The Challenges of Employee Retention in

THE CHALLENGES OF EMPLOYEE RETENTION IN INSTITUTIONS OF
HIGHER LEARNING
(A Survey of the Institute of Advanced Technology Branches, Nairobi)
BY:
WANGATIA MANYAH VINCENZIO
DHRM / NRB/ 37094
Research project submitted in partial fulfillment of the requirement for the award
of the Diploma in Human Resource Management to The Kenya Institute of
Management
JULY 2010
DECLARATION
This research study is my original work and has not been presented to any other
examination body. No part of this research should be reproduced without my consent or
that of The Kenya Institute of Management.
Name Sign Date
DECLARATION BY THE SUPERVISOR

This work has been submitted for defense with my approval as The Kenya Institute of
Management Supervisor.
Name Sign Date
For and on behalf of The Kenya Institute of Management
Name Sign Date
Branch Manager
ii
ACKNOWLEDGEMENT
I am grateful to the Kenya Institute of Management (KIM) for the provision of the
necessary facilities I needed for this project research. I acknowledge the close assistance
and sacrifice accorded to me by my supervisor M/S Jane Kariuki in guiding me
throughout my project research process and report write up.
I greatly appreciate my fellow students for their moral support and encouragement
at different levels as we went through this course.
Special thanks go to my beloved wife Elizabeth for her moral support,

understanding and commitment towards our family during the entire period of my
studies.
Thank you all and God bless you for your sacrificial contribution to my success.
iii
DEDICATION
This work is dedicated to my wife Mrs. Elizabeth Kahayi Wangatia.
iv
ABSTRACT
The purpose of the study was to establish the challenges faced in employee
retention at IAT. The research sought to: - establish how organization culture, Training,
compensation, recruitment contribute to employee retention.
The study results will be helpful to human resource managers in formulating

effective employee retention techniques. The findings will be useful to the policy makers
at the Ministry of Labour by providing an analysis on the factors that contribute to
employee retention and propose possible policy interventions. The study will contribute
to literature in the field of employee retention for reference by future researchers.
Descriptive methodology was adopted with both quantitative and qualitative
approaches. Stratified sampling technique was used to come up with seven homogeneous
departmental strata while simple random sampling was applied to each stratum to come
up with a sample size of 43. In collecting data, the study purposively selected seven
managers one from each branch who were interviewed using an interview schedule and
questionnaires self administered to the rest of the sample size.
The study found that the organization experienced an average of 9 % employee
loss annually. 55 % of respondents were between ages 28 to 37 years. The organization
exercises a power culture that emphasizes human inequalities. 71 % of employees had
attended training programs but only 45 % felt motivated after training. 51.6 % of
respondents rated training programs as average. 69 % rated compensation scheme as
below average while 60 % rated recruitment scheme as average. 72 % of employees who
leave the organization are between the age of 28 and 37 years.
The researcher recommends adoption of an open and friendly organizational
culture to break the high “power distance”, implementation of a well planned Training
program, a good succession plan and employee retention programs to deal with possible
crisis situations, enforcement of guidelines and laws governing compensation of all job
groups in both the public and private sectors by government, as well as fair and just
recruitment programs.
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TABLE OF CONTENTS
DECLARATION............................................................................................................ ii
DEDICATION ...............................................................................................................iv
ACKNOWLEDGEMENT ............................................................................................ iiii
ABSTRACT ....................................................................................................................v
TABLE OF CONTENTS................................................................................................vi
LIST OF TABLES ..................................................................................................... viiii
LIST OF FIGURES ........................................................................................................ix
OPERATIONAL DEFINITION OF TERMS...................................................................x
ACRONYMS ............................................................................................................... xii
CHAPTER ONE
1.0 INTRODUCTION ...................................................................................................1
1.1 Background of the Study ........................................................................................1
1.2 Statement of the Problem .......................................................................................5
1.3 Research Objectives ...............................................................................................6
1.4 Research Questions ................................................................................................6
1.5 Significance of the Study .......................................................................................6
1.6 Limitations of the Study .........................................................................................7
1.7 Delimitation of the Study .......................................................................................7
1.8 Scope of the Study .................................................................................................8
1.9 Conceptual Framework of the Study ......................................................................8
CHAPTER TWO
2.0 LITERATURE REVIEW ...................................................................................... 11
2.1 Introduction .........................................................................................................11
2.3 Factors affecting Employee Retention ..................................................................13
2.4 Critical Review ....................................................................................................25
2.5 Summary .............................................................................................................26
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY ................................................. 27
3.1 Introduction .........................................................................................................27
3.2 Research Design ..................................................................................................27
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3.3 Target Population.................................................................................................27
3.4 Sampling Design and Procedure...........................................................................28
3.7 Data Analysis .......................................................................................................29
CHAPTER FOUR
4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION ................... 30
4.1 Introduction .........................................................................................................30
4.2 Quantitative Data Analysis ...................................................................................30
4.3 Qualitative Data Analysis .....................................................................................42
CHAPTER FIVE
5.0 SUMMARY OF MAJOR FINDINGS, CONCLUSIONS,
RECOMMENDATIONS AND SUGGESTION FOR FURTHER STUDY………... 45
5.1 Introduction .........................................................................................................45
5.2 Summary of Major Findings ................................................................................45
5.3 Answers to research questions ..............................................................................46
5.4 Conclusions .........................................................................................................48
5.4 Recommendations ................................................................................................50
5.5 Suggestion for Further Study................................................................................51
REFERENCES ............................................................................................................ 52
APPENDIX
Questionnaire ................................................................................................................ 54
vii
LIST OF TABLES
Table 3.1: Target population by branch……………………….…..………………..27
Table 3.2: Sample Size……………………….…..……………………….…………28
Table 4.1: Response Rate ……………………….…..……………………….……...30
Table 4.2: The distribution of the sample size by gender……………………….…..31
Table 4.3: Age Distribution……………………….…..……………………….……32
Table 4.4: Work Experience……………………….…..…………………………....33
Table 4.5: Employee distribution in departments by branch………………….…….34
Table 4.6: Employee loss……………………….…..……………………….………35
Table 4.7 Organizational Culture……………………….…..………………………36
Table 4.8: Respondents who attended training programs……………………….…..37
Table 4.9: Motivation after attending Training programs……………………….…..38
Table 4.10: Respondents feeling on relevance of Training attended…………………38
Table 4.11 Rating for Compensation……………………….…..……………………39
Table 4.12 Rating for Recruitment……………………….…..……………………...40
Table 4.13: Percentage employee lost by age……………………….…..……………41
Table 7.1: Number of employees lost annually from the organization……………...55
viii
LIST OF FIGURES
Figure 1.1: IAT organization structure…………………………………..………….....5
Figure 1.2: Conceptual framework………………………………………………….....8
Figure 4.1: Response Rate……………………………………………………………31
Figure 4.2: Gender Distribution……………………………………………………...32
Figure 4.3: Respondents’ age Distribution……………………….……………..........33
Figure 4.4: Employees work experience……………………………………………..34
Figure 4.5: Employee population by branch..………………………………………..35
Figure 4.6: Percentage Employee loss by departments……………….…………......36
Figure 4.7: Responses on Organization Culture……………………………………..37
Figure 4.8: Training and its effects on employees…………………………………...38
Figure 4.9: Rating on Relevance of Training………………………………………...39
Figure 4.10: Rating on Compensation………………………………………………....40
Figure 4.11: Rating on Recruitment….………………………………………………..41
Figure 4.12: Percentage Employees loss by age………………………………………42
ix
OPERATIONAL DEFINITION OF TERMS
Challenge a demanding or stimulating situation, a test of ones’ abilities or

resources in a demanding but stimulating undertaking
Education training
Talent an endowment or quality in some field or activity; It is part-born,

part-learned; either way takes determination and effort; employee.
Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the
completion of the project.
Technique a procedure used to accomplish a specific activity or task.
Training the planned process of facilitating learning in order to become

effective and equipped for handling more challenging tasks in
future
Compensation Basic pay, salary, benefits, services, recognition
x
ACRONYMS
AIR American Institute for Research
EBC*L European Business License
ETC et cetera
IAT Institute of Advanced Technology
CompTIA Computer Technicians’ Industry Association
ICDL International Computer Driving License
IRD Instructional Research Design
ISO International Standards Organization
IT Information Technology
HRM Human Resource Management
KIM Kenya Institute of Management
MCSE Microsoft certified Systems Engineer
MCPs Microsoft Certified Professionals
MCITP Microsoft Certified IT Professional
MOL Management of Learning
NCC National Computing Centre
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CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study

Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of the
project. This process is beneficial for the organization as well as the employee.
Employees may have job opportunities at hand and when they feel dissatisfied with the
current employer or the job, they switch over to the next job. It is therefore the
responsibility of the employer to retain their best employees because if they don’t, they
would be left with no good employees (http://retention.naukrihub.com/retention.html).
One of the greatest challenges facing companies today is retaining top talent. The
yearly expense to an organization of replacing an employee - including separation,
replacement, training and lost performance costs- can be as much as that employee’s
salary for a year. Turnover also erodes morale among those who stay and harms customer
retention (American Institute for Research, 2009)
According to the American Institute for research (AIR, 2009) reasons for turnover
vary by industry and profession. They include multiple factors such as; Compensation
and benefits, Supervisor - subordinate relations, Organizational culture, Two-way
communication, corporate identity/ prestige, and Working conditions. These factors may
play a role in determining employee retention, but the relative importance of each
depends upon the organization. AIR applies several instruments, including individual
interviews, focus groups, surveys, and benchmarking, for each unique enterprise to offer
the most comprehensive solution to their clients’ retention needs giving solutions or
suggesting services provided by their strategic partners to achieve reduction in turnover
and a stronger, more satisfied workforce.
Organizations can do little to manage turnover unless there is enough
understanding of the talent they have at hand. Most commentators recommend exit
interviews to collect information about reasons for leavers resignations, but the problem
is whether the individual will feel secure to tell the truth and will depend on the culture of
1
the organization, the specific reasons for leaving and the support that the individual will
need from the organization in the future in form of references (Torrington, Hall & Taylor,
2005).
Despite the disadvantages, exit interviews may be helpful if handled sensitively
and confidentially perhaps by the Human resources department rather than the line
managers. Analyses of turnover rates between different departments and different job
groups may also shed light on causes of turnover. Attitude surveys can also provide
relevant information (Torrington et. al., 2005).
According to Torrington (2005) employees leave jobs for a variety of reasons.
The Outside factors constitute reasons not related to their work for example a person
moving away when a spouse or when partner is relocated. Others include the wish to
fulfill a long-term ambition to travel, pressures associated with juggling the needs of
work, family and illness.
To some extent such turnover is unavoidable. Reduction can be through provision
of career breaks, forms of flexible working and / or childcare facilities. Functional
turnover include resignations welcomed by both employers and employees alike. They
may stem from an individuals poor performance or failure to fit in comfortably with the
organizational or departmental culture.
The main solution to reduce this turnover lies in improving recruitment
procedures so that fewer people in the category are appointed in the first place. However
some poorly engineered change management schemes are to blame especially where they
result in new work pressures or workplace ethics. Push factors result into turnover due to
dissatisfaction with work or organization. This may be due to insufficient development
opportunities, boredom, ineffective supervision, poor levels of employee involvement
and straight-forward personality clashes. It occurs due to absence of mechanisms for
picking up signs of dissatisfaction and lack of opportunity for unhappy employees to
voice their concerns.
Pull factors relate to attraction by rival employers offering better salary and
employees leaving in order to improve their living standards. In addition, it encompasses
broader notions of career development, the wish to move into new areas of work with
better opportunities, the chance to work with particular people, and more practical
2
questions such as commuting time. Solutions to this include the need of employers to be
aware of what other employers are offering and ensure that as far as possible this is
matched or offer a broadly comparable package of pay and opportunities. Another
solution is to ensure that the employees appreciate what they are currently being paid
emphasizing on effective communication of any unique selling points and the extent to
which opportunities comparable to those offered are given.
Taylor (2002) and his colleagues conducted interviews and found relatively few
of the employee leaving the job for financial reasons. Indeed, more of the interviewees
took pay cuts in order to move from one job to another than those who moved due pay
rise. Other factors that played a bigger role are; dissatisfaction with work conditions,
especially hours; a perception that they were not being given sufficient career
development opportunities and a bad relationship with their immediate supervisor. This
third reason was the most commonly mentioned in the interviews lending support to the
fact that employees often leave their managers and not their organizations.
It is easy for an organization to get itself into a vicious circle of turnover if it does
not stem a retention problem. Modest turnover rates can rapidly increase as the pressures
on remaining staff become greater, leading to serious operational difficulties. When more
than one established members of a team leave, more is demanded of those left to carry
the burden. First, there may be a sizeable time gap between leavers resigning and new
starters coming into post. There is the period when the new people are learning their jobs,
taking more time to accomplish tasks and needing assistance from the more established
employees (IDS, 2000).
The problem can be compounded with additional pressure placed on managers
and Human resources specialists faced with the need to recruit people quickly, leading to
the selection of the people not wholly suited for the job in question. The result is greater
turnover as people respond by looking for less pressured job opportunities elsewhere.
Problems of this kind were faced by the Japanese engineering Company, Makita. It
addressed the issue by increasing its induction program from half a day to four weeks and
by taking a good deal more care over its recruitment process. The result was a reduction
in turnover levels from 97 per cent in 1997 to 38 per cent in 1999 (IDS, 2000).
3
The key driver for both skills retention and utilization is the presence of a learning
orientation in the organization. People stay in organizations if they feel they are learning
and progressing in their careers. Retention or utilization of skilled people is not
necessarily improved through strategies such as increasing wages, adopting family-
friendly working policies, and the use of non - monetary rewards. These things help make
people feel satisfied, but they are not sufficient to retain skilled people in a tight labour
market. What does facilitate retention is the application of high-performance work
practices such as a commitment to learning, open-mindedness and shared vision. More
widespread adoption of these practices would benefit employers and workers alike.
1.1.1 Profile of IAT

The Institute of Advanced Technology (IAT) is a fully accredited training
institution offering international Microsoft certified Information technology products,
National Computing Centre (NCC) of the United Kingdom courses, Computer
Technicians’ Industry Association (CompTIA) certifications, Cisco systems, European
Business License (EBC*L) certifications, International Computer Driving License
(ICDL) which is an ICDL foundation program and degree programs in collaboration with
St. Pauls’ University and Maseno University in Kenya.
IATs’ Vision is to be recognized as Africa’s center of excellence, role model and
authority in education and training. Its Mission is to delight her customers, enhance
stakeholders’ social and economic well-being and continuously expand her market share
by aligning her training with industry best-practice benchmarks and providing world
class quality education and training through modern and conducive learning
environments.
With over 12,000 students having achieved ICDL certifications and over 10,000
in the other courses, IAT was the first training institution in Africa to attain recognition
for its quality system as set by International Standards Organization (ISO) and has
retained the ISO 9001: 2000 Certification since 1999 (IAT Prospectus, 2009).
IAT has eight (8) training centers with one branch in Mombasa while the remaining
seven are in Nairobi namely: - Loita, Westlands, Yaya, Buruburu, Fedha Towers, Thika
Road and Symphony branches.
4
Figure 1.1: IAT organization structure
East Africa
Manager
Country
Manager
MOL Senior Centre IT Managers Sales HR Director

Manager Accountant Managers Managers
Employees
Source: HR Data (2009)
1.2 Statement of the Problem

All companies, regardless of size, are struggling with employee retention. A
debate raging for many decades has been whether retaining them is more important than
finding a successor to the vacant position (Rajesh, 2007). The yearly expense to an
organization of replacing an employee- including separation, replacement, training and
lost performance costs- can be as much as that employee’s salary for a year. Turnover
also erodes morale among those who stay and harms customer retention (AIR, 2009).
It is easy for an organization to get itself into a vicious circle of turnover if it does
not stem a retention problem. Modest turnover rates can rapidly increase as the pressures
on remaining staff become greater, leading to serious operational difficulties and
challenges. When more than one established members of a team leave, more is demanded
of those left to carry the burden. First, there may be a sizeable time gap between leavers
resigning and new starters coming into post. There is the period when the new people are
5
learning their jobs, taking more time to accomplish tasks and needing assistance from the
more established employees (IDS, 2000).
The problem can be compounded with additional pressure placed on managers
and Human resources specialists faced with the need to recruit people quickly, leading to
the selection of the wrong person for the job. This result in greater turnover as employees
respond by looking for less pressured job opportunities elsewhere, (IDS, 2000). The
study will therefore concentrate on establishing the challenges experienced in employee
retention in higher institutions of learning with specific reference to IAT, Nairobi.
1.3 Research Objectives
1.3.1 General Objective

To establish the challenges faced in employee retention at the Institute of Advanced
Technology.
1.3.2 Specific Objectives

i. To find out how organization culture affects employee retention
ii. To investigate how Training affects employee retention
iii. To establish the effect of compensation on employee retention.
iv. To find out how recruitment contributes to employee retention.
1.4 Research Questions

i. How does organization culture affect employee retention?
ii. How does Training contribute to employee retention?
iii. What is the effect of compensation on employee retention?
iv. How does recruitment contribute to employee retention?
1.5 Significance of the Study
1.5.1 Human Resource Managers

The study results will be helpful to human resource managers in formulating
effective employee retention techniques. It will also form a basis for decision making on
administration policies that can address recruitment, training, compensation and
organization culture challenges.
6
1.5.2 Policy makers
The findings of the study will be useful to the policy makers at the Ministry of
Labour since it will provide an analysis on the factors that contribute to employee
retention in institutions of higher learning. The study will look at factors that lead to
employee turnover and propose possible policy intervention measures.
1.5.3 Researchers
Finally, this study will contribute to literature in the field of employee retention
for reference by future researchers.
1.6 Limitations of the Study
1.6.1 Uncooperative Respondents

There was lack of cooperation by respondents in giving relevant information
fearing that it would be used against them. Due to the nature of work, staffs were busy
attending to respective duties thus lacked time to respond to the questionnaires issued.
1.6.2 Suspicion
There was suspicion among respondents over researchers’ intentions for
collection the data thus a general reluctance in the filling questionnaires.
1.6.3 Biasness
Some respondents gave biased information based on their interpretation of
research questions and while some were denied permission to release information
considered to be confidential to the organization which they felt threatened the
organizations image.
1.7 Delimitation of the Study

1.7.1 Uncooperative Respondents
All respondents were given assurance of confidentiality for information collected
in the survey.
1.7.2 Suspicion
The researcher explained to the respondents that their responses were meant
solely for the purpose of study and would not be used against them. Writing of
respondents’ names was made optional.
7
1.7.3 Biasness
A pre-test of the questionnaire and interview schedule was carried out in the
seven departments at Loita branch on a sample of respondents randomly sampled and not
included in the sample size to enhance validity of the questionnaires and assess clarity of
the instrument items. Those that failed to measure the intended variables were modified
or discarded.
Respondents who gave unclear information were asked to clarify what they meant
by their responses.
1.8 Scope of the Study

