization's benefit.

For item 8 of table 4.11, when employees level of agree or disagree for conducive working
environments of the organization, 8.0%, 24.2%, 45.2%, and 22.6 percent of respondents
responded as "strongly agree" in the presence of conducive working environment "agree",
"neutral", and "disagree" in conducive environment of the organization respectively.
Depending on the data, some of the employees feel that the working environment of ACSO is
conducive, 45% of employees responded as they are neutral in conducive working
environment of the organization; some employees said that as they are disagree in smooth
working environment of the organization. If employees of the organization says no conducive
working environment, the level of termination in the organization will increase.

Regarding the awareness of management and employees concerning turnover employees in

the organization as it was indicated in item 9 of table 4.11, the respondents extent agree or
disagree, 45.2%, 32.2%, 12.9% and 9.7 percent of respondents said they are "strongly agree"
in the awareness of management and employees about turnover of employees of the
organization, "agree", "neutral" and "disagree" in the awareness of management and
employees about turnover of organization's employees. This indicates most employees as
well as management of the organization is aware of mobility of skilled manpower. Based on
this data the organization should come up with retention mechanisms in order to attain the
mission of the organization.

As shown in table 4.11 of item 10 summarizes about respondents extent of agree or disagree
in the organizations' supervisory requirement for employees commitment for their
performing their tasks, they responded as 6.5%, 16.1%, 45.2%, 22.6%, and 9.7 percent of
respondents responded as "strongly agree" in the presence of supervision for commitment of
employees, "agree", "neutral", "disagree", and "strongly disagree" respectively. This
indicates, most employees of the organization are neutral for need of supervisions for
commitment of employees. But others responded as no need of supervisors for employee's
commitment and few of them responded in the presence of supervisors for employee's
commitment to the organization.

Table 4.12. Respondents opinion on the behavior of their managers.

No Item Sample Response Response categories

1 2 3 4 5
1 Supervisors arranged flexible F 7 12 26 10 7
working environment or 62

Condition % 11.3 19.4 41.9 16.1 11.3

2 The organization's higher F 0 14 16 28 4

44
 officials allowed in decision 62
making % 22.6 25.7 45.2 6.5

3 The overall relation F 0 7 18 32 5

management between 62
management and employees % 11.3 29.0 51.7 8.0

Source: que stionnaire, 2024.

As it was indicated in the above table of 4.12 item 1, when employees are asked about their
extent of agree or disagree for their supervisors arranged flexible to working condition for
their subordinates, 11.3%, 119.4%, 41.9%, 16.1% and 11.3 percent of respondents responded
as "strongly agree" in their supervisors arrangement of a flexible working environment for
employees of the organization, "agree", "neutral", "disagree", and "strongly disagree" in the
arrangement of supervisors flexible working condition for employees. The overall data from
respondent's shows, most employees of the organization are neutral at the absence of flexible
working condition arranged by their supervisors of the organization.

Item 2 of the same table indicates, respondents extent of agree or disagree in management
permit of employees to participate in decision making process, 22.6%, 25.7%, 45.2%, and 6.5
percent of respondents responded as they "agree" in management allow of employees to
participate in decision making, "neutral", "disagree", and "strongly disagree" that
management of the organization do not allowed employees participate in decision making.
Therefore, from the above data, most of the respondents assume as management do not allow
them to participate in the decision making process of the organization.

Concerning the overall relationship between management and employees relationship, as it

was indicated in the above table of item 3, when the issue, 11.3%, 29.0%, 51.7% and 8.0
percent of respondents responded as "agree" in good relationship between organization's
management and employees; "neutral", "disagree", and "strongly disagree" in smooth
relationship found among employees and management of the organization. So, the data
obtained enforce to say more than 50 percent of employees have no harmonious relationship
with management of the organization and contribute for termination of potential and skilled
manpower.

