EXAMINING THE EFFECTS OF EMPLOYEES TURNOVER ON ORGANIZATION PERFORMANCE: THE CASE OF SOME SELECTED BRANCHES OF DASHEN BANK IN ADDIS ABABA

Abstract

The purpose of this study was to assess employee turnover and organization performance: the case of some selected branches of Dashen Bank in Addis Ababa. Many researchers have found that in a service rendering company like banks, there are strong relation between employee satisfaction, customer satisfaction and service quality. However, in this area of human resource, employee turnover is a major factor that hinders business's ability to retain customers and provide high-quality customer service. Thus, the study contains the introduction, problem statement and research objectives. The specific objectives this research are identify the major factors causing staff turnover in Dashen Bank, assess employees turnover and the performance of the bank and identify and suggest possible solutions to the bank to mitigate turnover that experiencing currently and retain its employees. It also involved looking through earlier research, documents, text books and journals on related literature previous research works. In addition, the researcher assessed both primary and secondary data. The primary data was collected using selfadministered questionnaires with both open and close ended questions. The data was put in appropriate tables and presented in tables and graphs since it is a good way to look at the data and see what happens and make interpretation. The overall findings of the study revealed that employee turnover affects the performance of the Dashen Bank SC, that leads to loss of the most competitive and experienced staff and this influences the organization to incur huge expenditure in recruitment and training of the new employees. The new employees’ exhibits low level of effectiveness and efficiency in the execution of the organization job task functions and this lowers the performance of the individual employees that in turn lowers the level of organization productivity. The researcher recommended that care must be taken to reduce or minimize turnover rate as minimum as possible through salary adjustment and benefit package, and creating opportunities for carrier advancement owing to the fact that well experienced employees will stay long in the organization and contribute much for the development in the performance of the bank.