The study was carried out at seven (7) IAT branches in Nairobi taken as a
representative of other institutions offering similar services. They included Loita,
Westlands, Yaya, Buruburu, Fedha Towers, Thika Road and Symphony branches.
1.9 Conceptual Framework of the Study
Figure 1.2: Conceptual Framework
Independent variables Dependent variable
Organizational
Culture
Training
Talent Retention
Compensation
Recruitment
Source: Author (2010)
8
1.9.1 Organizational Culture
Culture is a pattern of basic assumptions that has worked well enough to be
considered valid and thus taught to new members as the correct way to perceive, think,
and feel in relation to those problems. Although organizational problems are universal,
different groups resolve them differently. The resolutions are internalized and shape the
way in which groups of people live and think. They represent why people behave the way
they do and why they hold the beliefs and values they espouse. Generally, a friendly and
accommodating organization culture where employees feel secure retains employee more
than a closed and harsh one.
1.9.2 Training
Training is that attempt to provide an employee with information, skills and an
understanding of organization and its goals. This is to help a person continue to make
positive contribution in the form of good performance. Employees who invest heavily in
education and training will suffer high employee turnover rates. The logic behind this
wisdom is that employers who pay for employee development cannot afford to pay their
employees the full value of their worth, because the employer must recoup the cost of the
education.
Therefore, employers who do not provide or pay for the education can offer
higher wages - raiding those employers who do provide education. So the prediction is
that investing in employees’ education and training contributes to high turnover rates.
Because this line of reasoning has permeated the thinking of many senior executives, it is
one of the barriers that must be overcome in positioning learning as a strategic
investment.
Appropriate Training programs accompanied with commensurate compensation
retains employee while good training with poor compensation results to employee losses
due to poaching by competitors and in their search for better paying opportunities among
other factors.
1.9.3 Compensation
This is a management function that deals with rewards individuals receive at
work. Employees trade labour and loyalty for financial and non-financial compensation
9
(Pay, benefits, services, recognition, etc). It’s the major cost of doing business for many
organizations of the 21st century and is also the main reason individuals seek
employment. Generally, good pay packages attract and retain employees while poor
compensation often leads to employee loss depending on prevailing market and
organizational conditions.
1.9.4 Recruitment
Innovation and quality arise from your human resources and not from machines,
processes, or financial instruments. In order to maximize the performance of your human
resources and, thus organization, you must attract, select, develop, motivate and retain the
best people possible.
Poor recruitment makes every part of the organization less effective. Excellent
recruitment can transform an organization in a short period of time. An organization with
20 % turnover per year and recruitment practices that hire average employees can
theoretically become fully mediocre within five (5) years. Recruitment of right personnel
contributes to high employee retention as they feel they are handling fulfilling jobs that
meet their job related needs.
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CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This section contains literature review on employee retention. The chapter is
divided into two sections namely: overview on employee retention and secondly, factors
affecting employee retention based on study objectives. The critical review cites gaps
with the summary highlighting keys issues raised.
2.2 Overview of Employee Retention
A company's employee refers to its most important people - it's most

indispensable and valued employees. These are skilled individuals who are difficult to
recruit and, because of their competency levels, easy to lose. These are the people who
companies fight for. Employee retention becomes an important item of the HR
management agenda when organizations are faced with skills shortages. When labour is
in reasonably good supply, leavers can easily be replaced by new starters (Torrington et.
al., 2005).
According to The Herman Group (2010) report on Employee Retention in the
New Millennium, employee retention is most critical issue facing corporate leaders as a
result of the shortage of skilled labor, economic growth and employee turnover. Today's
labor force is different. Supervisors must take responsibility for their own employee
retention. If they don't, they could be left without enough good employees. A wise
employer will learn how to attract and keep good employees, because in the long run, this
workforce will make or break a company's reputation.
New supervisors must be prepared to be collaborative, supportive, and nurture
their people. The old style of "my-way-or-the-highway" style of management is a thing of
the past. Most new supervisors need training to understand what it really takes to retain
employees.
Employee retention involves being sensitive to people's needs and demonstrating
the various strategies in the five families detailed in Roger Herman's classic book on
11
employee retention, Keeping Good People as: - Environmental , Relationship, Support ,
Growth and Compensation. Employee retention takes effort, energy, and resources but
the results are worth it.
According to research, the most stable work forces are to be found in the public
services, where reported annual turnover rates in United Kingdom were only 10-11 per
cent (CIPD, 2003). Torrington et. al.,(2005) reported that turnover rates also vary
regionally and over time being highest when and where average pay levels are highest
and unemployment is low and between professions. As a rule, the more highly paid a
person is, the less likely they are to switch jobs, but there remain some highly paid
professions such as sales where turnover is always high.
People tend to move from employer to another early in their careers, often staying
in one employment for just a few months. But once they find a job or an employer they
like; they tend to remain for several years (Torrington et. al., 2005)
Young workers also tend to switch jobs more often than their older colleagues.
Macaulay (2003) found out that 86 per cent of employees over 50 years had completed
one year with their employers compared to only 51 % with 18- 24 years of age in the
United Kingdom.
Employee retention has always been an important focus for human resource
managers. Once a company has invested time and money to recruit and train a good
employee, it is in their own best interest to retain that employee, to further develop and
motivate him so that he continues to provide value to the organization. But, employers
must also recognize and tend to what is in the best interest of their employees, if they
intend to keep them. When a company overlooks the needs of its employees and focuses
only on the needs of the organization, turnover often results. Excessive turnover in an
organization is a prime indicator that something is not right in the employee environment.
Employee retention is measured by an employee's longevity with a company, and
is the desired outcome of a company hiring workers it wants and needs. Many
organizations find it more productive and profitable to redirect resources formerly
allocated to recruiting, hiring, orienting, and training of new employees and use them
instead toward employee retention programs. Such programs identify good performers
12
who are likely to leave the company and work proactively to retain them
(www.123helpme.com)
Turnover always rises when the economy is strong and jobs are plenty because
there are more opportunities available for people to change employers. Conversely,
during recessions, staff turnover falls because of relatively few attractive permanent
positions advertised.
2.3 Factors affecting Employee Retention

Human Resource Management recruits and develops personnel to promote the
organization’s objectives. It involves interviewing applicants, training staff, and
employee retention through Compensation, benefits, employee/labor relations, health,
safety, and security aspects. Its ultimate goal is to manage human capital and culture for
the organization’s success. The selection of an effective manager is crucial in maintaining
a nurturing and supportive environment for employees (Butcher, 2007).
2.3.1 Organizational Culture

