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Factors affecting employee turnover in business organisations
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Factors affecting employee turnover in business organisations (download PDF)

Employee turnover is a result of a combination of factors, including low pay, lack of employee recognition systems, poor employee reward systems, dissatisfaction with workplace conditions, lack of career progression, dissatisfaction with superiors, unclear organizational goals and objectives, lack of teamwork, and others.

The following are empirical studies on causes of employee turnover in business organizations from different parts of the globe.

Factors influencing employee resignations: basis for strategic measures to address turnover and improve retention

The study examined factors influencing employee intention to resign from their jobs at Protego Global Resources Corporation. The study objectives included the following: to determine the effect of demographic factors on employee intention to resign; to establish the effect of management and leadership on employee intention to resign; to find out the effect of workplace safety on employee intention to resign; to evaluate the effect of learning and development opportunities on employee intention to resign; to assess the effect of human resource policies and support on employee intention to resign; to determine the effect of compensation and financial concerns on employee intention to resign; to find out the effect of strategic planning and job design on employee intention to resign; to establish the effect of sales expectations and performance on employee intention to resign; to examine the effect of personal reasons and other concerns on employee intention to resign (Focbit, 2025).

The target population included resigned employees of Protego Global Resources Corporation in the Philippines. A sample size of 40 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. The findings were presented in tables as deemed fit (Focbit, 2025).

According to the results, the demographic factors with a significant influence on employee intention to resign included the following: age, department, and employment status. On the other hand, the following demographic factors were found to have insignificant influence on employee intention to resign: gender, job position, educational attainment, and marital status. (Focbit, 2025).

In addition, the results revealed that the following factors had very high influence on employee intention to resign: learning and development opportunities, compensation and financial concerns, and personal reasons, among other concerns. The following factors were found to have a high influence on employee intention to resign: management and leadership, company culture, workplace safety, operational efficiency, human resource policies and support, strategic planning and job design, and sales expectations and performance (Focbit, 2025).

A study on the determinants of employee turnover in the academic institutions of Kathmandu Valley

The study investigated factors that contribute to employee turnover in academic institutions in Kathmandu Valley, Nepal. Specifically, the study set out to achieve the following objectives: to determine the effect of employee relationships with supervisors on job satisfaction; to assess the effect of rewards on job satisfaction; to establish the effect of working conditions on job satisfaction; to examine the effect of job enrichment on job satisfaction; to find out the effect of employee recognition on job satisfaction; and to assess the effect of job satisfaction on employee turnover (Khadayat et al., 2024).

The target population included all staff working in academic institutions located in three major cities of the Kathmandu Valley, that is, Bhaktapur, Lalitpur, and Kathmandu. A sample size of 404 respondents from the target institutions was selected to take part in the study. Data collection was accomplished using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Inferential statistics were used to establish the effect of the predictor variables on the outcome variable. Smart PLS4 was used to obtain the route coefficient and corresponding t-value for the direct and mediated associations. The results were presented in tables as deemed fit (Khadayat et al., 2024).

According to the findings, a relationship with superiors had a positive and significant influence on job satisfaction in the target institutions; reward systems had an insignificant influence on job satisfaction; working conditions had a positive and significant influence on job satisfaction; job enrichment had a positive and significant influence on job satisfaction; employee recognition had a positive and significant influence on job satisfaction; and job satisfaction had a positive and significant impact on employee turnover (Khadayat et al., 2024).

The results of the PLS analysis further indicated that when all other factors are held constant, staff relationships with superiors contributed to 21.6% variance in job satisfaction, the reward system contributed to 6.9% variance in job satisfaction, working conditions contributed to 17.3% variance in job satisfaction, and job enrichment contributed to 23.5% variance in job satisfaction, while staff recognition contributed to 23.6% variance in job satisfaction (Khadayat et al., 2024).  

