Perceived influence of corporate social responsibility on employee retention at the geothermal development company (GDC) Kenya
Abstract
In today‟s competitive business environment, organizations are increasingly becoming
interested in internal marketing tactics in order to ensure a lower turnover rate, employee
engagement and satisfaction. CSR is one powerful tool that can be used in internal
marketing of an organization amongst her employees. This study sought to find out the
perceived influence of CSR on employee retention at the Geothermal Development
Company in Kenya (GDC). The study was a descriptive cross sectional study conducted
using structured questionnaires amongst 160 employees of GDC. Data analysis was
carried out through a descriptive approach by use of SPSS version 22.
A response rate of 100 % was achieved and the study found out that the most employees
at GDC have a very positive perception of the various statements on CSR in employee
retention. The findings of the study show that 96 % of the employees are not willing to
work for an employer with a negative corporate reputation. Employees are in full support
of CSR, only 64 % of the respondents had previously participated in CSR activities but
100 % of the respondents were willing to participate in CSR activities in future. Most of
the employees are also willing to put in more effort as a result of the CSR approach
adopted by the organization; it is for this reason that the employees talk up the
organization as a good employer. In addition, the study has revealed that most of the
employees leave the GDC as a result of lack of support, lack of recognition, low career
development, lack of stakeholders‟ engagement and poor CSR strategies. Therefore this
study has established that CSR is a good ingredient in employee retention at the GDC.
The study recommends CSR policies and strategies need to be fully promoted in all
organizations and so should be policies that are related to: support, engagement and
recognition of employees and career development for all employees. The study suggests
further research to be carried out on many organizations with selection of mediators and
more advanced statistical analysis to provide more insight into the relationship between
CSR and employees‟ retention. Another aspect for further research is the role of
communication when working with CSR; how it should be handled for more
effectiveness and how CSR efforts should be communicated in order for them to have the
largest possible positive effect on employee retention.
Publisher
University of Nairobi