Perceived factors affecting employee retention in Safaricom Limited

Abstract

The objective of the study is to investigate the perceived factors that affect employee retention in Safaricom Limited. Among the factors that influence employee retention includes; performance management practices, compensation, working conditions, rules and regulations, Manager-Employee Relationship and Career Growth. Employee retention in any organization is important as it assists in reducing the cost of recruitment, increased productivity and morale, retaining high performers, good organization image and keeping inside information more private. This study used descriptive survey in a context of one organization. The targeted population included the employees in all the departments of Safaricom Limited. Stratified random sampling procedure was used to arrive at a sample of the employees who took part in the study. Questionnaires with both structured and unstructured questions with rating scales were self-administered for purpose of collecting primary data. Quantative analysis was done using descriptive statistics such as percentages, means, standard deviation and tables to describe distributions. The research revealed that performance management practices are not transparent and unfair hence low retention and performance management practices are by objective, attainable and realistic, systematic, participative and regular. Career growth practices within Safaricom LTD leads to lower rate of employee retention. The availability of the manager and means of communication to employee is not well enhanced. Rules and regulation are a burden leading to low level of employee retention. Compensation is competitive and caters their needs leading to increased employee retention. Working conditions of the safaricom limited employees assisted in employee retention. The findings recommend that performance management practices needs to be reviewed to become fair and transparent. Career growth and development practices needs to be reviewed to increase employee retention. There is need for improved communication channels and manager availability within the organizations. The study recommends that the employees requires to be involved in drafting rules and regulations and reviewing them not to act as a burden to employee in turn increasing the rate of employee retention. Compensation equity and policy requires to be reviewed to increase rate of employee retention.