Table 4.13 Respondents view on the quality of training and development organized by ACSO.
Response
No Item Sample Response categories
1 2 3 4 5

F 4 16 20 18 4

45
 Training and development 62
1 program of ACSO % 6.5 25.8 32.2 29.0 6.5

is better to other similar

public sector organization
Source: questionnaire, 2024.
As it is shown in the table above 4.13 when the respondents of employees are asked about the
extent of agree or disagree in better provision of training and development practice of ERCA
at EABO; respondents responded as 6.5%, 25.8%, 32.2%, 29.0% and 6.5 percent "strongly
agree" that the organization practicing good training and development, "agree", "neutral",
"disagree" and "strongly disagree" because there is good training and development
mechanism given to employees respectively. So, the data obtained indicates, some of the
respondents responded in good training and development practice of the organization. While
some argued in absence of these practice. Therefore, hear we see that the training activity of
the organization takes place in some departments.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This study concerns to determine the causes of employee turnover and what retention
mechanism takes in the management of the organization. In order to reduce the rate of
turnover in organizations, the present study sought to identify motivational variables that
managers could use in order to influence employees retention. Frequent employees turnover
is costly to organizations and destructive to the attainment of organizational goals. Many
organizations are been able to identify properly the real reason or reasons that lead to key
employees to leave. Most managers believe that increasing financial benefits of employees
would motivate them to remain while others provide attractive working environment as a
retention strategy. The present study therefore, sought to determine the extent to which
selected motivational variables which are combinations intrinsic and extrinsic variables were
being applied and were influencing employees' decision to remain or quit an organization.

5.1. Summary of findings

 Most of the current employee respondents are male and below the age of 35, single,
qualified above BA/BSC, and has been in the organization less than 5 years. Likewise
exemployee
respondents are found to be male, age group of below 30, single, qualified above
BA/BSC and had been in the organization for less than 2 years. Management of the
organization is aware of skilled manpower turnover that the organization is facing.

46
 Most current employees believe that when their age increases they do not want to stay
in the organization.
 Most respondents believed and responded as, when their level of qualification
increases their chance of working in the organization decreases, this indicates us the
workers of the organization boarded towards their work.
 Employees of the organization gained valuable working experience due to the chance
they obtained to work at the organization.
 For most of the current employees qualification and experience are not considered to
promote them.
 When we see the respondent answer management of the organization is not
committed to provide everything that employee's need for doing their work.
 According to the respondent answer the salary of the organization has not such
attractive which motivate employees to stay at ACSO.
 Management of the organization is not providing employees different positions based
on their performance.
 Terminal and pension benefits of the organization are not in satisfying employees of
the organization.
 Management of the organization is not providing clear path for employees to advance
their career in the position they hold.
 Employees of the organization have no future hope of getting better benefits from the
organization.
 Most of the respondents says they stayed in the organization because they do not have
other employment alternative with the position they hold.
 Most of the employees at the organization clearly identified the mismatch between the
positions they hold and the skill and knowledge they have.
 Most of the respondents believe that the organization should be changed the way the
organization could run.
 The organization has no formal employee's representative to protect them from unifier
management decision.
 Most employees of the organization have no sense of belongingness to the
organization so that if they got other employment opportunity they live the
organization without any precondition.
 Interpersonal relationship in the organization is not such attractive so that a team work
has missing.

47
  Most of the respondents argue that disciplinary measures of the organization are not
properly laid dawn.
 Most of the respondents fill that Management of the organization is not impartial for
the overall benefits of the organization.
 Supervisors of employees have not arranged flexible working condition to the mass
workers to apply their creativity and potential.
 Most of the respondent's says that higher officials of the organization do not allowed
employees to participate in decision making activities.
 Training and development practice of the organization are not attractive and not better
than other similar sectors and some of the training are concentrated in few
departments of the organization. Ex-employees gained nothing while they were at
ACSO.
 Most ex-employees of the organization do not believe in conducive working
environment of the organization.
 Most of the ex-employees agree on that they left the organization because low salary
scale and other benefit packages. Still most of them says that the organization had not
provided good terminal benefits and pension for its ex- employees.
 Most of the organization ex- employees believe in that the position they held and the
skill they had made also them to leave the organization.
 Most of the Ex-employees did not have sense of belongingness to the organization
while they were in the organization.
 Most of the Ex-employees believe in poor interpersonal relation of the organization.

5.2. Conclusions

The researcher has made an attempt to identify major sources of professional employees'
turnover at Ethiopian Revenues and Customs Authority Eastern Addis Ababa Branch Office.
A combination of quantitative and qualitative data was used to conduct this study which
employed data collection techniques like questionnaires and interview check lists. Both
quantitative and qualitative data collected were analyzed by employing analysis techniques of
descriptive statistics and qualitative analysis method respectively. Consequently, the findings
from the survey and the interviews have been presented. At this point, the researcher comes
to a conclusion based on the interpreted results and discussions of findings. Accordingly, the
following conclusions are made.
 The compensation system and benefit packages of the organization are not attractive.
Hence, most of the employees left the organization and they will leave the
organization when they get better offer by the competitors.

