Work Environment: Issues To Resolve For Employee Retention In Tier I And Tier Ii Commercial Banks In Nairobi City County, Kenya
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Date
2025-03
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International Journal of Scientific and Research Publications
Abstract
The Kenyan banking sector plays an important role and
contributes to the socio-economic growth and development of the
country. However, the sector has had a challenge of retaining its
employees which affects its performance and sustainability. The
tier I and II commercial banks have a larger customer base
compared to other financial institutions. The increased workload
put pressure on employees, causing low retention rates, as a
solution this study focused on work environment and conditions.
The study sought to answer the research question; what is the
effect of work environment on employee retention in tier I and II
commercial banks in Nairobi City County? The study’s theoretical
foundation was Herzberg’s two factor theory and work adjustment
theory. The study targeted 17 Human Resource Managers and 348
employees working at bank’s head offices. The sample size
consisted of 365 employees and 256 participated in the research,
making a 70.1% response rate. Primary data was collected using
questionnaires that were analyzed using descriptive and linear
regression. Findings showed that work environment had an
average mean score of 3.549 and led to better retention of
employees at mean scores of 3.711. The regression analysis
showed that 59.9% variation in employee retention was influenced
by work environment. The recorded beta coefficient results of β =
0.604 imply that work environment positively and significantly
predicted employee retention. The conclusions are that work
environment improved employee retention in the Tier I & II
commercial banks. The study recommended abiding by the
building and construction requirements in creating a good work
environment with sufficient light, air circulation and working
space. This is important in retaining employees; hence the
commercial banks can operate optimally, grow and contribute to
economic development of the nation.
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