FACTORS AFFECTING EMPLOYEE TURNOVER: THE CASE OF DEFENSE CONSTRUCTION ENTERPRISE

Abstract

The purpose of this study was to examine factors affecting employee turnover in the case of Defense Construction Enterprise (DCE). Basic questions i.e. employee turnover trend, factors mainly influence employee turnover and efforts are made by the enterprise to minimize the magnitude of employee turnover were asked. The study employed quantitative and qualitative research design methods. Proportionate stratified random sampling technique was used to select the sample size from the population. Questionnaire and interview were used for data collection. The respondents were drawn from the employees of the organization. Ninety eight (98) questionnaires were issued to the employees out of whom ninety two (92) were properly completed and returned; documents that were received from the HR department were helpful in determining the turnover trend. The obtained data was summarized, organized, tabulated, coded, and analyzed using Statistical Package for Social Science (SPSS). Descriptive statistics such as percentage, mean value, tabulation were employed for data analysis. Based on the data analysis the following findings were recorded. The main finding indicated that dissatisfaction with pay structure, lack of conducive-work environment; unfair reward and promotion systems were some of the factors for employee turnover. The finding also indicated the following effects of turnover including loss of experienced and skilled employees, higher recruitment costs, and higher workload due to leavers. Similarly, it was concluded that lack of career advancement, job dissatisfaction, poor working conditions, and unfair training system were major factors for employee turnover. The researcher further employed a multiple linear regression model to analyze the relationship between dependent and independent variables. The regression result reveals working condition is positively and significantly influence employee turnover. On other hand, remuneration, reward and recognition, and career development were found positive but not significant factor influencing the employee turnover. The results of the study may suggest that the enterprise need to give more emphasis on enhancing working condition of the enterprise so as to reduce employee turnover.