48
  The organization has good trend in providing job descriptions that is matched with
professional employees which is actually performed.
 The organization does not give continuous training and development to its
employees.
 The employer employee relationship in the ACSO is not good. Besides,
supervisors are not treating and give respects to the employees.
 Since no job security in the organization, employees are leaving it.
 The organization does not give enough recognition for well done work and
employees are not appreciated at work.
 There is inequity in the organization during promotion of employees.
 There is unfair employee handling in the organization. Hence, some of the employees
are leaving the organization and others are looking for outside opportunities.
 Management of the organization is aware about its experienced and qualified
employee's turnover, but has only associated the cause with salaries and benefits
packages. Besides, even if the management realizes some of the causes obtained from
the exit interview, retention mechanisms as a strategy has not been developed to
retain the employees so far.
 From the employees' side as they agreed in the response career development is rated
as a significant element and training is not targeted and specific to the needs of them.
Hence, lack of career development is one of the elements most likely to encourage
employees' decision to leave the organization as many employees look for some
growth and development opportunities and lack of training that is specific to the
needs of the employee will result in frustration that leads to turnover, too.

5.3. Recommendations

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

 Since the management of the organization is aware of skilled manpower turnover, it

could strongly work on retention mechanisms like encourage employees to participate
in decision making, arrange good working environment, giving promotions, sharing
benefits based on their performance, giving clear path for career advancement, could
still work on good training and development mechanisms etc
 Advancement and promotion are the prime reason why many professional employees
leave the company. Due to no potential opportunity for advancements or promotions,
employees prefer other companies which may provide them with higher posts and

49
 increased compensation packages. So, career development is the most important
retention factor since offering good opportunities for career development not only
prevents employees from leaving the organization but it also contributes in a positive
way to their loyalty to the organization. Since the aim of retention policies is not only
to retain employees but also to retain employees who are loyal and committed, the HR
managers must also put more efforts in retention policies relating to the relationship
between managers and supervisors with their subordinates, working environment and
job content.
 As the organization has no formal employees' representative, it is better to have it
since it contributes for employees to solve problems they face at working environment.
 Even though employees believe as their level of qualification increases, their chance of
working decreases, the management is better to assign them to different positions
based on qualification.
 The organization should give good terminal benefits and pension for employees.
 Management of the organization should provide material which is essential for
discharging their responsibilities.
 Management should motivate employees to stay in the organization and convince
employees to get in the future better benefits than the current benefit.
 The management should give power and make them to participate in decision making
to make them to feel sense of belongingness to their organization.
 Management should work towards creating smooth and conducive inter personal
relationship since informal group contribute to effectiveness of work carried out by
employees of the organization.
 Supervisors of the organization should work closely with subordinates and arrange
flexible working condition to retain employees.

50
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4
 Appendix 1

Questionnaire to be filled by Employees of Ethiopian public sector organizations of

authority for civil society organizations (ACSO)

Dear respondents:-

Completion of research
question

The aim of this questionnaire is for preparing a thesis on the title of the effect of
professional employees turnover and retention practices in case of Ethiopian public sector
organizations of authority for civil society organizations (ACSO).The outcome of the study
will be used in order to suggest possible solutions for problems identified while
conducting the study. I kindly request you to spent your precious time to fill the
questionnaire as frank as and reasonable as possible. I inform you that, the information you
provide will be consumed for academic purpose only. The information you provide is
confidential. Therefore, you all not expected to write your name.

Best Regard!

Tick only one box only

A. General Background of Respondents (Demographic

Information)

