Effects of Human Resource Management Practices on Employee Turnover Intention: A Case Study of Commercial Banks in Ethiopia

Abstract

The purpose of the study was to show the effect of HRM practices on employee turnover intentions of employees at commercial banks in Ethiopia. The study was mixed in its approach and data was collected through triangulation of quantitative and qualitative methods. The research is an explanatory cross-sectional in its design. A total of 283 employees selected from the headquarters of the banks responded to the questionnaires. A binary logistic regression result shows that 62.8% variation in employee turnover intention is explained by HRM practices. The tests of the hypotheses have shown that HR practices have a significant effect on employees’ turn over intention. Therefore, the study suggested that to retain their employees organizations should reconsider their recruitment and selection practices, training and development practices, compensation and further alter work place environments. It is further suggested that new researchers undertake a longitudinal study on the topic of the study by considering more HR practices and different organizations in Ethiopian context.

Keywords: HRM Practices, Commercial Banks, Turn over Intention

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