An assessment of the causes of employee turnover in Oromia public service organisations

The study assessed the causes of employee turnover in the Oromia public service organization in Addis Ababa, Ethiopia. The objectives of the study included the following: to determine the effect of demographic factors on turnover intention; to find out the relationship between job satisfaction and turnover intention; to assess the relationship between payment system and turnover intention; to establish the relationship between supervision style and turnover intention; to assess the relationship between peer group relationship and turnover intention; to establish the relationship between working environment and turnover intention; to find out the relationship between promotion and turnover intention; to determine the relationship between job scope and turnover intention (Tuji & Bekele, 2022).

The target population included 1120 employees of Oromia public service organizations deployed at the regional level in Addis Ababa, Ethiopia. A sample size of 280 respondents was chosen to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency, percentage, mean, and standard deviation. Pearson correlation analysis was employed to assess the relationship between the independent variables and the dependent variable. Regression analysis was used to assess the effect of the independent variables on the dependent variable. The findings were presented in charts, graphs, and tables as deemed suitable (Tuji & Bekele, 2022).

The results of Pearson correlation analysis indicated that job satisfaction, compensation, promotion, and peer group relationships all had a positive and significant relationship with turnover intention. On the other hand, the findings further revealed that leadership style, job scope, and working environment all had an insignificant relationship with turnover intention. The results of regression standardized coefficients indicated that job scope contributed to 2.3% variance in turnover intention and working environment contributed to 4.9% variance in turnover intention, while peer group relationship contributed to 19% variance in turnover intention. On the other hand, the results indicated that job satisfaction, monetary reward, supervision style, and promotion negatively contributed to turnover intention (Tuji & Bekele, 2022).

Employee turnover and its impact on the organisational performance of the hospitality industries of Nepal

The study focused on factors influencing employee turnover in the hospitality industries in Nepal. The study aimed at achieving the following objectives: to determine the effect of psychological factors on employee turnover; to establish the effect of economic factors on employee turnover; to assess the effect of demographic factors on employee turnover; and to examine the effect of employee turnover on organizational performance (Niroula et al., 2024).

The target population included firms operating in the hospitality sector in Kathmandu Valley, Nepal. A sample size of 150 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Pearson correlation analysis was used to establish the associations between study variables. Regression analysis was used to examine the effect of the independent variables, including psychological factors, demographic factors, and economic factors, on the dependent variable, that is, employee turnover. The results were presented using tables as deemed appropriate (Niroula et al., 2024).

The results of correlation analysis indicated that psychological factors, economic factors, and demographic factors all had a positive association with employee turnover. The results of correlation analysis also indicated that employee turnover had a positive association with organizational performance. The results of regression analysis indicated that psychological factors explained 66.5% of the variance in employee turnover and demographic factors explained 17.4% of the variance, while economic factors had an insignificant influence on employee turnover. On the other hand, employee turnover contributed 40.7% variance to organizational performance. The results also indicated that employee turnover had a negative influence on organizational performance (Niroula et al., 2024).

Factors affecting employee turnover at Architecture, Engineering, Construction, Operations and Management (AECOM) Afghanistan

The study focused on factors affecting employee turnover at AECOM in Afghanistan. The objectives of the study included the following: to establish the effect of pay on employee turnover, to determine the effect of promotion on employee turnover, to assess the effect of supervision on employee turnover, and to evaluate the effect of career growth on employee turnover. The target population included 90 staff of AECOM in Afghanistan. A sample size of 73 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequency, mean, percentage, and standard deviation. Regression analysis was employed to establish the effect of the independent variables on the dependent variable. The results were presented in tables as deemed appropriate (Karimi et al., 2020).

The results of regression analysis indicated that the independent variables explained 33.6% of the variance in employee turnover. Specifically, the results of regression standardized coefficients indicated that when all other factors are held constant, pay explained 38.7% variance in employee turnover and supervision explained 22.3% variance in employee turnover, while promotion and career growth had an insignificant influence on employee turnover (Karimi et al., 2020).

