An Evaluation of Human Resource Practices on Employee Retention in State Corporations in Kenya

Abstract

Organisations can achieve a competitive advantage by enhancing and expanding human resource knowledge, skills, motivation, and morale. The study aimed to determine the effect of performance management techniques on staff retention at the National Transport and Safety Authority-Kenya. The study focused on 2100 employees working in 15 of Kenya's National Transport and Safety Authority branches. A descriptive research design was used in the study, with a sample size of 336 respondents selected using a stratified random sampling technique. Findings showed that Staff retention is positively correlated with performance management. There was a strong  positive correlation (association) (r = 0.725) between performance management and employee retention. The ANOVA findings  determined the regression model's significance, from which an f-significant value of P<0.001 was derived, indicating that the model's  likelihood (probability) of producing an incorrect prediction is less than 0.001. Management of NTSA-Kenya should appropriately handle  aspects of employee relations management, such as HR initiatives, leadership styles, and shared values. They should also provide their  employees with rewards in the form of cash bonuses, payments based on performance and pension schemes. Previous research on  human resource practices and employee retention has mostly focused on the private sector, leaving a study gap on the effect of these  policies on staff retention in Kenyan state corporations such as NTSA. The study, therefore, fills the gap in Knowledge of the performance  management practice affecting staff retention.