The Effect of Human Resource Management Practice on Employee Turnover: The case of Ethiopian Airlines

Abstract

The purpose of this study is to examine effects of human resource management practice on employee turnover with a special reference to Ethiopian airlines in Addis Ababa city. And human resource management practice was evaluated by recruitment and selection, career development, training and development, performance management, compensation, and health and safety. The study employed explanatory research, with quantitative approach. To achieve the objective of the study, primary data was collected from Ethiopian airlines employees. The study was carried out in Ethiopian Airlines head office located in Addis Ababa. Out of 9212 permanent employees 384 were selected using simple random sampling techniques. The data was collected through close ended questionnaire and was analyzed using descriptive statistical analysis and inferential analysis methods. Correlation analysis was assessed to figure out the relationship between HRM practices and employee turnover, multiple regression analysis was done to assess the influence of HRM on employee turnover, ANOVA and Cronbach Alpha was also tested. The results show that the selected human resource management practices contribute immensely to employee turnover. In order for Ethiopian Airlines human resource management team to tackle the employee turnover problem they have to effectively use different HRM strategies.