Perceived effects of employee benefits on employee retention at Kenya Forest Service

Abstract

On average a company losses approximately $1million with every 10 managerial and professional employees who leave the organization. The combined direct and indirect costs associated with one employee ranges from a minimum of one year’s pay and benefits to a maximum of two years pay and benefits. Thus, there is a significant economic impact when an organization losses any of its critical employees especially given the knowledge that is lost with an employee’s departure. The purpose of the study was to determine the perceived effects of employee benefits on employee retention at Kenya Forest Service. Descriptive research was used For this study the target population was employees of Kenya Forest Service which is a state corporation. It has a total population of 625 employees. The study used 62 employees as a sample case. To achieve the research objectives, both primary and secondary data was used. Primary data was collected through a questionnaire. Secondary data was obtained through documents review i.e Human Resource Manual and exit interview forms. Qualitative data was analyzed through content analysis. Quantitative data was analyzed using descriptive statistics. From the findings the study concludes that there is employee benefit policy at KFS and that employees do not leave the organization because of dissatisfaction with employee benefits. These benefits include pension scheme, life insurance, sabbatical leave, health insurance, workers compensation programs, transportation benefit, flexible work plan, educational fees, employee assistance programme, relocation benefits and recreational programmes. The study recommends that in order to enhance employees retention, the Kenya Forest Service should offer increased medical package, provision of housing facilities at subsidized rent rates, revision of benefits scale, increase salary, provision of growth and development opportunities for staff and a good reward scheme, staff participation in decision making, incentives to motivate staff, benefit policies that are competitive and compare favorably with other organization, transparency in matters relating with staff benefits, establishment of loyalty clubs/team building and good working conditions.