Chara Final Res.
Chara Final Res.
BY:
CHARA TAMIRU
ID NO. - M/E/WE/MBA/226/15
ADVISOR:
AUGUST, 2024
ADDIS ABABA, ETHIOPIA
THE EFFECTS OF JOB SATISFACTION ON EMPLOYEES
TURN OVER INTENTION: THE CASE OF AWASH BANK IN
BOLE BRANCH
BY:
CHARA TAMIRU
AUGUST, 2024
ADDIS ABABA, ETHIOPIA
DECLARATION
I, Chara Tamiru the undersigned, declare that this research thesis entitled: ―The Effects of Job
Satisfaction on Employees Turn over Intention: The Case of Awash Bank in Bole Branch”
submitted to the school of post graduated studies is my original work and has not been presented
for a degree in any other university. All source of materials used in under taking this thesis have
been duly acknowledged.
I understand that non adherence to the principle of academic honesty and integrity, mis
representation /fabrication of any idea or source will constitute sufficient ground for disciplinary
action by the college and can also revoke penal action from the source which have not been
properly cited or acknowledged.
(Researchers name ) signature Date
Chara Tamiru __________ ____________
i
STATEMENT OF CERTIFICATION
This is to certify that this thesis prepared by Chara Tamiru entitled: The Effects of Job
Satisfaction on Employees Turn over Intention: The Case of Awash Bank in Bole Branch
has been submitted to faculty of business and economics ,school of post graduates study for
examination with my approval as the college advisor.
(Advisor name) Signature Date
_________________________ __________ ____________
ii
APPROVAL SHEET
BY:
Chara Tamiru
_________________________ __________
Chair person Signature
_________________________ __________
Advisor Signature
_________________________ __________
_________________________ __________
iii
ACKNOWLEDEGEMENT
First and for most praise be to God, the al mighty, for all the blessings and the strength he gave
me throughout the time of the study as always. A great deal of gratitude goes to my advisor, Ass
pro Tedesse legesse for his professional guidance and in valuable advice, and timely feedback on
the draft thesis without which I couldn’t have completed my work.
My heartfelt thanks go to my mother, Aminat who have been supporting me every step my life
and during this study. I’m deeply indebted to your unceasing support and encouragement which
inspired me to put my best efforts in the study.
Finally, a sincere appreciation is extended to my best friend, for their continuous support through
course of my education and for their constant encouragements .especially Melese Legese.
iv
Table of Contents
DECLARATION ......................................................................................................................................................... I
APPROVAL SHEET ................................................................................................................................................. III
WE THE EXAMINERS BOARD APPROVE THAT THIS THESIS HAS PASSED THROUGH THE DEFENCE AND REVIEW
PROCESS. .............................................................................................................................................................. III
ACKNOWLEDEGEMENT ......................................................................................................................................... IV
LIST OF FIGURE ....................................................................................................................................................VII
LIST OF TABLE .....................................................................................................................................................VIII
LIST OF ABBREVIATION/ACRONYMS ..................................................................................................................... IX
ABSTRACT .............................................................................................................................................................. X
CHAPTER ONE ........................................................................................................................................................ 1
INTRODUCTION ..................................................................................................................................................... 1
1.1. BACKGROUND OF THE STUDY .....................................................................................................................................1
1.2 STATEMENT OF THE PROBLEM.....................................................................................................................................2
1.3. RESEARCH QUESTIONS .............................................................................................................................................4
1.4. OBJECTIVES OF THE STUDY ........................................................................................................................................4
1.4.1. General Objective ........................................................................................................................................4
1.4.2. Specific Objectives .......................................................................................................................................4
1.5. SIGNIFICANCE OF THE STUDY......................................................................................................................................4
1.6. SCOPE OF THE STUDY ...............................................................................................................................................5
1.7. LIMITATION OF THE STUDY ........................................................................................................................................5
1.8. ORGANIZATION OF THE STUDY....................................................................................................................................6
CHAPTER TWO ....................................................................................................................................................... 7
LITERATURE REVIEW .............................................................................................................................................. 7
2.1. THEORETICAL LITERATURE REVIEW..............................................................................................................................7
2.1.1 Job Satisfaction with Pay .............................................................................................................................7
2.1.2 Job Satisfaction with Nature of Work ..........................................................................................................8
2.1.3. Job Satisfaction with Supervision ................................................................................................................8
2.1.4. Job Satisfaction with Promotion Opportunities ..........................................................................................9
2.1.5. Employees’ Turnover Intention .................................................................................................................10
2.2. EMPIRICAL LITERATURE REVIEW ...............................................................................................................................11
2.2.1. Effect of Job Satisfaction with Pay ............................................................................................................11
2.2.2. Effect of Job Satisfaction with Nature of Work .........................................................................................12
2.2.3. Effect of Job Satisfaction with Supervision ................................................................................................13
2.2.4. Effect of Job Satisfaction with Promotion Opportunities ..........................................................................14
2.2.5. Employees’ Turnover Intention .................................................................................................................14
2.3. GAP OF THE STUDY.................................................................................................................................................15
2.4. CONCEPTUAL FRAMEWORK .....................................................................................................................................17
CHAPTER THREE ................................................................................................................................................... 18
v
THE RESEARCH METHODOLOGY AND DESIGN ...................................................................................................... 18
3.1. INTRODUCTION .....................................................................................................................................................18
3.2. RESEARCH DESIGN .................................................................................................................................................18
3.3 RESEARCH APPROACH .............................................................................................................................................18
3.4 POPULATION AND SAMPLING ....................................................................................................................................19
3.4.1 POPULATION OF THE STUDY...................................................................................................................................19
3.4.2. Sampling and Sampling Technique ...........................................................................................................19
3.4.2.1. Sample Size .......................................................................................................................................................... 19
3.4.2.2. Sampling Technique ............................................................................................................................................ 20
3.5. SOURCE AND TYPES OF DATA ...................................................................................................................................20
3.6. INSTRUMENT OF DATA COLLECTION ..........................................................................................................................20
