Factors Affecting Employee Retention in Public Organizations in Kenya: A Case of The Supreme Court of Kenya

FACTORS AFFECTING EMPLOYEE RETENTION IN PUBLIC ORGANIZATIONS IN
KENYA: A CASE OF THE SUPREME COURT OF KENYA
MARTIN RODGERS ANANGWE
A research project submitted to the Department of Human Resource Management, School of
Business and Economics in partial fulfillment of the requirement for the award of the degree of
Bachelor of Science in Human Resource Management. - Murang’a University College
2016
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DECLARATION
I hereby declare that this research project is my original work and that it has not been presented
for a degree or any examination purpose in any other University
…………………………………… ……………………………………………
Signature Date
This project has been submitted for examination with my approval as the University Supervisor
………………………………….. ……………………………………………..
Signature Date
This project has been submitted for examination with my approval as the Head of Department-
Human Resource Management- Murang’a University College.
………………………………. ………………………………………..
Signature Date
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DEDICATION
I dedicate this project to the Almighty God who saw me through its preparation and to all those
who in one way or the other contributed to the success of this research project.
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TABLE OF CONTENTS
DECLARATION..............................................................................................................................i
DEDICATION................................................................................................................................ii
LIST OF TABLES...........................................................................................................................v
LIST OF FIGURES........................................................................................................................vi
LIST OF APPENDICES...............................................................................................................vii
ABSTRACT.................................................................................................................................viii
CHAPTER ONE..............................................................................................................................1
1.0 INTRODUCTION.....................................................................................................................1
1.1 Background of the Study........................................................................................................1
1.2 Statement of the Problem.......................................................................................................3
1.3 Objectives of the Study..........................................................................................................5
1.3.2 Specific Objectives of the Study.........................................................................................5
1.4 Research Questions................................................................................................................6
1.5 Justification of the Study........................................................................................................6
1.6 Scope of the Study.................................................................................................................7
CHAPTER TWO.............................................................................................................................8
LITERATURE REVIEW................................................................................................................8
2.1 Introduction............................................................................................................................8
2.2 Theoretical Literature Review...............................................................................................8
2.3 Factors Affecting Employee Retention................................................................................18
2.4 The Conceptual Framework.................................................................................................28
2.5 Research Gaps......................................................................................................................31
CHAPTER THREE.......................................................................................................................32
METHODOLOGY........................................................................................................................32
3.1 Research Design...................................................................................................................32
3.2 Target Population.................................................................................................................32
3.3 Sample Design.....................................................................................................................33
3.4 Data collection Instrument...................................................................................................34
3.5 Data Collection Procedure...................................................................................................34
3.6 Validity and Reliability of Research Instruments................................................................35
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3.7 Data Analysis Procedure......................................................................................................36
3.8 Ethical Considerations in Research Participants..................................................................36
CHAPTER FOUR.........................................................................................................................37
4.1 Introduction..........................................................................................................................37
4.2 Background Information......................................................................................................37
4.2.1 Respondents Distribution by Gender................................................................................37
4.2.2 Respondents Distribution by the number of years served in the supreme court of Kenya
....................................................................................................................................................38
4.2.3 Respondents Distribution by the Level of Education.......................................................40
4.2.4 Respondents Distribution by the Number of Years served as Head of Department.........41
4.3 FACTORS AFFECTING EMPLOYEE RETENTION...........................................................42
4.3.1 Employee Compensation..................................................................................................42
4.3.2 Employee Effort Recognition...........................................................................................44
4.3.3 Employee Training and Development..............................................................................45
4.3.4 Job Content.......................................................................................................................47
CHAPTER FIVE...........................................................................................................................49
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS..........................49
5.1 Introduction..........................................................................................................................49
5.2 Summary of Findings...........................................................................................................49
5.3 Discussion of the Findings...................................................................................................51
5.4 Implications of the findings.................................................................................................52
5.5 Conclusion...........................................................................................................................52
5.6 Recommendations................................................................................................................53
5.7 Suggestions for further studies.............................................................................................53
REFERENCES..............................................................................................................................54
APPENDIX I.................................................................................................................................55
APPENDIX II................................................................................................................................57
APPENDIX THREE......................................................................................................................58
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LIST OF TABLES
Table 2.1: Overview of Job Embeddedness Theory
Table 2.2: Herzberg’s Hygiene Factors and Motivators
Table 2.3: Job Embeddedness Theory Overview
Table 3.1: Sample Size
Table 4.1: Respondents Distribution by Gender
Table 4.2: Respondent Distribution by number of years served
Table 4.3: Respondents Distribution by the level of education
Table 4.4: Respondents Distribution by the number of years served as HODs
Table 4.5: Employee Compensation
Table 4.6: Employee Skill Recognition
Table 4.7: Employee Training and Development
Table 4.8: Job Content
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LIST OF FIGURES
Figure 2.1: Maslow’s Hierarchy of needs
Figure 2.2: The Conceptual Framework
Figure 4.1: Respondents Distribution by Gender
Figure 4.2: Respondent Distribution by number of years served
Figure 4.3: Respondents Distribution by the level of education
Figure 4.4: Respondents Distribution by the number of years served as HODs
Figure 4.5: Employee Compensation
Figure 4.6: Employee Skill Recognition
Figure 4.7: Employee Training and Development
Figure 4.8: Job Content
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LIST OF APPENDICES
Appendix I : Work Plan
Appendix II : Budget
Appendix III : Questionnaire
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ABSTRACT
Retention of employees is becoming a real challenge in today’s operating environment as
employers begin to realize the value of people that make up the organization. Public
Organizations are formed and owned by the Government to provide services to citizens. The
objective of the study was to establish the factors influencing employee retention in the public
organizations in Kenya. The study adopted a cross-sectional design as it took a representative
sample of its target group and based its overall findings on the views of those targeted. The target
population of this study was 205 employees of the judiciary. Primary data was collected using a
self-administered questionnaire. The data was analyzed using descriptive statistics comprising of
frequency distribution, percentages and chart description.
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CHAPTER ONE
1.0 INTRODUCTION
Employee retention refers to the resultant situation that arises after an organization’s workforce
becomes motivated to stay within and continue working for the organization. It is therefore, the
policies and practices organizations use to prevent valuable employees from leaving their jobs
Every organization in one way or the other spends considerably enough time and money on its
employees to make sure that they are motivated to stay within the confines of their jobs in the
organization. The organization is completely at a loss when the employees leave their job once
they are fully trained. Employee retention takes into account the various measures taken so that
an individual stays in an organization for the maximum period of time possible. Therefore, it is
essential for organization managers to invest their time in dealing with employee satisfaction at
workplace because seemingly, that is the major contributing factor that affects retention capacity.
1.1 Background of the Study
Worldwide, retention of skilled employees has been of serious concern to managers in the face of
ever increasing high rate of employee turnover. Today’s business environment has become very
competitive thus making skilled employees the major differentiating factor for most
organizations. Organizations- both public and private rely on the expertise of their employees in
order to compete favorably and indeed gain competitive advantage in the international market.
While the business environment continuously becomes dynamic, retaining valuable employees is
proving one of the biggest problems that affect organizations in the competitive marketplace.
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According to Abbasi, S. M., and Hollman, K. W. (2000), due to the "Revolving Door Effect"
nowadays, organizations often find that they spend considerable time, effort, and money to train
an employee only to have them develop into a valuable commodity and leave the company for
greener pastures. In order to create a successful organization, employers should consider as many
options as possible when it comes to retaining employees, while at the same time securing their
trust and loyalty so that they have less of a desire to leave in the future.
However, recent studies have shown that retention of highly skilled employees has become a
difficult task for managers as this category of employees are being attracted by more than one
organization at a time with various kinds of incentives. Against this background, organizations
will continue to lose valuable employees to competitor organizations until managers are able to
identify and apply appropriate retention strategies that will help in reducing the frequent turnover
of key employees. A number of studies (Lee, 2006; Raub and Streit 2006; Griffeth) have linked
employee turnover with recruitment sources. Others like Stovel and Bontis (2002) considered
employee turnover in isolation while paying less attention to the issues of retention.
The ongoing problem of retaining employees is the result of a variety of factors, but to appreciate
how to retain employees, managers must look into what motivates individuals within
organizations. Kalliath and Beck, (2001) have attempted to answer the question of what really
drives people's intention to quit or stay? Unfortunately, up to-date, the findings are somehow
different.
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Public Organizations in Kenya have been affected by a mass movement of employees in search
of better terms and working conditions. Omolo (2008) noted that many doctors and nurses were
leaving public corporations for the private sector because of better terms of employment. They
further acknowledged that more trained doctors and nurses were leaving the country for better
remuneration and working conditions in other countries like South Africa and Ghana. In the
transport sector, Kenya Airways has lost its well-trained pilots and cabin crew to competitors
both internationally and locally on the basis of pay and working conditions (Mumero,2012).
The researcher also contended that retaining employees to a 100% efficiency is hardly practical
in the current ever dynamic competitive environment. This study therefore aimed at finding out
the key factors that affect employee retention at The Supreme Court of Kenya (The Judiciary)
and how the factors can be put into consideration for the good of the court’s workforce.
Emphasis was placed on new hire orientation, corporate culture, employee communication and
team work.
1.2 Statement of the Problem
