THE INFLUENCE OF EMPLOYEE TURNOVER ON PERFORMANCE OF REGIONAL DEVELOPMENT AUTHORITIES IN KENYA: A CASE OF TANA AND ATHI RIVERS DEVELOPMENT AUTHORITY

Jane Njoroge, Dr. Sedina Misango

Abstract


Tana and Athi Rivers Development Authority has throughout the past three years, encountered an expanded pace of employee' turnover and this adversely affected hierarchical performance. The adverse consequence incorporates interruptions to support conveyance, organization’s internal cycles take more time and expansion in client disappointment and gripes. This study targeted to bridge the niche by evaluating the influence of employee turnover on association execution in reference to Tana and Athi Rivers Development Authority. Specifically, the study sought to examine how employee retirement influences TARDA’s performance, to determine how employee resignation influences TARDA’s performance. This study was based on Hertzberg two factor theory, and Affective Events Theory. The study used descriptive research design. The unit of analysis was Tana and Athi Rivers Development Authority while the unit of observation was done on 131 employees in their headquarters in Nairobi. Yamane formula for calculating sample size was used. The sample size of the study was 99 subjects. This study used stratified random sampling technique. Senior management, middle management, low management, and non-management formed the strata. The study collected data using semi-structured questionnaires. The researcher carried out a pilot review to pretest the legitimacy and reliable quality of the exploration instruments. A pilot study was conducted on 9 employees (10% of the sample size). Descriptive statistics analysis comprised of frequencies, mean, standard deviation, percentages, coefficient of variation, and one sample t-test to explore underlying characteristics of organizations and respondents. Inferential statistics included coefficient of determination, simple linear regression analysis and multiple linear regression analysis. The findings were presented in tables and figures. The study found that retirement negatively and significantly affects organizational performance of Tana and Athi Rivers Development Authority. Also, employee resignation negatively and significantly affects organizational performance of Tana and Athi Rivers Development Authority. The study thus recommends management of Tana and Athi Rivers Development Authority to implement retirement strategies that will help the company deal with loss of employees due to retirement.  The various retirements the organization should have in consideration include traditional retirement, semi-retirement, and temporary retirement. They should also think of various ways they can reduce the rate of employee resignation. This includes revising their compensation which is the main reason why employees consider resigning.

Key Words: Employee Turnover, Employee Retirement, Employee Resignation 


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