3.7. METHOD OF DATA ANALYSIS ...................................................................................................................................20
3.8. DATA VALIDITY AND RELIABILITY ...............................................................................................................................21
3.8.1. Validity Test...............................................................................................................................................21
3.8.2. Reliability Test ...........................................................................................................................................21
3.9. ETHICAL CONSIDERATIONS ......................................................................................................................................21
CHAPTER FOUR .................................................................................................................................................... 22
DATA ANALYSIS AND INTERPRETATION ............................................................................................................... 22
4.1. RESPONDENT RATE ................................................................................................................................................22
4.2. DEMOGRAPHIC CHARACTERISTICS .............................................................................................................................22
4.2.1. Gender Categories of the Respondents .....................................................................................................22
4.2.2. Age Categories of the Respondents ..........................................................................................................23
4.2.3. Educational Categories of the Respondents..............................................................................................23
4.2.4. Work experience of the Respondents ........................................................................................................23
4.3. DESCRIPTIVE STATISTICS ANALYSIS ............................................................................................................................24
ACCORDING TO ZAIDAT ON & BAGHERI, 2009, THE MEAN SCORE IN BETWEEN 2.00 - 3.00 WAS CONSIDERED AGREE LEVEL. ............24
4.3.1. Analysis of Job satisfaction with pay .........................................................................................................24
4.3.2. Analysis of Job satisfaction with nature of work .......................................................................................25
4.3.3. Analysis of Job satisfaction with supervision ............................................................................................25
4.3.4. Analysis of Job satisfaction with promotion opportunity ..........................................................................26
4.4. INFERENTIAL ANALYSIS ...........................................................................................................................................27
4.4.1. Correlation Analysis ..................................................................................................................................27
4.4.2. Multiple linear Regression Model Analysis ...............................................................................................27
4.4.3. ANOVA Analysis in the Model ...................................................................................................................28
4.4.4 Regression beta Coefficients in the Model .................................................................................................29
4.4.5. Five Assumptions Test ...............................................................................................................................30
CHAPTER FIVE ...................................................................................................................................................... 33
DISCUSSION, CONCLUSIONS, AND RECOMMENDATIONS..................................................................................... 33
5.1. SUMMARY OF FINDINGS .........................................................................................................................................33
5.2. CONCLUSION ........................................................................................................................................................34
5.3. RECOMMENDATION ...............................................................................................................................................35
REFERENCES......................................................................................................................................................... 36
APPENDIX ............................................................................................................................................................ 40
vi
List of figure
Figure 2.1: - The conceptual framework for the r/s between independent and dependent
variables. ....................................................................................................................................... 17
Figure 4.1: Test of linearity .......................................................................................................... 31
Figure 4.2: Scatter plot for testing homoscedasticity.................................................................... 31
vii
List of table
Table 3.1 Sample size determination ............................................................................................ 19
Table 4.1: Gender of the respondents ........................................................................................... 22
Table 4.2: Age of the respondents ................................................................................................ 22
Table 4.3: Educational qualification of the respondents ............................................................... 23
Table 4.4: Work experience of employee ..................................................................................... 23
Table 4.5 Job satisfactions with pay ............................................................................................. 24
Table 4.6 Job satisfactions with nature of work ........................................................................... 25
Table 4.7 Job satisfactions with supervision................................................................................. 25
Table 4.8 Job satisfactions with promotion opportunity............................................................... 26
Table 4.9: Correlations between effects of job satisfaction on employees turn over intention .... 27
Table 4:10: Model Summary of employ turnover intention ......................................................... 28
Table 4.11: ANOVA of employ performance .............................................................................. 28
Table 4.12: Beta Coefficients ....................................................................................................... 29
viii
List of Abbreviation/Acronyms
PY - Pay
NW - Nature of Work
SP - Supervision
PO - Promotion Opportunity
EI - Employee Turnover Intention
ANOVA: - Analysis of Variance
SPSS: - Statistical Package for Social Science
ix
ABSTRACT
As banking industry was one of the fast growing industries in Ethiopia, all banks were focusing on branch
expansion and introduction of new products/services. This condition has forced banks to attract and
retain high performing employees. Majority of these were from the operational areas whose release
impact on the bank’s profitability. The main purpose of this paper was examining the effects of job
satisfaction on employees’ turnover intention in Awash bank Bole branch. The study was done based on
descriptive and explanatory research design, quantitative research approach, target population was 120
with 92 sample size according to Yemane 1967 and 80 respondent rate. Primary and secondary data
sources were used. A self-administered structured questionnaire was designed to collect the relevant
information from the respondents. The collected data were analyzed using descriptive statistics and
multiple regressions. The result revealed that only satisfaction from promotion opportunity has
significantly related to intention of employees’ turnover. The study recommends that the management
should examine and improve the existing HR policy and procedure on promotion opportunity which can
guarantee transparency and fairness to the employees of the bank to keep them satisfied on their job and
retained in the bank
x
CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Job satisfaction is a pivotal determinant of employee turnover intentions across various sectors
globally. Extensive research has established a strong correlation between job satisfaction and
employee retention, indicating that satisfied employees are less likely to seek alternative
employment opportunities. The global economic landscape continues to evolve rapidly,
influencing job satisfaction and turnover intentions across different regions. Economic factors
such as inflation rates, unemployment levels, and industry growth significantly impact
employees' perceptions of job security and satisfaction (Kahn et al., 2021). Factors contributing
to job satisfaction include work environment, compensation, recognition, and opportunities for
advancement. In a globalized economy where talent mobility is high, organizations face
significant challenges in retaining skilled employees. The COVID-19 pandemic has further
complicated this landscape, leading to shifts in employee expectations regarding work-life
balance, mental health support, and flexible working arrangements (Kumar Kumar, 2021). As
organizations adapt to these changes, understanding the nuances of job satisfaction becomes
crucial for developing effective retention strategies. Research indicates that organizations that
prioritize employee satisfaction not only enhance retention rates but also improve overall
performance and productivity (Holtom et al., 2005). Thus, addressing job satisfaction is not
merely a human resources issue but a strategic imperative for organizations aiming to thrive in
competitive markets.