In the normal dynamic organizational environment, employee retention issues are emerging as
the most critical workforce management challenges of the immediate future, driven by employee
loyalty concerns, corporate restructuring efforts and tight competition for key talent. Therefore,
retention of employees is becoming a real challenge in today’s operating environment as
employers begin to realize the value of people that make up the organization.
The employment relationship is undergoing fundamental challenges that have the implication for
the attraction, motivation and retention of talented employees and talent shortage has resulted in
fierce competition (Flippo, 2001).
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Fitzenz, (2005) states that long term success of an organization depends largely on its ability to
effectively manage and utilize its human resources which are considered as the most crucial.
Ineffective management of employees leads to a high rate of staff turnover which has a
significant economic impact on organizations especially because of the knowledge that is lost
with the employees’ departure. It is very costly to do nothing about high rates of turnover
because one key individual can hold the fortunes of a department or business in their hands.
Loss of several members of core staff in the same unit or team can lead to instability of the entire
organization. State corporations are organizations formed and owned by the Government to
provide services to citizens. They are unique in their operations because they do not always
operate for profit but for the supply of services and goods meant for the general public welfare.
As such, their operations are unique and may not be compared to private firms.
However, the state corporations have been facing challenges which include the adoption and use
of ICT, financial resources and human resources challenges. State corporations have been
experiencing shortage of human resources both in the headquarters and in the field. At the same
time, employee retention in these state corporations has faced serious challenges following
increased globalization and internationalization of firms. The turnover of employees has been
increasing and this occurrence has undermined effective and efficient service deliver; a pointer to
employee commitment and retention policies at these firms (Njiru, 2008). Employees are now
more knowledgeable and demanding. This study will seek to establish factors influencing
employee retention in state corporations in Kenya.
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Studies have been done in relation to employee retention; Pegg (2009), studied the impact of
benefits on talent retention, motivation and productivity levels and how organizations are
choosing to inform their people about the type of benefits on offer. Mulwa (2010), carried out a
research on factors that influence staff turnover in World Vision and recommended a review of
existing pension plan to address staff expectation and Otieno (2010), studied the causes of staff
turnover in Private Primary Schools and recommended that employees compensated well as an
indicator for management’s appreciation of employees contribution and abilities. Muiruri
examined the factors influencing staff turnover at Jertec Junior academy in Nairobi. Manyura
(2012) investigated perceived factors affecting employee retention at Kenya Commercial Bank
Limited Headquarters.
Although the study was done, it was just a case study of one organization and the researcher did
not find any empirical study on factors influencing employee retention in state corporations. This
study therefore sought to fill this research gap by answering the research question: What are the
factors influencing employee retention in the Public Organizations in Kenya?
1.3 Objectives of the Study
1.3.1 General Objective of the Study
The general objective of the study was to study the factors that affect employee
retention at the Supreme Court of Kenya.
1.3.2 Specific Objectives of the Study
1. To determine whether compensation affects employee retention in the
public organizations in Kenya
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2. To determine whether employee effort recognition influences employee
retention in the public organizations in Kenya
3. To examine whether job content affects the level of employee retention in
the public organizations in Kenya
4. To determine the extent to which employee training and development
affects employee retention in the Supreme Court of Kenya
1.4 Research Questions
The study in its efforts to identify the key factors that affect employee retention at the Supreme
Court of Kenya intended to answer the following questions;
1. In what ways does compensation affect employee retention at the Supreme Court of
Kenya?
2. To what extent does employee effort recognition affect employee retention at the
Supreme Court of Kenya?
3. What job characteristics affect employee retention at the Supreme Court of Kenya?
4. To what extent does employee training and development affect employee retention at The
Supreme Court of Kenya?
1.5 Justification of the Study
The study intended to identify the salient factors affecting employee retention in public
organizations, a case of the Supreme Court of Kenya. The findings was useful for the Directorate
of Human Resource and Administration of the court and/or the general public to realize the need
for coming up with new retention strategies and reviewing the existing ones to ensure that they
are effective.
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The study also aimed at enabling the researcher generate recommendations for the court on how
to retain its employees and the general public for further research in the same area
1.6 Scope of the Study
The study was conducted at the Supreme Court of Kenya which is located in the Central
Business District of Nairobi, the Capital City of Kenya. It is located opposite the Nairobi City
Hall and adjacent to the Kenyatta International Conference Centre. The study concentrated on
the employees at the headquarters by involving the following departments; the registry,
employee welfare section, career and mobility section, salary section, training and development
section and the staffing section. It is from these sections that the study was conducted so as to
identify the core driving factors affecting employee retention.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter is meant to bring out the ideas and concepts that other scholars have put forward in
relation to employee retention. This section of the study was therefore intended to help the
researcher and other readers to have a clear understanding of the subject matter more. In
addition, it will also help the readers to familiarize themselves well with employee retention as a
whole.
2.2 Theoretical Literature Review
This study was guided by three theories namely; Maslow’s, Hierarchy of Needs Theory, Adam’s
Equity Theory, and Herzberg’s Two Factor Theory. The reason why the researcher chose these
three theories is because; there exists a close relationship between these theories of motivation
and employee retention.
2.2.1 Hierarchy of Needs Theory
This theory was introduced by Abraham Maslow as a result of his work on employee motivation.
Maslow saw human needs in the form of a hierarchy ascending from the lowest to the highest.
Daniels (2001) suggested that Maslow's ultimate conclusion that the highest levels of self-
actualization are transcendent in their nature may be one of his most important contributions to
the study of human behavior and motivation. He therefore proposed that each worker has a set of
needs he/she seeks to fulfill in the jobs and that these needs are arranged in a hierarchy of
importance.
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Maslow further proposed that lower-level needs must be met before higher-level needs and that
once one set of needs is met, it ceases to motivate employee behavior. The needs are as shown in
the figure below;
Self Actualization Needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Figure 2.1: Maslow’s Hierarchy of Needs
Physiological needs are basic needs for sustaining human life such as food, water, warmth,
shelter and sleep. At work place, these are reflected in the need for sufficient air and basic salary
to guarantee employees’ survival. According to Maslow, other needs will not arise unless
psychological needs are fulfilled. (Norwood G, 2002)
William J.H (2008) Posits that Maslow’s security or safety needs stand for the desire to be free
of physical danger and fear of loss of job, property, or shelter. These needs relate to the
employee needs for safe jobs, fringe benefits and job security. People want some assurance that
the above needs was met in their work places.
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Therefore absence of such needs will initiate employee career exploration in search of greener
pastures which will in turn lead to career mobility- the main cause behind labour turnover in
organizations.
Social needs on the other hand relate to the feeling of belonging. People feel that they need to be
accepted by others. In an organization setting, these needs involve the desire for good
relationships with co-workers, participation in a work group and a positive relationship with
supervisors. Elton (2003) posits that workers are not just motivated by money but could be better
motivated by having their social needs met whilst at work
Esteem need refers to the need for power, achievement and status which is usually demonstrated
when an employee is promoted to a managerial position and acquire a sense of control and
recognition within an organization. (Greenbarg & Baron, 2003) It is also evident in
organizations that employees have a tendency for seeking power and recognition within the
organization. This explains the esteem needs of employees too as human beings.
Thus according to McNamara, (2005), the satisfaction of esteem needs boosts the desire of an
employee to stay with an organization. Aguenza & Som (2012) suggested that employers should
focus on issues and relationships with the employee in order to perform organization function
effectively.
Self-actualization an be easily described as a desire to become what one is capable of becoming,
to maximize ones potential and to accomplish something. (Northup, 2007) Maslow concluded
that when one set of need is satisfied it ceases to be a motivator. Each of the five levels of
Maslow’s needs relates to optimal retention strategy.
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Since Maslow’s introduction of his motivation model, organizations have been employing
strategies at attempting to stimulate each of the five human needs described above to optimize
retention rates. When applied to the organizational model, meeting the self actualization and
esteem needs of an employee tend to correlate to better retention. (Richard et al, 2009)
Physiological, safety, and social needs are important as well, however, and must be addressed to
better the work environment. While implementing a retention strategy is ideal, successful
satisfying all five needs of employees is not only difficult, but also expensive. That being said,
managers who attempt to maximize employee need coverage tend to be more concerned with
employee satisfaction. (Cherry, 2014)
2.2.2 The Job Embeddedness Theory of Retention
Job embeddedness theory of employee retention was authored by Mitchell, Holtom, Lee,
Sablynski, and Erez (2001). It refers to a relatively new construct that examines an individual's:
links to other people, teams, and groups, perceptions of their fit with the job, organization, and
community and beliefs about what they would have to sacrifice if they left their jobs. Job
embeddedness is defined as the on-the-job and off-the-job factors associated with individual
links, fit, and sacrifice (Mitchell et al., 2001, pp. 8-9). The following sections examine these
three domains of embeddedness.
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Links
Links are defined as "discernible connections between people and institutions" (Mitchell, et al.,
2001, p. 8) and are separated into two factors: organization links and community links. The more
links to the workplace or community, in theory, the more highly embedded individuals will
become. Links can be social, psychological, or financial and associated with age, marital status,
number of children and their ages, years of service, hobbies, church or religious-related
activities, and/or membership in community or professional organizations.
The authors acknowledge that the relative importance of each of the previously mentioned
factors could differ by population. And there are inherent pressures to stay at one's present work.
These pressures can come from family members, team members at work, or other people at work
(Maertz, Stevens, Campion, & Fernandez, 2004). Alternatively, the lack of marital or parental
responsibilities or the failure to develop meaningful work relationships could indicate that
employees are less likely to stay with their present work situation.
Fit
Fit is defined as an "employee's perceived compatibility or comfort with an organization and
with his/her environment" (Mitchell et at., p. 9) and also splits into two factors: fit organization
and fit community. The closer one's personal views, values, and goals are aligned with those of
the organization and/or community cultures, the "higher the likelihood that an employee will feel
professionally and personally embedded" (Mitchell et al., 2001, p. 9). Tangible examples of
organizational fit include "job knowledge, skills and abilities" (Mitchell et al., 2001, p. 9).
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Factors related to how individuals fit within the community include items such as weather,
available and convenient access to outdoor activities and entertainment, community culture, and
individuals (neighbors and non-working friends) who share similar political and religious views.
It is important to note that how individuals perceive their fit within the community can be
inversely related to how they perceive their fit within the organization. For example, an
individual may love the community, but dislike working for the organization. (Mitchell et al,
2001)
Sacrifice
Sacrifice is the third domain of job embeddedness. Sacrifice refers to the "material" and
"psychological" benefits that an employee would lose at any given time if he or she chose to
leave the organization. Similar to the previous domains of embeddedness, sacrifice is separated
into two factors: sacrifice organization and sacrifice community. The greater the sacrifice, the
more difficult the decision to leave was (Shaw, Delery, Jenkins, & Gupta, 2003).
Organizational sacrifices might include the loss of health and retirement benefits, sports tickets,
coworker relationships, educational benefits, advancement opportunities, convenience and
proximity to the work location, and perhaps even a loss of security due to downsizing.
Community sacrifices are usually only an issue only if relocation is required with a new position.
In many cases, an individual's loss of community can represent too great a sacrifice, and thus the
employee is embedded.
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Other scenarios of community sacrifice, including the length of time and improvements in one's
home or the ability to sell a home, convenience and proximity to the local amenities, community
safety, and leadership positions in the community, often represent losses workers are unwilling
to bear, even though links to the organization might be minimal. (Erez & Holtom, 2009)
Table 2.1: Overview of Job Embeddedness Theory (Mitchell, Holtom, Lee, Sablynski, and Erez
2001)
Links Fit Sacrifice

