Relationship between human resource planning and labour turnover among micro finance institutions in Kenya

Abstract

The Micro Finance Institutions (MFIs) operating in Kenya have a huge role to play towards poverty alleviation through credit accessibility to Small and Micro Enterprises (SMEs). These micro finance institutions have had to develop strategic responses as a part of competitive strategies and this has meant addressing the issue of human resource planning along side other strategic plan. The objective of this study was to establish the relationship between human resource planning and labour turnover among micro finance institutions in Kenya. 32 micro finance institutions were used in the study. A census survey method was used to collect data because the micro finance institutions registered with the Association of Micro Finance Institutions (AMFI) was essentially small. The study primarily used data collected through a structured questionnaire with the sole aim of establishing whether in deed there exists any relationship between human resource planning and labour turnover in the micro finance sector. The results of the study revealed that most micro finance institutions have human resource planning and the labour turnover ranged from moderate to very low. There was however no significant relationship between human resource planning and labour turnover. However, despite the lack of a significant relationship between human resource planning and labour turnover, it was evident that there exists an inverse relationship implying that human resource planning increase employee retention.It is recommended that the micro finance institutions consider developing human resource plans as this will give them a strategic advantage