Job satisfaction and employee turnover intentions in the African context are influenced by a
complex interplay of cultural, economic, and social factors. The continents diverse labor markets
present unique challenges, with varying levels of job satisfaction shaped by regional economic
conditions and organizational practices (Meyer et al., 2016). For instance, many African
employees experience low job satisfaction due to inadequate compensation, limited career
progression, and poor working conditions (Akanji Adeyemi, 2020). These factors significantly
contribute to high turnover rates across various sectors. Additionally, cultural dimensions such as
collectivism versus individualism play a critical role in shaping employee perceptions of job
satisfaction. In collectivist societies, employees may prioritize group harmony and job security
1
over personal fulfillment, which can affect their turnover intentions differently compared to
individualistic cultures. Understanding these cultural nuances is vital for organizations operating
in Africa to implement effective retention strategies tailored to the specific needs and
expectations of their workforce (Ofori Aryee, 2011). Furthermore, with increasing globalization
and competition for skilled labor, organizations must recognize the importance of fostering job
satisfaction to minimize turnover rates and maintain a stable workforce.
Ethiopia presents a unique context for examining the effects of job satisfaction on employee
turnover intentions. As one of the fastest-growing economies in Africa, Ethiopia faces significant
challenges related to workforce retention amid rapid industrialization and economic development
(World Bank, 2020). The banking sector, particularly institutions like Awash Bank, plays a
crucial role in this transformation. Despite the growth opportunities available in this sector,
employees often grapple with issues such as limited career advancement opportunities,
inadequate remuneration, and lack of recognition (Tefera Hailu, 2021). These challenges
contribute to dissatisfaction among employees and subsequently heighten their intentions to
leave their positions. Moreover, the Ethiopian labor market is characterized by high competition
for skilled workers; thus, organizations must prioritize employee satisfaction to minimize
turnover rates (Abebe Kifle, 2022). The interplay between traditional values and modern
workplace expectations further complicates the landscape of employee satisfaction in Ethiopia.
Organizations must navigate these complexities to create an environment that fosters job
satisfaction while respecting cultural values.
1.2 Statement of the Problem
Employee turnover has emerged as a critical challenge for organizations worldwide, significantly
impacting operational efficiency and financial performance. In Ethiopia, the banking sector,
particularly institutions like Awash Bank, is not immune to this issue. High turnover rates can
disrupt service delivery and erode institutional knowledge, leading to decreased customer
satisfaction and increased recruitment costs (Abebe Kifle, 2022). Despite the rapid growth of the
Ethiopian banking sector, employee retention remains a pressing concern, with many employees
expressing dissatisfaction with various aspects of their jobs. This dissatisfaction often translates
into a higher propensity to leave their positions, thereby exacerbating turnover rates and
hindering organizational stability.
Job satisfaction is a multifaceted construct influenced by numerous factors, including work
2
environment, compensation, recognition, and opportunities for professional development (Locke,
1976). The relationship between job satisfaction and turnover intentions has been extensively
documented in the literature, indicating that dissatisfied employees are more likely to seek
alternative employment opportunities (Judge Bono, 2001). However, the specific dynamics of
this relationship within the Ethiopian banking context remain underexplored. Understanding how
job satisfaction affects turnover intentions at Awash Bank's Bole Branch is essential for
developing targeted retention strategies that address the unique challenges faced by employees in
this sector.
Moreover, the COVID-19 pandemic has further complicated the landscape of employee
satisfaction and turnover intentions. The shift towards remote work and increased focus on work-
life balance have altered employee expectations and perceptions of job satisfaction (Kumar
Kumar, 2021). Employees now prioritize flexibility and mental health support more than ever
before. In a rapidly changing environment, organizations must adapt to these evolving
expectations to retain talent effectively. Failure to do so may result in higher turnover rates,
which can significantly impact organizational performance and employee morale. This dynamic
necessitates an in-depth investigation into the current state of job satisfaction among employees
at Awash Bank and its implications for turnover intentions.
Existing literature primarily focuses on job satisfaction and turnover intentions in developed
countries, leaving a gap in understanding these dynamics in developing nations like Ethiopia
(Meyer et al., 2016). While some studies have addressed employee satisfaction in various sectors
within Ethiopia, there remains a lack of comprehensive research specifically targeting the
banking sector. Therefore, this study aims to fill this gap by examining the effects of job
satisfaction on employees' turnover intentions at Awash Bank's Bole Branch. By focusing on this
specific context, the research provided valuable insights that can inform organizational policies
and practices aimed at improving employee retention.
Furthermore, it is essential to consider the implications of high turnover rates on organizational
performance and customer service quality. When employees leave an organization, it disrupts
team dynamics and leads to a loss of institutional knowledge that can take time to rebuild
(Holtom et al., 2005). For banks like Awash Bank, where customer relationships are paramount,
maintaining a stable workforce is crucial for delivering consistent service quality. Understanding
how job satisfaction influences turnover intentions will enable management to implement
3
strategies that not only enhance employee satisfaction but also contribute to improved customer
experiences.
The effects of job satisfaction on employee turnover intentions represent a critical area of study
for organizations operating in competitive environments such as the banking sector in Ethiopia.
As Awash Bank navigates the challenges posed by high turnover rates, understanding the
specific factors contributing to job satisfaction among its employees at the Bole Branch is
essential for developing effective retention strategies. This research will provide insights into
how organizations can foster a positive work environment that enhances job satisfaction and
minimizes turnover intentions. By addressing this problem, organizations can improve employee
retention rates, enhance service quality, and ultimately achieve greater organizational success.
1.3. Research Questions
1. What is the effect of job satisfaction with pay on employee turnover intention?
2. What is the effect of job satisfaction with nature of work on employee turnover intention?
3. What is the effect of job satisfaction with supervision on employee turnover intention?
4. What is the effect of job satisfaction with promotion opportunity on employee turnover
intention?
1.4. Objectives of the Study
4
employee engagement and retention. Additionally, this research contributed to the existing body
of literature on human resource management by offering empirical evidence from a local context,
which can serve as a benchmark for other financial institutions in Ethiopia and similar markets.
