Employee Retention Strategies and Employee Turnover at Aga Khan Hospital in Nairobi City County, Kenya
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Date
2025-10
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Kenyatta University
Abstract
The Aga Khan University Hospital has faced a notable level of staff turnover, as prominent
recruitment agencies have successfully attracted their employees to pursue opportunities
elsewhere. Those relocating to international destinations are offered appealing compensation
packages, which include competitive salaries, generous allowances, prospects for career growth,
and extensive support for relocating their families. This study aimed to investigate how
employee retention strategies affect staff turnover at the Aga Khan Hospital in Nairobi City
County, Kenya. The specific objectives included assessing the effects of employee recognition
programs, work-life balance initiatives, career development opportunities, and competitive salary
structures on staff turnover at the hospital. The research was guided by theories such as
organizational equilibrium theory, social exchange theory, human capital theory, and equity
theory. A descriptive research design was employed in the study. 795 participants from 12
different departments were the subject of this investigation. Stratified sampling was the
technique used to choose participants. This indicates that a basic random procedure was used to
select study participants. There were 266 respondents in the sample. Questionnaires were utilized
in the study to collect data directly from the participants. To find out how effectively they work,
the study carried out a pilot study involving 26 hospital employees. The study examined the
content validity of the questionnaires to ensure their accuracy. The Cronbach's alpha correlation
coefficient was 0.776 which determined that the questionnaire items were reliable. Descriptive
statistics, such as mean and standard deviation, were used to analyze the data. Furthermore, the
data was examined using inferential statistics, which applied multiple regression analysis
approaches and concentrated on correlations between variables. Tables and graphs were used to
display the results. The study found that competitive compensation strategies, professional
development programs, work-life balance initiatives, and employee recognition strategies had a
positive significant influence on employee turnover at Aga Khan Hospital in Nairobi City
County, Kenya. The study concludes that an employee recognition program creates a productive
workplace where staff members feel valued and acknowledged for their efforts. Because workers
who feel their personal lives are valued are more likely to stick with their jobs, the work-life
balance approach increases job satisfaction. Employees may envision their future inside the
company thanks to the career development initiatives, which offer clear career tracks and
chances for professional development and skill improvement. The competitive pay boosts
employee morale and job satisfaction by giving workers a sense of worth and appreciation for
their accomplishments. The study recommends that the hospital ought to create a structured
program that routinely recognizes staff accomplishments. Flexible schedule alternatives, such
remote work, shortened workweeks, or customizable hours, can help employees better balance
their personal and professional obligations, which will improve job satisfaction and lower
turnover. The hospital should concentrate on implementing these options. The current career
development programs should be thoroughly examined by the hospital in order to find any
weaknesses and potential areas for enhancement. The hospital should offer comprehensive
benefit packages that may include health insurance, retirement plans, paid time off, and wellness
initiatives, as well as carry out in-depth market research to evaluate pay trends in the healthcare
industry.
Description
A Research Project Presented to the School of Business, Economics, and Tourism as Part of the Requirements for Obtaining a Master of Business Administration Degree (Human Resource Management Option) from Kenyatta University. October, 2025
supervisor
Rosemarie Wanyoike