ST.

MARY‟S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF GENERAL MBA AND HRM

FACTORS AFFECTING EMPLOYEE TURNOVER INTENTION

IN CASE OF YOSEF TEKETEL CONSTRUCTION COMPANY

BY

ADDIS KEBADU

(TEL: +251 913790107; EMAIL: [email protected])

MAY, 2021 G.C

ADDIS ABEBA, ETHIOPIA

 FACTORS AFFECTING EMPLOYEE TURNOVER

INTENTION IN CASE OF YOSEF TEKETEL CONSTRUCTION

COMPANY

BY

ADDIS KEBADU

ADVISOR: BERHANU ENDESHAW (PHD)

A THESIS SUBMITTED TO ST.MARY‟S UNIVERSITY, SCHOOL OF

GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

MAY, 2021 G.C

ADDIS ABEBA, ETHIOPIA

 ST. MARY‟S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS

FACTORS AFFECTING EMPLOYEE TURNOVER INTENTION IN

CASE OF YOSEF TEKETEL CONSTRUCTION COMPANY

BY
ADDIS KEBADU

APPROVED BY BOARD OF EXAMINERS

___________________ ________________

Dean, Graduate Studies Signature

___________________ _________________

Advisor Signature

___________________ _________________

Internal Examiner Signature

___________________ _________________

External Examiner Signature

 Acknowledgements

First and foremost, I would like to express my highest gratitude to GOD for the blessing, love, -
opportunity, health and mercy for me to complete this thesis. In this valuable chance, I
personally would like to express my gratitude and appreciation to my advisor BerhanuEndeshaw
(PhD.) for his motivation, advice, support, and even remark that he had contributed towards the
completion of my paper. I am also thankful to YosefTektle construction company management
and staff members for providing the necessary information‟s in conducting this study. Finally I
would like to thank my family for their support, insightful suggestions, and endless patience
from the beginning of my paper towards the end.

i
Table of Contents
Acknowledgements……………………………………………………………………………i
List of table………………………………………………………………..…………………..v
List of figure…………………………………………………………………………………..vi
ABSTRACT……………………………………………………….………………………….vii
CHAPTER ONE……………………………………………………………………………….1
INTRODUCTION…………………………………………………….……………………….1
1.1 Background of the study……………………………………………………………………1
1.2 Statement of the problem……………………………………………………………………3
1.3 Basic research question……………………………………………………………………...4
1.4 Objectives of the study………………………………………………………………………4
1.4.1 General objective of the study…………………………………………………………......4
1.4.2 Specific objective of the study…………………………………………………………......4
1.5 Research hypothesis………………………………………………………………………….4
1.6 Significance of the study……………………………………………………………………..5
1.7 Scope of the study……………………………………………………………………………6
1.8 Limitations of the study………………………………………………………………………6
1.9 Definition of terms …………………………………………………………………………...6
1.10 Organization of the thesis……………………………………………………………………7
CHAPTER TWO………………………………………………………………...………………..8
REVIEW OF THE RELATED LITERATURE………………………………………………….8
Introduction…………………………………………………………...……………………...8
2.1 Theoretical framework………………………………………………………………...…..8
2.1.1 Definitions of turnover……………………………………………………………….8
2.1.2 Influencing factors of turnover intention…………………………………………….8
2.1.2.1 Job/career related factor……………………………………………………….….8
2.1.2.2 Job performance……………………………………………………………..……9
2.1.2.3 Working environment …………………………………………………………..10
2.1.2.4 Employees compensation………………………………………………………..10
2.1.2 Types of turnover………………………………………………………………...………...11
2.1.3 Measuring turnover……………………………………………………………………...…11

ii
 2.1.4 Consequences of turnover……………………………………………………….12
2.1.5 Benefits of turnover……………………………………………………………..12
2.2 Empirical review…………………………………………………………………………13
2.3 Conceptual framework…………………………………………………………………...14
CHAPTER THREE………………………………………………………………………….15
RESEARCH DESIGN AND METHODS…………………………………………………..15
Introduction……………………………………………………………………………..15
3.1 Research design………………………………………………………………..……..15
3.2 Research approach……………………………………………………………………16
3.3 Research methods…………………………………………………………………….16
3.3.1 Population and sampling technique………………………………………………....17
3.3.2 Data collection……………………………………………………………..………..17
3.3.3 Methods of data analysis……………………………………………………………18
3.3.4 Validity of the instrument…………………………………………………………..18
3.3.5 Reliability of the instrument………………………………………………………...19
3.4 Ethical considerations………………………………………………………….…………19
CHAPTER FOUR…………………………………………………………………………….20
DATA ANALYSIS AND INTERPRETATION……………………………………………..20
Introduction…………………………………………………………………………….….20
4.1 Research process………………………………………………………………………..20
4.2 Demographic characteristics of respondents…………………………………………....20
4.3 Descriptive statistics………………………………………………………………...…..22
4.3.1 Job/Career………………………………………………………….……………….23
4.3.2 Working environment………………………………………………………………24
4.3.3 Job performance…………………………………………………………...………..25
4.3.4 Compensation………………………………………………………….………..….26
4.3.5 Employees turnover……………………………………………………………...…27
4.4 Reliability test……………………………………………………………………………...28
4.5 Inferential statistics………………………………………………………………………...28
4.5.1 Correlation analysis…………………………………………………………………28
4.5.2 Multiple linear regression analysis………………………………………..…….…..30

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 4.5.2.1 Assumption of multiple linear regression...........……………………………30
4.5.2.2 Model summary………………………………………………………….….33
4.5.3 Hypothesis testing ………………………………………………………………..33
CHAPTER FIVE………………………………………………………………...………..37
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS………………………..37
Introduction…………………………………………………………..…………………37
5.1 Summary of research findings…………………………………………………...……37
5.2 Conclusion…………………………………………………………....………………..38
5.3 Recommendation……………………………………………………...……………….38
5.4 Suggestion for further study…………………………………………………………...38
References………………………………………………………..…………………………..i
APPENDICES:Questionnaires……………………………………………………………..iii

iv
List of Tables
Table 2.1 Rate of turnover………………………………………………………………….3

Table 4.1 Characteristic of the respondents………………………………………………..17

Table 4.2 Employees response to Job/career……………………………………………….19

Table 4.3 Employees response to working environment……………………………………20

Table 4.4 Employees response to Job performance………………………………………….21

Table 4.5 Employees response to Compensation…………………………………………….22

Table 4.6 Employees response to turnover…………………………………………………...23

Table 4.7 Reliability test……………………………………………………………………...28

Table 4.8 Correlation of variables…………………………………………………………….28

Table 4.9 Multicollinearity test………………………………………………………………33

Table 4.10 Multiple linear regression model……………………………………....................33

Table 4.11 Multiple regression coefficients………………………………………………….34

Table 4.12 Summary of hypothesis testing ………………………………………………….36

v
Lists of Figures
Figure 2.1 Conceptual frame work of the study……………………………………….14

Figure 4.1 Linearity test………………………………………………………………..31

Figure 4.2 Homoscedasticity test………………………………………………………32

vi
 ABSTRACTS
The purpose of this study is to identify factors contributing towards turnover intention in existing
employees of YosefTektle Construction Company. The turnover intention can be measured in the
aspect of personal factor, environment and economic factor, job performance, working
environment, compensation/ salary of Employee and career growth. Primary data were collected
through the use of questionnaire to the construction employees. The study was a descriptive
research type and quantitative research approach was used in data collection and analysis. The
sample size for the study was 195 respondents. All the data was gathered from the respondents
were analyzed using Statistical Package for Social Science (SPSS).Descriptive analysis
technique is used to identify the background of respondents in the aspect of age, gender, marital
status, years of experience, and qualification. The result of the study shows that the employees
have a good job performance even if the compensation and working environment affected
negatively. There for the company has to take consideration on the compensation and on the
working environment of the company.Which is maximizing the payment by giving other benefits
to the employees and creating an effective action plan. On other hand the management of the
company should apply a better facilities and place of work for the employees. This study has
played an important role to identify variables or factors contributing towards employees’
turnover intention in YosefTektle Construction Company and also identified few steps to
reducethe problem of turnover intention and further wider studies must also be carried out
comprising of other variables not included in this study to predict the effects of employees
turnover intention in the construction company in the country.