Furthermore, the findings may inform policymakers and stakeholders about the importance of
fostering a supportive work environment that prioritizes employee well-being, ultimately leading
to improved organizational performance and customer satisfaction (Suleiman et al., 2021). In a
competitive banking industry, retaining skilled employees is essential for sustaining growth and
innovation; thus, this study aims to highlight actionable strategies that can mitigate turnover
intentions and enhance job satisfaction among employees at Awash Bank.
1.6. Scope of the Study
The scope of the study was delimited to the Awash Bank bole branch located around Addis
Ababa. Due to certain limitations, the researcher focused solely job satisfaction on employee
turnover intentions, rather than tracing other human resource practices. Geographically, the study
was confined to the bole branch of the bank in Addis Ababa, excluding other branches outside
the city and other banks engaged in similar business activities. Conceptually, it concentrated only
on the effect of job satisfaction on employee turnover intentions within the banking industry,
disregarding other business sectors. Methodologically, the study was limited to descriptive and
explanatory research design, and also utilize quantitative methods, including questionnaires, to
gather data from a representative sample of employees, allowing for statistical analysis of the
relationship between job satisfaction and turnover intention (Babbie, 2020).
1.7. Limitation of the Study
This study was subject to several limitations that may impact the validity and generalizability of
its findings. Firstly, it is confined to a single branch of Awash Bank in Bole, Addis Ababa, which
may limit the applicability of the results to other branches or financial institutions in Ethiopia;
the unique organizational culture, management practices, and employee demographics at this
specific branch may not reflect the broader banking sector or other regions within the country
(Smith Jones, 2023). Secondly, the research employs a quantitative approach, primarily relying
on questionnaires to gather data on job satisfaction and turnover intentions. While this method
allows for statistical analysis and provides valuable insights, it may not capture the nuanced
perspectives of employees regarding their experiences and motivations. Qualitative data, such as
interviews or focus groups, could offer deeper insights into the complexities of job satisfaction
5
and its influence on turnover intentions, but these methods were not included in the current study
(Brown et al., 2022). Additionally, the study's cross-sectional design limits the ability to establish
causal relationships between job satisfaction and turnover intentions; as data is collected at a
single point in time, it cannot account for changes in employee attitudes or external factors that
may influence their perceptions over time (Williams Taylor, 2023). Longitudinal studies would
be beneficial for understanding how job satisfaction evolves and its long-term impact on
employee retention. Lastly, potential biases in self-reported measures may also affect the
accuracy of the findings, as employees may respond in a socially desirable manner rather than
providing honest assessments of their job satisfaction and intentions to leave, leading to an
underestimation or overestimation of turnover intentions based on perceived expectations from
management or peers (Johnson Lee, 2023). In summary, while this study aims to contribute
valuable insights into job satisfaction and turnover intentions at Awash Bank's Bole Branch,
these limitations should be acknowledged, and further research is encouraged to validate and
expand upon these findings in different contexts.
1.8. Organization of the study
This study was aligned into five chapters. The first chapter provided the background of the
study, statement of the problem & research question, objectives of the study, significance of the
study, scope of the study, limitation of the study as well how the main paper organized. Chapter
two deals with related review literature, empirical literature and conceptual frame work. The
third chapter deals with research design and approach, population & sampling, sample selection
technique, source & methods of data collection and methods of data analysis. Chapter four deals
descriptive analysis and multiple linear regressions with interpretation on the relationship of
organizational culture and employee performance and finally, the fifth chapter gave highlights on
the implications based on the results; it included a summary of major findings, conclusions,
recommendations.
6
CHAPTER TWO
LITERATURE REVIEW
2.1. Theoretical Literature Review
7
2.1.2 Job Satisfaction with Nature of Work
Job satisfaction is significantly influenced by the nature of work, which encompasses various
dimensions such as job characteristics, autonomy, task variety, and the overall work
environment. According to Hackman and Oldham's Job Characteristics Model (2016), certain job
attributes can enhance employee motivation and satisfaction. Specifically, jobs that provide
meaningful work, autonomy, and opportunities for personal growth are more likely to lead to
higher levels of job satisfaction. Recent studies have corroborated this model, indicating that
when employees perceive their work as engaging and aligned with their personal values, they
experience greater job satisfaction. For instance, a study by Lee et al. (2023) found that
employees who engage in tasks that are perceived as challenging and meaningful report higher
levels of job satisfaction. This relationship is further supported by findings that indicate a
positive correlation between job autonomy and job satisfaction, suggesting that when employees
have control over how they perform their tasks, they tend to feel more satisfied with their work
(Bakker et al., 2022).
Furthermore, the nature of work also intersects with individual differences and contextual
factors, which can modulate the impact of job characteristics on satisfaction levels. Research by
Zhang et al. (2023) highlights that personality traits, such as conscientiousness and openness to
experience, can influence how individuals perceive their work environment and its impact on
their job satisfaction. In addition, organizational support and a positive workplace culture can
amplify the effects of favorable job characteristics on employee satisfaction. For example, a
supportive management style that encourages feedback and collaboration can enhance the
perception of job meaningfulness, thereby increasing overall job satisfaction (Eisenberger et al.,
2022). Consequently, understanding the multifaceted relationship between the nature of work
and job satisfaction is crucial for organizations aiming to foster a motivated and satisfied
workforce. By designing jobs that are not only challenging but also aligned with employees'
values and providing adequate support, organizations can significantly enhance job satisfaction
and overall employee well-being.
8
enhance job satisfaction by fostering a supportive work environment where employees feel
valued and understood. According to a study by Liu et al. (2023), positive supervisory behaviors
such as providing constructive feedback, recognizing employee contributions, and facilitating
open communication are critical in shaping employees' perceptions of their work environment.
When supervisors engage in supportive practices, they not only enhance employees' feelings of
competence and autonomy but also promote a sense of belonging within the organization. This
aligns with the Social Exchange Theory, which posits that positive interactions between
supervisors and employees lead to a reciprocal relationship where employees are more likely to
exhibit higher levels of job satisfaction and organizational commitment (Cropanzano Mitchell,
2023). Furthermore, the role of transformational leadership has been highlighted as particularly
impactful; leaders who inspire and motivate their teams tend to cultivate a more satisfying work
environment (Bass Riggio, 2022).
