Published on January 2023 | HRM

Rationales and impacts of employees turnover in Commercial Banks of Ethiopia

The ability of an organization in the process of management depends largely on its efficiency and effectiveness of utilizing its human resources. Human resource is the most fundamental and decisive asset. On the other hand, whatever ample material and financial resources it may have, the institution is lifeless unless it converted to some sort of outputs with the effort of people. This is due to the fact that human resources mobilize and organize other resources to realize organizational goals and objective. Labor turnover is an important and pervasive feature of the labor market Martin (2003), because, it affects both workers and the firms’ performance by incurring high amount of turnover cost. Employee turnover refers to the proportion of employees who leave an organization over a set period (often on a year-on-year basis), expressed as a percentage of total workforce numbers. At its broadest, the term is used to encompass all leavers, both voluntary and involuntary, including those who resign, retire or are made redundant, in which case it may be described as ‘overall’ or ‘crude’ employee turnover.