Workers' motivation and labour turnover among sales agents; A Study of British - American Insurance Company in Kenya

Abstract

This study investigates the link between motivation and labour turnover of sales agents in British- American Insurance, a leading Life Insurance company in Kenya. To facilitate understanding of motivation, reference was made to the social exchange and motivation theories. The factors that motivate Sales Agents are used as indicators of job satisfaction. Job satisfaction was seen as having an effect on staff retention and labour turnover. The methodology used included a sample survey, the random sampling procedure, structured interviews and review of secondary data. Data analysis was done using the SPSS statistical package, chi-square tests and frequency tables showing percentage distributions. It was found that the Sales Agents are dissatisfied with certain aspects of their terms and conditions of service. In particular, they are not happy about the company's decision making process, lack of adequate financial support to new agents, the commission structure and the mode of payment. Their perceptions about the terms and conditions of service were not influenced by their personal characteristics like age, education, marital status and number of dependants as the chi square tests conducted did not show any association. The study recommends a review of the company's policy on decisbn making policy in order to allow agents to participate in this process. The financial support extended to new agents should also be enhanced to enable new agents to meet their basic needs like food transport and clothing. The current commission structure should also be reviewed to improve the morale of the sales agents. Most agents are not in favour of the current mode of payment and would prefer a commission plus basic pay method. A review of this mode of payment is therefore recommended in order to boost the level of morale of the sales agents and enhance the overall performance of the company.