Moreover, the supervisory style can also moderate the effects of job demands on employee well-
being and satisfaction. Research by Zhang and Chen (2023) emphasizes that supportive
supervision acts as a buffer against job-related stressors, enabling employees to cope more
effectively with challenges. This buffering effect is crucial in high-pressure environments where
job demands may lead to burnout and decreased job satisfaction. Additionally, the quality of
supervision is linked to the development of trust within teams, which further enhances job
satisfaction (Dirks Ferrin, 2022). Employees who perceive their supervisors as trustworthy are
more likely to feel secure in their roles, leading to increased engagement and satisfaction.
Overall, the interplay between supervision quality and job satisfaction underscores the
importance of effective leadership in fostering a positive work environment that promotes
employee well-being and organizational success.
15
more developed economies. Furthermore, while studies such as those by Al Mamun and Hasan
(2017) have established a clear link between job satisfaction and turnover intention, they
frequently fail to delve into the nuanced dimensions of job satisfaction such as intrinsic
motivation, recognition, and work-life balance that could uniquely influence turnover intentions
among employees at Awash Bank. This lack of localized research creates an incomplete
understanding of how job satisfaction operates within this specific context, thereby limiting the
effectiveness of retention strategies tailored to Ethiopian banking employees.
In addition to the need for context-specific research, there is also a methodological gap in the
existing literature regarding the temporal dynamics of job satisfaction and turnover intention.
Most studies employ cross-sectional designs, which provide a snapshot view of employee
sentiments but do not account for how these feelings may evolve over time, particularly in
response to organizational changes or external economic pressures. For instance, a longitudinal
study by Chen et al. (2020) suggests that employees’ perceptions of job satisfaction can shift
dramatically during periods of organizational change, impacting their turnover intentions.
However, such longitudinal analyses are scarce in the Ethiopian context, where rapid changes in
the banking sector due to technological advancements and regulatory shifts could significantly
influence employee experiences. Moreover, qualitative methodologies that capture the personal
narratives of employees regarding their job satisfaction and turnover intentions are underutilized
in current research. By employing mixed methods that combine quantitative surveys with
qualitative interviews, future research could provide a more comprehensive understanding of
how employees at Awash Bank perceive their work environment and what drives their intentions
to leave or stay. Addressing these gaps will not only enhance theoretical knowledge but also
inform practical strategies for improving employee retention within the unique context of
Ethiopian banking.
16
2.4. Conceptual Framework
The conceptual framework as resented on Figure 2.1. has been formulated to depict a
relationship between effect of job satisfaction and employees’ turnover intention. The independent
variables were Pay, Nature of Work, Supervision and Promotion Opportunity and dependent
variable was employees’ turnover intention.
Pay
Nature of Work
EMPLOYEES’ TURNOVER
INTENTION
Supervision
Promotion
Opportunity
Figure 2.1: - The conceptual framework for the r/s between independent and dependent
variables.
17
CHAPTER THREE
18
numerical data. Through the use of surveys, primary data sources provided the quantitative data.
Furthermore, the gathered data was processed and examined using numerical or quantitative data
analysis methods in the research.
3.4 Population and Sampling
3.4.1 Population of the Study
The target population was 120 of Awash bank in bole branch. The target demographic was
chosen by the researcher in order to minimize costs, facilitate the usage of the data that would be
available with this population makeup, and ensure that the necessary data would be easily
accessible at the requisite level.
The target populations of this research were Awash bank in bole branch. Regarding sample size,
Bryman and Bell (2007) recommend that the larger the sample size, the more the accuracy of the
results. There are several methods to determining sample size. Given the total population, the
number is known; Yamane’s (1967) formula is used to calculate a sample size that could
accurately represent the total 120 employees work in the Awash bank in bole branch.
N
The number was found below by (Yamane, 1967) Formula. n = . It was believed that p
1+N(e)2
=0.05 and a 95% confidence level were suitable for this equation.
Sample size determination
The formula used to calculate the sample size of the study (Yamane, 1967)
Where n = the sample size, N= population size, and e = level of precision.
𝟏𝟐𝟎
𝑛 = 𝟏+(𝟏𝟐𝟎)(𝟎.𝟎𝟓)𝟐 = 92
19
3.4.2.2. Sampling Technique
When the population in Awash bank bole branch was consistently homogeneous regarding the
studied question of interest, the researcher used both probability and non-probability which was
simple random sampling, regarded as randomly selecting officers and clerks because it offered
each participant an equal chance (non-zero chance) of taking a random sample of the population
and to ascertain the real sample size. To offer them an equal opportunity, the researcher will
employ the random sampling picking technique as previously mentioned. The researcher also
employed to choose respondents who were more knowledgeable and aware of the topic under
Management teams, a purposive sample technique of non-random sampling used.
3.5. Source and Types of Data
Both primary and secondary data sources were used in the study to meet the research goal.
Primary data would have been gathered via close ended questionnaires. The respondents'
responses to structured questionnaires will be utilized to collect primary data. Secondary data
was gathered from both published and unpublished sources, such as office reports, literature
reviews and research papers.
3.6. Instrument of Data Collection
The researcher would employ quantitative research methodologies used to meet the study's
objectives. The approved questions would be used to prepare respondents for closed-ended or
structured surveys as well as 5-point Likert scales (i.e., "Strongly Disagreed to Strongly Agree").
Respondents will be asked to rate their degree of agreement with the following evaluations on a
5-point Likert scale: Strongly Disagreed (1), Disagree (2), Neutral (3), Agreed (4), and Strongly
Agreed (5).
3.7. Method of Data Analysis
The researcher employed a quantitative data analysis techniques, including percentage, tabular
representation, and description methods. The objectives of the research would guide the
collection, organization, analysis, interpretation, and discussion of the findings. The collection
and analysis of all quantitative data would make use of descriptive statistics such as percentage
and frequency. Multiple linear regressions used to demonstrate the effects of independent
variables on dependent variables, while Pearson correlation used to observe the link between
independent variables and dependent variables.