Key words

Employee Turnover, Turnover intention, working environment, compensation, job performance,

vii
 CHAPTER ONE

INTRODUCTION

This chapter deals with the problem and its approach. Generally deals with the
background of the study, statement of the problem, basic research questions, and
objectives of the study, scope of the study and significance of the study.

1.1 Background of the study

Every organization and business desire to be successful and have wishes to become sustain in the
market with profit. Today‟s rapid changes in the technology and business ideas organizations
should rearrange about their strengths on major inputs. The major inputs that an organization
uses to achieve its objectives is human resource. High labor turnover has become a problem for
both governmental and non-governmental institutions. Well experienced and qualified
professionals leave position they held in their offices (Alkahtani, 2015).

Employees are great assets for any business activity in this world. Especially in a construction
sector it is impossible to meet company‟s objective without retaining employees. In this context,
it is important to cite Andrew Carnegie, the famous industrialist of the 19th century, who
mentioned: “Take away my factories, my plants; take away my railroads, my ships, my
transportation, take away my money; strip me of all of these but leave me my key employees,
and in two or three years, I will have them all again” (Alkahtani, 2015).

Benedict, et al., (2012) defined Labor turnover as the rate at which an employer gains and losses
employees. Simple ways to describe it are “how long employees tend to stay in the
organization". Employee turnover is defined as “the rate at which employees enter and leave a
company in a given fiscal year.” HR professionals and organization executives focus on turnover
for three main reasons: - it has significant cost implications, it affects overall business
performance and it has the potential to become difficult to control which result in a talent loss
and hard to find quality candidates with the skill sets required to fill open positions (Tett&
Meyer, 1993).

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Turnover intention is a well-known subject to the organization in any business culture and
industry. It is one of the most important topics that need due considerations at workplace and in
any organization. Meyer et al. (1993) defined turnover intention as conscious willfulness to seek
other alternative jobs opportunities in other organizations. No matter how big or small the 2
organization, turnover intentions among the employees exists and always be a main concern for
organization to reduce or eliminate due to the existence of associated cost.

Recently the level of turnover in Ethiopian government as well as non-government organization

increase because of different reason. Most organizations are facing a frequent turnover of staff,
and as such the high turnover is costing them in terms of productivity, money and time.

Turnover is a critical human resource issue in all sectors of the economy. Turnover affects
productivity, product and service quality, and profitability. The cost of replacing workers in any
company is high, finding skilled employees can be difficult, and investment in training may not
pay back as quick as desired, however the degree may vary almost in every organization in every
industry faces the turnover problem, which is persistent and expensive (International Journal of
construction engineering &mgt 2020, 9(1):20-32) .Turnover has proved to be a drain of profit of
an organization; in the same way YosefTektle Construction Company is also exposed to turnover
related problems.

Clearly, firms lose their main productive resources where there is labor turnover.In order to
reduce turnover, managers should monitor both the extrinsic and intrinsic sources of job
satisfaction available to employees. These activities could assist in maintaining and increasing
job satisfaction and commitment to the organization (Mellor et al 2007).

The analysis of employees turnover is a vital role of the human resource department as the data
may be used to forecast future recruitment requirements, assists an organization‟s retention
strategy and succession plan as well as to set assertive mechanisms of turnover reduction to
achieve the organizational goals. It also highlights areas of business that may require assistance
in terms of people management problem issues and by measuring employee turnover on regular
4 bases an organization can immediately recognize a change in levels and implement strategies
for dealing with this.

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This study is aimed to identify the main causes of employee turnover & its effect on the
performance of YosefTektle Construction Company. A number of studies on turnover have been
conducted in Ethiopia on various business sectors so far.

1.2 Statement of the Problem

Employee turnover is a threat for many organizations because of its negative effects on operation
and performance of organizations. For that reason labor turnover needs to be controlled
effectively and efficiently. Most of the construction projects are difficult and complex to manage
it. High employees‟ turnover rate may influence the construction companies‟
performances.YosefTektle Construction Company is faced with a high rate of staff turnover each
year and this leads to poor employee performances which in turn has impact on organizational
quality of project works and have high cost of recruitment and training of new employees.

The type of costs incurred may be divided into two: employee turnover creates both tangible and
intangible costs. The tangible costs include recruitment, selection, and training, fine tuning time,
possible product and service quality problems, and the costs of agency workers (Morrell, Loan-
Clarke and Wilkinson 2004). The intangible costs, which may be even more significant than the
tangibles, involve the effect of turnover on organizational culture, employee morale, social
capital and organizational memory (Morrell and others, 2004).

In order to reduce turnover, managers should monitor both the extrinsic and intrinsic sources of
job satisfaction available to employees. These activities could assist in maintaining and
increasing job satisfaction and commitment to the organization (Mellor et al 2007).
Table 2.1 Rate of turnover

Fiscal Number of joiners Number of leavers In percentage

Year
2016 100 28 28%
2017 115 39 34%
2018 150 58 39%
Source: YosefTektleConstruction Company (2019)

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The above table shows as employee‟s turnover rate in the company increases from year to year.
So that this leads to maximize the cost of the company in related to recruitment process and the
time of the company. This study tells us the main causes of employee turnover and its effect on
the performance of the construction company.

Therefore, this study is motivated by these factors to find out the reasons for employee turnover
and its effect on YosefTektle Construction Company performance.

1.3 Basic Research Questions

 What are the factors that lead to employee turnover at YosefTektle construction?
 What are the effects of employee turnover on the performance of the company?
 What are the effects of job performance, compensation and work environment?

1.4 Objectives of the Study

1.4.1 The general objective of the study

The overall general objective of this research is to examine the effect of employees‟
turnoverintention at YosefTektle Construction Company.

1.4.2 Specific Objectives of the Study

The key specific objectives of the this research are as follows

 To examine the careers growth on employees‟ turnover intention in theconstruction firm

 To find out the various variables affecting employee turnover in YosefTektleconstruction
company

 To measure the impacts of major determinants on employee turnover intention in the

construction firm

 To determine the job performance on employees‟ turnover intention in the construction

firm

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1.5 Research hypothesis

The hypothesis developed for this study is based on the following assumptions:
Hypothesis:1
H1:Working environment has a negative and significant effect on the turnover intention
of employees‟
H0:Working environment has no significant effect on the turnover intention of
employees‟

Hypothesis: 2
H1: Career growth has a negative and significant effect on the turnover intention of
employees‟
H0: Career growth has no significant effect on the turnover intention of employees‟

Hypothesis: 3
H1: Job performance has a negative and significant effect on the turnover intention of
employees‟
H0: Job performance has no significant effect on the turnover intention of employees‟

Hypothesis: 4
H1: Salary & compensation has a negative and significant effect on the turnover intention
of employees‟
H0: Salary & compensation has no significant effect on the turnover intention of
employees‟

1.6 Significance of the Study

Construction Company‟s success can be measured mainly through delivery of quality and on
time projects to their clients. When labor turnover rate is high the company intended objectives
and expected results may not be achieved. Therefore thesignificance of the study was to
investigate the causes of employee turnover in YosefTektle Construction Company for the
management to take appropriate measures.

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In general, the findings and recommendations of the study will help the organization to
understand the problems associated with the employee turnover and to take the necessary
remedial actions.

Besides, it would be a useful reference for researchers and others interested in this topic, and can
serve as a base for any further studies to be conducted in this area of study.

1.7 Scopeof the Study

Due to the time and resource limitations, the study was carried out YosfeTektel Construction
Company located only 3 projects site in Addis Ababa & around A.A and head office in Addis
Ababa Ethiopia. The study is a quantitative research type. With independent variable of Careers
growth, Compensation/salary, Working environment and Job performance are the independent
variables used in this study. And the only dependent variable is Employees‟ turnover intention.
The participants of the study were construction engineer, office engineer, general foreman,
project manager and office workers in different position working in the construction company.

1.8 Limitations

The participants in the study were limited to four projects and the head officeemployees who
completed the questioner and the researcher have faced in the study was the pandemic of covid-
19. This study is limited only to this particular construction company.

1.9 Definition of terms

For clarity and understanding throughout this study the following terms were defined.

Employee Turnover. This term is used to describe the ending of a relationship between an
organization and a person who received monetary compensation from the organization.

Job-Related Turnover. This term is used to describe employee turnover for reasons that are
within the direct control of the employer.

Non Job-related Turnover. This term is used to describe employee turnover due to things in the
employee‟s personal life that impact the individual‟s performance in the workplace.

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Organizational Fit. This term is used to describe how well an employee fits in to a particular
work environment.

