DETERMINANTS OF EMPLOYEES‟ TURN OVER INTENTION: A CASE DEVELOPMENT BANK OF ETHIOPIA (DBE) HEAD OFFICE

Abstract

This study examines the determinants of employees' turnover intention at the Development Bank of Ethiopia (DBE) Head Office, focusing on four key factors: salary and benefits, job security, work environment, and career growth opportunities. Employee turnover remains a critical challenge for organizations, leading to increased costs, operational disruptions, and loss of institutional knowledge. Understanding the drivers of turnover intention is essential for developing effective retention strategies. Using a quantitative research design, data was collected from 185 employees through structured questionnaires. The study employed descriptive statistics, correlation analysis, and multiple regression to analyse the relationships between the independent variables (salary, job security, work environment, career growth) and the dependent variable (turnover intention). The findings revealed that all four factors significantly influence turnover intention, with salary and benefits showing the strongest correlation (r = 0.837, p < 0.01), followed by job security (r = 0.635, p < 0.01), work environment (r = 0.604, p < 0.01), and career growth (r = 0.406, p < 0.01). The regression model explained 76.8% of the variance in turnover intention (R² = 0.768), confirming the robustness of these predictors. The study aligns with Herzberg's Two-Factor Theory and Maslow's Hierarchy of Needs, emphasizing the importance of addressing both hygiene factors (salary, job security) and motivators (career growth) to reduce turnover. Practical recommendations include competitive compensation, transparent communication about job stability, fostering a supportive work environment, and creating clear career advancement pathways. This research contributes to the literature on employee retention in Ethiopia's banking sector and provides actionable insights for DBE and similar institutions. Future studies could explore additional variables or adopt longitudinal designs to assess the long-term impact of retention strategies.