Human Resource Management Practices and Employee Retention in Research Institutes in Kenya

Abstract

Significant attention in human resource management is often directed at employee retention. This is because maintaining and developing talent of the workforce hold key to competitive advantage across different sectors. In contexts such Kenya, research institutes have endeavoured to place measures capable of creating conducive work environment aimed at ensuring high productive among employees. However, these organizations are continuously faced with dynamic and competitive business environment requiring innovative measures of retaining talented workforce. This study sought to explore the influence of human resource management practices (HRMP) on employee retention among research institutes in Kenya. Specifically, the study sought to establish the influence of employee selection, training and development, performance management and compensation on employee retention and the moderating effect of management style on employee retention in research institutes in Kenya. Michigan model, Resource based view, Contingency theory as well as Ability, Motivation and Opportunity (AMO) theories were adopted to guide the study. Descriptive and correlational research designs were deployed on a target population of employees in specific categories identified in 5 public research institutes listed in the Fourth schedule of the Science, Technology and Innovation Act, CAP 250 (repealed), 2013. Stratified random sampling technique was used to select a sample size 303 employees from twelve strata. Data was collected using self-administered questionnaires which yielded an acceptable response rate. Reliability and validity were respectively computed via Cronbach's Alpha and factors analysis processed SPSS software from pilot test data collected from 33 respondents drawn from the research organizations. Descriptive statistics and multiple regressions were used for data analysis. The overall model summary with a moderating variable indicated a great degree of variation implying that the study variables of employee selection, training and development, performance management and moderating variable of management style accounted for great influence on employee retention. The study found that employee selection, training and development, performance management and compensation have a significant positive influence on employee retention while management style had a significant moderating effect on the relationship in research institutes in Kenya. The study recommends the need to improve these HRM practices through monitoring of employee performance throughout the year, undertaking periodic salary review, ensuring external equity of salaries and provision of competitive benefit packages in research institutes in Kenya. The study suggests that future studies should consider replicating this study through inclusion of other HRM practices not covered by the study and conducting similar studies in private sector research institutes. The research findings will be of benefit to the research institutes in Kenya, policy makers and management in organizations to gain a better understanding of how human resource management practices can be optimized for better retention outcomes. It will also benefit researchers and academicians by contributing to the body of knowledge in the academic community and to stimulate further research in the field of human resource management practices in other sectors of the economy.