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INFLUENCE OF HUMAN RESOURCE MANAGEMENT STRATEGIES ON EMPLOYEE RETENTION IN SELECTED STATE CORPORATIONS IN KENYA

Employee retention is becoming a real challenge in today’s work environment as employers begin to realize the value of people that make up the organization. It has been noted that lack of effective SHRM practices leads to increased rate employee turnover in many organizations. Many Kenyan state corporations have been characterized with high employee turnover rates. Recent surveys show that over 75% of state corporations experience low level of employees’ retention and face high staff turnover rates. Despite the fact that the Kenyan government has made efforts towards achievements of various development goals, the rate of employee retention in many state corporations has remained low for the past ten years. Notwithstanding the significant influence of Human Resource Management strategies on employee retention in organizations, most studies on SHRM and employee retention that have been undertaken in public and private organization and are not linked with employee retention in state corporations. The general objective of the study was to establish the influence of strategic human resource management practices on employee retention in selected state corporations in Kenya. The study specifically aimed to; assess the influence of employee recruitment strategy on employee retention in state corporations in Kenya; determine the influence of employee compensation strategy on employee retention in state corporations in Kenya; assess the influence of employee training strategy on employee retention in state corporations in Kenya and to establish the influence of employee relations strategy on employee retention in state corporations in Kenya. The study adopted a descriptive research design and the target population was a total of 372 human resource and development staff working in the selected state corporations with headquarters offices in Nairobi. The study applied a stratified random sampling technique to select 124 respondents as the sample size for the study. Questionnaires were used as the main data collection instruments and a pilot study was conducted to pretest questionnaires for reliability. Descriptive statistics and multiple regression analysis will be used to analyze the gathered data and the results were presented on tables, figures and graphs. The study findings showed that employee recruitment strategy; employee compensation strategy; employee training strategy and employee relations strategy influence employee retention in State Corporations in Kenya. The study concluded that recruitment strategy is the major human resource strategy that influences most employee retention in state corporations with a coefficient of 0.389, followed by compensation strategy with a coefficient of 0.185, then employee relations strategy with a coefficient of 0.128 and lastly training strategy with a coefficient of 0.123. The study recommended for application of recruitment strategy that emphasizes on higher and right academic qualifications, hiring of management trainees and use of head hunting to recruit the most experienced and skilled staff. The management of state corporations should formulate and implement effective employee compensation strategy through regular review employee salary structures, provision of good benefits and implementation of effective merit pay methods. The management of state corporations should adopt effective employee training strategy by regularly conducting on-the-job training; offthe-job training and leadership development training. The management of state corporations should adopt effective employee relations strategy through application of effective communication channels, use of effective conflict resolution methods, encouraging team building activities and providing better working conditions. Key Employee retention is becoming a real challenge in today’s work environment as employers begin to realize the value of people that make up the organization. It has been noted that lack of effective SHRM practices leads to increased rate employee turnover in many organizations. Many Kenyan state corporations have been characterized with high employee turnover rates. Recent surveys show that over 75% of state corporations experience low level of employees’ retention and face high staff turnover rates. Despite the fact that the Kenyan government has made efforts towards achievements of various development goals, the rate of employee retention in many state corporations has remained low for the past ten years. Notwithstanding the significant influence of Human Resource Management strategies on employee retention in organizations, most studies on SHRM and employee retention that have been undertaken in public and private organization and are not linked with employee retention in state corporations. The general objective of the study was to establish the influence of strategic human resource management practices on employee retention in selected state corporations in Kenya. The study specifically aimed to; assess the influence of employee recruitment strategy on employee retention in state corporations in Kenya; determine the influence of employee compensation strategy on employee retention in state corporations in Kenya; assess the influence of employee training strategy on employee retention in state corporations in Kenya and to establish the influence of employee relations strategy on employee retention in state corporations in Kenya. The study adopted a descriptive research design and the target population was a total of 372 human resource and development staff working in the selected state corporations with headquarters offices in Nairobi. The study applied a stratified random sampling technique to select 124 respondents as the sample size for the study. Questionnaires were used as the main data collection instruments and a pilot study was conducted to pretest questionnaires for reliability. Descriptive statistics and multiple regression analysis will be used to analyze the gathered data and the results were presented on tables, figures and graphs. The study findings showed that employee recruitment strategy; employee compensation strategy; employee training strategy and employee relations strategy influence employee retention in State Corporations in Kenya. The study concluded that recruitment strategy is the major human resource strategy that influences most employee retention in state corporations with a coefficient of 0.389, followed by compensation strategy with a coefficient of 0.185, then employee relations strategy with a coefficient of 0.128 and lastly training strategy with a coefficient of 0.123. The study recommended for application of recruitment strategy that emphasizes on higher and right academic qualifications, hiring of management trainees and use of head hunting to recruit the most experienced and skilled staff. The management of state corporations should formulate and implement effective employee compensation strategy through regular review employee salary structures, provision of good benefits and implementation of effective merit pay methods. The management of state corporations should adopt effective employee training strategy by regularly conducting on-the-job training; off the-job training and leadership development training. The management of state corporations should adopt effective employee relations strategy through application of effective communication channels, use of effective conflict resolution methods, encouraging team building activities and providing better working conditions. Key 

Author: Kinoti Agostino Kiogora  

Co- Author:Dr. Kepha Ombui 


 


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