Factors affecting employee turnover: the case of Lebanese retail companies

The study focused on factors affecting employee turnover in Lebanese companies. The main objectives of the study included the following: to determine the effect of training and development on employee turnover, to establish the effect of change management on employee turnover, and to assess the effect of leadership and motivation on employee turnover. The target population included 1000 employees working in the Lebanese retail companies. Data collection was done using a questionnaire. Descriptive statistics were used to analyze descriptive variables of the study. Regression analysis was used to assess the effect of independent variables on the dependent variable. The findings of the study were presented using tables (Shatila & Alozian, 2019).

The results of regression analysis indicated that when all factors are maintained at a constant, change management contributed to 31.6% variance in turnover intention, training and development contributed to 25.1% variance in employee turnover, and leadership contributed to 19.1% variance in employee turnover (Shatila & Alozian, 2019).

Factors affecting employee turnover intention in the Development Bank of Ethiopia

The study examined factors affecting employee turnover in development banks in Ethiopia. The specific objectives of the study included the following: to establish the effect of personal factors on turnover intention; to determine the effect of social and economic factors on turnover intention; to find out the effect of job stress on turnover intention; to assess the effect of organizational and work environment on turnover intention; to evaluate the effect of employee relationships with management on turnover intention; to determine the effect of career growth on turnover intention; to find out the effect of compensation on turnover intention in the target firm (Tilahun, 2018).

The target population included the 782 employees of the Development Bank of Ethiopia. A sample size of 264 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics. The findings were presented using tables, charts, and graphs as deemed appropriate (Tilahun, 2018).

The results revealed that personal factors had no significant relationship with turnover intention among employees of the Development Bank of Ethiopia. Social and economic factors had a significant influence on employee turnover intention. The working environment was also established to have a significant influence on turnover intention among the target employees. It was also established that the existing compensation played a significant role in employee retention. This means that the employees felt the remuneration offered by the organization to workers was fair. In addition, the findings indicate that the staff-management relationship was not at its best. Hence, this could contribute to employee turnover in the target organization (Tilahun, 2018).

Factors influencing employee turnover intention in the hotel industry in China

The study explored factors influencing turnover intention in the hotel industry in China. Specifically, the study aimed at achieving the following objectives: to determine the effect of demographic factors (gender, age, education, length of service, and employment classification) on employee turnover in the hotel industry in China; to find out the effect of work factors (supervision, work environment, communication, and job satisfaction) on employee turnover intention in the hotel industry in China (Huai, 2015).

The target population included 1250 staff working in hotels in China. A sample size of 500 respondents was selected to participate in the study. Data collection was done using a questionnaire. Descriptive statistics, including frequency, percentage, mean, and standard deviation, were used to analyze the descriptive variables in the study. The Pearson chi-square method was used to determine the association between the independent variables and the dependent variable. The findings were presented using tables, charts, and graphs (Huai, 2015).

The findings indicated that demographic factors have a significant influence on employee turnover intention. In addition, the results showed that work factors had a positive and significant influence on employee turnover intention (Huai, 2015).

Employee turnover: a study on the information technology sector

The study explored factors affecting employee turnover in the information technology sector in Kolkata, West Bengal. The specific objectives of the study included the following: to determine the effect of a higher salary on employee turnover; to establish the effect of a higher portfolio on employee turnover; to assess the effect of the scope of a foreign assignment on employee turnover; to find out the effect of a higher company brand name on employee turnover; to assess the effect of a breach of commitment on employee turnover; to evaluate the effect of job satisfaction on employee turnover; and to find out the effect of familial obligations on employee turnover (Guha & Chakrabarti, 2014).

The target population included companies operating in the information technology sector in Kolkata, West Bengal. A sample size of 460 respondents was selected to take part in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequencies and percentages. Pearson correlation analysis was used to assess the relationship between study variables. Regression analysis was employed to assess the effect of the independent variables on the dependent variable. The findings were presented in tables as deemed fit (Guha & Chakrabarti, 2014).

