DETERMINANTS OF EMPLOYEE RETENTION AMONG FAST MOVING CONSUMER GOODS FIRMS IN NAIROBI COUNTY, KENYA

Roda Mutethya Musyoka, Dr. Thomas Mose, Lorna Kerubo Nyamwaro

Abstract


The costs of employee turnover are high and have a serious impact on the organizations bottom line. In Kenya, nearly 70% of private organizations have reported having difficulties in replacing staff. Statistics indicate that over 50 % of people recruited in to the fast moving consumer goods sector in Kenya will leave within the first 2 years and one in four of new hires will leave within 6 months. The study sought to examine the determinants of employee retention among fast moving consumer goods manufacturing firms in Nairobi County, Kenya. Particularly, this research explored how motivational factors and organization related factors influence employee retention. The research employed the descriptive research design. The unit of analysis in this study was all the 217 fast moving consumer goods firms in Nairobi County while the unit of observation was human resource managers or their equivalents. The sample size of the study was determined using Yamane’s Formula; the sample size for the study was 140 respondents. The study employed simple random sampling in selecting the FMCG firms. The study then used purposive sampling to select human resource managers in each of the company. The study used primary data gathered through questionnaires, which was dropped and picked from the selected respondents. The questionnaire covered the demographic information, and the information pertaining to the study's variables. The research employed 10% of the population required for pilot testing and the Cronbach alpha was used to examine the study's instrument reliability. The data obtained from the research instruments was analyzed by use of descriptive statistics (percentages and frequencies) and also inferential statistics through the aid of the SPSS statistical software. The multiple regression equation was employed in the relationship determination between the dependent and independent variables after which the data that’s been analyzed was presented inform of tables, pie charts and bar charts. The study concludes that motivational factors influences retention of employees among FMCG firms in Nairobi County. In addition, the study concludes that organizational factors influences retention of employees among FMCG firms in Nairobi County. From the findings, the study recommends that the management of fast moving consumer goods firms in Nairobi City County should ensure regular employee compensation and employee incentives to facilitate employee retention. In addition, the study recommends that the management of fast moving consumer goods firms in Nairobi City County should ensure regular employee training to equip the employees with necessary skills required to perform their duties.

Key Words: Employee Retention, Motivational Factors and Organization Related Factors


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References


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