THE EFFECT OF ORGANIZATIONAL RETENTION STRATEGIES
ON EMPLOYEE TURNOVER
(A Case Study of the Kenyan Courts-Mombasa Law Courts)
This paper presents some of the existing institutional retention strategies and tries to point out their effect on employee turnover. The study intends to establish how recognition and rewards, induction programmes, the working environment and training and career management opportunities influence an institution's rate of employee turnover. It seeks to understand the different retention strategies that organizations employ and their effectiveness in reducing employee turnover rates.
The study will analyse the effects of some of the retention strategies on employee turnover at the Kenyan Courts - Mombasa Law Courts.
The researcher will apply descriptive research design to gather information from the respondents and use stratified random sampling to obtain the probability samples. Stratified random sampling was preferred as it will give a sample that will be a representative of the population. The study targets a sample of about 40 respondents from whom data will be collected using questionnaires.
The data collected will then be analysed and from the findings, establish the effect of the different retention strategies on employee turnover. The study will also seek to establish which of the retention strategies or a combination, when applied, is best placed at resulting into a higher retention rate of employees in institutions.
1.1 Background of the study
The people organizations wish to retain are often the ones most likely to live. It was claimed by Reed(2001) as cited by Armstrong 2009 that: "Every worker is five minutes away from handing in his or her notice and 150 working hours away from walking out of the door to a better offer. There is no such thing as a job for life and today's workers have a few qualms about leaving employers for greener pastures."
One of the biggest challenges companies are facing is the attraction and retention of top performers. The World Future Society predicted that the greatest test of durability for companies in the next five years would be the ability to get and keep good people (Cheryl Cran, http://www.cherylcran.com/). According to Beardwell and Claydon, 2007 as stated by Manfred Kets de Vries (cited in Williams, 2000), today's high performers are like frogs in a wheelbarrow: they jump out any time. Most organizations are recognizing this and are turning their attention to the retention of key staff.
Armstrong 2009 defines employee turnover - also referred to as wastage, attrition - as the rate at which people leave an organization. Turnover of employees, especially key staff or high performers, can be disruptive and costly.
Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed, by having policies and practices in place that address their diverse needs (Workforce Planning for Wisconsin State Government, 2005). These policies and practices employed by organizations to encourage employees to remain in the organization are what is referred to as the retention strategies.
Labour turnover can be either voluntary or involuntary. According to Noe, Hollerbeck, Gerhart and Wright: 2007, involuntary turnover is turnover initiated by the organization (often among people who would prefer to stay), while voluntary turnover is...