Turnover intention: Turnover intention is defined as "a conscious and deliberate willingness to
leave the organization".

Source:Heneman and Judge (2009)

1.10 Organization of the thesis

The study contains five chapters. Chapter one contain background of the study, statement of the
problem, basic research questions, objectives of the study, research hypothesis, significance of
the study, scope and limitation of the study. The second chapter of the study focuses on
literature review. The third Chapter deals with methodology of the study. Under the fourth
chapter data analysis and interpretation of the study are discussed. The last chapter contains the
Summary of findings, conclusion and Recommendations

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 CHAPTER TWO

REVIEW OF RELATED LIRATURE

Introduction
In this chapter various published literatures are briefly reviewed regarding to employees‟
turnover intention. In general the theoretical, empirical and conceptual frame works of the study
are presented here under.

2.1 Theoretical Literature

2.1.1 Definitions of Turnover

Employees‟ turnover is a much studied phenomenon Shaw et al. (1998).But there is no standard
reason why people leave organization. Employee turnover is the rotation of workers around the
labor market; between firms, jobs and occupations; and between the states of employment and
unemployment Abassi et al. (2000). The term “turnover” is defined by Price (1977) as: the ratio
of the number of organizational members who have left during the period being considered
divided by the average number of people in that organization during the period. Frequently,
managers refer to turnover as the entire process associated with filling a vacancy: Each time a
position is vacated, either voluntarily or involuntarily, a new employee must be hired and
trained. This replacement cycle is known as turnover Woods, (1995). This term is also often
utilized in efforts to measure relationships of employees in an organization as they leave,
regardless of reason. “

2.1.2 Influencing Factors of Employee Turnover intention

The topic employee‟s turnover is extensively studied with multiple perspectives and suggested a
variety of factors are the causes of turnover of an employee in an organization. Some factors are
demographics and some are biographic e.g. financial rewards, work environment, promotion,
emotion of employee‟s self-accomplishment and self-recognition, over stress of employees etc

2.1.2.1 Job/Career related factors

Most researchers (Bluedorn, 1982; Kalliath and Beck, 2001; Kramer et al., 1995; Peters et al.,
1981; Saks, 1996) have attempted to answer the question of what determines people's intention

—8—
to quit by investigating possible antecedents of employees‟ intentions to quit. To date, there has
been little consistency in findings, which is partly due to the diversity of employed included by
the researchers and the lack of consistency in their findings. Therefore, there are several reasons
why people quit from one organization to another or why people leave organization. The
experience of job related stress (job stress), the range factors that lead to job related stress
(stressors), lack of commitment in the organization; and job dissatisfaction make employees to
quit Firth et al. (2004).

This clearly indicates that these are individual decisions which make one to quit. They are other
factors like personal agency refers to concepts such as a sense of powerlessness, locus of control
and personal control. Locus control refers to the extent to which people believe that the external
factors such as chance and powerful others are in control of the events which influence their lives
Firth et al. (2004).

2.1.2.2Job performance

Organizational instability has been shown to have a high degree of high turnover. Indications are
that employees are more likely to stay when there is a predictable work environment and vice
versa (Zuber, 2001). In organizations where there was a high level of inefficiency there was also
a high level of staff turnover (Alexander et al., 1994).

Therefore, in situations where organizations are not stable employees tend to quit and look for
stable organizations because with stable organizations they would be able to predict their career
advancement. The imposition of a quantitative approach to managing the employees led to
disenchantment of staff and hence it leads to labor turnover. Therefore management should not
use quantitative approach in managing its employees. Adopting a cost oriented approach to
employment costs increases labor turnover Simon et al. (2007).

All these approaches should be avoided if managers want to minimize employee turnover an
increase organizational competitiveness in this environment of globalization. Employees have a
strong need to be informed. Organization with strong communication systems enjoyed lower
turnover of staff (Labov, 1997). Employees feel comfortable to stay longer, in positions where
they are involved in some level of the decision-making process. That is employees should fully
understand about issues that affect their working atmosphere (Magner et al. (1996).

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2.1.2.3 Work Environment

If working conditions are substandard or the workplace lacks important facilities such as proper
lighting, furniture, restrooms and other health and safety provisions, employees will not be
willing to put up with the inconvenience for long time. Organizational instability has been shown
to have a high degree of high turnover. Indications are that employees are more likely to stay
when there is a predictable work environment and vice versa. In organizations where there was a
high level of inefficiency there was also a high level of staff turnover. For employer losing a
single key worker the like hood of project success and investor confidence may significantly
reduce. Main causes of turnover are salary, working environment and security of job. Turnover
particularly arises from unhappiness from job place. In contrary employees are also pushed to
leave their current job due to the dissatisfaction in their present workplace.

2.1.2.4Employees compensation

This comprise Society‟s economic development level, labor market condition, employment
system, job opportunities, enterprise property, transportation, housing, education and health care
facilities, the cost of living, quality of life and so on all have an impact on employee‟s
turnoverintention(Yanjuan,2016).
According to Belete AK (2018) Employees in different organizations seek to improve their level
of income. Therefore, employees in an organization improve their pay level if they obtain a pay
increment in their current organization or by joining other organizations which will provide good
pay. With regard this stated that organizations pay level has a potentially important direct
influence on voluntary turnover. In today‟s work environment where pay is one of a determinant
factor, employees quits current job and accept the job with higher pay opportunity. Attractive
remuneration packages are one of the very important factors of retention because it fulfills the
financial and material desires. As stated the turnover of employees is mainly due to low salary.
Pay level and rewards had negative and significant relationship with turnover intension.With
respect to employee‟s compensation, there are two components. The first is the direct financial
payments and the second one is the indirect payment (Dessler, 2000). Direct financial payments
include wages, salaries, incentive, commissions and bonuses and these the employees on the
basis of their performance or the time spent. Indirect payment involves holidays, personal leave,
vacations, sick leaves, life insurance, retirement plan, education assistance etc.

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According to palmer (2006), the employees of toady know about how much they are worth and
also tend to walk away from the negotiating table if they feel that the pay which is being offered
to them is not good enough. In order to determine which benefits will help in attraction and
retention of employees, it will be necessary to think out of the box. Ryan (1992) has stated that
number of things which are not normally associated with traditional benefits might feel
important if we are able to ask the right questions.

2.1.3 Types of Turnover

Heneman and Judge (2009) have described four types of employee turnover under two
categories. It can be seen that turnover is either voluntary being initiated by the employee, or
involuntary, being initiated by the organization.
Involuntary Turnover
Involuntary turnover is split into discharge and downsizing types.
Discharge Turnover:Discharge turnover is aimed at the individual employee, due to discipline
and/or job performance problems.
DownsizingTurnover:It occurs as part of an organizational restructuring or cost-reduction
program to improve organizational effectiveness and increase shareholder value.
Voluntary Turnover:Voluntary turnover, in turn, is broken down into avoidable and
unavoidable turnover.
Avoidable Turnover:Avoidable turnover is that which potentially could have been prevented by
certain organizational actions, such as pay raise or new job assignment.
UnavoidableTurnover:A turnover that happens in unavoidable circumstances is called as
unavoidable turnover. For instance, Employee‟s death or spouse‟s relocation

2.1.4 Measuring Turnover

Turnover rate definition: The term „employee turnover rate‟ refers to the percentage of
employees who leave an organization during a certain period of time. People usually include
voluntary resignations, dismissals, non certifications and retirements in their turnover
calculations. They normally don‟t include internal movements like promotions or transfers.This
calculates the number of leavers in a given period as a percentage of the average number of

— 11 —
employees during the same period. S.Aberra (2007) Most organizations simply track their crude
turnover rates on a month by month or year by year basis. The formula is simply:

Turnover Rate%= Employees separated X 100

Average number of employees

2.1.5 Consequences of turnover

High turnover rates can negatively affect a company and its employees in many ways. With the
constant need to hire and train new employees, it is easy to veer from true mission and vision of
the organization. By retaining employees, companies can provide a higher caliber workforce that
positively affects the bottom line. Businesses can lower turnover rates by providing adequate
training, rewarding employees for a job well done and creating a company culture of trust.

Turnover is expensive (Mobley, 1982). It affects organizational profitability because in

measuring turnover three major costs are included. Separation cost, replacement cost and training
cost. Johnson (1981) viewed turnover as problematic for the industries, affecting the quality of
products and services and incurring considerable replacement and recruitment costs.

