This study was designed to assess the relationship between performance appraisal and staff turnover and its significance for quality of education in Bole sub city selected private secondary school sand to suggest possible solutions to the problem. In order to conduct the study, descriptive survey method was employed. Five Woredas were selected for the study using simple random sampling technique and out of 26 private secondary schools, 5 were a selected for the study using simple random sampling technique. The study had 78 respondents who were teachers in the targeted private secondary schools.. The respondents were selected for the study using purposive sampling technique for female teachers to participate all of them since their number is too small compared with male teachers and availability sampling for male teachers. In general, out of 78, 73 respondents filled in the questionnaire and returned. Interviews were made with 10 school administrators, and 9 sub city education office officers. Documents were reviewed at Bole sub city Education Office. Research data collected through questionnaires were analyzed and interpreted using frequencies, percentages and mean values. Information collected through interviews was analyzed qualitatively. By answering four basic questions which were prepared to check the relationship between TPA and staff turnover, the study revealed that there is significant relationship between teachers’ performance appraisal and teaching staff turnover since when the appraisal practice gets better the interest of teachers to stay in their current schools increase and to the contrary when the performance appraisal practice gets worse the intention of teachers to leave their current schools increase. Therefore so as to reduce teachers turnover caused by performance appraisal private schools should work hard in collaboration with the sub city education office in preparing the TPA criteria and following the expected standard while employing specially school administrators. Unless this continuous loss of qualified and experienced teachers deteriorates students’ academic performance, overburdening of the remaining teachers, stressed them and decrease their commitment in teaching and this strongly affect the production of well trained and internationally competent citizens.