Perceived influence of corporate social responsibility on employee retention at the geothermal development company (GDC) Kenya

Abstract

In today‟s competitive business environment, organizations are increasingly becoming interested in internal marketing tactics in order to ensure a lower turnover rate, employee engagement and satisfaction. CSR is one powerful tool that can be used in internal marketing of an organization amongst her employees. This study sought to find out the perceived influence of CSR on employee retention at the Geothermal Development Company in Kenya (GDC). The study was a descriptive cross sectional study conducted using structured questionnaires amongst 160 employees of GDC. Data analysis was carried out through a descriptive approach by use of SPSS version 22. A response rate of 100 % was achieved and the study found out that the most employees at GDC have a very positive perception of the various statements on CSR in employee retention. The findings of the study show that 96 % of the employees are not willing to work for an employer with a negative corporate reputation. Employees are in full support of CSR, only 64 % of the respondents had previously participated in CSR activities but 100 % of the respondents were willing to participate in CSR activities in future. Most of the employees are also willing to put in more effort as a result of the CSR approach adopted by the organization; it is for this reason that the employees talk up the organization as a good employer. In addition, the study has revealed that most of the employees leave the GDC as a result of lack of support, lack of recognition, low career development, lack of stakeholders‟ engagement and poor CSR strategies. Therefore this study has established that CSR is a good ingredient in employee retention at the GDC. The study recommends CSR policies and strategies need to be fully promoted in all organizations and so should be policies that are related to: support, engagement and recognition of employees and career development for all employees. The study suggests further research to be carried out on many organizations with selection of mediators and more advanced statistical analysis to provide more insight into the relationship between CSR and employees‟ retention. Another aspect for further research is the role of communication when working with CSR; how it should be handled for more effectiveness and how CSR efforts should be communicated in order for them to have the largest possible positive effect on employee retention.