20
3.8. Data Validity and Reliability
3.8.1. Validity Test
To ensure the legitimacy of the research, reputable sources were consulted, including recently
published, booked, and researched publications about the variables for measuring the effect of
training on employee performance Additions, deletions, and modifications to the question would
have been made in light of the respondent's response. To enhance the instrument's accuracy, a
questionnaire comprising standardized questions from various sources was produced and
administered. Additionally, the research adviser offered insightful feedback on the questionnaire.
3.8.2. Reliability Test
Reliability is a statistical concept that refers to the consistency of a measure. In other words, it
assesses whether a measurement tool produces similar results when applied repeatedly under
similar conditions (Tavakol & Dennick, 2011). Cronbach's alpha is a widely used coefficient to
measure the internal consistency of a set of survey items. It essentially estimates how well the
items within a scale or questionnaire are measuring the same underlying construct. Cornbrash’s
alpha will be calculated Hence according to Lombard (2010),coefficient of 0.9 or greater are
nearly always acceptable ,0.8 or greater is acceptable in most situation.
Table 3.2 Reliability Test
Dimensions Cornbrash’s alpha Remark
Job satisfaction with pay 0.82 Reliable
Job satisfaction with nature of work 0.87 Reliable
Job satisfaction with supervision 0.84 Reliable
Job satisfaction with promotion opportunity 0.81 Reliable
Employee turnover intention 0.86 Reliable
3.9. Ethical Considerations
According to Creswell,(2003),as the researchers anticipate data collectors, they need to respect
the participants and site for the research. All the information was treated and kept secretly with
high confidentiality without disclosure of the respondents‟ identity. No information was changed
and the same with the literatures collected for the purpose of this study. The questionnaire was
anonymous and high level of confidentiality is considered. The information gathered through
questionnaire was used solely for this research whose objective is one of fulfilling requirement of
my Masters of Business Administration study.
21
CHAPTER FOUR
22
4.2.2. Age Categories of the Respondents
The age of respondents as shown on the above respondents in the range of 21-30 years was
66(82.5%), respondents in the range of 31-40years were 10(12.5%), in the range of 41-50 years
3 (3.75%) and above 50 years was 1(1.25%).
Table 4.3: Educational qualification of the respondents
Education Frequency Percent
Masters and above 15 18.75
Degree 60 75
Diploma 3 3.75
Certificate 2 2.5
Total 80 100%
Source: Own Survey, 2024
23
4.3. Descriptive Statistics Analysis
According to Zaidat on & Bagheri, 2009, the mean score in between 2.00 - 3.00 was considered
agree level.
24
4.3.2. Analysis of Job satisfaction with nature of work
Table 4.6 Job satisfactions with nature of work
Respondent results were on the above Table 4.6 Stated that employees who were asked nature
of work affect job satisfaction on employee turnover intention since I joined Awash Bank Bole
branch, the Grand mean value was 2.70 as well as the standard deviation was shown below one.
That means the respondents had disagreed on the intent so these figures indicate that the work
environment provided by the bank should not be effective for job satisfaction of the employee
turnover intention.
25
Source: Own survey, 2024
Respondent results were on the above Table 4.7 Stated that employees who were asked
supervision had an effect on employee turnover intention since I joined Awash Bank Bole branch,
the Grand mean value was 2.52 as well as the standard deviation was shown below one. That
means the respondents had disagreed on the intent so these figures indicate that the supervision
provided by the bank should not be effective for job satisfaction of the employee turnover
intention.
Respondent results were on the above Table 4.8 Stated that employees who were asked
promotion opportunity needed improve my job satisfaction since I joined Awash Bank Bole
branch, the Grand mean value was 2.71 as well as the standard deviation was shown below one.
That means the respondents had disagreed on the intent so these figures indicate that the
26
promotion opportunity provided by the bank should not be effective for job satisfaction of the
employee turnover intention.
4.4. Inferential Analysis
Table 4.9: Correlations between effects of job satisfaction on employees turn over intention
(PY) (NW) (SP) (PO) (EI)
Pay(PY) Pearson Correlation 1
Sig. (2-tailed)
Nature Of Work Pearson Correlation 0.849** 1
(NW) Sig. (2-tailed) 0.000
Supervision (SP) Pearson Correlation 0.875** 0.961** 1
Sig. (2-tailed) 0.000 0.000
Promotion Pearson Correlation 0.814** 0.885** 0.945** 1
Opportunity (PO) Sig. (2-tailed) 0.000 0.000 0.000
Employee Pearson Correlation 0.860** 0.949** 0.985** 0.934** 1
Turnover Sig. (2-tailed) 0.000 0.000 0.000 0.000
Intention (EI)
**Correlation is significant at the 0.01 level (2-tailed).
Source: own survey 2024
27
relationship between variables.
Adjusted
Model R R Square R Square Std. Error of the
Estimate
a
1 .947 .897 .893 .29447
a. Predictors: (Constant), pay, nature of work, supervision and promotion opportunity
28
4.4.4 Regression beta Coefficients in the Model
Table 4.12: Beta Coefficients
Unstandardized Standardized
Coefficients Coefficients
B Std. Error Beta
Model T Sig.
1 (Constant) 6.103 .207 29.515 0.000
Satisfaction -.004 .048 -.003 -.089 0.000
With Pay
a. Dependent Variable:
Turnover Intention
From the above table, it can be learnt that the higher satisfaction with pay the less or Employees
turnover intention (Beta=-0.003). But, when t-value (-0.089) or p-value (sig.) (0.929) for
satisfaction with pay is considered, t-value is in between the normal curve (-1.96 and 1.96) or p-
value > α = 0.05 respectively, the coefficient is insignificant. Thus the effect of satisfaction with
pay on employees’ turnover intention is insignificant.
The coefficient of satisfaction with nature of work variable is 0.007; this implies that satisfaction
with nature of work is positively related with the employees’ turnover intention. But, looking at
the P-value, it can be understood that the coefficient is insignificant which means satisfaction
with nature of work has no significant effect on employees’ turnover intention.
