EMPLOYEE PERFORMANCE MANAGEMENT AND EMPLOYEE RETENTION IN COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
Abstract
Purpose: The purpose of this study was to investigate the influence of employee performance management on employee retention in tier one commercial banks in Nairobi, Kenya. The specific objectives were to determine how performance planning, performance process influence employee retention in tier one commercial banks in Kenya.
Methodology: The study focused on the nine commercial banks in tier one in Nairobi, Kenya. This study targeted three hundred and eighty-nine respondents from tier one commercial banks in Nairobi County and used multivariate regression analysis to examine the relationships between the study variables. The study was anchored on four theories; the McClelland’s achievement theory, and human capital theory. Simple random sampling was used to recruit respondents.
Findings: There is significant positive correlation between performance planning increasing fairness and equity in the tier one commercial banks in Nairobi County (r=0.866, p<0.05), as well as a substantial positive correlation between onboarding process and employee retention of tier one commercial banks in Nairobi County (β = 0.316, p<0.05). Mentorship programs enhance job satisfaction, but it was unclear whether this strategy improved employee retention in commercial banks. The findings show that the employee retention in tier one commercial banks in Nairobi County and the performance process have a significant, moderately positive association (r=0.622, p<0.05). There is statistically significant positive correlation (β = 0.336, p<0.05) between the employee retention in tier one commercial banks in Nairobi County and the performance process.
Recommendations: The tier one commercial banks should put more effort in encouraging their employees to come up with suggestions and useful decisions and endeavor to incorporate them into the organization's practices and policies with regard to performance planning and performance process.
Key words: Employee Performance Management, Employee Retention, Performance Planning, Performance Process.
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