Perceived relationship between reward management practices and employee retention in insurance companies in Kenya
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Date
2015Author
Mwangi, Teresiah W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Reward management practices and employee retention are important components of
human resource management practices. People are rewarded financially for the job they
are in and may receive additional rewards related to the level of their performance,
competence or their service in the job. They can also receive non-financial rewards such
as recognition, praise or the opportunity to develop and learn new skills. This research
was primarily carried out to establish the relationship between reward management
practices and employees retention in Insurance Companies in Kenya. Descriptive survey
design was used to demonstrate the relationship between variables. Primary data was
collected through the use of a structured questionnaire by use of a Likert Scale. Data was
analyzed using descriptive statistics, which comprised of frequencies, percentages, mean
and standard deviation. The components explored were recognition of employee
contribution to the organization, cash bonuses offered, communication of the reward
policy, career advancement opportunities, work life balance, skills development
opportunity, autonomy with which employees carry out assignments, benefits offered in
the organization, financial assistance, personal needs and entitlements, personal security,
pension scheme offered, share ownership offered, allowances and other benefits. The
findings of the study revealed that offering employees‟ performance based pay and
recognizing their contribution to the insurance company greatly influenced their
retention. Share ownership and pension scheme offered to employees in Insurance
Companies in Kenya were found to have a moderate effect on employee retention while
allowances and other benefits (company car, car loan, petrol, mileage) were found to
have little effect on employee retention. However, from the findings other reward
management practices components explored had a considerable effect on employee
retention in Insurance Companies in Kenya. The study concluded that there is a
significant relationship between reward management practices and employee retention in
Insurance Companies in Kenya. The study recommended that Insurance Companies in
Kenya need to improve on their reward management practices in their employee
management strategies to enhance employee retention.
Publisher
University of Nairobi
Description
Thesis