Human Resource Management Practices and Employee Retention at Kenya Women Finance Trust, Migori County

Authors

  • Ruth Atieno Onyango
    Msc student, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology
  • Dr. Jane Omwenga
    JKUAT, Kenya

Abstract

Purpose: The primary objective of this study is to determine the impact of various human resource management practices on employee retention at Kenya Women Finance Trust in Migori County. Specifically, it aims to assess how different HRM strategies influence the retention rates among the employees of the organization.
Material/methods: The study utilized a descriptive research design, focusing on the entire workforce of Kenya Women Finance Trust in Migori County, which comprises 42 employees. A census approach was employed to include all employees in the study, ensuring comprehensive coverage across all departments. Data were collected using Likert-structured questionnaires, a method chosen for its ability to quantify the perceptions and behaviors of respondents in a systematic manner. The reliability of the questionnaires was confirmed through Cronbach Alpha values, while validity was assessed using face and construct validity methods. The analytical approach combined descriptive statistics (percentages, frequencies, mean, standard deviations) and inferential statistics (Pearson correlation, multiple regression models).
Findings: The results from the regression analysis indicated that while work-life balance did not significantly affect employee retention, both career development and compensation were found to have a significant positive impact on retention rates at Kenya Women Finance Trust. This highlights the varying effectiveness of different HRM practices in influencing employee retention.
Conclusion: The study concludes that career development and compensation are essential factors in retaining employees at Kenya Women Finance Trust. These findings suggest that HRM practices that focus on professional growth and competitive remuneration are more likely to sustain employee commitment and reduce turnover.
Value: By identifying which HRM strategies are most effective, the study provides actionable insights for Kenya Women Finance Trust and similar organizations aiming to enhance their retention strategies. This can guide HR policies to invest more in professional development and competitive compensation to retain valuable employees and ensure organizational stability.