Organizatio Links Fit Sacrifice
n organization organization organization

Community Links Fit Sacrifice
community community community
2.2.3 Herzberg’s Motivation-Hygiene Theory
To better understand employee attitudes and motivation, Frederick Herzberg performed studies
to determine which factors in an employee's work environment caused satisfaction or
dissatisfaction. He published his findings in the 1959 book The Motivation to Work.
The studies included interviews in which employees where asked what pleased and displeased
them about their work. Herzberg found that the factors causing job satisfaction (and presumably
motivation) were different from that causing job dissatisfaction. He developed the motivation-
hygiene theory to explain these results. (Oscar et al 2005)
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He called the satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene"
in the sense that they are considered maintenance factors that are necessary to avoid
dissatisfaction but that by themselves do not provide satisfaction. Bassett-Jones & Lloyd (2005,p
932) suggests that Herzberg, assumed a more complex interaction between both internal and
external factors, and explored the circumstances in which individuals respond to different
internal and external stimuli. The following table presents the top six factors causing
dissatisfaction and the top six factors causing satisfaction, listed in the order of higher to lower
importance.
Hygiene Factors Motivation Factors

 Company policy  Achievement
 Supervision  Recognition
 Relationship w/Boss  Work itself
 Work conditions  Responsibility
 Salary  Advancement
 Relationship w/Peers
Table 2.2: Herzberg’s Hygiene Factors and Motivators (Herzberg 1959)
Herzberg reasoned that because the factors causing satisfaction are different from those causing
dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The
opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite
of dissatisfaction is no dissatisfaction (Oscar et al, 2005).
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Understanding the different dimensions of a job that may increase satisfaction or, at least, reduce
dissatisfaction would be the very first step towards designing a strategy for retention of quality
staff (Raju, 2004). While at first glance this distinction between the two opposites may sound
like a play on words, Herzberg argued that there are two distinct human needs portrayed. First,
there are physiological needs that can be fulfilled by money, for example, to purchase food and
shelter. Second, there is the psychological need to achieve and grow, and this need is fulfilled by
activities that cause one to grow.
From the above table of results, one observes that the factors that determine whether there is
dissatisfaction or no dissatisfaction are not part of the work itself, but rather, are external factors.
Herzberg often referred to these hygiene factors as "KITA" factors, where KITA is an acronym
for Kick In The A, the process of providing incentives or a threat of punishment to cause
someone to do something. (Raju 2004) Herzberg argues that these provide only short-run success
because the motivator factors that determine whether there is satisfaction or no satisfaction are
intrinsic to the job itself, and do not result from carrot and stick incentives. (Bolman, 2005)
According to Leslie (2002), if the motivation-hygiene theory holds, management not only must
provide hygiene factors to avoid employee dissatisfaction, but also must provide factors intrinsic
to the work itself in order for employees to be satisfied with their jobs. Herzberg also argued that
job enrichment is required for intrinsic motivation, and that it is a continuous management
process.
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According to Herzberg, the job should have sufficient challenge to utilize the full ability of the
employee, employees who demonstrate increasing levels of ability should be given increasing
levels of responsibility and if a job cannot be designed to use an employee's full abilities, then
the firm should consider automating the task or replacing the employee with one who has a lower
level of skill. If a person cannot be fully utilized, then there was a motivation problem.
Critics of Herzberg's theory argue that the two-factor result is observed because it is natural for
people to take credit for satisfaction and to blame dissatisfaction on external factors.
Furthermore, job satisfaction does not necessarily imply a high level of motivation or
productivity. Herzberg's theory has been broadly read and despite its weaknesses its enduring
value is that it recognizes that true motivation comes from within a person and not from KITA
factors. (McNamara, 2005)
The above theories share some similarities, in that they all recognize positive reinforcement and
recognition as tools for creating a positive work environment, while disapproving the use of
negative critiques of job performance. Each theory also concludes that individuals are motivated
by a variety of factors that vary based on environmental and psychological needs of that
individual. For that reason, each organization must recognize that what motivates one individual
employee may not work on the other one. (Aguenza & Som 2012)
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2.3 Factors Affecting Employee Retention
The main purpose of retention is to prevent the loss of competent employees from the
organization as this could have adverse effect on productivity and service delivery (Samuel &
Chipunza, 2009). Abbas i& Hollman (2000) suggest that employee retention strategies which
effectively satisfy the needs of all employees consequently enhance the ability for organizations
to adapt more effectively to ongoing change (Gale Group, 2006).
In view of the large costs associated with employee turnover, even in a global economic
downturn characterized by downsizing and layoffs, HR managers still need to work out HR
practices that enable them to retain their talented employees (Steel et al, 2002). Retention
activities may be defined as a sum of all those activities aimed at increasing organizational
commitment of employees, giving them an overall ambitious and myriad of opportunities where
they can grow by outperforming others (Bogdanowicz & Bailey, 2002).These activities are often
bundled under the term “retention management”.
Johnson, (2000) defines retention management as “the ability to hold onto those employees you
want to keep, for longer than your competitors” Retention factors incorporating the needs and
desires of employees at any age enhance levels of individual job satisfaction, loyalty, and
commitment (Boomer Authority, 2009). However, retention management has been faced by
several challenges and influenced by the following factors;
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2.3.1 Compensation
The provision of an attractive remuneration package is one of the most widely discussed
retention factors, since they not only fulfill employees’ financial and material needs, but also
have a social inclination, with the salary level providing an indication of the employee’s relative
position of power and status within the organization and his/her immediate community.
Compensation is considered the most important factor for attracting and retaining the talent
(Willis, 2000).
Empirical studies (Kinnear & Sutherland, 2001; Maertz & Griffeth, 2004) have revealed that
factors such as competitive salary, good interpersonal relationships, friendly working
environment, and job security were reported by employees as key motivational variables that
influenced their retention in the organizations.
In addition, Parker and Wright (2001) suggest that besides money influencing the contractual
relationship between employees and the organization, it can also persuade employee behavior
whether to stay or leave an organization. Due to the trend towards benchmarking, it is becoming
increasingly difficult for organizations to set themselves apart from their competitors by means
of remuneration, which reduces the impact of financial rewards on employee retention (Cappelli,
2001). However, some studies indicate financial rewards as being poor motivating factor.
Besides this, it still remains a tactic used by many organizations to commit their employees to
the organization (Cappelli, 2001; Mitchell et al, 2001).
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Benson and Brown, (2007); Horwitz et al. (2003) found that the most popular retention strategies
reported by HR managers is still related to compensation. This is due to the fact that employees
view their income level as an indicator of their worth to the organization and their field of
specialization. Similarly, Bogdanowicz and Bailey (2002) noted that organizations try to provide
their workforce benefits and a holistic motive to stick to the current organization and making the
decision to leave the organization difficult and pointless.
The use of financial inducements has been recognized as extremely important in retaining
employees and it has been considered an important reward to motivate the behavior of
employees (Koh & Neo, 2000). A number of studies suggest that higher wages reduce quit
propensity positively and are related to decisions to continue (Kim, W., Leong, J. and Lee, Y. ,
2005)
Most employees desire fair and motivating total compensation in their jobs. Salary.com (2009)
found that 56% of employees voluntarily left their jobs because of inadequate compensation. If
the managers and employees perceive their total compensation equitable, they will be less likely
to leave for another job. Schuler (2008) found studies that had shown that 50% of employees
were open to changing jobs and that only 55% of the workforce was engaged in their jobs. They
felt that companies must have total compensation policies, not just focus on pay and benefits. A
system must be in place to make the organization attractive to the high performers. Organizations
that have a competitive compensation package can have a sustainable competitive advantage
because of lower turnover, more engaged employees, and higher revenues through engaged
employees.
20
2.3.2 Recognition
Recognizing employee skills and/or personal job accomplishments is an effective retention
