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HUMAN RESOURCE MANAGEMENT PRACTICES AND STAFF RETENTION IN COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA
Esther Wambui Ndua Business Administration Department, School of Business, Kenyatta University P. O Box 43844, 00100 Nairobi, Kenya Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Dr. Philip Wambua Business Administration Department, School of Business, Kenyatta University P. O Box 43844, 00100 Nairobi, Kenya
CITATION: Ndua, E, W,. Wambua, P. (2017). Human Resource Management Practices And Staff Retention In Commercial Banks In Nairobi City County, Kenya. International Journal of Human Resources and Procurement. Vol 6 (10) pp 134 – 152.
ABSTRACT Retention of employees is becoming a real challenge today as employers begin to realize the value of people that make up their organizations. The banking sector in Kenya is experiencing high staff turnover such that the banking fraternity has tried to cap increased staff turnover by restricting bonuses to employees who have stayed for over six months. The loss of employees is a disruptive event and replacing employees is costly, both in recruiting and training employees to obtain satisfactory levels of performance over time. This study sought to examine the influence of human resource practices on staff retention in commercial banks in Nairobi City County, Kenya by reviewing: recruitment, reward management, training, and career development as the study variables which add up to human resource management practices which make up the independent variable. The study adopted descriptive research design. The target population comprised of all 42 commercial banks in Kenya as the unit of observation and the respondents as the unit of analysis. Stratified sampling was employed in the determination of the sample size. Data was collected by use of a structured questionnaire which was administered using drop and pick later method. The collected data was analyzed using multiple regression analysis. The findings indicated that the four independent variables that were studied explained 94.6% of the staff retention in commercial banks as represented by the R2. The study concluded that reward system, recruitment, training and career development are significant and has a positive relationship with staff retention. The study recommended that commercial banks should work around the clock to retain the highly qualified and skilled employees through a laid down career plan helped preventing shortage of those employees in the near future.
Key Words: Recruitment, Reward management, Training, Career development, Employee retention
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