Influence of Career Development on Employee Retention in 3-5 Stars Rated Hotels in Nairobi City County, Kenya
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Date
2023-02
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Kenyatta University
Abstract
Career development is a systematic planning strategy for linking the corporate career
needs and requirements of a company's workforce with employee career aspirations,
and it comprises activities carried out by both the individuals and organizations in order
to satisfy career goals and employment requirements. Previous studies affirm that
globalization has subjected many employees to focus on improving and upgrading their
competencies so as to fit in the international market. Among those highly affected are
employees in developing countries that are keen to connecting with the world markets.
Similarly, African countries, the majority of which are classified as developing
countries, are focusing on adopting career development strategies employed by
developed countries in order to help them accomplish their professional goals and
employment needs. Employee retention is a key important aspect for the hospitality
industry considering that the sector employs more people than any other industry in any
given economy. The major objective is to establish career advancement techniques and
staff retention in a 3-5-star hotel in Nairobi, Kenya, in order to ascertain the underlying
factors contributing to the industry's high employee turnover rate. The study's
objectives were, to assess the influence of human resource policies, analyze the impact
of succession planning, quantify the impact of training, and measure the influence of
job rotation on employee retention. The study benefited the government, policymakers,
the management and staff of 3-5 star hotels in Kenya by providing information that help
them identify areas to concentrate on in order to lower high employee turnover rates
and save money on employee replacement and training. The study employed a cross sectional descriptive research design. Nairobi hotels were picked because they attract
visitors from all over the world and represent the city accurately. The study population
target was 2374 employees employed on contract employment in 3-5 star rated hotels
in Nairobi City County. Using Yamane's (1967) formula, the sample size proportions
from the entire population was calculated. A total of 342 people working in operational
departments and upper management were included in the sample. Employees in the
operational department were surveyed using structured questionnaires, while
interviewing rules was used to engage the company's senior executives. Descriptive
statistics and Simple Linear Regression Analysis were used to examine the data. The
outcomes were used to display the findings. According to the research regression
coefficient findings, human resource policy is favorably and substantially connected to
employee retention (= 0.163, p=0.000). Furthermore, coefficient regression findings
suggest that succession planning and staff retention are positively and substantially
associated (= 0.166, p=0.000). Moreover, the results of a regression analysis (=0.173,
p=0.000) reveal a positive and robust relationship between the cost of training
employees and the likelihood that they would remain with the company. Job rotation
was shown to have a positive and significant relationship with employee retention (=
0.167, p=0.000) based on regression of coefficient results. Finally, the use of ICT was
a significant (partial) mediator of the relationship between career progression and staff
retention in hotels rated three to five stars in Nairobi city county Kenya. To increase
staff retention, the research advised that the hotel sector adopt a clearly written HR
policy on employee retention methods that provide a vibrant and pleasant working
atmosphere. The report also suggested that the hotel business institute a work rotation
scheme to make employees feel more valuable, boost morale, increase engagement and
improve knowledge and other organizational skills
Description
A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Hospitality Management of Kenyatta University. February, 2023
Supervisors
1. Vincent Maranga
2. Alex Kivuva