strategy for employees at any age (Yazinski, 2009). Studies indicate that fulfilling people’s need
for acceptance by acknowledging their achievements prolongs employment of employees
(Redington, 2007). It is also important to recognize the commitment of individuals to an
organization, as well as the organization’s need to create an environment in which one would be
willing to stay (Harris, 2000).
It is often believed that an organization is only as good as its people (Templer & Cawsey,
2002).A Study by Yazinski (2009) shows trends of an increased number of job applicants
seeking out organizations that encourage employee input, growth, education, and teamwork,
beyond the traditional compensation/benefit packages offered by many employers. Thus for
employees to stay within the domains of an organization, then it has to ensure that to some
recognizable extent, there is employee effort recognition. (Harris 2002)
Individual skill recognition is restricted by age, and motivates positive behaviour, ethics,
teamwork, confidence, and growth in all employees (Redington, 2007). Thus, skill recognition
embraces individual performance, effectiveness, and retention (Agrela et al. 2008). In addition,
Cunningham, (2002) posits that the key to promoting employee retention is to have a positive
work environment where employees are recognized and rewarded for good performance, where
there is good communication, and where everyone shares in the excitement of being part of a
successful organization.
21
Successful organizations understand the importance of developing a recognition and reward
program to recognize the accomplishments and validate the work of their employees. These
programs may be formal, offering material incentives for employees who achieve predetermined
goals, or informal, providing positive feedback in the form of verbal praise. Perhaps, the most
effective program is that which encompasses a range of recognition activities that reflects the
unique culture of the organization (Daniel, T., & Metcalf G 2005). Samuel & Chipunza (2009)
also identified that recognition has a significant influence on employee retention in private sector
and on public sector employees.
2.3.3 Job Content
Management Update (June, 2008), nine of ten managers think people stay or go because of
money. But, Kaye and Evans (2010) conclude that money and perks matter, but employees are
interested in challenging and meaningful work, good bosses, and opportunities for learning and
development.
As a result, Caudron (2011) stated that with the growing economy, people have more choices to
get a better job so they have more that they are more satisfied with the job contents than those
that are poorly designed. Several studies based on western research (e.g. Boxall et al., 2003;
Malhotra et al., 2007; Meyer & Smith, 2000), have shown that work-related factors such as job
content/design and workloads are major determinants of job satisfaction, organizational
commitment and in turn employee retention.
22
Employees do not just work for the money but also to create purpose and satisfaction in their life
(Mitchell et al. 2001). According to Woodruffe (2005) employees in addition to a strong need to
deliver excellent results, also have a desire to take on difficult challenges that are relevant for the
organization. However, when their work mainly consists of the routine-based performance of
tasks, the likelihood of de-motivation and turnover is relatively high.
By thinking carefully about which tasks to include in which jobs, companies can affect their
retention rates (Steel et al, 2002). Buttler and Waldrop (2001) have termed this as “job
sculpting”, or the art of matching people to jobs that allow their “deeply embedded life
interests”.
Mobley et al. (2004) noted that age, tenure, overall satisfaction, job content, intentions to remain
on the job and commitment were all related to employee retention and turnover. Therefore, there
is increasing evidence that job content is an important dimension affecting employee outcomes
such as commitment, performance and organizational citizenship behavior. Horwitz et al. (2003)
& Steel et al. (2002) found that initiatives aimed at enhancing the intrinsic qualities of the job
were the second most popular type of retention practices reported by HR managers. For many
employees, their jobs are their ‘identities’ of who they are. They have a need to use their minds
and make a significant contribution. If they cannot achieve this through the framework of the
current job, they will find one where they can.
23
2.3.4 Training and Career Development
Investment on employee training and career development is considered important factor in
employee retention. Organization has the incentive to make investment in form of training &
development only on those workers, from whom organization expect to return and give output on
its investment (Messmer, 2000).
According to Clark (2001), organizations are intensification development for talented employees,
through proficiency analysis, input on employee interests, need development and multisource
appraisal of capabilities and formulate plans for action. Wetland (2003) suggest that firms and
individual made investment on human capital in the form of training. Training enhances the
skills of employees.
According to Gomez et al, (2005), training provides specialized technique and skills to employee
and also helps to rectify deficiencies in employee performance, while development provide the
skills and abilities to employee which will need the organization in future. Development of skill
consists of improving interpersonal communication, technological knowledge, problem solving
and basic literacy etc.
Garg & Rastogi (2006) explain that in today’s competitive environment feedback is essential for
organizations to give and receive from employees and the more knowledge the employee learn
the more he or she will perform and meet the global challenges of the market place. Eisenberger
and Aselage (2003) describe that if the employee receives the support from the employers, such
as training, they will trust the employer and was more obliged to reciprocate.
24
Bruvold and Lee (2003) also explore in their research that perceived investment in employee
development is positively related to the affective commitment and the employee’s intention to
stay in the organization. In the psychological contract, it has been well documented that
employees invariably hold expectations that organizations may provide them with training
opportunities beneficial to individual advancement and development. When an organization
offers desirable training to employees, it may be interpreted as an employer expressing employee
concern and care. (Bruvold and Lee 2003)
According to Coyle-Shapiro & Kessler (2002), training may thus be viewed as an advancement
opportunity, the employees might perceive the organization values them as individuals and
fosters their self-worth. The perception of a caring and trustworthy organization will ultimately
evoke a sense of obligation that takes the form of enhanced commitment and reduced turnover.
Meanwhile, employee would appreciate the skills they have required via training provided by the
employer and be aware the training expenses the organization has spent on them. They therefore
might develop a sense of obligation for the employer and become more committed to the
organization and be ultimately less likely to quit.
25
2.3.5 Learning & Working Climate
According to Abrams et al (2008), Learning and Working Climate generally refers to the
environment within which employees both learn and work. More specifically, the concept could
be described by referring to: guidance and appreciation at work; pressure at workplace; the
amount of empowerment and the responsibility that employees experience; choice in job tasks
and development; provision of challenging and meaningful work; and advancement and
development opportunities
In addition, appreciative learning and working climate, positively influences employee retention
(Kim, W., Leong, J. and Lee, Y. 2005). Since learning and development opportunities appear
crucial for the retention of talented employees (Arnold 2005, Hytter 2007, Walker 2001), an
organization must establish a supportive learning and working climate.
2.3.6 Work-Life Balance
The balance of both employee’s job and his/her life as a retention factor has frequently been
cited in the literature (Schuler, R.S. and Jackson, S.E., 2011). The conflict between one’s work
and his life at large has been the song of the current employment era. Therefore due to this, there
is an increasing demand for more flexible forms of work which would positively impact the
reduction of the work-family conflict and employee satisfaction in general (Anderson et al.,
2002). HR policies addressing work-life balance are critically important because the current
generation of employees attaches much more importance to quality of life, as a result of the ever
increasing work pressure (Cappelli, 2001; Mitchell et al, 2001)
26
2.3.7 Flexibility
Job flexibility is vital for retaining employees of any age (Kim, W., Leong, J. and Lee, Y. 2005).
Researchers describe the importance of employment flexibility such as scheduling variations that
better accommodate individual work times, workloads, responsibilities, and locations around
family responsibilities (Cunningham, 2002; Pleffer, 2007).
Studies show that "flexibility" empowers individuals to facilitate a healthier balance between
work and personal obligations, something that appeals to all ages of employees (Schuler, R.S.
and Jackson, S.E. 2011). Prenda &Stahl (2001) say that employees having job flexibility options
report having higher levels of personal commitment, concentration, satisfaction, productivity,
loyalty, and mental capacity at any age. An employee working in flexible terms at the work place
is more motivated to stay than that who is strictly confined within the 8 hours- 5 days system of
work.
2.4 The Conceptual Framework
In this section, the researcher will discuss how the variables identified in the literature review
relate to each other. There are a number of variables that have been identified for the sake of this
study. They include, the background/control variables, the independent and the depend variables
as shown in the figure below;

