Perceived Influence of Work Environment Factors on Organizational Commitment Among the Millennials in the Banking Industry in Kisumu City - Kenya

Abstract

Worldwide, Millennials make up 50% of the workforce. According to a report by financial advisory firm Deloitte, the Millennials make up 70 per cent of the workforce in Kenya. It has been observed that with their entrance into the workforce, employee turnover rates have become higher than before. This high turnover has increased cost of doing business for firms. Previous reports indicate that 4 out of 10 of Millennial employees have one foot out of their current employer, especially if a company’s work environment is not conducive. Factors affecting organizational commitment have been studied. However most of these researches usually study factors that determine organizational commitment at an individual level instead of organizational level. Moreover, given the fact that different generational groups normally will have different values, opinions, practices, perspectives and worldviews and will react differently to workplaces and work environment stimuli; work environment factors affecting Millennial organizational commitment have not been studied in Kenya. It is against this backdrop that this study sought to find out the perceived influence of work environment factors on employee commitment among the Millennials in the banking industry in Kisumu city – Kenya. This research employed cross- sectional, descriptive survey study design of employees in branches of commercial banks in Kisumu City, Kenya. Target population for this study was all Millennial employees working in commercial banks in Kisumu City. Data was collected using a closed ended questionnaire based on a Likert five scale. The study found out the industry in the city has 53.2% males and 46.8% females. Supervisor support has 11.3% significance of positive influence on commitment while decision making and co-worker support have 19.4% and 2.1% positive significance respectively. However, employee job autonomy has a 3.5% weak positive relationship with organizational commitment. The results therefore indicated that employee direct participation in decision making and supervisor support was found to have positive and significant influence on organizational commitment while employee co-worker support and job autonomy on organization commitment was found to have a weak positive but statistically insignificant effect. This study therefore concludes that work environment factors affect organizational commitment amongst Millennials in the banking industry in Kisumu City, Kenya.