INFLUENCE OF EMPLOYEE LOYALTY ON RETENTION IN PRIVATE SECURITY FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

The challenge of employee retention is a global problem that affects organizations in both developing and developed countries. Even though a lot has been done towards addressing the problem, the situation has continued to be experienced among private security firms in Nairobi City County, Kenya. The main objective of this study was to determine the influence of employee loyalty on retention in private security firms in Nairobi City County, Kenya. The work environment was used as a moderating variable. The study adopted a descriptive research design. The target population of this research was 50 private security firms in Nairobi City County registered with Kenya Security Industry Association. Primary data was collected using a closeended questionnaire. Data was analyzed with the aid of SPSS version 25.0 and presented using descriptive and inferential statistics. Simple and multiple regression analysis was used to establish the relationship between variables and the t-statistic at a 95% significance level was adopted in testing the hypothesis of the study. The overall significance was tested using F-test. The study established a positive significant effect of employee loyalty on retention with a regression coefficient of 1.583 and a p-value of 0.000 implying that employee loyalty affected retention. The interaction between work environment and employee commitment had a regression coefficient of 2.330 and a p-value of 0.025 implying that work environment positively altered the relationship between employee loyalty and retention. The study recommends that private security firms ought to put strategies that encourage employees to remain loyal in performance of their work, to ensure increased employee retention. The findings of the research will contribute to theory, policy making, and understanding of human resource management practices to ensure an increase in employee retention.