FACTORS INFLUENCING STAFF RETENTION IN THE BANKING INDUSTRY IN KENYA. A CASE STUDY OF EQUITY BANK LIMITED.
Abstract
Staff retention is one of the key challenges that many organizations around the world, and specifically in Kenya, face today. The general objective of this study will be to investigate the factors influencing staff retention in the banking industry in Kenya, A case study of Equity bank limited. The study’s target population was 200 employees of Equity bank limited, from which a sample of 100 respondents was drawn for the study using 50% of the target population. This included the top management, middle management and lower level management. The sample was selected through stratified sampling techniques. The researcher collected data using both structured and unstructured questionnaires and also through use of interview schedules. Quantitative data was analyzed using descriptive statistical tools namely frequencies, percentages, mean and standard deviation while inferential statistical tools such as correlation and regression were used to determine and explain variable relationship; through SPSS version 22 computer program. The study recommends that the management of Equity bank should put into consideration the use of financial and non–financial needs in order to fully satisfy different employee needs thus attaining the set goals and objectives. The study also recommends that the organization needs to establish a reward policy /system and involve employees in determining acceptable and affordable rewards based on achievement of performance targets. This could be done in liaison with the government agencies such as SRC (Salaries and Review Commission). The management of Equity bank should ensure that; there is a training policy in place, that their employees are thoroughly trained on issues that can increase the bank’s productivity, that they hold up mentorship programs, there is a work-life balance policy in the organization and offer recreational facilities for the staff. The study also recommends that the management of the bank should ensure there is a proper promotion policy in place. Future researchers should focus on other variables that may influence retention of the banking personnel. This study was limited to the banking sector in Kenya using Equity Bank limited as a case study. A similar study could be carried out in other financial institution especially in the public sector to find out whether the same results shall be obtained.
Key Words: Staff Retention, Employee Training, Employee Remuneration, Work-life Balance, Employee Promotion, Banking Industry in Kenya.
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i2.249
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