Employee Retention Practicesand Organization Performance In County Governments Of Westernkenya

ABSTRACT

In order for organizations to compete favorably in the current global economy, they need

to invest heavily in employee retention practices. Former Western Province Counties in

Kenya have been experiencing acute employees shortage due to their inability to attract

and retain qualified personnel. This has resulted to poor county government performance

resulting to; delays in projects initiation and completion, missing revenue collection

targets, and poor service delivery to the citizens. Embracing employee retention practices

coupled with good county leadership can act as a solution to the county dismal

performance. The main objective of the study was therefore to investigate the effect of

employee retention practices and county leadership on organization performance in

county governments of Former Western Province, Kenya. The specific objectives of the

study were to determined the effect of; competitive compensation, competency training,

career growth and development, and work-life balance on organization performance in

county governments of Former Western Province. It also investigated the moderating

effect of county leadership on the relationship between employee retention practices and

organization performance in county governments of Former Western Province. The study

was anchored on five theories namely: resource based view theory; Equity theory of

motivation; Social cognitive learning theory; Social cognitive career theory; and Spill

over and work boarder theories. The study was premised on positivism paradigm

philosophy. Mixed research design involving cross-sectional survey and descriptive

correlational research designs were adopted in the study. 1, 826 employees were targeted

out of which 328 respondents were sampled. Stratified sampling and simple random

sampling techniques were employed to enable the researcher to select the respondents of

the study in Kakamega, Vihiga, Busia and Bungoma Counties. Pilot study was conducted

in Siaya County. The study collected primary data by use of questionnaires and interview

schedule. Validity and reliability of research instruments were assured. The resultant

Cronbach’s Alpha value was 0.923 thus above the 0.7 acceptable threshold in social

research. The data collected was analyzed using descriptive and inferential statistics.

Inferential statistic involved the use of Pearson Product Moment correlation coefficient

and regression models while descriptive statistic involved the use of percentage, mean

and standard deviation. Data was presented by use of frequency distribution tables and

figures. The study found out that employee retention practices of; work-life balance,

competency training, competitive compensation and career growth and development

contributes to 16.8%, 13.6%, 11.7% and 10.7% respectively of the variability on

organization performance. Employee retention practices also had a significant positive

effect on organization performance in county governments of Former Western Province.

The study noted that county leadership moderated the relationship between employee

retention practices and organization performance in county governments of Former

Western Province at a rate of 52.9%. It was therefore recommended that county

governments should formulate, develop and implement employee retention practices

entailing; work-life balance, competency training, competitive compensation and career

growth and development so as to realize improved organization performance.

Government and organization policy makers may utilize the study findings in developing

human resource policies on employee retention practices for better organization

performance while academia and other researchers may rely on the study rich empirical

literature to further research in the study area.