Satisfaction with supervision is negatively related with employees’ turnover intention; its p-value
(.178) > α = 0.05, satisfaction with supervision is not a significant factor that employees’
29
turnover intention in the bank.
All the factors of job satisfaction, satisfaction with promotion opportunity has inversely related
with employees’ turnover intention. The computed t-value of - 26.765 is statistically significant
at 1%. This indicates satisfaction with promotion opportunity has a significant effect on
employees’ turnover intention. Keeping all other variables constant, a unit change in the
satisfaction of promotion opportunity would result in a 0.923 unit reductions in turnover
intention.
4.4.5. Five Assumptions Test
A multiple regression model was likely employed (Lind, Marchal, & Wathen, 2019). This
approach allows for the examination of the combined and individual effects of these factors Pay
Nature of Work, Supervision and Promotion Opportunity) on the dependent variable Employ
Turnover Intention the analysis likely utilizes standard beta coefficients and p-values to assess
the strength and significance of each factor's influence.
Assumption 1: Normality Test
To ensure statistical tests produce reliable results, researchers often verify if the data is normally
distributed. This means the data should resemble a bell curve, where points cluster around the
mean and the curve doesn't lean towards one side (Lind et al., 2019). Statistical software like
SPSS can be used to assess normality using skewness and kurtosis. Skewness measures
asymmetry, with values near zero indicating a normal distribution. Kurtosis reflects the peak of
the distribution, with a value close to zero ideal for normality. Visualizing the data through
histograms, which plot frequency distributions, can also provide clues about normality; a
normally distributed histogram will resemble a bell curve (Field, 2000).
A normal distribution of residuals, an important assumption for many statistical tests (George &
Mallery, 1999). Normality is assessed by examining skewness and kurtosis values. As suggested
by these authors, values between -3 and +3 for both statistics generally indicate acceptable
normality. The histogram's bell shape and the fact that the mean of the residuals is zero further
support this conclusion.Therefore; we can assume that for each combination of independent
variable levels in the population, the data on the dependent variable is also normally distributed.
Assumption 2: Linearity Test
The normal probability plot reveals a reasonably straight diagonal line from bottom left to top
right, indicating linearity. As it suggests a linear relationship between the independent and
30
dependent variables. In simpler terms, the data points should follow a predictable straight-line
pattern, which is confirmed by the diagonal trend in this plot.
31
Table 4:13: Multicollinearity Test
COEFFICIENTSA
Model COLLINEARITY STATISTICS
Tolerance VIF
1 pay 0.132 4.724
nature of work 0.232 4.316
supervision 0.211 4.195
promotion opportunity 0.202 4.421
a. Dependent Variable: Employee Turnover Intention
Source: own survey 2024
Assumption 5: Autocorrelations
Table 4.14 shows the Durbin-Watson statistic, which assesses the presence of autocorrelation in
the residuals (errors) of the regression model (George & Mallery, 1999; Hair, 2009). Ideally, the
residuals should be independent, meaning their values are not influenced by neighbouring
observations. A value close to 2 indicates no autocorrelation, while an acceptable range falls
between 1.50 and 2.50. In this study, the Durbin-Watson statistic of 2.050 falls in available
preferred range.
32
CHAPTER FIVE
33
5.2. Conclusion
This study was initiated to investigate the Effects of Job Satisfaction on Employees Turnover
Intention.in Awash bank Bole branch The result of the study showed that there was an association
and relation of Effects of Job Satisfaction and Employees Turnover Intention.
The following are the major conclusions drawn from the results and findings of the research:
The study on the effects of job satisfaction on employees' turnover intention at Awash
Bank Bole Branch revealed critical insights into the factors influencing employee
retention. The research demonstrated that the independent variables Pay Nature of Work,
Supervision, and Promotion Opportunity—significantly impact employees' turnover
intentions. Notably, there exists a positive correlation between employees' turnover
intention and these determining variables, with recognition emerging as a key factor
affecting turnover intention.
The regression analysis indicated that 89.7% of the variation in employees' turnover
intention could be attributed to the composite measures of the identified independent
variables, highlighting their importance in shaping employee satisfaction and retention.
However, the remaining 10.3% suggests that other unexamined factors could also
contribute to turnover intentions.
The grand mean scores for job satisfaction across all variables (Pay: 2.66, Nature of
Work: 2.70, Supervision: 2.52, Promotion Opportunity: 2.71) indicate a general
dissatisfaction among employees at Awash Bank Bole Branch. This dissatisfaction is
alarming as it suggests a potential risk for increased turnover rates if not addressed.
34
5.3. Recommendation
Based on the points raised above, the following recommendations were forwarded
Enhance Compensation Packages: Given the dissatisfaction with pay (mean score of
2.66), Awash Bank should consider reviewing and improving its compensation packages.
Competitive salaries and benefits can significantly enhance job satisfaction and reduce
turnover intention.
Improve Work Environment: The nature of work received a mean score of 2.70,
indicating dissatisfaction. Management should focus on creating a more engaging and
supportive work environment. This could include ergonomic improvements, better
resources, and opportunities for teamwork and collaboration.
Strengthen Supervision Practices: With a mean score of 2.52 for supervision, there is a
clear need for better supervisory practices. Training programs for supervisors can help
them provide more effective support and feedback to their teams, fostering a more
positive workplace culture.
Expand Promotion Opportunities: The score of 2.71 for promotion opportunities suggests
that employees feel limited in their career advancement. The bank should establish
clearer career paths and provide more opportunities for professional development and
internal promotions.
Implement Recognition Programs: Since recognition was noted as having a major effect
on turnover intention, it is essential to implement formal recognition programs that
celebrate employee achievements and contributions, fostering a sense of value among
staff.
Conduct Further Research: To better understand the remaining 10.3% of factors affecting
turnover intention, further qualitative research could be conducted to explore additional
influences such as work-life balance, organizational culture, and personal circumstances.
By addressing these areas, Awash Bank can enhance job satisfaction among its employees,
ultimately reducing turnover intentions and fostering a more committed workforce.
