Factors Affecting Employees’ Turnover Intention: A Study on Kaliti Food S.C., Addis Ababa, Ethiopia

Abstract

The objective of the study was to identify the major factors affecting employees’ turnover intention in Kaliti Food S.C. and provide professional advice that would help the company to reduce turnover and retain its employees. The research followed mixed concurrent research approach. The research utilized descriptive and explanatory research design, survey as a strategy and semi-structured questionnaire as data collection instrument. The research utilized probability-sampling method to select the participants from the population. The data collected from a sample of 145 respondents from five different departments found in the company, namely operations, finance, sales and marketing, human resource and procurement, through stratified sampling technique. Based on the size of each stratum the respondents selected using a simple random sampling technique. The study utilized a statistical tool called SPSS V.25 for doing the analysis. Both primary and secondary sources of data used to gather data. The study revealed that the average turnover rate in KFSC is 9.08%. The inferential analysis indicates that there is significant relationship between all independent variables and intention of turnover in KFSC. Among all independent variables, there is relatively strongest relationship between external factor and turnover intention followed by organizational factor & personal factors. Among all the independent variables, the weakest relationship exists between personal factor and turnover intention in KFSC. The study concluded that external factor is the most significant factor influencing the turnover intention of KFSC employees followed by organizational factor & personal factor. The study recommended that the company have to give much emphasis for the major organizational factors affecting turnover intention such as work related factors, which directly affects overall job satisfaction of the employees. These are working environment, promotion and payment.