High turnover disrupts and destabilizes that culture of constant improvement: it starts to feel less
safe to experiment in an unstable team environment, it becomes easier not to explore new ways
of improving performance, and the missing connection to a collective vision undermines basic
motivation. When teams are starved of the oxygen of a growth mindset and the momentum that
comes from that, performance inevitably suffers (Cath Bishop, 2019)

2.1.6 Benefits of turnover

According to Meredith (2018), Employee turnover can sometimes be an indicator of moving towards
success at an organization. When an organization fosters continual growth, there‟s a give and take.
Some employees will meet the challenge that comes with high growth and continue to fit the culture
while others hit setbacks, feel a disconnect from the strategy or want to grow in a different direction.
In all those situations, it is better to exit the employee than force an employee to fit to a culture and
vision they normally wouldn‟t.No matter how talented, an employee who doesn‟t believe in the
business strategy, culture or mission will not be as successful as a more aligned employee will be.
And without turnover, you are not making room to hire, retain and engage more A Players.

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2.2 Empirical review

According to (Kevin, 2004) Organizations invest a lot on their employees in terms of induction
and training, developing, maintaining and retaining them in their organization. Therefore,
managers at all costs must minimize employee‟s turnover. Although, there is no standard
framework for understanding the employees turnover process as whole, a wide range of factors
have been found useful in interpreting employee turnover. Therefore, there is need to develop a
fuller understanding of the employee turnover, more especially, the sources- what determines
employee turnover, effects and strategies that managers can put in place minimize turnover. With
globalization which is heightening competition, organizations must continue to develop tangible
products and provide services which are based on strategies created by employees. These
employees are extremely crucial to the organisation since their value to the organization is
essentially intangible and not easily replicated Meaghan et al. (2002). Therefore, managers must
recognize that employees as major contributors to the efficient achievement of the organization‟s
success Abbasi et al. (2000). Managers should control employee turnover for the benefit of the
organisation success. The literature on employee turnover is divided into three groupings:
sources of employee turnover, effects of turnover and the strategies to minimize turnover.

When looking at the study made by Asmamaw (2011) at MOFED, management of the
organization is not committed to provide everything that employees‟ need for work. The study
shows that un attractive financial issues, poor management regarding performance based
promotion un-satisfying terminal and pension benefits and problem of the management in
providing clear path for employees to advance their career where highlighted as major factors
affecting employees‟ turnover in the company. Given all the problems, employees stayed in the
organization because they do not have other alternative job and they clearly identify a mismatch
between the positions they hold and the skill and knowledge they have. Most employees of the
organization have no sense of belongingness to the organization so interpersonal relationship is
not healthy. Disciplinary measures of the organization are not properly laid-dawn. Supervision of
employees has not arranged flexible working condition. As the Ex-employees gained nothing
while they were in MOFED and most ex-employees believe in conducive working environment
of the organization. Thus most Ex-employees left the organization because of low salary scale
and other benefit packages.

— 13 —
2.3 Conceptual frame work of employee Turnover

The conceptual frameworks for the study has taken turnover intention as dependent variable and,
Career/job, Working environment, job performance and compensation(salary) as an independent
variable which if not managed and implemented properly leads to turnover.
The above mentioned independent variables negatively impact turnover, the dependent variable.

Figure 2.1: Conceptual Framework of the study

Independent
Variables Dependent
Variable

Career/Job

Turnover
intention
Working
environment

Job
performance

Employees
compensation

Source:Heneman and Judge (2009)

— 14 —
 CHAPTER THREE

RESEARCH DESIGN AND METHODS

Introduction

Research methodology is the techniques or procedures which are used to identify, select, process
and analyses the data regarding to a specific research topic (Creswell, 2014). In order to allow
readers to critically evaluate a researches overall reliability and validity, the methodology section
is a basic part of a research paper (Clandinin, 2007). Tashakkori and Teddlie (2010). Suggests
that the methodology section must contain the type of the study, how it‟s collected and analyzed
and any materials or tools used in the study and the researchers rational for selecting the
methods.

This chapter covers the research approach and methodology used in the present study. It
describes the research methods applied in this study, the survey questionnaire through which data
was collected, and the administration thereof.The final section of this chapter describes the data
analysis methods used in this study.As mentioned in chapter one, the aim of this research is to
investigate the factors that contribute to voluntary turnover at a selected construction company in
Addis Ababa.

3.1 Research Design

Saunders et al. (2009), defines research design as the general plan of how the research questions
would be answered. He further noted that, it is the conceptual structure within which research is
conducted, and also it constitutes a blue print for the collection, measurement and analysis of
data.In descriptive studies, information is collected for the purpose of describing a specific group
with nointention of going beyond that group.
In general, three types of research designs are often used by researchers. These are Exploratory,
Descriptive and Causal studies. This study is a causal research type which is mainly concerned
the cause and effect relationships among the variables. The reason for choosing this type is, such
types of studies are related to higher levels of internal validity. From dependent and independent
variables analyzing activity takes place. Explanatory research design carried out to investigate in
a timely manner a phenomenon that had not been studied before, or had not been studied before,

— 15 —
or had not been well explained previously. Its intention is to provide details where a small
amount of information exists. Its goal is to find the way and what for an object of study. Its have
own characteristics for example its allows for increased understanding about a specific topic,its
uses secondary research as a source of information and explanatory research allows them to
replicate studies to give them greater depth and gain new insights.

3.2 Research Approach

There are three main approaches of research design available in social science this are:
qualitative, quantitative and mixed methods. Therefore, to answer research questions effectively,
the mixture of qualitative and quantitative method has been used while more concentrations were
on qualitative ones. This study used in depth quantitative approach in order to be able to clarify
the dynamics between employees and the company in the studied contexts. According to
Maxwell, (2005), quantitative approach offers the researcher the opportunity to carefully
communicate and gather the experience of therespondentsusing questionnaire. Quantitative
research is a systematic investigation of phenomena by gathering quantifiable data and
performing statistical, mathematical or computational techniques. Its collects information from
existing.Employees using sampling methods and sending out questionnaires the results of which
can be depicted in the form of numerical. There are two methods to conduct quantitative research
primary quantitative research methods and secondary quantitative research methods. The
research approach in this study is based on secondary data collected from reports of the company
and other relevant sources. In addition primary data are collected by using questionnaires.

3.3 Research methods

Are the strategies utilized in the collection of data for analysis to a better understanding of the
subject matter. This study used a five point liker scale questionnaire which is strongly agreed,
agreed, neutral, disagreed and strongly disagreed. Secondary data was collected from various
documents like reports, local and international newspaper related with issues of turnover,
Researchreports,booksandjournalarticles.

— 16 —
3.3.1 Population and Sampling technique

YosefTektle Construction Company is a grade1 construction in Ethiopia. The population size is

390 (the total number of employees working in the company) in Addis Ababa and projects.
Those respondents for this research will involve all different gender and age. In this study
probability sampling design was employed and respondents were selected using systematic
sampling technique. In order to determine the appropriate sample size, Taro Yamane‟s (1967)
simplified formula was used by the researcher, which is appropriate for small size population.

n= N/ [1+N (e) 2]

n= 390/ [1+390(0.05)2]

n= 195

Where,

n= Sample Size

N= Total Population Size in the production line and,

e= the standard error with 95% confidence level

So from the above formula for a size of total population in the company390; sample size 195.
The sample consists of construction & office engineer, project manager, general foreman and
admin staff which were selected to fill questionnaires.

3.3.2 Data collection

In order to collect data which is relevant to the study both primary and secondary sources of data
were used by the researcher while doing this study. Primary data are being gathered to tackle a
particular research objective. Those kinds of data can be collected using methods such as survey,
questionnaires, interviews and direct observations. Primary data are reliable ways to collect data
because the researcher knows the exact sources of data and how it has been gathered and
analyzed since it is being collected by the researchers him selves. Primary sources necessitate the

— 17 —
researcher to interact with the source and extract information form it (Sachdeva, 2009). While
the secondary data sources are be collected from company reports and internet. The techniques
which were used by the researcher in order to collect data both primary and secondary. The
primary sources of data use questionnaires and observation and the secondary sources of data
include organizational records and websites.
3.3.3 Method of data analysis

After all the data was collected from the sample employees using questionnaires it was coded
and entered into SPSS (Statistical package for social science) version 23 and the appropriate
analysis of the data was done using descriptive and statistical measures.