Organization Culture refers to the employees’ perceptions of the work
environment of the Organization. It is influenced by the organization, personalities of
participants, and organizational leadership. The Culture of the Organization may be
conceived as the personality of an Organization and has a significant impact on employee
retention. Organizations with an open Culture lead to higher employee retention. The
open Culture is characterized with cooperation and respect within the employees and
management. The management listens and is open to suggestions, gives praise, and
respects the employees. Management also provides facilitating leadership. Employees are
supportive of each other and there are high collegial ties among the employees.
Employees are close and there is an atmosphere of cooperation and commitment
(Butcher, 2007).
Schein (1985) defined culture as a pattern of basic assumptions- invented,
discovered or developed by a given group as it learns to cope with its problems of
external adaptation and internal integration – that has worked well enough to be
13
considered valid and therefore to be taught to new members as the correct way to
perceive, think, and feel in relation to those problems
Although the problems that all human societies face are universal, different
groups will resolve them in different ways. The resolutions are internalized and become
taken for granted but shape the way in which groups of people live and think. They
represent why people behave the way they do, and why they hold the beliefs and values
they espouse (Schneider and Barsoux, 1997). Members of a group or society share a
distinct way of life with common values, attitudes and behaviors that are transmitted over
time in a gradual, yet dynamic process (Harris et. al. 2003).
Several models of how culture influences work exist. The most widely recognized
is Hofstedes’ “theory of the cultural relativity of organizational practices”. He argues
that national cultural differences are not changing much at all, even though more
superficial work-related norms and values might be. As a result, he feels that national
culture will continue to have a strong influence on the effectiveness of various business
practices (Ivancevich, 2003).
According to Hofstede culture differs in at least five ways. He found that
differences in responses at work could be explained by four main factors namely;
Individualism versus collectivism, power distance, avoidance of uncertainty and
masculinity (Ivancevich, 2003).
According to Individualism versus collectivism dimension, cultures differ in
terms of relationship of person to his or her family. In some societies such as Peru and
Taiwan, the groups’ achievement and well-being will be emphasized over individuals’. In
contrast, individualistic societies such as United States and Australia place emphasis on
individuals’ actions accomplishments and goals.
In view of the power relationships, cultures with high “power distance”
emphasize human inequality. For example symbols of power and authority such as large
offices, tittles are usually found in a culture with a high power distance. In German
corporations, the concepts of codetermination and worker councils are an organizational
practice typical of low-power distance cultures (Ivancevich, 2003).
Avoidance of uncertainty relates to knowing what the future holds. Cultures in
Japan and Portugal with high avoidance of uncertainty attempt to predict, control and
14
influence future events while those with low avoidance of uncertainty are more willing to
take things day by day. To the extent that control reduces uncertainty, the rigid use of
managerial control systems is more likely to be found in organizations in high-
uncertainty- avoidance cultures.
In Masculinity dimension, Hofstede refers to division of roles for male and
females that a particular culture imposes. Masculine cultures have strict sex roles;
feminine cultures have less well-defined roles. Masculine organizational cultures like
Austria and Japan might tend to be less supportive of efforts to integrate women into top-
level management than feminine cultures found in Norway and Sweden (Ivancevich,
2003).
In addition to the above five factors are the Chinese long-term versus short-term
orientation values. This refers to the extent to which cultures think in terms of the future
or in terms of more immediate events. Human resources management can be influenced
by the cultural differences along one of or more of theses dimensions. For example, there
is evidence that national differences in uncertainty avoidance and power distance can
affect the extensiveness of organizational selection practices (Ryan et. al. 1999).
Similarly, differences in individualism and collectivism can affect overall success that a
training program has on culturally diverse audiences (William 2001).
These culture differences may work either for or against employee retention based
on employee perceptions among other factors.
2.3.3 Training
Training is a process that attempts to provide an employee with information, skills
and an understanding of organization and its goals. They are also designed to help a
person continue to make positive contribution in the form of good performance
(Ivancevich, 2003).
Training helps employees to do their work better while development prepares
individuals for the future. It focuses on learning and personal development. Training is
important for new and present employees. It attempts to improve the current or future
performance. It is a systematic process of altering the behavior of employees in a
direction that will help employees master specific skills and abilities needed to achieve
15
organizational goals. This can be done through formal training where the employer
provides opportunities for the employee to acquire job-related skills, attitudes, and
knowledge (Ivancevich, 2003).
One key factor in employee motivation and retention is the opportunity
employees want to continue to grow and develop job and career enhancing skills. There
are a couple of secrets about what employees want from Training opportunities. These
ideas emphasize what employees want in Training opportunities and articulate your
opportunity to create devoted, growing employees who will benefit both your business
and themselves through your Training opportunities. These factors are key in multiplying
the value of the Training you provide. They include allowing employees to pursue
training in directions they choose, not just in company-assigned and needed directions
and having the company support learning, in general, and not just in support of
knowledge needed for the employee’s current or next anticipated job. Recognize that the
key factor is keeping the employee interested, attending, and engaged (Heathfield, 2009).
The development of a life-long engaged learner is a positive factor for the
organization no matter how long the employee chooses to stay in your organization.
These Training activities should be used to ensure that you optimize the employee's
motivation and potential retention.
One way to impact Training significantly is through realigning the responsibilities
in an employee’s current job. This can be done by expanding the job to include new,
higher level responsibilities, reassigning responsibilities that the employee does not like
or that are routine, providing more authority for the employee to self-manage and make
decisions, inviting the employee to contribute to more important, department or
company-wide decisions and planning, providing more access to important and desirable
meetings and providing more information by including the employee on specific mailing
lists, in company briefings, and in your confidence(Heathfield, 2009).
In addition, provide more opportunity to establish goals, priorities, and
measurements assign reporting staff members to his or her leadership or supervision,
assign the employee to head up projects or teams, enable the employee to spend more
time with his or her boss and provide the opportunity for the employee to cross-train in
other roles and responsibilities.
16
According to Heathfield, (2009), formal Training programs may take various
forms. They should enable the employee to attend external seminars and internally
offered training session. Employees should be able to perform all of the activities listed
before, during, and after a training session to ensure that the learning is transferred to the
employee’s job. The programs should require the employee to train other employees with
the information learned at a seminar or training session.
It is the responsibility of the organization purchase business books for the
employee, sponsor a book club or offer the time at a department meeting to discuss the
information or present the information learned to others. It can also offer commonly-
needed training and information on an Intranet, an internal company website, pay for the
employee to take online classes and identify low or no cost online training, provide a
flexible schedule so the employee can take time to attend university, college, or other
formal educational sessions as well as provide tuition assistance to encourage the
employee's pursuit of additional education (Heathfield, 2009).
Employees’ retention Conventional economic wisdom- the stuff of economics and
MBA curricula- holds that employers who invest heavily in education and training will
suffer high employee turnover rates. The logic behind this wisdom is that employers who
pay for employee development cannot afford to pay their employees the full value of
their worth, because the employer must recoup the cost of the education. Therefore,
employers who do not provide or pay for the education can offer higher wages—raiding
those employers who do provide education. So the prediction is that investing in
employees’ education and training contributes to high turnover rates. Because this line of
reasoning has permeated the thinking of many senior executives, it is one of the barriers
that must be overcome in positioning learning as a strategic investment (Bassi, 2004).
Some collective insights that emerged from a variety of recent research reports
done by Aon Consulting, the Hay Group, the William M. Mercer Group, the Gallup
Organization, and the American Society for Training in 2008 show that although money
is clearly an important consideration, cash is not the primary factor that keeps people in
their current job or attracts them away to a new job. Opportunity to grow and learn at
work is emerging as a primary determinant of attracting and retaining employees (Bassi,
2004).
17
Another key determinant of employee retention is the quality of an employee’s
immediate supervisor. This is based on the fact that the management qualities that
contribute to employee satisfaction and retention are “trainable.” Although employees
consistently indicate that education and training are key aspects of their willingness to
stay at or leave their current job, employees also typically rank the quality of their
employer’s education and training function as low (Bassi, 2004).
The only “intangible asset” found to predict the future financial performance of a
firm- its revenue per employee and stock market price- is the firm’s retention rate for key
employees (Bassi, 2004). Together, this body of research suggests that: - Keeping good
people is an important determinant of financial performance, and The way to keep good
people is to provide them with the skills they need to leave; that way they don’t feel that
they have to.
During the 1980s and 1990s, employers indicated to their employees that they
were responsible for their own ongoing development. The increasing wage premium that
was paid to those with high levels of skills communicated the message that lifelong
learning is an increasingly important determinant of an individual’s financial security
(Bassi, 2004).
According to Bassi, (2004), it is not surprising that employees are focusing more
than ever on their own development. Ironically, given many employers’ message that
employees are responsible for their own development, is that those employers who are
willing to share this responsibility now enjoy a competitive advantage in the marketplace.
Winning the war for talent, a prerequisite for effectively competing, increasingly hinges
on an enterprise’s capacity to provide and manage effective development for its people.
What is perhaps surprising, given the centrality of employee development that is
evident from the research summarized above, is the poor regard with which it is typically
held by employees. This suggests that lip service given to the view that “people are our
most important asset” is inadequate. If employers are serious about attracting and
retaining the best people, then they must be equally serious about attending to managing
learning. Learning must be run like the strategic business investment that it has become
(Bassi, 2004).
18
2.3.3 Compensation
This management function deals with rewards individuals receive at work.
Employees trade labour and loyalty for financial and non-financial compensation (Pay,
benefits, services, recognition, etc) (Ivancevich, 2003). It’s the major cost of doing
business for many organizations and is the main reason why individuals seek for
employment (Hackett & McDermott, 1999).
According to Antaya (2005), research demonstrates that people don’t start looking
for new jobs because of money. They change jobs to work for companies that make them
feel valuable, offering the opportunity for empowerment, career and personal growth, and
the development of new skills. Employees should be shown that you care about them.
Bonuses can be rewarded for good service. Handwritten notes can express appreciation.
Employees’ should have the opportunity to attend workshops, conferences, and
conventions. Employees can also be rewarded with special lunches and dinners. Studies
have shown that higher employee satisfaction leads to increased customer satisfaction.
Salaries and benefits are key components in attracting future employees and
retaining current employees. Competitive salaries, offering incentive pay to current
employees who recruit new staff are ways to enhance recruitment and retention. In
addition to salaries, other benefits include participation in an employee retirement plan,
disability insurance and sick leave, professional liability insurance and personal days,
professional development, membership in professional associations and time away from
work, (Kritsonis, 2002).
Financial compensation is either direct or indirect. Direct financial compensation
consists of the pay an employee receives in the form of wages, salaries, bonuses, or
commissions. Indirect financial compensation or benefits consist of all financial rewards
that are not included in direct financial compensation. Typical benefits include vacation,
various kinds of insurance, services like child care or elder care etc (Ivancevich, 2003).
From the employees’ point of view, pay is a necessity of life. It is a means by
which they provide for their own and family needs. Compensation does more than
provide for physiological needs. What a person is paid indicates their worth to the
organization. The objective of compensation is to create a system of rewards that is
equitable to employers and employees alike. The desired outcome is to attract employees
19
to work hard and motivate them for better results. Patton suggests that compensation
policy should provide several criteria for effectiveness (Ivancevich, 2003).
According to Ivancevich (2003), Compensation should be; Adequate meeting the
minimal governmental, union and managerial levels; equitable making sure that each
person is paid fairly inline with their efforts, abilities and level of training. It should also
be balanced incorporating pay, benefits and other rewards to provide a reasonable total
reward package; be cost-effective implying that it should not be excessive considering
what the organization can afford to pay; secure in terms of enabling the employee feel
secure enough and aid him or her to satisfy basic needs. Good compensation should also
be incentive-providing thus motivate effective and productive work as well as be
acceptable to the employees meaning that they should understand the pay system and feel
that it is a reasonable system for them and the enterprise.
Kevin (2001) and Fay (2002) suggest that the compensation for services offered
may vary. Most employers pay different rates to employees performing the same job. Pay
differentials are based on two main factors i.e. one; the individuals experience, skills and
performance and two; expectations that seniority, high performance or both deserve a
higher pay.
The reasons for paying employees different rates for the same job include the fact
that pay differentials; allow firms to recognize that different employees performing the
same job make substantially different contributions to meeting the organizational goals;
allows employers to communicate a changed emphasis on important job roles, skills,
knowledge etc; provide organizations with an important tool for emphasizing norms of
enterprise without having employees change jobs that’s promotion; allow firms to
recognize market changes between jobs in the same grade without requiring a major
overhaul of the whole compensation system and making sure that the pay system does not
violate the internal equity norms of most employees because this may reduce satisfaction
with pay and make attraction and retention of employees more difficult (Kevin, 2001).
Employee retention starts with competitive compensation and benefits. A
company’s’ package should be reasonably close to her competitors. An employer doesn't
have to offer the top salaries and benefits in the market. In fact, for a market leader you
may be wasting money. If you find that your salary and benefits aren't competitive, fix
20
them immediately. The consequences are very expensive - far greater than the cost of
upgrading.
Non-competitive compensation and benefits will limit you to attracting and hiring
'bottom feeders'. These people will accept job offers because it's their only one. Bottom
feeders generally have low talent, skills, attitudes, and consequently low performance.
They work to survive, rather than achieve. While they may not always arrive at work on
time, they always leave on time(Kevin, 2001).
The concept of saving money by not hiring employees may be dangerous. In
addition to low performance, these people love to create or join unions - to protect their
right to maintain low talent, skills, attitudes, and poor performance. Remember that when
designing hiring, leadership, and organizational practices, unions do not cause unions,
management does.
Paying for low performance and potential unions are only the costly tip of the
iceberg. The customer dissatisfaction that bottom feeders help create will cost you far
more. Hiring 'cheap' employees becomes very expensive when your customers
experience product quality inconsistencies, service quality inconsistencies and higher
prices due to inefficiencies (Kevin, 2001).
Kevin, (2001) indicates that the resulting customer dissatisfaction and lack of
loyalty leads to the ultimate turnover cost and customer losses. This leads to lower profits
which logically leads to lowering your organization's compensation and benefits package
to make up for the loss in profits.
2.3.4 Recruitment
Recruitment provides an opportunity to select from a pool of qualified applicants.
HR department is responsible for designing a plan for employee retention. Treating all
employees with dignity and respect is the key in retaining employees. The objective of
HRM is to help an organization meet strategic goals by attracting and maintaining
employees as well as manage them effectively (Butcher, 2007).
Employee retention starts at orientation. HRM should provide an outline of
relevant information to new employees regarding policies, values, operations, and
culture. It should be thorough and include time in the training for questions from new
21
employees. After the orientation, feedback should be given as to what was effective and
what should be done differently for future orientations (Butcher, 2007).
Recruitment is the most crucial internal activity of every service organization.
Poor recruitment makes every part of the organization less effective. Excellent
recruitment can transform an organization in a short period of time. An organization with
20% turnover per year and recruitment practices that hire average employees can
theoretically become fully mediocre within five (5) years (Sullivan, 2009).
The concept of human resource management is that innovation and quality arise
from your employees and not from your machines, processes, or financial instruments. In
order to maximize the performance of your human resources and, therefore, your
organization, you must attract, select, develop, motivate and retain the best people
possible. Recruitment is the cornerstone of human capital management(Sullivan, 2009).
There is a need to strike a balance at the recruitment stage between sending out
messages which are entirely positive and sending out messages which are realistic. It is
important not to mislead candidates about the nature of the work that they will be doing.
Realistic job interviews are therefore most important when candidates, for whatever
reason do not know a great deal about the job for which they are applying for. This may
be because of limited job experience or because the job is relatively unusual and not
based on type of workplace with which the job applicants are familiar. This helps to
avoid recruiting people who subsequently leave within few weeks (Wanous, 1992; Hom
& Griffeth, 1995)
Better recruitment strategies result in improved organizational outcomes. The
more effectively organizations recruit and select candidates, the more likely they are to
hire and retain satisfied employees (Wanous, 1992; Hom & Griffeth, 1995).
Sheila and Bernthal (2008) findings shows that strategies used by organizations to
recruit both managerial/professional and non-management candidates differ. For
recruiting managerial/professional candidates, the Internet is the most popular advertising
medium, used by 76 % of the organizations surveyed. Organizations regularly utilize
internal resources (e.g. internal job postings and employee referrals) when recruiting both
internal and external candidates.
22
Different kinds of agencies are used to recruit for positions at different levels.
Temporary and government agencies are used mainly to recruit non-management
candidates. Employment agencies, colleges, and professional organizations are used more
often to recruit managerial/professional candidates. The quality of an organization’s
offerings affects its ability to attract job candidates. Organizations believe they offer
candidates a strong company reputation (69 %) and high-quality benefits packages (65
%) and learning opportunities (55 %). Many organizations do not offer stock options (37
%) or child care options (36 %) (Sheila and Bernthal, 2008).
On best practices, Organizations with the most effective recruiting strategies were
15 to 19 % more likely to offer candidates high-quality options such as: - Potential for
advancement, Company reputation, Stocks, Benefits package, Corporate culture and
Salary scale. Organizations offering candidates and employees a positive culture (e.g.,
innovative, diverse, potential to advance) and learning environment have more satisfied
employees and are more successful at retaining them (Sheila and Bernthal, 2008).
There are many barriers to effective recruitment. The surveyed organizations
report that the top barriers to effective recruitment of candidates are: - Shortage of
qualified applicants (62 %), Competition for the same applicants (62 %), Difficulty
finding and identifying applicants (48 %).
Today’s tight labor market is making it more difficult for organizations to find,
recruit, and select talented people. The competition for talent is intensifying, as there are
fewer qualified applicants available. This shortage of applicants makes it all the more
important for organizations to be able to effectively attract, select, and retain quality
candidates (Sheila and Bernthal, 2008).
As results from this survey indicate, organizations need to offer more than an
attractive wage to entice qualified candidates. With the number of job opportunities
currently available, candidates can afford to be choosy when searching for their ideal job.
They are looking for more than just an attractive salary; candidates are seeking
organizations that can offer them various kinds of benefits, the potential to advance, and
an environment in which they can learn and thrive. If an organization cannot offer these,
job seekers will find one that does. Thus, it is important for organizations to know exactly
23
what they have to offer potential employees, and then highlight their best features when
recruiting candidates (Sheila and Bernthal, 2008).
Once organizations have successfully recruited candidates, they must select the
best ones for the positions under consideration. Organizations use various tools to help
them select individuals (Sheila and Bernthal, 2008).
Sheila and Bernthal, (2008) show that results from some studies indicate that
selection tools designed to obtain behavioral and motivational information about
candidates contribute to effective selection systems. For example, behavioral
interviewing is a popular selection activity among organizations with highly effective
selection systems. In the future even more organizations plan to use this and similar tools
more extensively to select employees. Organizations realize that having an effective,
legally sound system in place is crucial to helping them select the right people for the
right jobs; to do so, many organizations are planning to increase their use of various tools
and devote more money to the process.
Finally, better recruitment strategies result in improved organizational outcomes.
The more effectively organizations recruit and select candidates, the more likely they are
to hire and retain satisfied employees. In addition, the effectiveness of an organization’s
selection system can influence bottom-line business outcomes, such as productivity and
financial performance. Hence, investing in the development of a comprehensive and valid
selection system is money well spent (Sheila and Bernthal, 2008).
According to Kimberly Digit (2009), Recruitment, Selection & Retention Theory
an e-How Contributing Writer, Recruitment, selection and retention theory is based on an
organization's success of hiring and retaining valuable employees. Recruiting skilled or
educated employees saves cost because an organization will spend less time training a
skilled candidate. Employers will list required qualifications when posting a job opening.
On selection, many organizations use a variety of tools and technologies to assess a
candidate's abilities, allowing them to choose the most qualified candidates to proceed in
the interview process. Assessing candidate's skills allows the organization to focus on
other qualifications during an interview.
Part of the recruitment process can include assessing the candidate's true interest
in the organization and position, which can lead to hiring a long-term employee.
24
Retention can also include offering salary and benefits that will offer a good work
environment (Kimberly, 2009).
The Significance is that organizations that have developed a successful
recruitment, selection and retention theory often have a low resignation rate, which can
save an organization a significant amount of time and money. Hiring and training can be
costly for an organization (Kimberly, 2009).
Extensive research and organizational involvement including human resources,
department managers and valued employees should be considered when developing
principles and policies. Many considerations can lead to successful recruitment, selection
and retention (Kimberly, 2009).
2.4 Critical Review