Compensation
Skill Recognition
Employee Retention
Job Content
Training and Development

Figure 2.1: The Conceptual Framework of the factors affecting employee retention.
27
Shah & Burke. (2003) posit that in today’s competitive world, high-performing employees are
looking for more than compensation packages and benefits. More specifically, what the
employees nowadays are looking for is interesting work, employer flexibility, feeling valued and
having training and advancement opportunities which finally, become the major factors
influencing their decision to change jobs (Cunningham, 2002).
Therefore from the literature review and the diagrammatic conceptual framework, the following
factors are directly correlated with employee retention of an organization.
2.4.1 Compensation
The use of financial inducements has been recognized as extremely important in retaining
employees and it has been considered an important reward to motivate the behavior of
employees (Koh & Neo, 2000). According to Reville, Boden & Biddle, (2003), compensation is
not only in financial form.
It can also be in non-financial forms. Benefits, such as pension, life and health insurance,
retirement plans and allowances that include company cars or subsidized transportation, all
represent a significant pay element in many organzations. In addition, for organizations with tax
advantages and economies of scale, compensation and benefits are always viewed as tools for
attracting and retaining desired employees (Hauser & Baggett, 2002). Williams et al (2007) also
found out that employee retention was high in those organizations that clearly communicated
their compensation policies to the whole lot of employees.
28
2.4.2 Skill Recognition
Recognizing employee skills and/or personal job accomplishments is an effective retention
strategy for employees at any age (Kim, W., Leong, J. and Lee, Y. 2005). Studies indicate that
fulfilling people’s need for acceptance by acknowledging their achievements prolongs
employment of employees (Redington, 2007). A Study by Kalliath and Bek (2009) shows trends
of an increased number of job applicants seeking out organizations that encourage employee
input, growth, education, and teamwork, beyond the traditional compensation/benefit packages
offered by many employers.
2.4.3 Job Content
According to Woodruffe (2005) employees in addition to a strong need to deliver excellent
results, also have a desire to take up challenges that are relevant to the organization. However,
when their work mainly consists of the routine-based tasks, the likelihood of de-motivation and
turnover is relatively high. By thinking carefully about which tasks to include in which jobs,
organizations can affect their retention rates (Steel et al, 2002). Buttler and Waldrop (2001) have
termed this as the art of matching people to jobs that allow achievement of their interests. There
is increasing evidence that job content is an important dimension affecting employee outcomes
such as commitment, performance and organizational citizenship behaviour (Horwitz et al.
2003).
29
Steel et al. (2002) suggests that initiatives aimed at enhancing the intrinsic qualities of the job
were the second most popular type of retention practices reported by HR managers and that for
many employees, their jobs are their ‘identities’ of who they are therefore, they have a need to
use their minds and make a significant contribution and if they cannot achieve this through the
framework of the current job, they will find one where they can.
2.4.4 Training and Development
Pare and Tremblay (2000) opine that employees will willingly remain in organizations where
work is stimulating and challenging, chances for advancement are high and if they feel
reasonably well paid. In addition, Walsh and Taylor (2007) found out that although it was
important to obtain a good salary and benefits package, the decision of employees to remain with
an organization mainly depends on the extent to which their organizations respond to their
professional growth. Also, those employees who are committed to performing challenging work
are most likely to remain with their organizations (Walsh & Taylor, 2007, p. 147)
According to Landsman (2004), he suggested that training is a valuable activity for enhancing
skills and improving staff performance and that training can address some of the factors
contributing to staff retention, such as perceived support from the supervisor, the agency and
community. Training can define roles more clearly to employees thereby minimizing job stress.
Organizations with sufficient training opportunities should thus have a higher retention rate.
30
2.5 Research Gaps
The Following research gaps were identified after an extensive literature review in the field of
employee retention, specifically in the context of public organizations, and more particularly in
the Kenyan context: Most of the studies on employee turnover and retention have been
undertaken in the context of business organizations. There is not much research work carried out
in the context of public organizations. In addition, practitioners agree that there is a growing
problem related to employee retention in the public sector and therefore this area merits serious
research attention. (Kim, W., Leong, J. and Lee, Y. 2005))
Apart from a few studies mentioned above, most studies on employee retention have been
carried out in the western context and not the Kenyan context. The researcher thus identified this
as a gap to be filled by conducting such a study.
31
CHAPTER THREE
METHODOLOGY
3.1 Research Design
Descriptive design was ideal for this study since it was carried out within a limited geographical
scope and hence the ease and simplicity of conducting the study. According to Mugenda and
Mugenda (2003), a descriptive research design determines and reports the way things are. Also
Creswell (2003) observed that a descriptive research design is used when data is collected with
an aim of describing persons, organizations, settings or phenomena.
In agreement with Kothari (2008), the design will also provide enough protection against
biasness and will also help maximize reliability. In accord with Mugenda and Mugenda (2003),
the researcher considered cross-sectional approach because the study was undertaken at a
particular point in time. This approach is appropriate because it allows analysis of the relations of
variables under study using linear regression. It also allows flexibility in terms of resources as
well as avoiding the hardship of hunting for respondents more than once to produce high
response rate. Kothari (2008).
3.2 Target Population
The study population will include 205 staffs working at the Supreme Court of Kenya (The
Judiciary) the 205 employees was from the following departments; HR department, Finance
department, Security section, Mails section, Transport section, Hospitality section and Registry
section and Judges Chambers. Therefore 205 people were involved as the study population.
32
3.3 Sample Design
Mugenda and Mugenda (2003), define a sample as the smaller group obtained from the
accessible population. Ngechu (2004) underscores the importance of selecting a representative
sample through making a sampling frame. For this study, the researcher will select a sample of
10% of employees in all departments in The Supreme Court of Kenya. The departments were
selected using stratified sampling method.
Stratification was by functional units. Each stratum will contribute 10% of its total number of
employees to the overall sample. The final respondents were picked randomly from each
stratum. These departments are preferred because they cut across several units in the judiciary
hence they are representative of all departments in the Judiciary.
Department Total Sample Proportion Sample size