The researcher organized the respondents‟ profiles in the areas of their sex, age, educational
status, work experiences and their position/responsibilities. The respondent‟s profile was
tabulated in the form of mean and percentages.

The Pearson Correlation and Multiple Regression Analysis have been conducted to identify the
factors affecting employees‟ turnover intention and determine the relationship between factors
and employees‟ turnover intention in construction companies. Causal analysis has been
conducted to summarized and describe the data collected by measure the mean and standard
deviation to make the results of the research easier to understand.

Lastly based on the statistical results obtained a mathematical equation was developed using the
dependent variable (Turnover intentions) and independent variables (working environment,
career growth, job performance and compensation/salary) of the study.

3.3.4 Validity of the instrument

According to Bryman& Bell (2011), all the structured questions will be designed in the way to
be sincere andclear for respondents and an introduction of the interviewer and the topic of the
study were to start with.Taherdoost (2016) Validity describes how well the data collected covers
the actualarea of the study. Fundamentally it means “measure what is intended to be
measured”.The questioners used in this study are adapted from past literatures related to the
topicwith some adjustments. Before distributing the questionnaires to the respondents a pilot

— 18 —
survey was applied on 5 respondents and the researcher has made some modifications on the
itemsbased on the respondent‟s feedback.

3.3.5 Reliability of the instrument

According to Collis & Hussey, (2009) reliability refers to the absence of differences in the results
if the research were repeated. To determine whether the approaches the researcher applied is
consistent or not, the research has been supported by using reliable sources of information,
namely a large number of academic journals, articles, books, related websites, and work papers
and studies related to the area. Alpha coefficient is the widely used measure for internal
consistency (Taherdoost, 2016). Oluwatayo, (2012) Proposes that it‟s a fair reliability for
coefficient alpha between 0.6 and 0.7 , good reliability between 0.7 and0.8, and a Very good
reliability between 0.8 and 0.95. The reliability of the construct items under each variable was
evaluated using Cronbach‟s coefficient alpha.

3.4 Ethical Considerations

In doing this study the participant were asked for verbal consent before being asked for any
information. Objective of the study were explained for every participant and they were asked to
give information only after they gave their consent. And privacy issues such as not mentioning
the name of the participant and providing all the necessary information‟s to participants
regarding to the study area.

— 19 —
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

Introduction

This chapter deals with data presentation, analysis and interpretations of the analyzed data. It
includes two major analysis parts. The first part of this chapter present demographic
characteristic of the respondents and the second part present the results and its interpretation of
findings.

4.1 Research Response Rate

The first step for collecting data was asking the management of the construction company and
after getting permission from the company the researcher has distributed 195 questionnaires to
the employees with the help of the management team. For employees who got any difficulties on
the questionnaires like language the researcher has explained and answered to them. All returned
incomplete questionnaires were considered as errors and removed from the survey data and from
195 questionnaires 170 were completely filled and returned which is 87.18% response rate.
Statistical package for social sciences (SPSS) version 23 was used in analyzing the statistical
data.

4.2 Demographic characteristics of respondents

The demographic characteristics part of the questionnaire includes the personal futures like Age,
Gender, Educational qualifications, working experience and marital status. The details are as
follows;

— 20 —
Table 4.1 Characteristic of the respondents

No. Item Measurement Frequency Percentage Valid

(%) percent
1 Age 20-27 35 20.59 20.59
28-35 45 26.47 26.47
36-45 60 35.30 35.30
46-55 20 11.76 11.76
Above 55 10 5.90 5.90
Total 170 100 100
2 Gender Female 50 29.41 29.41
Male 120 70.59 70.59
Total 170 100 100
3 Marital status Married 90 52.94 52.94
Single 50 29.41 29.41
Separate 15 8.82 8.82
Divorced 15 8.82 8.82
Total 170 100 100
4 Educational Certificate 20 11.76 11.76
qualification Diploma 40 23.52 23.52
Degree 100 58.82 58.82
Masters degree 10 5.90 5.90
Total 170 100 100
5 Working Less than 1 year 10 5.90 5.90
Experience 1-2 years 90 52.94 52.94
3-5 years 60 35.29 35.29
6 years & above 10 5.90 5.90
Total 170 100 100
Source: Data survey SPSS output, 2021

Item-1 shows age and out of 170 respondents 26.47% fall under the age 28-35 followed by
20.59% within the age group of 20-27 with a percentage of 35.30% the age is 36-45 , then
11.76% within the age group of 46-55, 5.90% above the age of 55. From this one can conclude
that majority of the company‟s employees are within the younger age group this could be taken
as an advantage of the company if managed well.

— 21 —
Item-2 shows gender arrangement and 70.59% of sampled employees are male and 29.41% are
female. From this, it‟s possible to conclude that the company work conditions matters the gender
arrangement and male employees play a highest role in the construction company.

Item-3 of the table points out the marital status of the respondents. Accordingly, 29.41% of the
respondents are single and 52.94% are married.

Item-4 of the table is about the educational qualification of the respondent‟s .Based on the data,
majority of the respondents, which is 58.82% are first degree holders followed by 23.52%
diploma and 11.76% are certificate .There are 5.90 master‟s degree holders. This implies that
majority of the employees working in the construction company have finished their higher level
of education. So that it is easier for the respondents to understand the issue and its helps the
researcher to get a relevant data to the study.Based on the data, it could be inferred that majority
of the company‟s labor force are educated.

Item-5 of the table is concerning the service year of the respondents in the organization. The
table shows that 52.94% of the respondents have been working in the organization for 2 years,
35.29% respondents for 3-5 years, 5.90% respondents for 6 years and above. This indicates that
majority of the employees included in this study doesn‟t have longer year of experience in the
construction. However due to the easier preparation of the questioner the respondents are not
getting problem in answering it.

4.3 Descriptive Analysis

In this section the data obtained on employee turnover are from the organization report and data
collection through questionnaires from professional employees currently working at YOSEF
TEKTLE CONSTRUCTION COMPANY and are analyzed, presented and interpreted by using,
mean, percentage, count and standard deviation. The responses from every respondent for each
determinant are scored on a five points scale i.e. strongly agree, agree, Neutral, disagree and
strongly disagree. Madala et.al., (2014) argued that for a 5 point liker scale questionnaires a
mean score value above 3.75 is considered as high, between 3.35 and 3.75 is considered as
moderate and below 3.35 is considered as lower. Therefore analysis of the collected data is
described below

— 22 —
4.3.1 Job/Career
Table 4.2 Employee response on Job related

SA A N D SD mea St.de
Description n v
F % Fq % F % F % F %
q q q q
I feel spouse 70 41.1 40 23.5 40 23.5 15 8.82 5 2.94 3.84 0.4
relocation affects the 7 2 2
employee turnover

I‟mexperienmassivew 50 29.4 70 41.1 40 23.5 8 4.70 2 1.17 3.92 0.5

ork load in my 1 7 2
company
I‟m not in the level of 30 17.6 80 47.0 40 23.5 20 11.7 - - 3.91 0.7
job secure 4 5 2 6
I have too much site 20 11.7 10 58.8 40 23.5 7 4.11 3 1.76 3.84 0.4
and office work load 6 0 2 2
Is inflexible working - - 95 55.8 45 26.4 25 14.7 5 2.94 3.73 0.5
hours and work life 8 7 0
imbalance having
direct effect on
turnover decision
I‟m unable to follow - - 50 29.4 90 52.9 20 11.7 10 5.88 3.8 0.6
organization job 1 4 6
timing, roles and
regulation
Lack of necessary 5 2.94 20 11.7 80 47.0 40 23.5 25 14.7 3.93 0.7
equipment and tools 6 5 2 0
to facilitate my job
Source: DatasurveySPSS output, 2021

As shown in the above table 4.2 majority of the respondent (80.16%) agreed that they affected by
their job related issues. When the job related issues affect the employees and them goes to leave
there jobs. While 15% of the respondents neither agrees nor disagrees and the remaining
respondent 4.86% disagreed. The average mean score of the respondents for job/career is 3.85
which is high result.This shows that employees of the construction company affected by their
job/career.