35
REFERENCES
•Abebe, G., Kifle, T. (2022). Employee Turnover Intention in the Banking Sector:
A Case Study of Awash Bank. *Journal of African
Business*, 23(2), 123-140.
36
Dr. Gabriel D. & Thomas K. (2012), ―Labor Turnover and Its Impacts on
Performance of Banks in Ghana”, European Journal of
Business and Management, Vol.4, No. 7, 2012
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and
reference.
11.0 update (4th ed.). Boston: Allyn & Bacon.
Ghulam M. K. K, Dr. Zainab F. Z. (2011) ―The Contribution of Individual
Variables: Job Satisfaction and Job Turnover‖
Interdisciplinary Journal of Contemporary Research in
Business Vol. 3, No. 5, 2011.
Griffeth R. W, Hom P. W, Gaertner (2000), ―A Meta –Analysis of Antecedents and
correlates of Employee Turnover: Update, Moderator
tests, and Research Implications for the next millennium’.
Journal, Vol. 26, No. 3, 463-488
Herzberg, F. (1966). *Work and the nature of man*. World Publishing Company.
•Hobfoll, S. E. (1989). Conservation of resources: A new attempt at
conceptualizing stress. *American Psychologist*, 44(3),
513-524.
•Hobfoll, S. E., Halbesleben, J. R., Neveu, J. P., Westman, M. (2018).
Conservation of resources in the workplace: The role of
resource gain in coping with stressors. *Journal of
Occupational Health Psychology*, 23(4), 449-465.
•Huang, G., Liu, Y., Yang, J. (2016). The impact of intrinsic motivation on job
satisfaction: A study in the banking sector. *International
Journal of Bank Marketing*, 34(3), 348-365.
Kahn, W. A., et al. (2021). The Impact of Economic Conditions on Job Satisfaction:
A Global
Perspective. *Journal of Occupational Health Psychology*,
26(4), 287-302.
Kumar, S., Kumar, P. (2021). Impact of COVID-19 on Employee Job Satisfaction:
A Study on
Indian IT Sector. *International Journal of Management*,
37
12(4), 1-10.
Koh, H.C. and Goh, C.T. (1995). ―An analysis of the factors affecting the turnover
intention of non-managerial clerical staff: A Singapore
study.‖ The International Journal of Human Resource
Management, 6(1).
Liu, Y., Wang, X., Zhang, J. (2021). A meta-analysis of the relationship between
supervisory
practices and job satisfaction. *Journal of Organizational
Behavior*, 42(5),
625-645.
Lee, J., Kim, H., Choi, S. (2023). Career development programs and job
satisfaction: The
mediating role of perceived promotion opportunities. *Journal
of Career
Development*, 50(1), 45-59.
Lee, J., Kim, S. (2022). Job satisfaction, work-life balance, and turnover intention
among
healthcare professionals. *International Journal of Health
Services*, 52(3), 345-
362.
M. Armstrong (2006) A Handbook of Human Resource Management Practice, 10th
edition,2006. Misener T.R. et al (1996) ―Toward an
international measure of job satisfaction‖,
NursingResearch, Vol. 45, pp. 87-91.
Samuel E.M. & C.O. Ikemefuna (July 2012), ―Job Satisfaction and Employees’
Turnover Intentions in Total Nigeria Plc. In Lagos State”,
International Journal of Humanities and Social Sciences,
Vol. 2 No. 14
38
Santript S. & Dr. Ambatika Sinha (May-June 2013), ―Employee Turnover in
banking Sector: Empirical Evidence”, IOSR Journal of
Humanities and Social Science (IOSR JHSS), Vol. 11,
Issue 5
Sherman, B., & Snell, A. (1998) Managing Human Resources, incentives and
rewards, International Publishing, Ohio
T. Hussain, S. Asif) (2012) Turnover Intention Driven by Organizational
Commitment and Is Employees’ Perceived Organizational
Support? Journal of Quality and Technology Management,
Vol. III, Issue II, December 2012, Page1-10
Zahid H.B. (June 2013), Examining the Relationship between P-O Fit and
Turnover Intention, Indian Journal of Research, PARIPEX, Vol.
3, Issue
Zhang, X., Chen, X., Li, Y. (2022). Transformational leadership and job
satisfaction: A study in the technology sector. *Leadership
Organization Development Journal*, 43(3), 491-504.
Zhao, L., Zhang, Y., Wang, J. (2023). Organizational culture and turnover
intention: Evidence from the technology sector. *Journal of
Business Research*, 145, 123-130.
39
APPENDIX
Questionnaire
Introduction
I am a graduate student in the Department of Masters of Business Administration at Great
College. Currently, I am undertaking research entitled "The Effects of Job Satisfaction on
Employees Turnover Intention: The Case of Awash Bank in Bole Branch ". The main
purpose of this questionnaire is to collect data about the effects of job satisfaction on employee’s
turnover intention: and also the outcome of this study will be used for academic purposes only.
Therefore, your genuine response to the questions is vital for the quality and successful
completion of the study. The accuracy of the information you provide highly determines the
reliability of the study.
Yours Sincerely
CHARA TAMIRU
2) Work experience in this organization in a year(s) (put a tick mark (√) on your correct year
against the range provided)
4) Gender of the respondents (put a tick mark (√) on the appropriate identity)
Male Female
40
5) Educational qualification of the respondents (put a tick mark (√) against your correct
qualification and field of specialization)
Please tick (√) in the appropriate number to indicate your level of agreement with the questions
asked.
1= strongly disagree (SD), 2= disagree (D), 3= Neutral (N), 4. Agree (A), and 5= Strongly Agree (SA)
41
Section C: Job satisfaction with Supervision
Items 1 2 3 4 5
1 My supervisor always consults co-workers when deciding
which may affect works.
2 My supervisor shows consideration
for subordinates’ feelings
3 Communication between me and my
immediate supervisor is good
Dear respondent, using the following space you can put your general idea about the current
integrated solid waste management service delivering practice and its basic challenges you
regard as necessary.
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________
42
43