INFLUENCE OF HUMAN RESOURCES MANAGEMENT STRATEGIES ON EMPLOYEE RETENTION IN THE MEDICAL INSURANCE INDUSTRY, IN KENYA

Abstract

The most important assets in any institution are the human resources. Retention of experienced and efficient employee in a firm is important since it reduces hiring costs. The objective of the research was to determine the link between human resources management strategies and retention of employees in the medical insurance industry in Kenya.  The specific objectives were; to examine the effects of recruitment and selection, training and development, employee relations and reward and compensation strategies on retention of workers in the medical insurance industry in Kenya. The study design was the descriptive method. The unit of observation was the medical insurance industry.  The unit of analysis was the staff at the medical insurance companies. The study targeted 150 top level managers and 300 HR managers in the medical insurance firms in Nairobi County. The stratified random sampling was used in selecting the sample for the study. 212 respondents formed the study sample size. Primary data was collected by use of questionnaires. The questionnaires were administered by the researcher with the help of trained study assistants. Descriptive analysis was used in analyzing descriptive data. MS Excel and Statistical Package for Social Sciences (SPSS version 21) were used to describe the data. Frequencies, percentages, means and other central tendencies were used. The results were presented by use of tables and charts.  Mean scores and standard deviation were used to analyze Likert scale. Open-ended questions were analyzed by use of content analysis. A multiple regression analysis was carried out to find out the association between human resources management strategies and employee retention. To determine the significance level of the model ANOVA was adopted. Theistudy foundithat recruitment andiselection, trainingiand development, employeeirelationsiand reward andireward and compensation had significant positive relationship with staff retention in the medical insuranceiindustry in Kenya. Theistudyirecommends medical insurance companies to use recruitment agencies and internal staff recommendations in recruiting and selecting employees; this ensures that the firm hires committed and productive workers. The management of insurance companies should invest more in training activities to ensure they are effective and should ensure that training and growth are used as strategies for motivation. The insurance company management should adopt strategies that create an environment in which employees feel a sense of voice encouraging employee development.

Keywords; Compensation, Development, Employee relations, Employee retention, Human resources management strategies, Recruitment, Reward systems, Selection, Training.