EFFECT OF STAFF RETENTION STRATEGIES ON PERFORMANCE OF TELECOMMUNICATION COMPANIES IN KENYA: A CASE OF SAFARICOM LIMITED

Abstract

Retention of employees is becoming a real challenge in today’s operating environment as employers begin to realize the value of people that make up the organization. Therefore the employment relationship is undergoing fundamental challenges that have the implication for the attraction, motivation and retention of talented employees and talent shortage has resulted in fierce competition. The general objective of the study was to establish the effect of staff retention strategies on performance of telecommunication companies in Kenya, with special focus on Safaricom Limited. The study specifically sought to determine the effect of training and career development, job satisfaction, remuneration and reward and recognition on performance of telecoms in Kenya. This study was built on the underpinning theories, including the Maslow's hierarchy of needs, job embeddedness theory and expectancy theory. The study considered case study design suitable since data was gathered from a single source. Case approach helped to narrow down a very broad field or population into an easily researchable one, and sought to describe a unit in details, in context and holistically. The study population composed of 186 members of staff in different managerial levels currently working with Safaricom Limited. Therefore this study used 30% of the population and thus the sample size was 56 respondents. The research used questionnaires. The research perused completed questionnaires and document analysis recording sheets. Quantitative data collected was analyzed using SPSS (Version 20) and presented through percentages, means, standard deviations and frequencies. This study also employed a multiple linear regression analysis. The study found that training and career development, job satisfaction, remuneration and reward and recognition have a positive and significant effect on performance of telecoms in Kenya. The study concluded that personal development through training helps employees to accomplish tasks with ease. In addition training is an act of increasing the knowledge and skills of employees for doing a particular job. Based on the research findings the study recommended that organizations should implement training and career development so as to improve their performance. In addition all organization should conduct in-house training regularly.