According to The Herman Group (2010) report, supervisors must take
responsibility for their own employee retention. If they don't, they could be left without
enough good employees. New supervisors must be prepared to be collaborative,
supportive, and nurture their people. The old style of "my-way-or-the-highway" style of
management is a thing of the past. Most new supervisors need training to understand
what it really takes to retain employees. A wise employer will learn how to attract and
keep good employees, because in the long run, this workforce will make or break a
company's reputation.
According to Antaya (2005), research demonstrates that people don’t start looking
for new jobs because of money. They change jobs to work for companies that make them
feel valuable, offering the opportunity for empowerment, career and personal growth, and
the development of new skills. Employees should be shown that you care about them.
Bonuses can be rewarded for good service. Handwritten notes can express appreciation.
Employees’ should have the opportunity to attend workshops, conferences, and
conventions. Employees can also be rewarded with special lunches and dinners. Studies
have shown that higher employee satisfaction leads to increased customer satisfaction.
Employee retention involves being sensitive to people's needs and demonstrating
the various strategies in the five families detailed in Roger Herman's classic book on
employee retention, Keeping Good People as: - Environmental , Relationship, Support ,
25
Growth and Compensation. Employee retention takes effort, energy, and resources but
the results are worth it.
Though information about employee retention has been documented, specific
literature on challenges faced in employee retention in higher institutions of learning is
missing.
2.5 Summary
Employee retention starts at orientation. HRM should provide an outline of
relevant information to new employees regarding policies, values, operations, and
culture. It should be thorough and include feedback should be given as to what was
effective and what should be done differently for future orientations.
People don’t start looking for new jobs because of money (Antaya, 2005). They
change jobs to work for companies that make them feel valuable, offering the opportunity
for empowerment, career and personal growth, and the development of new skills.
Employees should be shown that you care about them. Employees should be trained and
developed, appreciated and rewarded for good service. Studies have shown that higher
employee satisfaction leads to increased customer satisfaction.
26
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This section describes the research methodology under the subtopics: research
design, target population, sampling procedures and design, data collection, validity and
reliability of research instruments and data analysis.
3.2 Research Design

The study adopted descriptive research. According to Best, (1977) descriptive
research involves the description, recording, analysis and interpretation of conditions that
now exist. It also involves some type of comparison and contrast and may attempt to
discover relationships that exist between non manipulated variables.
3.3 Target Population

The survey covered seven (7) IAT Branches in Nairobi with a population of 215
employees in the frameset as in table 3.1 below.
Table 3.1: Target population by branch