— 23 —
 4.3.2 Working environment
Table 4.3 Employee response on work environment

Description SA A N D SD mean St.de

v
F % F % Fq % Fq % F %
q q q
There is a - - 4 23.5 100 58.8 30 17.64 - - 3.03 1.07
good working 0 2 2
relationship
among
employees
All employees - - 2 11.7 95 55.8 40 23.52 1 8.82 2.92 1.16
are treated 0 6 8 5
equally
I am working - - 1 8.82 70 41.1 60 35.29 2 14.7 2.98 1.09
in favorable 5 7 5 0
work
conditions
How 10 5.88 3 17.6 90 52.9 35 20.58 5 2.94 3.0 1.05
employee 0 4 4
recognition
dose helps in
employee
retention
The working 15 8.82 3 20.5 100 58.8 20 11.76 - - 3.09 1.07
environment 5 8 2
enables me to
develop my
skills in my
job
Source: Data survey SPSS output, 2021

According to the above table 4.3 indicate the working environment considered as uncomfortable
(the physical surrounding are not suitable). The average mean of the respondent is 3.00 which is
low result. The construction companies have a problem in working environment. Therefore from
the responses it can be concluded that the construction company hasn‟t a good working
environment.

— 24 —
4.3.3 Job performance
Table 4.4 Employee response on job performance

Description SA A N D SD mean St.dev

Fq % Fq % Fq % Fq % Fq %
I am well 30 17.64 70 41.17 45 26.47 20 11.76 5 2.94 2.9 1.11
trained in my
job
I have a good 30 17.64 90 52.94 40 23.52 10 5.88 - - 3.41 0.82
communication
skill with my
colleagues and
boss
I‟m freely 20 11.76 50 29.41 75 44.11 25 11.70 - - 3.38 0.75
present
organization
and
interference of
boos in my
activities
I get a satisfied - - 70 41.17 60 35.29 30 17.64 10 5.88 3.42 0.58
recognition
regarding to
my
performance
I am willing to 30 17.64 90 52.94 40 23.52 10 5.88 - - 3.9 0.71
accept my
faults
Source: Data survey SPSS output,2021

The above table 4.4 shows the respondents 60% agreed that they are well trained in their job, and
satisfied by the recognition in related to performance, have a good communication skill with
their boss, they make some errors in the time of work and they willing to accept their mistakes.
The averages mean score of 3.4 for the employee‟s job performance which indicate moderate
mean result or score.

— 25 —
4.3.4 Compensation/Salary
Table 4.5 Employee response on salary related

SA A N D SD mean St.dev
Description Fq % Fq % Fq % Fq % Fq %
I feel, I am - - 30 17.64 40 23.52 80 47.05 20 11.76 3.83 0.7
fairly
compensated
for the work I
do or perform
I‟m get - - 10 5.88 45 26.47 100 58.82 15 8.82 3.9 0.4
salary on
time/at the
end of the
month
constantly
The financial - - 20 11.76 60 35.29 70 41.17 20 11.76 3.75 0.5
rewards
provided by
the company
motivates me
the most
I‟m satisfied - - 10 5.88 50 29.41 100 58.82 10 5.88 3.93 0.6
b/c my
compensation
related to my
educational
and work
experience
Over all, I am - - 15 8.82 55 32.35 80 47.05 20 11.76 3.84 0.4
happy with
organizational
benefit and
compensation
Source: Data survey SPSS output, 2021

The responses presented in the table 4.5 above indicated that the majority 80% of employees are
not satisfied by the payment of the company, 18% of the respondent neither agree nor disagree
and the remaining 2% have agreed by the compensation. The mean score of the respondents for
compensation is 3.85 which indict high score. This dissatisfaction may grow and leads to went
from the company and goes to the other one. The turnover of employees may become increase
and these conditions destruction the company.

— 26 —
4.3.5 Employees turnover
Table 4.6 Employee response on turnover intention

SA A N D SD mean St.dev
Description Fq % Fq % Fq % Fq % Fq %
I think high 30 17.64 70 41.17 40 23.52 25 14.70 5 2.94 3.53 0.6
turnover
costs heaps
of money

The - - 30 17.64 100 58.82 40 23.52 - - 3.5 0.7

company
working to
reduce the
turnover

The - - 80 47.05 60 35.29 25 14.70 5 2.94 3.3 0.7

company I
am
currently
working is
not focus on
the
expectation
of the
employees
Source: Data survey SPSS output, 2021

According to the above table 4.6 majority of respondents 76% agreed,23% neither agreenor
disagree and 1% disagree. This show the companies not focused on the expectations of the
employees and have high turnover costs. Average mean for employees turnover is 3.4 the score
is high.

— 27 —
4.4Reliabilitytest
In this section the reliability test is done for the whole sample (on 170 respondents).
Thereliability of the items under each variable was evaluated using cronbach‟s coefficient alpha.
The overall reliability for the 25 items was 0.709 and it is presented in the table 4.7 below.

Table 4.7: Reliability test

Variable Number of items Cronbach‟s Alpha

Job/Career 7 .710

Working environment 5 .783

Job performance 5 .833

Compensation 5 .789

Employees turnover 3 .699

Source: Data survey SPSS output, 2021

4.5 Inferential statistics

4.5.1 Correlation analysis

According to Paulo (2019) Correlation analysis is a statistical technique which is used to

measure the strength of association between two quantitative variables. The Pearson product
moment correlation coefficient which is denoted by r shows the extent of the relationship
between two variables. The symbol of correlation coefficient, r, can be within the range of -1 and
1. The variable can be either negatively or positively correlated.

Negative correlation shows a negative association between two variables while a positive
correlation shows a direct positive association between the variables. The association between
two variables will be very strong if the correlation coefficient (r) is 0.7 and above, substantial if
it‟s between 0.5 and 0.69, moderate if it‟s between 0.3 and 0.49 , low if it‟s between 0.1 and
0.29, and Negligible if it‟s between 0.01 and 0.09 (Pandey, 2017).

This section presented the degree of relationship between the dependent (turnover intention) and
independent variables (working environment, job performance, compensation and career/job
relate).

— 28 —
Table 4.8 Correlation of variables

Correlations
Compensatio Job/Caree Working Job Employees
n r environmen performanc turnover
t e
Compensation Pearson
Correlation 1 .231** .239** -.150** -.375**

Sig(2- - .000 .000 .006 .000

tailed)
N 170 170 170 170 170
Job/Career Pearson .230** .399** 1 -.290** -.280**
Correlation
Sig(2- .000 .000 .004 .003
tailed)
N 170 170 170 170 170
Working Pearson .236** .402** 1 -.255** -.217**
environment Correlation
Sig(2- .000 .000 .001 .000
tailed)
N 170 170 170 170 170
Job Pearson
performance Correlation -.150** -.297** -.250** 1 .183**
Sig(2- .006 .005 .002 .001
tailed)
N 170 170 170 170 170
Employees Pearson
turnover Correlation -.368** -.204** -.230** .170** .1
Sig(2- .000 .002 .000 .001
tailed)
N 170 170 170 170 170
**.Correlation is significant at the 0.01 level
Source: Data survey SPSS output,2021

The result of the correlation presented in the above table 4.7 indicated that compensation in the
construction company is negatively correlated with employees turnover intention at r=-.375 and
p<0.01. The job/career is negatively correlated with the turnover of employees at r=-.280 and
p<0.01 and working environment also negatively correlated with employee turnover at r=-.217
and p<0.01with the lower associate result. This indicates when the independent variable
increases the dependent variable become decrease. The job performance of the construction
company is positively correlated with the employees turnover and the association is lower and

— 29 —
significant at r=.183 and p<0.01. The positive association between the variable indicates that
when the job performance is good the turnover manageable by the company.

Therefore, from the results of the correlation analysis between the independent and dependent
variables it can be concluded that any change in the independent variables, for example in
compensation, working environment and job/career will have a negative effect on the employees
turnover while improvement in the job performance will have a positive effect on the employees
turnover(dependent variable).

4.5.2 Multiple linear regression analysis

According to M.Bremer (2014) Regression analysis is a statistical technique for estimation the
relationship among variables which have reason and result relation. Main focus of univariate
regression is analyses the relationship between a dependent variable and independent variable
and formulates the linear relation equation between dependent and independent variable. In this
study the independent variable are job/career, working environment, job performance and
compensation and the dependent variable is employee‟s turnover.

4.5.2.1 Assumptions of multiple linear regression analysis

The studies of Williams et.al. (2014) suggests that its necessary to test the four assumptions of
multiple regression before running the model. The assumptions are the residuals must be
normally distributed; there must be a linear relationship between the dependent variable and
independents variables. The four assumptions of the multiple regression model are discussed
below.

