The Influence of Employee Benefits on Retention at Safaricom Limited

Abstract

Employee benefits is a broad topic that most organizations are trying to strike a balance between the various benefits they offer their staff. Employee’s perceptions on the kind of benefits they are entitled to differ with another employee, hence the need for organizations to clearly analysis and understand the benefits that will impact most employees. Some of the benefits that organizations can design and implement as highlighted in this study are medical benefits, retirement plans, discounted staff loans, leave and stock Option those are among the factors that influence an employee decision to either leave or stay in an organization. The study aimed at determining the influence of employee benefits on retention at Safaricom Limited- head office, with a target population of 4,839 staff. This study is guided by mainly two theories namely; Social exchange theory and Reinforcement theory of motivation.The methodology used was a descriptive survey which enables a researcher to describe the characteristics of the variables mentioned in the study, stratified sampling and the sample size of 320 which was determined using Krejcie and Morgan method. Primary data was collected by means of a structured questionnaire, which was self-administered. The data collected was analyzed using descriptive statistics (measures of central tendency, regression, and measures of variations) with the help of Statistical Package for Social Sciences (SPSS) version 20 to achieve the objectives of the study. Regression was used in determining the relationship between employee benefits variables and retention at Safaricom. The study concluded that all the benefits discussed in the study influences employee retention, however, one benefit had to be introduced at a time so as to evaluate the level of influence as the other factors are held constant. It is recommended that Safaricom Limited management should take actions aimed at ensuring that employees are rewarded accordingly and benefits offered to are constantly reviewed, furthermore, Safaricom Ltd needs to invest on non-monetary benefits which will not cost the company high financial costs. The study recommends that other benefits that Safaricom Limited should provide to increase employee retention includes employee of the month, praise and recognition among other non-monetary benefits. The study findings were applicable to Safaricom Limited only. The findings can therefore not be generalized to all organizations. The study recommends that further research should be done on the effects of employee benefits on employee retention in private organizations mainly the telecommunication industries in Kenya.