Abstract:
The purpose of this study was to establish the influence HRM practices have in enhancing employee commitment in commercial banks in Kenya. This has been occasioned by the intense competition and ‘talent wars’ as a result of the liberalization of the financial services. Specifically, the objectives of this study were to establish whether HRM practices such as promotion, compensation, and training as well as performance evaluation under different contracts influence Kenyan commercial bank employees’ commitment. The study was conducted using survey design. The total population of the target banking employees was 8000, and in the selected institutions it was 3607. Proportional stratified random sampling technique was used to select the required sample drawn from the six selected commercial banks based on the two stratums of the contract and permanent employees who were union members. In addition, purposive sampling was used to pick a sample from the 43 HR managers for validation of the self reported responses from employees. Data was collected using a questionnaire, which had both closed ended (Likert scale 1-5) questions and open ended questions, while an interview schedule was used to obtain additional information from the HR and operations managers. The items in the questionnaire were arranged and grouped according to the specific objectives of the study. The study employed Pearson’s Product Moment Correlation, Linear Regression, Moderation models and Step-wise Regression Statistics (i.e. ANOVA and F Tests) for data analysis and tests. Qualitative data was put into categories based on the themes that were aligned with the research objectives and integrated in the discussion of research findings. The study revealed that promotion opportunities negatively influence employee commitment. The study therefore brought to fore the role of promotion opportunity creation plays in enhancing the commitment of employees in the commercial banks. Further, the study found that commercial banks in Kenya employed effective compensation management systems that can enhance the three levels of employee commitment (effort, value and retention). The study recommends that training needs of each employee should be identified and programsdeveloped that are best suited to these needs. There is also a need for transparency in the promotion process to remove the feeling of favoritism and nepotism. The compensation policy should ensure that employees’ compensation is matched with the employees’ efforts.The study concluded that the management of commercial banks should employ less subjective ways in setting targets, performance review and giving incentive to employees duringpromotion and this did not enhance all levels of employee commitment in this sector.