A. Linearity assumption test

Multiple Regressions is that the relationship between the independent variables and dependent
variable must be linear. The linear relationship between the independent variables and outcome
variable can be checked by using the scatter plots. The Figure 4.1 below shows the scatter plots
of the independent variables (job/career, working environment, job performance, and
compensation) and dependent variable (employees turnover) indicating that the relationship can
be displayed by a straight line signifying that the association among these variables is linear.

— 30 —
Figure 4.1 Linearity Test

Normal P.P Plot of regression standardized

residual

0 0.2 0.4 0.6 0.8 1.0

B. Normality assumption test

According to Williams et.al., (2014) residuals are the difference between the observed value of
the outcome variable and the independent variable and this residuals of the regression model
must be normally distributed.

C. Homoscedasticity assumption test

According to Pandey (2017) the assumption of homoscedasticity refers to the variance of the
errors is constant across the values of the explanatory variables. If the errors don‟t have a
constant variance, it‟s called heteroscedastic. The scatter plot is commonly used to check
homoscedasticity. The studies of Williams et.al., (2014) shows that if homoscedasticity occurs,
there must be no patterns in the residuals but if heteroscedasticity occurs, the residuals could tend
to exhibit greater variation in some systematic way. In the figure 4.2 below it‟s indicated that
there appears no particular pattern in the data. Therefore, the homoscedasticity assumption is
satisfied.

— 31 —
 Figure 4.2: Homoscedasticity Test

Scatterplot
Dependent variable: Employees Turnover

-2 0 2 4

D. Multicollinearity test

One of the assumptions of the multiple regression is there must not be a high correlation among
the explanatory variables. Multicollinearity refers to the existence of a higher association among
the predictor variables in the regression model. The VIF (variance inflation factor) and the
tolerance value tests are the most commonly used methods to check multicollinearity. In order to
meet the assumption; the VIF values must be less than 10 and the tolerance values must be
greater than 0.10 (Osborne and Waters, 2003). In this study the researcher used these two
methods to check the absence of muliticollinearity. The results in the table 4.8 below indicates
that VIF values for each independent variable is less than 10 and the tolerance values are greater
than 0.10. Thus, the absence of muliticollinearity assumption is satisfied.

— 32 —
Table 4.9: Multicollinearity test

Variables statistics Collinearity statistics

Tolerance VIF

Working environment 0.970 1.131

Job performance 0.964 1.125

Compensation 0.980 1.012

Job/career 0.959 1.122

Source: Data survey SPSS output, 2021

4.5.2.2 Model summary

Since all the assumptions of the multiple regression analysis are all fulfilled it‟s possible to
proceed to the main regression analysis. Therefore, the findings of the regression analysis were
presented in the table 4.9 below.

Table 4.10 Multiple Linear Regression Model Summary

Model R R Square Adjusted R Std. Error

Square

1 .395 .156 .150 .321

Source: Data survey SPSS output, 2021

From the above table 4.9 it can be understood that the four independent variables (Job
performance, Compensation, Job/career, and working environment) of the study explains 15.6%
(R2=0.156) of the dependent variable (employees turnover). This implies that 15.6% level of
employees turnover in the construction determine by the independent variables the remaining
84.4 % determine by other factors which don‟t include by the study.

— 33 —
Table 4.11: Multiple Regression Coefficients

Unstandardized Coefficients Standardized

Coefficients
Model t Sig.
B Std Error Beta

Working environment -.210 .180 -.179 -1.201 .048

Job performance .101 .040 .202 2.128 .025

Compensation -.220 0.60 -.210 -3.501 .000

Job/career -.090 .110 -.080 -.399 .060

Dependent Variable: Employees turnover

Source: Data Survey SPSS output, 2020

The above table 4.10 shows beta coefficient value for compensation is -.220 with a significant
value of .000 which is lower than 0.05. The beta value indicates compensation has highest
negative contribution to the dependent variable(employee‟s turnover). Compensation has a
significant and negative effect on the employee‟s turnover. The study results similar to Henry
Ongori (2007) and Dessler (2000).

The beta coefficient value for Job/Career is -.090with a significant value of .060 which is a little
bit higher than 0.05. Meaning that career has a lower significant effect (insignificant effect) on
the turnover of employees.

The beta coefficient value for working environment is -.210 with a significant value of .048
which is lower than 0.05. In Such a situation, working environment has a negative and
significant effect on the employee‟s turnover. The researches of Bezawork (2020) also indicate
same result.

— 34 —
The beta coefficient value for job performance is .101 with a significant value of .025 which is
lower than 0.05. This shown as job performance employees has positive and significant effects
on employee‟s turnover in the construction.

Based on the results obtained on the above table 4.10 a mathematical equation was developed
using the independent variables (Working environment, compensation, job/career, and job
performance) and dependent variable (employees turnover) of the study. The equation for the
regression model is presented as follows.

T=-.210WE+-.220C+-.090J/C+.101JP

Where T= Employees Turnover

C= Compensation

WE=Working environment

J/C= Job/career

JP= Job performance

4.6.3 Hypothesis testing

In order to decide whether the hypotheses of this study are rejected or not; the four hypotheses
were tested based on standardized coefficients beta with 95% confidence level.

Hypothesis: 1

H1: Work environment has a negative and significant effect on the turnover of employees‟

H0: Work environment has no significant effect on the turnover of employees‟

Based on the results of the multiple regression coefficient as indicated in the above table 4.11,
Work environment have a negative and significant effect on the turnover of employees with a
standardize coefficient beta value = -.179 and p<0.05 at 95% confidence level. Thus, the null
hypothesis (Ho) is rejected.

— 35 —
Hypothesis:2
H1: Job/career has a negative and significant effect on the turnover of employees‟
H0: Job/career has no significant effect on the turnover of employees‟
The results of the multiple regression coefficient shown in the above table 4.11 implies that
Job/career have a negative and insignificant effect on the turnover of employees.
The standardized coefficient beta value is -.090 but the significance level is .060 which is higher
than 0.05. Therefore, the null hypothesis (Ho) is accepted.

Hypothesis:3
H1: Compensation has a negative and significant effect on the turnover of employees‟
H0: Compensation has no significant effect on the turnover of employees‟
Based on the results of the multiple regression coefficient as indicated in the above table 4.11,
Compensation have a negative and significant effect on the turnover of employees with a
standardized coefficient beta value =-.222 and p<0.05 at 95% confidence level. Thus, the null
hypothesis (Ho) is rejected.

Hypothesis:4
H1: Job performance has a positive and significant effect on the turnover of employees‟
H0: Job performance has no significant effect on the turnover of employee
From the results of the multiple regression coefficient as shown in the above table 4.11, Job
performance have a positive and significant effect on the turnover of employees with a standardized
coefficient beta value =.101 and p<0.05 at 95% confidence level. Therefore, the null hypothesis (Ho)
is rejected.

Table 4.11: Summary of Hypothesis testing

No. Developed hypothesis Test result

1 Ho1:Work environment has no significant effect on the turnover of employees‟ Rejected

2 Ho2: Job/career has no significant effect on the turnover of employees‟ Accepted

3 Ho3:Compensation has no significant effect on the turnover of employees‟ Rejected

4 Ho4:Job performance has no significant effect on the turnover of employee Rejected

Source: Data Survey, 2021

— 36 —
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Introduction
This section of the research has a purpose of reviewing the major findings of the study, providing
a conclusion on the findings of the study regarding to the objectives of the research to examine
the effects of employee‟s turnover intention at YosefTektleConstruction Company by means of
factors such as job performance, employees compensation, employees turnover and working
environment. A recommendation based on the conclusions combined at the end of this chapter

5.1Summaryofresearchfindings
The main purpose of the study was to examine the effects of employees turnover intention at
YosefTektle construction company by investigating the effects of each factor (compensation,
job/career, working environment and job performance) on the employees turnover intention. The
summary of the findings of the study using descriptive statistics and correlation analysis are
presentedbelow.

The results of the mean score values using the descriptive statistics indicates that compensation,
job/career and working environment with mean values of 3.85, 3.84, and 3.00 respectively are
above the average mean point 3. Whereas the mean value for job performance is below 3.

On the other hand the mean score value for employees turnover indicates that moderate mean
score with mean=3.4. This means that employees turnover of the construction company have an
average level, due to the above condition. From the person correlation results for compensation
is -.375 this shown as compensation have a negative and significant effect on the employees
turnover intention. The study of Kumar (2018)Attractive remuneration packages are one of the
very important factors of retention because it fulfills the financial and material desires. As stated
the turnover of employees is mainly due to low salary. Pay level and rewards had negative and
significant relationship with turnover intension.

