Effect Of Employee Turnover On Organizational Performance: The Case Of Awash Bank Central Region

Abstract

The main purpose of this study was to examine effects of employee turnover on organization performanc in Awash Bank Central Region . Many researchers have found that in a service rendering organization especially governmental organization there are strong relation between employee satisfaction, customer satisfaction and service quality. However, in this area of human resource, employee turnover is a major factor that hinders organization’s ability to effectively and efficiently serve its customers and provide high-quality customer service. In addition, the researcher assessed both primary and secondary data. The primary data was collected using close ended questionnaires. The data was put in appropriate tables and presented in tables and graphs since it is a good way to look at the data and see what happens and make interpretation. The overallfindings of the study revealed that employee turnover affects the performance of the organization in different ways that leads to loss of the most competitive and experienced employees. This influences the organization to incur huge expenditure in recruitment and training of the new employees. It also breaks well established team spirit in the institute.The new employees’ exhibits low level of effectiveness and efficiency in the execution of the organization job task functions and this lowers the performance of the individual employees that in turn lowers the level of organization performance. The researcher recommended that care must be taken to reduce or minimize turnover rate as minimum as possible through salary adjustment and benefit package, and creating opportunities for career advancement owing to the fact that well experienced employees will stay long in the organization and contribute much for the development in the performance of the institute