Abstract

Employee retention is a major challenge facing many organizations today. The understanding of Generational differences at the workplace has been identified as a key requirement in implementing measures for effective employee retention. Within the telecommunications firms in Kenya, the problem of employee retention is a major challenge to the telecommunications firms. This paper thus examines the effect of generational differences on the retention of engineers in telecommunications firms in Kenya from the generational theory and generational cohorts theory perspective. This study used the cross-sectional and descriptive survey research design. Data were analyzed using descriptive and inferential statistics. We found that there exist a statistically significant variation in employee retention across the generational cohorts as observed through employee engagement, job satisfaction and organizational commitment (continuance commitment, affective commitment and normative commitment). These findings extend the theory regarding employees’ retention and have implication for employee retention practices which should be differentiated across the generational cohorts.

Highlights

  • Employee retention is a key concern to many organizations today as organizations grapple with the challenge of retaining their key talents

  • To determine the relationship between generational differences and employee retention, the study established that employee retention varies significantly across the three generations

  • Analysis of Variance (ANOVA) for generational differences between and within generational groups established that there was a statistically significant differences in retention among the three generations based on the mean scores of responses among various generational groups

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Summary

Introduction

Employee retention is a key concern to many organizations today as organizations grapple with the challenge of retaining their key talents. Skills and knowledge possessed by employees have been considered as key divers required by organizations to achieve competitive advantage (Michington, 2010, Walker 2011) In this era of competition, employers must devise methods of retaining their key talents if they have to survive in any industry (Gurumani, 2010). In the 21st century, organizations have recognized that in order to succeed in achieving competitive advantage, they must have the best and stable workforce in their employment (Guest, 2011). To achieve this objective, organizations need to institute measures that will engage and retain their most valued employees. Many organizations are facing scarcity of talents, the ‘war for talents’ (Capelli, 2000)

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