Human Resources 60 0.1 6
Finance 50 0.1 5
Security 30 0.1 3
Mails 30 0.1 3
Transport 20 0.1 2
Hospitality 40 0.1 4
Registry 60 0.1 6
Judges Chambers 5 0.1 1
TOTAL 205 30
Table 3.1 Sample Size
3.4 Data collection Instrument
Rooney (2004) defined data as “information, often in the form of facts or figures obtained from
experiments or surveys, used as a basis for making calculations or drawing conclusions”. The
main data collection instrument to be used in this study was both open and closed ended
33
questionnaires. Open-ended questionnaires allow respondents to fully express themselves but at
the risk of getting unclean data that makes analysis difficult (Giorgetti et al., 2002).
Questionnaires were used for the purpose of collecting primary data. Additionally, the
questionnaires was used for the following reasons: its ability of reaching a large number of
respondents within a short time, ability to allow the respondents adequate time to respond to the
questions, a sense of security (confidentiality) to the respondent and its objective thus no bias
resulting from the personal characteristics (as in an interview) (Owens, 2002).
The questionnaire was divided into sections organized according to the major research
objectives.(Giorgetti et al, 2002)
3.5 Data Collection Procedure
Prior to the commencement of data collection, the researcher will obtain all the necessary
documents, including an introduction letter from the Murang’a University College- Department
of Human Resource Management. The audience at the Supreme Court of Kenya will also be
sought from the registrar of the court and thereafter from section heads by clarifying to them the
purpose of the study. Upon getting clearance, the researcher in person will distribute the
questionnaires to the sampled individuals who in most occasions were present at their work
stations.
Use of questionnaires was meant to ease the process of data collection as all the selected
respondents were reached in time. During the distribution of the instruments, the purpose of the
research was explained.
3.6 Validity and Reliability of Research Instruments
3.6.1 Validity
34
Validity refers to the degree to which evidence and theory support the interpretation of test
scores entailed by use of tests. The validity of an instrument is the extent to which it does
measure what it is supposed to measure. According to Mugenda and Mugenda (2004), Validity is
the accuracy and meaningfulness of inferences, which are based on the research results. It is the
degree to which results obtained from the analysis of the data actually represent the variables of
the study. The research instrument was validated in terms of content and face validity. The
content related technique measures the degree to which the question items reflect the specific
scope of the study.
Therefore to for validity purpose, the questionnaire was sectioned into several portions.
Questions will also be both open and closed ended to facilitate the collection of qualitative and
quantitative data.
3.6.2 Reliability
Reliability is the ability of a research instrument to consistently measure characteristics of
interest over time. It is the degree to which a research instrument yields consistent results or data
after repeated trials. If a researcher administers a test to a subject twice and gets the same score
on the second administration as the first test, then there is reliability of the instrument (Mugenda
and Mugenda, 2004).
Reliability is concerned with consistency, dependability or stability of a test (Nachmias and
Nachmias, 2002). The researcher will measure the reliability of the questionnaire to determine its
consistency in testing what they are intended to measure.
35
The test re-test technique was used to estimate the reliability of the instruments. This will involve
administering the same test twice to the same group of respondents who have been identified for
this purpose.
3.7 Data Analysis Procedure
Both quantitative and qualitative approaches were used for data analysis. The data were
organized into tables in the form of descriptive statistics such as frequency and percentages so as
to present the quantitative data in form of tables and graphs based on the major research
questions.
The qualitative data generated from open ended questions were categorized in themes in
accordance with research objectives and reported in narrative form along with quantitative
presentation. The qualitative data was used to reinforce the quantitative data.
3.8 Ethical Considerations in Research Participants
The researcher will explain to the respondents about the research and that the study was for
academic purposes only. It was made clear that participation was voluntary and that the
respondents were free to decline or withdraw at any time during the research period.
Respondents will not coerce anyone into participating in the study. The participants will have an
informed consent to make the choice whether to participate or not. They were guaranteed that
their privacy was protected by strict standards of anonymity.
CHAPTER FOUR
4.1 Introduction
This chapter presents an analysis of the data on factors that affect employee retention at The
Supreme Court of Kenya. The study targeted 50 respondents out of which 30 of them gave their
36
responses thus leading to a response rate of 86.7%. This rate was quite remarkable and
represented the population. The rate also conforms to Mugenda and Mugenda (2004) stand that a
50% response rate is enough for analyzing and reporting as a rate of 60% is considered good
while that which is above 70% is considered excellent.
4.2 Background Information
4.2.1 Respondents Distribution by Gender
Gender Frequency Percentage (%)

Male 19 63.3
Female 11 36.7
Totals 30 100
Table 4.1 shows the respondents’ distribution by gender
Respondent Distribution by Gender

70.00%
60.00%
50.00%
Percentage
40.00%
30.00%
20.00%
10.00%
0.00%
Male Female
Figure 4.1 shows the respondents’ distribution by gender
37
From table 4.1 and Figure 4.1, it is clear that the respondents were both male and female. The
male constituted 63.3% of the total respondents while female formed 36.7% of the total
respondents.
4.2.2 Respondents Distribution by the number of years served in the supreme court of
Kenya
Number of Years Served Frequency Percentage (%)

1-5 Years 1 3.3
6-10 Years 3 10
11-15 Years 6 20
16-20 Years 8 26.7
21 Years and Above 12 40
Total 30 100
Table 4.2: Respondents Distribution by the number of years served
Respondents Distribution by the number of Years Served

45.00%
40.00%
35.00%
30.00%
25.00%
Percentage
20.00%
15.00%
10.00%
5.00%
0.00%
1-5 years 6-10 years 11-15 years 16-20 years 21 years and
above
Figure 4.2: Respondents Distribution by the Number of Years Served
From the findings recorded in table 4.2 and shown in figure 4.2, we see that 40% of the
respondents had worked in the Supreme Court of Kenya for 21 years and above. 26.7% had
38
served for between 16 to 20 years. It is also clear that 20% of the respondents had served for 11-
15 years. On the other hand, 10% of the respondents had worked for 6 to 10 years while only
3.3% had been within the past 5 years. This generally means that the respondents had worked
long enough in The Supreme Court of Kenya. This thus means that the respondents are well
conversant with the issues at their place of work. This is a good justification that the information
provided in this study about the factors affecting employee retention in The Supreme Court of
Kenya is reliable.
4.2.3 Respondents Distribution by the Level of Education
Level of Education Frequency Percentage (%)

Diploma 1 3.3
Degree 6 20.0
Masters 20 66.7
PhD 3 10
Total 30 100
Table 4.3: Respondents distribution by the level of education
Respondents Distribution by the Level of Education

80.00%
70.00%
60.00%
50.00%
Percentage
40.00%
30.00%
20.00%
10.00%
0.00%
Diploma Degree Masters PhD
39
Figure 4.3 Respondents Distribution by the Level of Education
From table 4.3 and figure 4.3, it is clear that the majority (66.7%) of the respondents had pursued
a master’s degree in their respective fields. At least 20% had pursued a degree in the respective
areas. In addition, it is only a small portion (3.3%) of the respondents that had reached the
diploma level. There was a tangible (10%) representation of those who had pursued a PhD. This
thus supports the reliability of the gathered information.
4.2.4 Respondents Distribution by the Number of Years served as Head of Department
Number Years Frequency Percentage (%)

1-5 Years 8 26.7
6-10 Years 11 36.7
11-15 Years 10 33.3
16-20 Years 1 3.3
Total 30 100
Table 4.4: Respondents Distribution by the Number of Years Served as HODs
40
Respondents Distribution by the number of Years Served as HOD
40.00%
35.00%
30.00%
Percentage
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
1 - 5 Years 6 - 10 Years 11 - 15 Years 16 - 20 Years
Figure 4.4 Respondents Distribution by the Number of Years Served as HOD.
From table and figure 4.4 above, the majority (36.7%) of the respondents had worked as the head
of various departments for about 6 to 10 years. 33.3% had served for 11 to 15 years while 26.7%
had served for less than 5 years. Only a smaller percentage (3.3 %) of the respondents had served
for a period of more than 16 years but less than 21 years.
4.3 FACTORS AFFECTING EMPLOYEE RETENTION

The factors affecting employee retention at the Supreme Court of Kenya have been generalized
and conceptualized as;
a) Employee Compensation
b) Employee Effort Recognition
c) Job content
d) Training and Career Development
41
4.3.1 Employee Compensation
The study sought to establish the respondents’ level of agreement with whether employee
compensation packages affect the possibility of an employee to stay with or leave an
organization.
Opinion Frequency Percentage (%)

Strongly Agree 9 30
Agree 17 56.7
Average 2 6.7
Disagree 1 3.3
Strongly Disagree 1 3.3
Total 30 100
Table 4.5 How Employee Compensation affects Retention
42
Employee Compensation affects Employee Retention
60%
50%
40%
30%
20%
10%
0%
strongly Agree Agree Average Disagree Strongly Disagree
Figure 4.5: showing the opinion on whether compensation affects retention.
From the results of both the table and figure 4.5 above, 56.7 % of the respondents agreed that
employee compensation does affect employee retention. 30% strongly agreed while 6.7% were
not sure whether employee compensation affects employee retention. A total of 6.6% disagreed.
4.3.2 Employee Effort Recognition

The respondents were asked to rate the extent to which skill recognition affects the decision of an
employee to stay with or leave an organization.