The results of correlation analysis indicated that all the study variables were significantly correlated with the number of company changes. Salary and portfolio were negatively correlated to an employee’s propensity to change companies. Highly experienced employees showed a preference for locational advantage and greater freedom of work. If the preferences were not addressed in their current stations, they showed a high likelihood of moving to other companies. The findings of regression analysis indicated that all the predictor variables had a positive and significant effect on the predictor variable (Guha & Chakrabarti, 2014).

Factors affecting employee turnover in the pharmaceutical industry: a case of Philips Group of Companies Kenya

The study explored factors affecting employee turnover at pharmaceutical companies: the case of the Philips Group of Companies operating in Kenya. The main objectives of the study included the following: to establish the effect of remuneration on employee turnover in the Phillips group of companies in Kenya; to find out the effect of reward and recognition on employee turnover in the target firms; to determine the effect of opportunities for career progression on employee turnover in the target firms; and to assess the effect of working conditions on employee turnover in the target firms (Mwangangi, 2014).

The target population included 595 employees of the Phillips group of companies in Kenya. A sample size of 151 respondents was selected to participate in the study. A questionnaire was used to collect data from the target population. The collected data was analyzed using a questionnaire. Descriptive statistics were used to analyze descriptive variables of the study. These included frequency, percentage, mean, and standard deviation. Regression analysis was used to evaluate the effect of the independent variables on the dependent variable. The results were presented in tables, charts, and graphs as needed (Mwangangi, 2014).

The results of standardized regression coefficients indicated that when all factors are kept constant, working conditions contributed to 2.5% variance in employee turnover, remuneration contributed to 16% variance in employee turnover, and career progression contributed to 6.4% variance in employee turnover, while rewards and recognition contributed to 61.6% variance in employee turnover (Mwangangi, 2014).

Citations

Focbit, P.B. (2025). Factors influencing employees’ resignations are the basis for strategic measures to address turnover and improve retention. Business Fora: Business and Allied Industries International Journal, 4(1), 39-50.

Guha, S. and Chakrabarti, S. (2014). Employee turnover: a study on the information technology sector. Journal of Business and Management, 20(2).

Huai, Y. (2015). The influencing factors of employee turnover intention in the hotel industry in China. Master’s thesis submitted to the University of Utara, Malaysia.

Karimi, A.H., Rahimi, A.T., and Mirza, A. (2020). Factors affecting employee turnover at Architecture, Engineering, Construction, and Management (AECOM). Bachelor’s research project submitted to Kardan University, Kabul, Afghanistan.

Khadayat, A., Basyal, D.K., Lawaju, P., and Paundel, U.R. (2024). A study on the determinants of employee turnover in the academic institutions of Kathmandu Valley. The Spectrum, 2(1).

Mwangangi, F.W. (2014). Factors affecting employee turnover in the pharmaceutical industry: a case of Philips Group of Companies Kenya. A master’s thesis submitted to the School of Management, Management University of Africa, Kenya.

Niroula, B., Upadhayay, J.P., and Singh, S.K. (2024). Employee turnover and its impact on the organizational performance of the hospitality industries of Nepal. International Journal of Professional Business Review, 9(5), 1-18.

Shatila, K. and Alozian, M. (2019). Factors affecting employee turnover: the case of Lebanese retail companies. Journal of Human Resources Management and Labor Studies, 7(2), 5-13.

Tilahun, H. (2018). Factors affecting employee turnover intention in the Development Bank of Ethiopia. A master’s thesis submitted to the School of Graduate Studies of St Mary’s University, Addis Ababa, Ethiopia. Tuji, A. and Bekele, T. (2022). An assessment of the causes of employee turnover in Oromia public service organizations. Global Scientific Journals, 10(10).

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