Branch Population Percentage (%)
BuruBuru 17 8
Fedha Towers 16 7
Loita 73 34
Thika Road 41 19
Westlands 17 8
Yaya 11 5
Symphony Campus 40 19
Total 215 100
27
3.4 Sampling Design and Procedure
Based on departments at different IAT branches, stratified sampling technique
was used to come up with seven homogeneous departmental strata namely: Front office,
Training and MOL, IT services, Quality, Instructional Research design (IRD),
Administration and Sales and Marketing. This was based on the premise that employees
are shared out among the branches on departmental basis thus some employees would not
be tied to particular branches but departments.
Simple random sampling using a ratio of 0.2 was applied to each department to
come up with a sample size of 43 ensuring that each element within the accessible
population had an equal and independent chance of being selected.
Table 3.2: Sample Size

Department Population Sample size (20%)
Front office 20 4
Training and MOL 65 13
IT services 40 8
Administration 45 9
Quality 20 4
IRD 10 2
Sales and Marketing 15 3
Total 215 43
3.5 Data Collection Instruments and Procedure

Interviews schedule and a questionnaire survey were used to collect data. The
study purposively selected seven managers one from each branch who were interviewed
using an interview schedule and questionnaires were self administered by the researcher.
The questionnaire was both structured and semi-structured.
The questionnaire survey was used to collect data on population characteristics
that include: - gender, age, work experience, number of employees lost annually by
department, organizational culture, training, compensation and recruitment.
28
The interview schedule was used to collect data on annual employee loss by
branch and age bracket, measures recommended to avoid employee loses, techniques
used in the organization to retain employees and the challenges faced by the organization
in employees retention
3.6 Reliability and Validity of the Research Instruments

A pre-test was carried out in the seven departments at Loita branch on a sample of
respondents randomly sampled and not included in the final research sample size. The
pilot study was conducted on the target population to enhance validity of the
questionnaires. This was for assessing clarity of the instrument items so that those that
failed to measure the intended variables were modified or discarded.
3.7 Data Analysis

The questionnaires were edited to ensure completion and consistency. Data was
classified and tabulated according to departments. Data analysis was done using descriptive
statistics involving simple statistical techniques by use of excel. Qualitative data was
analyzed and presented in discussive format while Quantitative data was presented in tables,
bar charts and summarized into meaningful narrative format.
29
CHAPTER FOUR
4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION
4.1 Introduction
This section contains data analysis and presentation by the research objectives.
Quantitative analysis covers employee population distribution characteristics looking at
gender, response rate, age and work experience, and employee losses by department
Qualitative data analysis covers the open ended items in questionnaires and interview
schedule.
4.2 Quantitative Data Analysis
4.2.1 Response Rate

Table 4.1 shows the response of the sample to questionnaires issued in the survey.
Table 4.1: Response Rate
Questionnaires Number Percentage

No. of Questionnaires returned 31 72%
No. of Questionnaires not returned 12 28%
Total Questionnaires issued 43 100%
Out of the 43 Questionnaires given, 31 were returned. This translates to a

response rate of 72%.
30
Figure4.1: Response Rate
12, 28%
31, 72%
No. of Questionnaires returned No. of Questionnaires not returned
4.2.2 Gender Distribution
Table 4.2: The distribution of the sample size by gender

Gender Frequency Percentage (%)
Male 21 68
Female 10 32
Total 31 100
68 % of respondents were males while 32 % were women as in table 4.2. This
suggests that a higher number of males than females are employed in the organization.
31
Figure 4.2: Gender Distribution
32%
68%
Female
Male
4.2.3 Age Distribution

Table 4.3: Age Distribution
Age in years No. of responses Percentage (%)
18 – 27 7 23
28 – 37 17 55
38 – 47 5 16
48- 57 2 6
Total 31 100
Table 4.3 shows that 55 % of the respondents were between the ages of 28 to 37
years followed by 23 % between 18 to 27 years. No responses were received from
employees between the age above 57 probably indicating that very few elderly employees
exist in the organization or their unwillingness to participate in the survey exercise for
personal reasons.
32
Figure 4.3: Respondents age distribution
60
50
Value 40
30
20
10
0
18 - 27 28 - 37 38 - 47 48- 57
No. of Responses
Age in years Percentage (%)
Table 4.4: Work Experience

Experience in years No. of years(x) Frequency (f) Percentage (%) fx
Below 1 1 6 19% 6
1–2 2 12 39% 22
3–4 4 5 16% 20
5–6 6 3 10% 18
7–8 8 2 6% 16
9 – 10 10 2 6% 22
11 – 12 12 1 3% 12
Total 43 31 100% 116
Mean (Work experience) = ∑(fx/ x) 2.7
The Mean employee experience was 2.7 years with 39 % of employees having 1 to 2
years followed by those with less than 1 year at 19 % as in table 4.4. The results indicate
that employees do not stay with the organization for long periods of time suggesting high
employee turnover.
33
Figure4.4: Employee work experience
40% 39%
35%
30%
25%
19%
20%
16%
15%
10%
10%
6% 6%
5% 3%
0%
Below 1 1–2 3–4 5–6 7–8 9–10 11–12
No. of years worked Percentage (%)
4.2.4 Employee Distribution Characteristics

Table 4.4 shows the distribution of employees in IAT by branch. The company
policy allows sharing of employee’s across departments thus some branches do not have
permanently stationed employees.
Table 4.5: Employee distribution in departments by branch
Buru Fedha Thika
Department Population Buru Towers Loita Road Westlands Yaya Symphony
Front office 20 2 1 6 7 2 1 1
Training and MOL 65 10 0 35 11 5 4 0
IT services 40 2 2 8 11 1 2 14
Administration 45 2 11 12 3 3 2 12
Quality 20 0 2 7 3 3 1 4
IRD 10 1 0 0 2 2 0 5
Sales and Marketing 15 0 0 5 4 1 1 4
Total 215 17 16 73 41 17 11 40
34
The number of employees in the 7 branches for the year 2009 was 215 distributed
as in table 4.4 and Figure 4.5. Based on branches, Loita has the highest numbers of
employees at 73 while the training and MOL has the highest number among departments.
Figure 4.5: Employee population by branch
80
70
60
Population
50
40
30
20
10
0
BuruBuru Fedha Loita Thika Road Westlands Yaya Symphony
Towers
Branch Employee population
4.2.5 Employee Loss
Table 4.6: Employee loss

Target No. of
Department Population employees lost Percentage loss
Front office 20 2 10%
Training and MOL 65 8 12%
IT services 40 2 5%
Administration 45 3 7%
Quality 20 1 5%
IRD 10 1 10%
Sales and Marketing 15 2 13%
Totals and Average % loss 215 19 9%
35
The study found that the organization experienced an average of 9% employee
loss in 2009 with 13% and 12% losses in Sales and Marketing and Training and MOL
respectively as in table 4.6 above and Figures 4.6 below.
Figure 4.6: Percentage employee loss by department

14% 13%
12%
12%
10% 10%
10%
8%
7%
6% 5% 5%
4%
2%
0%
Front office Training and IT services Administration Quality IRD Sales and
MOL Marketing
Front office Training and MOL IT services Administration Quality IRD Sales and Marketing
Table 4.7 Organizational Culture
Response Frequency Percentage (%)

Very good 0 0
Good 1 3
Average 26 83
Below average 4 14
Total 31 100
36
Figure4.7: Responses on Organization Culture
0%
3%
14%
83%
Very good Good Average Below average

On a Likert scale of one (1) to four (4), 83 % of respondents rated the
organization culture as average with only 3% rating it as good as in table 4.7 above. They
felt that the organization exercises a power culture where the power relationships have a
high “power distance” that emphasizes human inequalities. Those in management are
given large offices and titles emphasized thus a closed organization culture that maintains
official relationships between employees in the different hierarchical order of operation.
Table 4.8: Respondents who attended Training programs

Yes 22 71
No 9 29
Total 31 100
The study established that 71 % of respondents had a chance to attend training
programs while 29 % had not.
37
Figure4.8: Training and its effect on employees
25
20
No. of employees
15
Yes
No
10
0
Trained Motivated after training

Table 4.9: Motivation after attending Training programs
Yes 14 45
No 17 55
Total 31 100
The study results in table 4.9 show that 45 % of employees felt motivated while
55 % were not motivated after attending training programs. The results suggest that
training is not a motivator when applied independent of other factors.
Table 4.10: Respondents feeling on relevance of Training attended
Very relevant 1 3.2
Relevant 11 35.5
Average 16 51.6
Not relevant 3 9.7
Total 31 100
38
The survey result in table 4.10 shows that 51.6 % of respondents rated training
programs as average while 9.7 % thought it was not relevant. This indicates that the
employees did not find the skills applicable to their work after the training.
Figure4.9: Rating on relevance of Training
3%
10%
36%
52%
Very relevant Relevant Average Not relevant
Table 4.11 Rating for Compensation

Very good 0 0
Good 2 6
Average 8 25
Below average 21 69
Total 31 100
69 % of respondents rated their compensation scheme as below average while 6
% rated them as good as in table 4.11. They felt that top management was not concerned
with the plight of the employees regarding reward systems. This greatly contributed to
the exit of employees threatening employee retention.
39
Figure4.10: Rating on Compensation
0%
6%
25%
69%
Very good
Good
Average
Below average
Table 4.12 Rating for Recruitment

Very good 1 3.0
Good 2 6.5
Average 18 60.0
Below average 10 30.5
Total 31 100
The survey found as in table 4.12 that 60 % of respondents rated the recruitment
scheme as average while 3 % rated them as very good. The organizations’ recruitment
policies target fresh diploma graduates. Based on their recruitment pattern of engaging
young employee, employee loss is very high.
40
Figure4.11: Rating on Recruitment
3%
7%
31%
Very good
Good
Average
Below average
59%
Table 4.13: Percentage employee lost by age