Strongly Agree 6 20
Agree 14 46.7
Average 4 13.3
Disagree 4 13.3
Total 30 100
Table 4.6: Employee Skill Recognition and Retention
43
Skill Recognition
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Strongly Agree Agree Average Disagree Strongly Disagree
Figure 4.6: Employee Skill Recognition and Retention
Table 4.6 and figure 4.6 show that a 46.7% of the respondents agreed that indeed employee
recognition affects employee retention. 20% of the respondents had a strong agreement that
employee skill recognition affects retention. Those who were not sure recorded a tie with those
who disagreed at 13.3%. 6.7% of the respondents strongly disagreed on the other hand.
4.3.3 Employee Training and Development

The study also aimed at establishing the respondent’s opinion on whether employee training and
development can affect retention. The respondents were asked to rate the extent to which training
and development programs may affect employee retention.

Strongly Agree 18 60
Agree 5 16.7
Average 4 13.3
Disagree 2 6.7
44
Total 30 100
Table 4.7: opinion whether employee training and development affect employee retention
Employee Training and Development

70%
60%
50%
40%
30%
20%
10%
0%
Figure 4.7: Employee Training and Development and whether it affects employee retention
From the result of table 4.7 and figure 4.7, it is evident that the majority (60%) strongly agreed
that training and development programs may determine whether an employee will stay with an
organization or not. 16.7% agreed with this while 13.3% were no not sure about whether it does
affect employee retention or not. 6.7% and 3.3% of the respondents disagreed and strongly
disagreed respectively. They defended their opinions saying that training and development does
not affect employee retention.
45
4.3.4 Job Content
The respondents were required to indicate their level of agreement or disagreement with whether
job content affects the decision of an individual to stay with an organization or leave.

Strongly Agree 16 53.3
Agree 4 13.3
Average 5 16.7
Disagree 3 10
Total 30 100
Table 4.8: Opinion on Job contents and its influence on Employee Retention
Job Content
60.00%
50.00%
40.00%
Percentage
30.00%
20.00%
10.00%
0.00%
Figure 4.8: Respondents’ opinion on Job Contents and Employee Retention.
From table 4.8 and as represented in figure 4.8, 53.3% of the respondents strongly agreed that
job content affects employee retention. 13.3% just agreed that indeed job content affects
46
employee retention. 16.7% were not sure whether job contents affect employee retention or not.
10% and 6.7% disagreed and totally disagreed respectively.
47
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
The purpose of this study was reflected in its objectives which include;
a) To determine whether compensation affects employee retention in the public
organizations in Kenya
b) To determine whether employee effort recognition influences employee retention in the
public organizations in Kenya
c) To examine whether job content affects the level of employee retention in the public
organizations in Kenya
d) To determine the extent to which employee training and development affects employee
retention in the Supreme Court of Kenya
The study was to identify the factors affecting employee retention at public organizations in
Kenya; a case of The Supreme Court of Kenya. The summary of findings, conclusion and
recommendations are presented below.
5.2 Summary of Findings

It was established that a majority of the respondents had served in the Supreme Court of Kenya
for 21 years and above as indicated by the 40%, and that most of the respondents had been
serving as heads of departments for 6 to 10 years as shown by 37.6%. This provides credibility
and reliability of the findings of the study.
48
With regard to employee compensation, 56.7% of the respondents agreed that it really
guaranteed job security. 30% of the total respondents strongly agreed that indeed that
compensation packages greatly influenced retention rates. However, 6.7% of the respondents
were not sure whether compensation affects employee retention. 6.6% of the total respondents
agreed and strongly disagreed with the assumption that compensation does affect employee
retention.
Looking at the issue of employee effort recognition, 46.7% of the respondents agreed that
employee skill/effort recognition impacted on retention. An average of 20% strongly agreed that
skill recognition supports employee retention. There was a balance between those who were not
sure and those disagreed both registering 13.3 % of the total respondents. However, 6.7% totally
disagreed with the statement that employee effort recognition guarantees them job security.
On the issue of job content, it was clear that 53.3% of the respondents strongly agreed that the
nature and amount of work greatly impacted the decision of an employee of whether to stay or
leave an organization. 13.3% on the other hand agreed that job content affects employee
retention. An average of 16.7% was not sure whether job content does affect employee retention.
On the lower side, 6.7%strongly disagreed while just 10% partially disagreed with the hypothesis
that job content affects employee retention.
With regard to employee training and development, the majority (60%) agreed that a well trained
employee is more likely to stay with an organization than an untrained one. 16.7% also agreed
that employee training and development is important.
49
From table 4.5, it is evident that a whole 13.3% were not sure whether employee training and
development affects retention.6.7 % disagreed this while only 3.3% strongly objected that
employee training and development affects retention.
5.3 Discussion of the Findings

From the findings of the study, it was found out that employee retention was affected by the
following; training and development, compensation, job content and employee skill recognition.
These findings are in line with those of Lathan (2009) that if training is relevant and
implemented, it should bring into employees new knowledge and skills. It should also help meet
both employee and organizational goals. For an individual employee if training and development
is provided, , then there is no doubt that the desired outcome was achieved. From the finding,
training and opportunities for career advancement contribute to retention of employees in an
organization.
The study also found out that most employees were satisfied with the compensation in terms of
rewards and benefits. This means that they were comparable with what was being offered in the
market. According to Reville (2003), benefits such as pension, life and health insurance are
important pay elements in many large firms. They are meant to improve employee commitment
to an organization and hence employee retention.
The study also found out that there was reasonable job content given to employees in The
Supreme Court of Kenya. This was tied with active skill recognition that led to a motivated
workforce. The attitude of the workers on their job was regularly monitored through performance
management.
50
Gruman and Saks (2009) argue that in order to enhance an organization’s ability to survive in the
turbulent environment, performance management is important. The employees were motivated to
feel part of the organization and that job security level had an influence on employee retention.
5.4 Implications of the findings

The study found out that employee retention was greatly influenced by training and
development, nature and amount of work, skill recognition and compensation. This therefore
implies that for many organizations including public ones, to promote employee retention, it is
important to find ways of empowering their employees through active and regular training and
development.
In addition, public and private organizations alike need to reward their employees competitively.
They also need to ensure performance management. Job design is also important for the
combination of these will promote employee commitment in the organization. This therefore
means that employees have to be treated with value so as to remain with an organization value
creation.
5.5 Conclusion
The study concluded that employee retention in public organizations is influenced by employee
training and development, compensation plans, job content and employee skill recognition. In
addition to this, the study also found out that training and development was in greater use in
public organizations. This was mainly done through sponsored training and development
programs.
51
The study also concluded that job content to some extent does not match with the amount of
rewards employees receive especially in the public organizations. However, the study concluded
that he available benefits were attractive and congruent with those offered in the market. Thus,
generally, training and development takes the lead in retaining employees. It is closely followed
by compensation, job content and employee skill recognition.
5.6 Recommendations
The study recommended that public organizations should create policies to ensure that working
environments protect and promote employee retention. The policy making function should
develop guidelines that allow implementation of the retention strategies of an organization.
The study also established that employees working in public organizations have compensation
that is way much below the amount of work that they do. Administrators should thus ensure that
their employees are rewarded according and give reasonable amounts of work.
5.7 Suggestions for further studies

This study majored in establishing the factors affecting employee retention in Kenyan Public
Organizations; a case of The Supreme Court of Kenya. This study therefore recommends that
another study be done to establish the factors influencing employee retention in private
organizations.
Secondly, further studies should be conducted to identify how retention factors compare and
contrast between public and private organizations.
52
REFERENCES
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Management, 29(3), 333–343.
Bontis and Stovel (2002), Managing two fits of strategic human resource management, The
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Boxall et al (2003). Firm Resources and Sustained Competitive Advantage, Journal of

