EFFECT OF STAFF BENEFITS ON EMPLOYEE RETENTION: A CASE OF UNCLAIMED FINANCIAL ASSETS AUTHORITY

Caroline Chepkurui Chirchir, Joyce Mumbi Kamau, Margaret K. Kinyanyui

Abstract


Staff benefits are important elements in an organization. These are strategies or initiatives which have been put in place in a company to help to keep the employees. The essence is to make them not leave but be dedicated and committed to serve the organization with undivided attention. It is a common labour practice that an employee may leave for different reasons ranging from working conditions or terms of employment. The general objective for this study was to explore the effect of staff benefits on employee retention at Unclaimed Financial Assets Authority. The study was guided by the following objectives: to examine the effect of medical insurance cover and to establish the effect of retirement plan on employee retention at Unclaimed Financial Assets Authority. The study was anchored on four theories, Maslow Hierarchy of Needs and McClelland's Acquired Need theory. The target population was 60 employees of UFAA using census sampling method. Descriptive survey design method was used to analysis the data and results or outcomes presented in tables and pie charts using IBM Statistical Package for Social Sciences (SPSS) version 27.0. Structured questionnaires were used to collect primary data. All variables had coefficients above 0.7 which is the threshold for measuring reliability, the overall alpha coefficient was 0.895, indicating the research instrument was reliable. Based on the findings on the first objective on medical insurance cover, it is concluded that employees at UFAA are influenced to stay by the provision of in-patient and out-patient medical insurance cover. The organization has also included the dependents of the employees in the medical cover, provision of maternity, dental and optical benefits, access to a pool of specialists of medical practitioners, and acceptability of the medical insurance in major hospital facilities by the individual employees and their beneficiaries. All these aspects contribute to retention of staff at Unclaimed Financial Assets Authority. In addition, based on findings of the third objective on retirement plan, the study concluded that employees at UFAA are influenced to stay because of their pension benefits being protected and is transferable to another public institution if jobs are changed. The contribution of the employer is more than that of the employee and cumulatively together with interest earned from both parties’ funds is eligible to the staff as provided in the retirement benefits laws in Kenya. Based on the findings of the study, it was shown that there is a moderately positive correlation between medical insurance coverage and employee retention, indicating a significant relationship. The results suggest that employers should pay more attention to ensuring that health-related matters are well-covered to protect employees from the high costs of medication and treatment

 

Key Words: Staff Benefits, Medical Insurance Cover and Retirement Plan


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