Employee Retention Strategies and Performance of Selected Commercial Banks in Garissa County, Kenya
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Date
2018-03
Authors
Bashir, Abdinoor
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Employee retention is vital in all the commercial banks in Kenya. This is because of the fact that
worker turnover is high as employees search for jobs somewhere else which have better
packages or personnel are head-hunted by rival companies which end up in making the company
free professional personnel. Lack of gifted employees effects to a drop in performance therefore
companies have to employ better employees retention strategies. The general objective of this
study was to investigate the influence of employee retention strategies on the performance of
selected commercial banks in Garissa County, Kenya. This study was guided by the following
specific objectives: To examine the influence of work environment, reward, recruitment and
selection and training on the performance commercial banks in Garissa County, Kenya. The
study was anchored by two factor theory of motivation and the decision making theory. This
study employed a descriptive design. The target population was 4 commercial banks in Kenya
namely; Kenya Commercial Bank, Equity Bank, National Bank and Cooperative Bank. The
targeted respondents were 149 respondents comprising of 4 branch managers and 145 employees
from the four Banks in Garissa County, Kenya. Purposive sampling was used to identify the
respondents from each bank and census of 49 respondents comprising of 4 managers and 45
employees was carried out. Questionnaires were administered to employees and interviews for
the branch managers. Content analysis technique was used to analyze qualitative data collected
using interview schedules and reported in narrative form. Quantitative data was analyzed using
descriptive statistics such as mean and standard deviation and presented using charts, graphs and
tables. The study concludes that work environment performs an essential role in motivating
employees to carry out their assigned task and making a work environment wherein personnel
are productive is essential to multiplied earnings for commercial banks. Reward systems carried
out by commercial banks have an impact on personnel’ conduct and mindset towards their task
and Implementation of extrinsic rewards is proved to have a favorable association with
organizational performance. Training is very critical for commercial banks in Kenya to compete
with this unpredictable and dynamic world. The focus of recruitment and selection in
commercial banks in Kenya is to fit the competencies of prospective candidates against the
demands and rewards inherent in a given job. For this reason, commercial banks in Kenya
dedicate considerable sources and authority to creating high first-rate selection systems. The
study recommends that management of commercial banks in Kenya ought to attempt as a great
deal as possible to build a work environment that attracts, preserve and encourage its employees
so that it will help them work in a conducive environment and growth enterprise performance.
Commercial banks in Kenya ought to provide greater emphasis on intrinsic rewards so that it will
encourage and improve personnel’s task performance. Commercial banks in Kenya should
provide training to their personnel. This is because training and development have benefits not
only for the employee however the last advantage is for the organization itself. The study also
recommends that commercial banks in Kenya should deal with their candidates fairly, issues of
favouritism have to be avoided when choosing candidates, jobs have to be properly described
and analyzed to chose applicants to aid performance, the human resource department need to
appraise employees to help them deliver off their high-quality and help improve overall
performance of personnel.
Description
A Proposal Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University