Age (in Years) Frequency Mean Percentage
18 – 27 6 19
28 – 37 22 72
38 – 47 2 6
48 – 57 1 3
Total 31 100
The survey results in table 4.13 found that 72 % of employees who leave IAT are
in their very productive ages of between 28 and 37 years followed by those between 18 to
27 years at 19 %. The organizations’ recruitment policies target fresh diploma graduates
and this recruitment pattern of engaging young employees without adequate support and
compensation results in high turnover. Factors like individuals’ age at recruitment and the
organization taking advantage of the slow economic growth in a flooded labour market to
offer low pay have not been effective because the young employees not satisfied with the
company’s treatment walk out to get other opportunities elsewhere.
41
Figure4.12: Percentage employee loss by age
3%
6%
19%
72%
18 – 27 28 – 37 38 – 47 48 – 57
4.3 Qualitative Data Analysis

The study established that major reasons for resignations include poor
remuneration, job descriptions not adhered to by managers in assigning tasks and lack of
clearly defined career growth paths for example in some departments, a person with high
qualifications can still remain in lower departments. Most people who lack advancement
opportunities within the organization tend to leave after they have attained relevant
training.
The desire for change from routine jobs leading to search for new challenges,
work pressure especially when overworked without compensation, growing out of favor
with management, the search for greener pastures with better pay and promising
opportunities were given as possible reasons for employee loss.
The short contracts offered serves as a motivation for some employees to work till
end of the contract then leave without renewing it so that they avoid getting into conflicts
42
with management on staying longer. Other reasons include difficult working conditions
and unrealistic targets to be met without provision of necessary facilitative tools of work
as well as poor manager-employee relations i.e. the master-servant relations rather than
teamwork.
The study revealed that company has adopted various methods to ensure
employee retention. Specific techniques used include Bonding agreements, Cash
payments to guarantee for the job, Academic loans, the Earn and Learn scheme,
Contracts, Promotions, Lower certification recruitments, Performance recognition,
Individuals’ age at recruitment and taking advantage of the slow economic growth in a
flooded labour market.
The challenges experienced at IAT in employee retention relate to poor
remuneration which results in employees opting out to look for greener pastures, ethical
issues for example where unethical behavior is rewarded against proper ethics contributes
to degraded organizational performance.
Training adds value to employees making them marketable in the business
environment resulting to employee loss to competitors causing the organization to incur
unplanned expenses in recruitment. The lack of growth opportunities makes the
employees see no future with the organization thus seek for opportunities in competitor
firms creating extra expenses to the organization.
The other challenge arises when employees gain relevant work experience which
makes them marketable for higher paid jobs thus they are poached by competitors
making it challenging for the organization to maintain qualified staff to work with them
whilst not being ready to compensate them to equal levels as competitor firms. The lack
of proper motivation also contributes to employee loss. The challenge here is that some
needs are impossible to satisfy and this may result in aggression, rationalization,
regression, fixation and resignation.
The demand for new skills from employees who are not willing to go through
Training arguing that it’s a waste of time or that the training is irrelevant to them since
they do not intent to pursue career development along the current job line is a great
challenge.
43
Unmanaged expectations created out of promises that the company is not ready to
meet is the other challenge. The lower level entry employees at diploma have to be
trained by the lowly compensated graduate employees thus quality is compromised and
the organization suffers double training expenses, bad image from exiting employees,
poor quality products and services handled by the poorly trained lower level entry
employees.
The last identified challenge is lack of employee retention programs. This keeps
the organization in the dark about the kind and quality of talent they have resulting into
the challenge of inability to attach value to talent currently held in or lost from the
organization.
The study revealed that the measures that can be applied in addressing challenges
faced in employee retention include provision of improved remuneration commensurate
to work and responsibilities assigned, good working conditions, quality Training
programs to gain relevant skills to handle current job tasks and future assignments,
workable employee retention programs as well as having clear, easy to understand and
realistic contracts. Other measures include ensuring high level of employee motivation,
having well defined career progression paths, ensuring that superiors do not micromanage
employees, good employee welfare programs and effective communication programs.
44
CHAPTER FIVE
5.0 SUMMARY OF MAJOR FINDINGS, CONCLUSIONS,

RECOMMENDATIONS AND SUGGESTION FOR FURTHER STUDY
5.1 Introduction
The study established the challenges faced in employee retention at IAT. This
chapter summarizes the findings, their conclusions, recommendations and suggestions for
further study.
5.2 Summary of Major Findings

The Institute of Advanced Technology experiences challenges in employee
retention. Employee loss has a negative impact in IAT. The study found that the
organization experienced an average of 9 % employee loss annually. The study
established that 55 % of the respondents were between the ages of 28 to 37 years while
only 6 % were between 48 to 57 years. No responses were received from employees
between the age above 57 years probably indicating that very few elderly employees exist
in the organization or their unwillingness to participate in the survey exercise for personal
reasons
The Mean employee experience was 2.7 years with 39 % of employees having 1
to 2 years followed by those with less than 1 year at 19 %. 83 % of respondents rated the
organization culture as average with only 3% rating it as good. The organization
exercises a power culture with power relationships that have a high “power distance” that
emphasizes human inequalities. The study established that 71 % of employees had a
chance to attend training programs but only 45 % felt motivated. 51.6 % of the
population rated Training programs as average while 9.7 % felt it was not relevant to
them
Compensation scheme was rated by 69 % as below average with none rating it as
very good. Employees felt that top management was not concerned with the plight of the
employees regarding reward systems thus greatly contributed to employee exit
threatening employee retention. The study established that about 60 % of respondents
45
rated the recruitment scheme as average. 72 % of employees who leave the organization
are in their very productive age between 28 and 37 years.
Though the organization has adopted various techniques to ensure employee
retention like Bonding agreements, Cash payments to guarantee for the job, Academic
loans, the Earn and Learn scheme, Contracts, Promotions, Lower certification
recruitments, Performance recognition, low age at recruitment and taking advantage of
the slow economic growth in a flooded labour market, it is still challenged I retaining its
employee.
5.3 Answers to research questions

5.3.1 How Organization Culture contributes to Employee Retention
The study results from the open ended items revealed that the power culture
exercised in IAT cultivates power relationships that have led to a high “power distance”
that emphasizes human inequalities. 83% of the respondents felt that the lack of social
interactions generally makes individuals feel that they lack a sense of belonging thus
contributes to employee losses when employees do not get a chance to express
themselves to management. Those in management are given large offices and titles
emphasized thus a closed organization culture that maintains official relationships
between employees in the different hierarchies.
Close social ties that value teamwork encourage interactions between and among
employees of different hierarchies thus contributes to employee retention. To further
encourage employee retention, the organization should reorganize its organization
structure and provide clear career progression paths communicated effectively to
employees who join the organization with clear reporting lines of authority
5.3.2 How Training contributes to Employee Retention

On Training programs, 55% of respondents felt that they were forced into training
programs due to management pressure reacting to employee losses by exiting employees
thus requiring immediate filling of gaps. This created tension between managers-
employee relations thus poor relationships that led to employee losses.
46
9.7% never got an opportunity to utilize their skills after training complained that
management never put the new skills acquired by employees to task by utilizing and
engaging them in more challenging jobs making the skills redundant and a loss of
opportunity to enhance the organizations’ performance. Training programs are mainly
internal rather than external. This many times contributed to compromise in the quality of
training.
After training due to the fact that new skills were not put to use immediately for
some, employees opted to look for opportunities in competitor organizations to practice
their skills at better pay. Most of the employees felt that training should be outsourced so
as to make the training credible.
Majority of the respondents felt that management did not respect and value
employee competency and did not pay attention to their aspirations. The Earn and Learn
contracts were not always honoured due to manager manipulations thus the internal
training did not take place as scheduled in the contracts leading to employee losses.
Training should however be accompanied by adequate remuneration to retain employees.
5.3.3 How Compensation contributes to Employee Retention

69% rated compensation as below average. The neglect by top management with
regard to compensation made employees feel de-motivated and not part of the
organization. The issues raised included generally low pay in comparison to competitor
firms, complains about medical cover and refund applications that were not honoured,
unpaid overtime allowances and gaps between the “we and them” class groupings due to
disparities in salaries that led to employee losses. Improved remuneration commensurate
to work and responsibilities assigned would attract and retain employees to work with the
organization. The pay should be reasonable and fair in accordance with market rates
offered by competing firms in the same industry and should have clearly documented
benefits attached to each position in the organization.
Respondents suggested that the company should have a good reward scheme to
support better performance, innovativeness and creativity. For example where employees
meet or exceed set targets, tokens of appreciation e.g. Christmas gifts, gift vouchers etc
that are tied to certain performance achievements and clearly communicated to all
47
employees should be given so as to inculcate a spirit of hard work with just and fair
treatment for all.
5.3.4 How Recruitment contributes to Employee Retention
The study established that the organizations’ recruitment policies target fresh diploma
and degree graduates. Ignorantly and out of excitement of getting the first job
immediately after college they take up contracts they consider flowery. This is done
under the Earn and Learn contract program where recruits are promised a lower pay
alongside being taken through Training programs. 30.5% respondents expressed
dissatisfaction with the program because many times this arrangement is not always
honoured by the organization resulting into poor supervisor- subordinate relations
because the managers are given the authority to make decisions as to when and this ends
up resulting to employee loss.
Though 3% rated recruitment as very good, majority suggested that the company
should also ensure that there is a flexible working schedule providing for reasonable
number of working hours to enable or allow employees pursue further studies probably
through evening programs and other work study programs. It should encourage
employees to further their studies externally to assure quality of training to gain new
skills to handle current job tasks and future assignment incase of a promotion. In
addition, the organization should appreciate the new skills gained by employees by
offering more challenging tasks as well as better pay after studies.
The study revealed that majority respondents were of the opinion that the expense
for an organization in replacing an employee is so higher than that of retaining a current
employee in a vacant position. Morale is also eroded among remaining employees and it
gives a poor organization image resulting to customer losses.
5.4 Conclusions
Though various techniques have been adopted to ensure employees are retained,
IAT still faces challenges in employee retention. The techniques adopted have varied
effects on employees. Bonding agreements, Earn and Learn contracts and promotions
effected at end of contract seem to irritate employees especially where the agreements
48
and expectations are not fulfilled by the company leading to more employee loss than
retention.
Based on their recruitment pattern of engaging young employee, employee loss is