1. Your age group

Below 25 □ 25-30 □ 31-45 □ 36-40 □ above 40 □

2. Sex

Male □ Female □

3. Marital status

Married □ Single □

4. Qualification

5
 10+2 □ BSC/BA □ PhD □
12+2 □ MSC/MA □

5. Year of service in ACSO

Less than 1 year □ 1 to 2 years □ 2 to 5 year □

5 to 10 years □ more than 10 years □
6. Year of service in your last position

Less than 1 year □ 1 to 2 years □ 2 to 5 year □

5 to 10 years □ 10 years and more

6
 Note Select only one among the options given below

1=strongly
agree 2=Agree

3= Neutral

4= Disagree

5= strongly disagree

B. Items concerning turnover of employees and retention

mechanisms
Strongly Strongly
No Demographic factor questions agree Agree Neutral Disagree disagree
1 2 3 4 5
1 As your age increase your chance of
staying in the office increases.
2 Organization is committed to
provide you everything you need.
3 As your level of qualification
increases commitment and level of
stay increases.
Benefit and salary package
questions
4 You were motivated to Join ACSO
for gain of experience.
5 Salary scale and other benefits
motivated you to stay in ACSO.
6 You stayed inACSO because you
don’t have other job.
7 Financial issues of ACSO
motivated you to stay in the
position.
8 You are working with the skill you
have with the position in which you
are placed
9 ACSO had changes to the way
organization is run.
10 There are employees representatives
in the organization.
11 You have sense of belonging to
the Organization.
12 You have freedom of innovative
thinking and the organization
motivates you.
13 Your supervisors arranged you
flexible working condition
14 The organizations provided you to
2
 different positions on your
performance.
15 The organizations higher officials
allowed you to participate in
decision making.
16 Interpersonal relation of the
organization is better relative to
other public organizations.
17 Organization is providing good
terminal benefit or pension.
18 Qualification and experience are
considered to promoting employees.
19 The relation between managers and
employees is good at ACSO.
20 Management has provided a clear
path for advancement of career for
all employees.
21 Disciplinary procedures of ACSO
are properly laid down.
22 ACSO is impartial for over
all benefits of employees.
23 Training and development program
ACSO is relatively better to other
24 similar public organizations.
Working environment of ACSO
is good.
25 Young professional employees’
interest to stay in ACSO is
26 Management and employees have
awareness about turnover of the
Employees organization.
27
Since employees of the
organization are committed there is
no need of
Supervision.
28 Your future hope of getting better
benefit made you to stay at ACSO

3
 Appendix 2
Questionnaire to be filled by ex- Employees of Ethiopian public sector organizations of
authority for civil society organizations (ACSO)

Dear
respondents:-

Completion of research
question:

The aim of this questionnaire is for preparing a thesis on the title of effect of professional
employees turnover and retention practices in case of Ethiopian public sector organizations
of authority for civil society organizations (ACSO).The outcome of the study will be used
in order to suggest possible solutions for problems identified while conducting the
study. I kindly request you to spent your precious time to fill the questionnaire as frank
as and reasonable as possible. I inform you that, the information you provide will be
consumed for academic purpose only. The information you provide is confidential.
Therefore, you are not expected to write your name.

Best Regard!

Tick only one box only

A. General Background of Respondents (Demographic

Information)

1. Your age group

Below 25 □ 25-30 □ 31-35 □ 36-40 □ above 40 □

2. Sex

Male □ Female □

3. Marital status

Married □ Single □

4. Qualification

4
 10+2 □ BSC/BA □ PhD □
12+2 □ MSC/MA □
5. Year of service in ACSO

Less than 1 year □ 1 to 2 years □ 2 to 5 year

□ 5 to 10 years □ more than 10 years □
6. Year of service in your last position

Less than 1 year □ 1 to 2 years □ 2 to 5 year □

5 to 10 years □ 10 years and more □

5
 Note Select only one among the options given
below 1=strongly agree

2=Agree
3=
Neutral

4= Disagree

5= strongly disagree

D. Items concerning the overall intentions that made ex- employees to leave the
Organization
Incentive and benefit package
Questions Strongly Agree Agree Neutral Disagree Strongly
no Disagree
1 2 3 4 5
1 I left ACSO due to its incentive
and salary package is low.
2 I left the organization because
it doesn’t provide everything
you need for performing your
3 Ijob.
left the organization because
your qualification does not meet
the requirement.
4 Nothing you gained while you were
working in ACSO.
5 I left ACSO because of other
job you got.
6 ACSO is not perceived as the
organization in which you sense

6
 Appendix 3

Interview questions to human resource department Management

1. What are the challenges and negative effect the organization are facing due to
employees’ move from the organization?

2. Is management aware about employee mover of the organization?

3.
4. What is your view regarding reasons for turnover of employees?

5. What costs the organization in cur due to turnover?

6. What retention Practies the organization made to proactively retain existing

employees?
7. What is the view of current employees to stay in the organization?

6. Do all employees aware about the negative effect of turnover of the organization?

7
[Type text]