Strategic Human Resource Practices and Employee Retention in a Private Commercial Bank in Nairobi County, Kenya

Abstract

Employees are always regarded as an organization's biggest asset because the workforce is a major component of every business. Organizations cannot deliver business results, satisfy organizational goals, or reach their financial targets without personnel. The majority of corporations understand how crucial human resources are to their businesses' success. It is impossible to overstate the importance of employing excellent strategic human resource management techniques, particularly when dealing with a dynamic workforce. Employee replacement costs are high, it might be challenging to locate qualified candidates, and expenditures on training are currently less secure, making employee turnover expensive. This study sought to investigate the relationship between Strategic Human Resource Management practices and employee retention in a Private Commercial Bank in Nairobi County, Kenya. Specifically, the study sought to determine the effects of recruitment, career management practices, and training on employee retention in the Private Commercial Bank. The study adopted a descriptive cross-sectional research design. The target population consisted of all the 198 employees of the Private Commercial Bank. This study used simple random sampling to determine the employees who participated in the study. The sample size was 93 respondents which was determined by the use of the formula developed by Yamane. The study utilized primary data that was collected by the use of questionnaires that were administered to the employees. The study data was analyzed using descriptive statistics through the use of means and standard deviation. Further, regression analysis was used to test the relationship between the study variables. The results indicated a positive significant correlation between recruitment and employee retention (r = 0. 419, p-value=0.000), significant positive correlation between career management and employee retention (r = 0.230, p-value=0.000) and a significant positive correlation between training and employee retention (r = 0.589, p-value=0.000). The study concluded that employee recruitment was crucial for improving staff retention in the private commercial bank in Kenya. Additionally, the research found a strong correlation between staff recruitment and retention. The study came to the conclusion that career management practices, as a strategic HRM practice, had a substantial impact on improving employee retention in the bank, particularly in light of the fact that workers respond favorably to possibilities for career growth and promotion. The study also came to the conclusion that career management methods and employee retention had a very strong favorable association. The study also came to the conclusion that training, as a strategic HRM practice, was essential to improving employee retention, particularly in light of the idea that when organizations support employees' training, everyone is given a clear understanding of their responsibilities as well as the skills and knowledge required to do their jobs.