Human Resource Management Practices and Employee Retention In Beverage Processing Firms in Kenya

Abstract

Employee retention is a key factor in an organizations’ success. It is one of the challenges facing many organizations both public and private occasioned by globalization that has intensified competition and increased mobility of highly skilled employees. Thus, aim of this study was to investigate the influence of human resource management practices on employee retention in beverage processing firms in Kenya. The objectives of the study were: To assess the influence of training on employee retention in beverage processing firms in Kenya; to examine the influence of promotion on employee retention in beverage processing firms in Kenya; to evaluate the influence of performance appraisal on employee retention in beverage processing firms in Kenya and to establish the influence of Reward on employee retention in beverage processing firms in Kenya. The study was conducted using cross-sectional research design to establish the relationship between variables. The target population was 2940 employees of beverage firms in Kenya and simple random technique was used to collect the sample. The sample size was 352 employees who were calculated using Taro Yamane’s formula. The study adopted structured questionnaires to get answers of the research questions. Questionnaires were used to collect data and later on analysed using descriptive statistics and presented in frequency tables. The pilot study was carried out at Kipchabo tea factory in Nandi County in order to validate the study instrument. It was established that training, promotion, performance appraisal and reward practices showed a positive correlation with retention of employees in beverage processing firms. The study concludes that beverage processing firms train their employees based on the existing policy guidelines. The study also, concludes that beverage processing firms promote their employees based on merits and this promotion offered an opportunity to employees for advancement. The study recommended that beverage processing firms should involve employees in decision making in order to allow them identify areas that they need to be trained. The study recommended that beverage processing firms should make aware of promotion policy to its employees through proper communication channel from the top management. Also, the study recommended to the management of organizations to put in place performance appraisal policy, give performance appraisal feedback timely and should be conducted on regular bases to enable management and employees to plan for better execution. The study recommended that issues should be addressed so that to prevent employees from perceiving performance appraisal systems as discriminatory, punitive and judgmental processes, where cronyism and biased considerations dominated objectivity and thus ineffectiveness of the appraisal system. Lastly, the study was to be of great significance to beverage processing firms, academicians, scholars and policy makers.