Management, 17, 99- 120.
Barney, J.B., and Wright, P.M. (2009), On becoming a strategic partner: the role of human
resources in gaining competitive advantage, Human Resource Management, Vol. 37
pp.31-46.
Becker, B., and Huselid, M. (2008), An interview with Mike Losey, Tony Rucci, and Dave
Ulrich: three experts respond to HRMJ's special issue on HR strategy in five leading
firms, Human Resource Management, Vol. 38 No.4, pp.353-65.
Bhatnagar, J. (2007), Talent management strategy of employee engagement of Indian ITES

employees: key to retention, Employee Relations, Vol. 29 No.6, pp.640-63
Bindra, Sunny [online]. Available at http://www.sunwords.com/2012/05/13/we-lost-adecade- in-

reforming-kenyas-state-corporations [Accessed 28th August 2013]
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sector organizations. The International Journal of Public Sector Management, 13 (5),
417-446.
Boles, J., Lawrence, and E., Johnson, J. (2012), Reducing employee turnover through the use of
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pp.19-30.
Braunschweig, C. (2000), VCs begin to fund Monster Competition. Private Equity
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44 No.2, pp.42-6.
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No.11, pp.6.
Dipietro R. B. and Condly (2007), Employee Turnover in the Hospitality Industry: An Analysis
Based on the CANE Model of Motivation. Journal of Human Resources in Hospitality
& Tourism, 01; 6:1-22.
Dixit, A. (2002), Incentives and organisations in the public sector: An interpretive review,
Journal of Human Resources, 37, (4), 696-727.
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Fortino, P. and Ninemeier, J. (2008), Industry in the dark about turnover rate. Lodging,Vol. 22
No.4, pp.25
Hauser, A.H. and Baggett, M. S. (2002), "Workers' Compensation: The Statutory Framework for
Defending a Claim. Trial Advocate Quarterly 21 (fall).
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organizational commitment, and intention of leaving in a casual dining chain restaurant.
International Journal of Hospitality Management, Vol. 24 No.2, pp.171- 93.
Michaels, E., Handfield-Jones, H. and Axelrod, B. (2001), The War For Talent. Harvard
Business School Press, Boston, MA, .
Mugenda, M. and Mugenda, G. (2003), Research Methods, Quantitative and Qualitative

Approaches, Kenya.
Ngechu. M. (2004), Understanding the research process and methods. An introduction. Star
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Reville, R. T., Boden, L. and Biddle, J. (2003), Comparing Compensation Adequacy: Workers'
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54
APPENDIX I
WORK PLAN
TASK SPECIFIC ACTIVITIES TIME FRAME

th
1 Project Writing  Identification and Definition of the 9 January 2016 to
problem 26th February 2016
 Identifying the study objectives\
 Determining the scope of the study
 Literature Review
 Conceptual framework
 Research Methodology
2 Data Collection and  Going to the field 29th February 2016 to
Analysis  Administering Research Instrument 31st March 2016
 Analyzing collected Data

3 Presentation of findings  Interpreting the Findings and 1st April 2016 to 14th
drawing conclusions / April 2016
recommendations for further
studies
 Submitting the study report
55
APPENDIX II
THE BUDGET
The following is the Budget for the intended study;
ITEM COST PER DAY NUMBER OF TOTAL
DAYS
1 Transport 600 20 12,000
2 Writing 200 20 4,000
Material
3 Photocopyin 300 10 3,000
g
4 Airtime 200 30 6,000
5 Typing and 500 10 5,000
Printing
6 Personal 500 20 10,000
needs
56
APPENDIX THREE
QUESTIONNAIRE TO COLLECT DATA ON THE FACTORS AFFECTING
EMPLOYEE RETENTION
INSTRUCTIONS
a) Answer the Questions by ticking (√) in the boxes provided.
SECTION ONE: BACKGROUND INFORMATION
1. What is your gender?
Male
Female
2. For how long have you served in the Supreme Court of Kenya?
1 to 5 years
6 to 10 years
11 to15 years
16 to 20 years
21 years and above
3. What is your education level?.
Certificate
Diploma
Graduate
Others
4. For how long have you served as a Head of Department?
1 to 5 years
57
6 to 10 years
11 to15 years
16 to 20 years
21 years and above
SECTION TWO: FACTORS AFFECTING EMPLOYEE RETENTION
1). Employee compensation packages strongly affect whether an employee stays with an
organization or not.
a) Strongly Agree
b) Agree
c) Average
d) Disagree
e) Strongly Disagree
2. Does your company pay more attention to incentives and perks offered to you?
a) Yes b) No
3. Have you ever been encouraged to participate in training to improve your skills and
Competencies?
a) Yes b) No
58
4. Do you get the recognition that you deserve for your performance?
a) Yes b) No
5. What is your opinion regarding the work load?
Very high
High
Average
Low
Very low
6. Would you like to plan your further career in this organization?
a) Yes b) No
7. Have you ever suggested/will you suggest your friends/relatives to join this organization?
a) Yes b) No
If yes, Please explain precisely.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
8. Do you think that the implementation of three R’s (recognition, reward, respect) will increase
employee retention?
a) Never b) sometimes c) most of the times d) all the time
9. Does your management come forward to support you when you are facing a critical situation?
59
a) Strongly Disagree b) Disagree c) Neutral d) Agree d) Strongly Agree
10. Work-life balance is supported by this organization.
11. Your training program is always linked with your career development/growth.
12. The organization treats you in a respectful way.
13. There are no barriers of communication while you are communicating with your
superior
14. Do you agree that you are rewarded periodically for your performance?
15. Do you agree that employee retention plays a vital role in productivity?
16. Express your level of satisfaction regarding the welfare measures provided by
the Company.
60
a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied e) Highly Satisfied
17. What is your opinion about major reasons for employees leaving the organization? (You can
name more than one)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
18. Have you ever worked with any other organization apart from this company?
Yes [ ] No [ ]
If yes, for what reason did you shift to this company?
THANK YOU.
61

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FACTORS AFFECTING EMPLOYEE RETENTION IN PUBLIC ORGANIZATIONS IN

KENYA: A CASE OF THE SUPREME COURT OF KENYA

MARTIN RODGERS ANANGWE

A research project submitted to the Department of Human Resource Management, School of

Bachelor of Science in Human Resource Management. - Murang’a University College

for a degree or any examination purpose in any other University

Signature Date

Human Resource Management- Murang’a University College.

Signature Date

Table 2.1: Overview of Job Embeddedness Theory

Table 2.2: Herzberg’s Hygiene Factors and Motivators

Table 2.3: Job Embeddedness Theory Overview

Table 3.1: Sample Size

Table 4.1: Respondents Distribution by Gender

Table 4.2: Respondent Distribution by number of years served

Table 4.3: Respondents Distribution by the level of education

Table 4.4: Respondents Distribution by the number of years served as HODs

Table 4.5: Employee Compensation

Table 4.6: Employee Skill Recognition

Table 4.7: Employee Training and Development

Table 4.8: Job Content

Figure 2.1: Maslow’s Hierarchy of needs

Figure 2.2: The Conceptual Framework

Figure 4.1: Respondents Distribution by Gender

Figure 4.2: Respondent Distribution by number of years served

Figure 4.3: Respondents Distribution by the level of education

Figure 4.4: Respondents Distribution by the number of years served as HODs

Figure 4.5: Employee Compensation

Figure 4.6: Employee Skill Recognition

Figure 4.7: Employee Training and Development

Figure 4.8: Job Content

Appendix I : Work Plan

Appendix III : Questionnaire

Retention of employees is becoming a real challenge in today’s operating environment as

organizations in Kenya. The study adopted a cross-sectional design as it took a representative

frequency distribution, percentages and chart description.

1.1 Background of the Study

1.2 Statement of the Problem

retention of employees is becoming a real challenge in today’s operating environment as

fierce competition (Flippo, 2001).

employee retention in state corporations in Kenya.

indicator for management’s appreciation of employees contribution and abilities. Muiruri

factors influencing employee retention in the Public Organizations in Kenya?

1.3 Objectives of the Study

1.3.1 General Objective of the Study

retention at the Supreme Court of Kenya.

1.3.2 Specific Objectives of the Study

1. To determine whether compensation affects employee retention in the

public organizations in Kenya

retention in the public organizations in Kenya

3. To examine whether job content affects the level of employee retention in

the public organizations in Kenya

4. To determine the extent to which employee training and development

affects employee retention in the Supreme Court of Kenya

1.4 Research Questions

Court of Kenya intended to answer the following questions;

Supreme Court of Kenya?

Supreme Court of Kenya?

1.5 Justification of the Study

1.6 Scope of the Study

identify the core driving factors affecting employee retention.

2.2 Theoretical Literature Review

and employee retention.