The main objective of this research is to identify the major factors influencing employee turnover and management response in Ethiopian bank industry and provide professional advices that would help the bank to reduce turnover and retain its competent personnel. Both quantitative and qualitative methods were used to gather information through the utilization of a questionnaire and interviews. In order to collect primary data, a questionnaire was designed and administered to both current and ex-employees of bank industry. In addition, interview was conducted with the management of banks and the HR department personnel. The primary data was collected by distributing structured questionnaire for 225 bank employees of seven banks by using stratified random sampling. The study showed detailed discussion of major causes for professional employees' turnover such as salaries and benefits, work environment, work environment, relationship of management and supervisor with their subordinates, hopping job and related factor, and management approach as a reason for turnover to leave or stay and management response in employment turnover. Therefore the researcher has recommended that the bank has to revise its compensation policy like salary scale and other benefit package, smooth relationship between management and employees and creates good working environment in order to reduce turnover intention and retain its employee.