The person correlation results for working environment shows a negative and significant effect
on the turnover of employees with value (r=-217and p<0.01). This shows working environment
have negative effect on employee‟s turnover. Furthermore jobs/career have also a negative

— 37 —
correlation result with employees turnover with the value (r=-280 and p<0.01).
However job performance is positive correlated with employees turnover and association is
moderate and significant at r=.183 and p<0.01.

5.2Conclusions
Based on the different analyses done that the objectives of this study need and the main findings
of this research conclusions are presented as follow: The study examines the effects of
employee‟s turnover intention at yoseftektle Construction Company by investigating the effects
of each determinant factor (compensation, working environment, job/career and job
performance) on the employees turnover intention.

Based on the results of the mean score values obtained using the descriptive statistics it can be
concluded that majority of the respondents have agreed that even if they have job performance
they experience low compensation, being unclear of their job roles, and feel low level of comfort
in the working environment . And due to this they lead to turnover.

5.3 Recommendations

Grounded by the findings and conclusion, the next recommendation are made to allow the liable
authority‟s to retain the current employees and decrease the factors for the high employee
turnover faced by the organization.

 The results of the statistical analysis revealed that yoseftektel construction company are
experiencing low level of compensation, which affects the turnover intention negatively.
So the management of the company has to take into consideration on how to maximize
the payment by giving other benefits to the employees and creating an effective action
plan etc
 According to the findings of the study working environment has a negative and
significant effect on the turnover of employees. This means that employees are not well
comfortable by the place and the facilities of the company. For that reason, the
management of the construction must take into attention on applying a better facilities
and place. (such as having good facilities of food, recreation center, transportation
facilities, constant time interval visitation program creating working environment
security policy etc…) in order to satisfy its employees and decrease turnover.

— 38 —
  Finally the analysis uses four independent variable (compensation, working environment,
career and job performance) the dependent variable (turnover intention). So the
researcher recommends that further wider studies must carried out with other variables to
measure the turnover intention in the construction company.

5.4 Suggestion for further study

For further since the problem is not well addressed regarding to the construction sectors of
Ethiopia (much of the studies the researcher have reviewed are done on the service sectors such
as banks, academic institutions and hospitals) other broader researches regarding to the issue
must be done including other constructioncompanies in Ethiopia.

— 39 —
 References

Alkahtani, A. (2015). Investigating Factors that Influence Employees‟ Turnover Intention: A.

International Journal of Business and Management, 10.

Asmamaw.(2011).Professional Employees Turnover and retention practices of Ethiopian Public

Sector Organizations of Ministry of Finance and Economic Development (MOFED). Addis
Ababa.

G. D., & Shaw, J. D. (2001). Voluntary turnover, social capital and organizational
performance.Academy of management Review, 26 (3), 446-456.

Ali Khan, S. (2014). The factors affecting employee turnover in an. African Journal of Business
Management, 8(1), 25-34.

Kevin MM, Joan LC, Adrian JW (2004). “Organizational change and employee turnover”
Personnel Rev. 33 (2):161-166.

Labov B (1997). "Inspiring employees the easy way", Incentive, 171(10):114-18.

Morrell K, Loan-Clarke J, Wilkinson A (2001). "Unweaving leaving: the

use of models in the management of employee turnover", Int. J.Manage. Rev. 3 (3): 219-144.

Firth L, David J Mellor, Kathleen A Moore, Claude Loquet (2007).How can managers reduce
employee intention to quit?, J. manage. Psychol. 19 (2): 170-187.

Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods

approaches (4th ed.). Thousand Oaks, CA: Sage

Beam, J. (2009, November 12). What is Employee Turnover? Retrieved November 13, 2009,
from WiseGEEK: http://www.wisegeek.com/what-is-employee-turnover.htm

Bhuian, S. N., &Menguc, B. (2002). 'Evaluation of Job Characteristics, Organizational

Commitment and Job Satisfaction in an Expatriate, Guest Worker, Sales Setting' Journal of
Personal Selling and Sales Management, 22, 1-12

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Clandinin, D. J. (Ed.). (2007). Handbook of narrative inquiry: Mapping a methodology.
Thousand Oaks, CA: Sage.

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organization-level analysis. Industrial Relations.33 (4). pp. 505-520.

AsmamawArgeta, (2011). Professional Employee Turnover and Retention Practice of Ethiopian

Public Sector Organization of Ministry of Finance and Economic and Devolvement (MoFED),
(Masters Dissertation). Addis Ababa University College of Management Information and
Economic sciences, Addis Ababa, Ethiopia

Mobley, W.H. (1982). Employee Turnover: Causes and Consequence, and Control. Addison-
Wesley Publishing, Philippines.

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Validation of a Questionnaire/Survey in a Research.International Journal of Academic
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II
APPENDICES

III
 Appendix

ST.MARY‟S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

MASTERS IN BUSINESS ADMINISTRATION

RESEARCH QUESTIONNAIRES

Dear Sir/Madam

I am a graduate student undertaking Masters of General Management at the Saint‟s Marry

University College. I am conducting a research study entitled “FACTORS AFEECTING
EMPLOYEE TURNOVER: IN THE CASE OF YOSEF TEKTLE CONSTRUCTION
COMPANY”. You have been selected to assist in providing the required information because
your views are considered important to this study. I am therefore kindly requesting you to fill
this questionnaire. Please note that any information given will be treated with utmost
confidentiality and will only be used for the purpose of this study.

Thank You in advance for your kind collaboration and time.

Addis Kebadu (Email: [email protected])

_________________________________________________________________________

Directions

 No need of writing your name

 Questionnaires are prepared only for employees of the company

IV
Instructions

Kindly tick (√) the appropriate choice or fill the following questions in the appropriate spaces
provided

PART 1 -PERSONAL INFORMATION (DEMOGRAPHIC DATA)

A. Age

1) 20-29___ 2) 30-39___ 3) 40-49____ 4) 50-60____

B. Gender

1) Male_____ 2) Female________

C. What is your marital status?

1) Married___ 2) Single__ 3) Separated_____4) Divorced____

D. What is your highest educational level?

1) Certificate ____ 2) Diploma___ 3) Degree____ 4) Masters Degree and above__

E. How many years have you worked for YosefTektle Construction Company?

1) Less than 1 year___

2) 1-2 years________

3) 3-5 years________

4) 6years and above______

F. Current Position

1. General Forman 2. Construction engineer 3. Office engineer 4. Project manager

5. Other state here: ________

V
PART 2 – JOB RELATED QUESTIONS

Please tick (√) the appropriate choice

Please rate your response as follows:

1= Strongly Agree; 2= Agree; 3= Neutral; 4=Disagree; 5=Strongly disagree

No. Questions related to Job/Career 1 2 3 4 5

SA A N D SD
1. I feel spouse relocation affects the employee
turnover

2. I‟m experiencing massive work load in my

company
3. I‟m not in the level of job secure
4. I have too much site and office work load
5. Is inflexible working hours and work life
imbalance having direct effect on turnover
decision
6. I‟m unable to follow organization job timing,
roles and regulation
7. Lack of necessary equipment and tools to
facilitate my job
8. I sometimes feel my job responsibility are not
clear to me
Question related to working environment 1 2 3 4 5
SA A N D SD
1. There is a good working relationship among
employees
2. All employees are treated equally
3. I am working in favorable work conditions
4. How employee recognition dose helps in
employee retention
5. The working environment enables me to develop
my skills in my job
Question related to Employees job 1 2 3 4 5
performance SA A N D SD
1. I am well trained in my job
2. I have a good communication skill with my
colleagues and boss
3. I‟m freely present organization and interference
of boos in my activities
4. I get a satisfied recognition regarding to my
performance

VI
5. I am willing to accept my faults
Question related to Employees compensation 1 2 3 4 5
SA A N D SD
1. I feel, I am fairly compensated for the work I do
or perform
2. I‟m get salary on time/at the end of the month
constantly
3. The financial rewards provided by the company
motivates me the most
4. I‟m satisfied b/c my compensation related to my
educational and work experience
5. Over all, I am happy with organizational benefit
and compensation
Question related to Employees turnover 1 2 3 4 5
SA A N D SD
1. I think high turnover costs heaps of money

2. The company working to reduce the turnover

3. The company I am currently working is not focus

on the expectation of the employees

VII