very high. 72% of employee lost is between the ages of age of 28- 37 years. Factors like
individuals’ age at recruitment and the organization taking advantage of the slow
economic growth in a flooded labour market to offer low pay have not been effective
because the young employees not satisfied with the companies treatment and thus walk
out of the agreements with the notion that they still have a chance to get other
opportunities elsewhere due to their youthful age and therefore have nothing to loose by
moving out.
Payment of cash by new employees to secure a job has generally been interpreted
as buying the job. Though the company has split the amount payable so that half is paid
on job admission while the rest is deducted on a monthly basis from employee salaries, it
is worth noting that people looking for employment may not be able to easily raise the
amount of cash demanded for by the company. This scares away potential quality
employees’ instead of attracting them into the organization.
Academic loan framework earlier used rarely applies to the current employees but
even when used, employees who have gone through the program have walked out
forfeiting their benefits when better opportunities come their way. Performance
recognition has not been effective because it is not implemented as a company policy
across all departments. Its segregative application therefore creates a lot of strife among
employees in the different departments.
The lower level entry employees at diploma have to be trained by the lowly
compensated graduate employees since training is internal thus quality is compromised
and the organization suffers double training expenses, bad image, poor quality products
and services handled by the poorly trained lower level entry employees.
Employee retention at IAT is therefore a challenge. The challenges experienced
relate to poor remuneration, ethical issues, poorly structured Training, lack of growth
opportunities, employee work experience, lack of proper motivation, the demand for new
skills from employees who are not willing to go through training, unmanaged
49
expectations created out of promises that the company is not ready to meet and the lack
of employee retention programs.
These challenges result in either employee loss to competitors causing the
organization to incur unplanned expenses in recruitment, contributes to degraded
performance in the organization or the inability to attach value to employee currently
held in or lost from the organization thus poor planning.
Annually, IAT looses an average of 7.9% of its employee. These findings present
major issues that have contributed to failure in employee retention in organization and
need to be addressed by management to avert further employee losses.
5.4 Recommendations
Based on the study findings and discussion, the research made the following
recommendations: -
The organization should adopt an open and friendly organizational culture for its
employees to break the high “power distance” so as to minimize the existing human
inequalities. To further encourage employee retention, the organization should reorganize
its organization structure and provide clear career progression paths communicated
effectively to employees who join the organization with clear reporting lines of authority.
Application of high-performance work practices such as a commitment to learning, open-
mindedness and shared vision would benefit employers and workers alike.
Training should be planned so as to avoid forcing employees into training
programs due to management pressure reacting to employee losses by exiting employees
requiring immediate filling of gaps. Employees should be respected and valued providing
opportunity to apply new skills acquired after training should however be accompanied
by adequate remuneration to retain employees.
The government through the ministry for labour should come up with enforceable
guidelines and laws governing compensation of all job groups in both the public and
private sectors. This will help in harmonization of salaries across the sectors giving a
level ground to all employees with similar qualifications to avoid unfair treatment, bias
and discrimination by employers.
50
Recruitment should be fair, equitable and just. It should provide for a mix of all
ages to allow learning and mentorship from experienced employees. Payment of cash by
new employees to secure a job should be stopped. The organization should implement
appropriate employee retention programs as well as a succession plan to help them take
stock of the kind and quality of talent they have and to attach value to talent currently
held in or lost from the organization thus implement a succession plan to avert the
challenges they face.
5.5 Suggestion for Further Study

To help organizations understand which employee retention techniques are most
effective, a study may be carried out on effectiveness of the different employee retention
techniques.
51
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APPENDIX
Questionnaire
This questionnaire aims at helping the researcher to gather information on “The

Challenges of Employee Retention in Institutions of Higher Learning (A Survey of the
Institute of Advanced Technology- Nairobi)”. The information you give will be treated
confidentially. You are kindly requested to complete the form giving your honest opinion
in the spaces provided.
Section A
1. Name (optional)…………………………………Date……………….……………
2. Your gender (tick one)
Male Female
3. Your age in years (tick one)
18 – 27 48- 57 48- 57
28- 37 58- 67
38 – 47 68- 77
4. Indicate the number of years you have worked with IAT ( tick one option below)
<1 5-6 11 - 12
1-2 7-8 13 - 14
3-4 9 - 10 15 - 16
Section B
Answer this section by filling in the table below. How many employees left the
organization over the years indicated in the table 7.2?
Table 7.1: Number of employees lost annually from the organization

Department 2009
Front office
Training and MOL
IT services
Administration
Quality
IRD
Sales and Marketing
Total
Section C
1. In your honest opinion , give five reasons why you believe employees leave your
organization
i. ……………………………………………………………………………………
ii. …………………………………………………………………………………….
iii. ……………………………………………………………………………………
iv. ……………………………………………………………………………………
2. Organizational Culture
i. How would you rate the organization culture of your organization towards
employee retention?
ii. How does organization culture contribute to employee retention in your
organization? Explain……………………..……………………………………..
3. Training
i. Have you attended any training since you joined the organization?
Yes No
ii. After training, did you feel motivated and part of the organization?
Yes No
If No, why?................................................................................................................
iii. How would you rate your Training programs towards employee retention?
Is the training already acquired relevant to you?
Very relevant Relevant Average Not relevant
iv. How does Training contribute to employee retention in your organization?
Explain……………………..……………………………………
v. Suggest ways that may be used to improve the training system
…………………………………………...…………………………………………
4. Compensation
i. How would you rate your compensation/ reward package?
ii. How does compensation contribute to employee retention in your organization?
Explain……………………..……………………………………………………..
5. Recruitment
i. How would you rate employee Recruitment programs in your organization?
ii. How does Recruitment contribute to employee retention in your organization?
Explain…………………………………………………………….
6. For many decades the debate has been whether retaining current employees is more
important than finding a successor to a vacant position. What is your opinion on
this?.…………………………………………………………………………………....
7. Give reasons for your answer in Question 4 above
i. ………………………………………………………………………………………
ii. ………………………………………………………………………………………
iii. ………………………………………………………………………………………
Section D: Interview schedule
1. What is the number of employees of each age bracket below that are lost from your
organization annually?
Age (years) Number of employees (Percentage)
18 – 27 ………………………….
28 – 37 ………………………….
38 – 47 ………………………….
48 – 57 ………………………….
58 – 67 ………………………….
68– 77 ………………………….
2. What measures would you recommend to your organization to avoid loosing
employees/ talent?
i. ……………………………………………………………………………………
ii. …………………………………………………………………………………….
3. State six techniques used in your organization to retain talent/ employees
i. ………………………………………………………………………………………
ii. …………………………………………………………………………………….…
iii. ………………………………………………………………………………………
iv. ………………………………………………………………………………………
v. ………………………………………………………………………………………
vi. ………………………………………………………………………………………
4. State five challenges that your organization faces in retaining talent/ employees.
i. ………………………………………………………………………………………
ii. …………………………………………………………………………………….…
iii. ………………………………………………………………………………………
iv. ………………………………………………………………………………………

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THE CHALLENGES OF EMPLOYEE RETENTION IN INSTITUTIONS OF

(A Survey of the Institute of Advanced Technology Branches, Nairobi)

Name Sign Date

DECLARATION BY THE SUPERVISOR

Name Sign Date

For and on behalf of The Kenya Institute of Management

Name Sign Date

Special thanks go to my beloved wife Elizabeth for her moral support,

This work is dedicated to my wife Mrs. Elizabeth Kahayi Wangatia.

The study results will be helpful to human resource managers in formulating

Challenge a demanding or stimulating situation, a test of ones’ abilities or

Talent an endowment or quality in some field or activity; It is part-born,

Technique a procedure used to accomplish a specific activity or task.

Training the planned process of facilitating learning in order to become

Compensation Basic pay, salary, benefits, services, recognition

AIR American Institute for Research

EBC*L European Business License

IAT Institute of Advanced Technology

CompTIA Computer Technicians’ Industry Association

ICDL International Computer Driving License

IRD Instructional Research Design

ISO International Standards Organization

HRM Human Resource Management

KIM Kenya Institute of Management

MCSE Microsoft certified Systems Engineer

MCPs Microsoft Certified Professionals

MCITP Microsoft Certified IT Professional

MOL Management of Learning

NCC National Computing Centre

1.1 Background of the Study

1.1.1 Profile of IAT

MOL Senior Centre IT Managers Sales HR Director

Source: HR Data (2009)

1.2 Statement of the Problem

1.3 Research Objectives

1.3.1 General Objective

1.3.2 Specific Objectives

1.4 Research Questions

1.5 Significance of the Study

1.5.1 Human Resource Managers

1.6 Limitations of the Study

1.6.1 Uncooperative Respondents

1.7 Delimitation of the Study

1.8 Scope of the Study

1.9 Conceptual Framework of the Study

Figure 1.2: Conceptual Framework

Independent variables Dependent variable

Source: Author (2010)

2.0 LITERATURE REVIEW

2.2 Overview of Employee Retention

A company's employee refers to its most important people - it's most

2.3 Factors affecting Employee Retention

2.3.1 Organizational Culture

2.4 Critical Review

3.0 RESEARCH DESIGN AND METHODOLOGY

3.2 Research Design

3.3 Target Population

Table 3.1: Target population by branch

Table 3.2: Sample Size

3.5 Data Collection Instruments and Procedure

3.6 Reliability and Validity of the Research Instruments

3.7 Data Analysis

4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION