Influence of Human Capital Practices on Employee Performance in the Private Security Industry in Kenya

Abstract

In globally dynamic business environment, to identify key human capital drivers that work, and enhance sustainable employee performance in the 21st century organizations is a challenge. A survey showed that 33% of Kenya firms reported crime as a serious problem accounting for losses of nearly 4% on annual sales and on average, businesses allocate 3% of their operating budgets to private security services and security upgrade. Security is critical for national productivity, employment creation and sustained economic development as envisaged in Kenya’s Vision 2030. The main objective of the study was to establish the influence of human capital practices on employee performance in the Private Security Industry in Kenya. The study sought to improve employee performance, efficiency, and effectiveness in service delivery, reduced expenditure in security services, eliminate precarious work and suggest a move towards decent job creation. The study adopted descriptive research design and positivism research paradigm. The study unit of observation was the Private Security Guards. The target population was 150,000 and the sample size was 213. Kaiser-Meyer-Oklin method was used to measure of sample adequacy. Purposive and systematic random sampling technique was employed, and the pilot test of 10% of sample size was used. Test for validity through Bartlett’s sphericity test and expert input was used. Reliability was determined through Cronbach’s Coefficient Alpha. Triangulation was adopted in data collection tools. The study adopted descriptive data analysis, use of statistical inferences and hypothesis testing. The Data analysis was done with the help of STATA Version 15.0. Descriptive statistics analysis, correlation, regression, ANOVA and t-tests were adopted in the analysis. Data presentation was done through tables and figures. The study found a practical and statistically significant positive relationship between the human capital practices and employee performance. Hence, the carefully chosen variables enhance employee performance. The study recommends implementation of progressive employment policies, sector skills plan, robust human capital information systems, to build a sound human capital base. In addition, integration of IT and human capital management practices aligned with the legal frameworks and the national human capital development plan to enhance employee performance and sector growth.