| Abstract: | This study investigates the relationship between employee turnover and financial performance at
Hibret Bank, a leading commercial bank in Ethiopia. The study uses a mixed-methods approach,
including a Pearson correlation analysis of turnover rates and gross profit, and thematic analysis
of semi-structured interviews with the HR manager, finance manager, and branch manager. The
results of the Pearson correlation analysis suggest a moderately negative relationship between
employee turnover rate and financial performance, although the lack of statistical significance at
the conventional level of 0.05 suggests that this relationship may not be strong enough to draw
definitive conclusions. However, the thematic analysis of the interviews revealed several key
themes related to employee turnover and its impact on organizational performance, including
increased recruitment and training costs, loss of institutional knowledge, decreased productivity,
and negative impact on team morale. The managers also discussed various strategies for
mitigating the negative effects of employee turnover, including offering competitive compensation
and benefits, providing opportunities for professional development and advancement, fostering a
positive work environment, investing in training and onboarding for new employees, and tracking
employee turnover rates. Based on these findings, we recommend that Hibret Bank take steps to
manage employee turnover effectively and maintain financial performance, including conducting
a detailed analysis of turnover data, developing targeted retention strategies, measuring financial
metrics, and evaluating changes that decrease turnover. Future research could expand on these
findings by including more variables, using a larger sample size, and using different research
methods. |
