Effect of Human Resource Management Practices on Retention of Millennial Work Force at Consolidated Bank of Kenya Limited

Abstract

Employee retention practices particularly in the last decade became largely effective because they focused more on older generational cohorts like baby-boomers who preferred to remain in the same job for life. Consequently, most strategies for improving employee productivity during that time also became productive because they operated under low and stable employee turnover rates. In Kenya, many firms particularly in the commercial banking sector are yet to appreciate and act towards elevating the value of millennial employees in production. The result has been high turn-over of millennial employees from the sector to other sectors. Thus, this study aimed at establishing the effect of Human Resource Management practices on retention of millennial work force at Consolidated Bank of Kenya Limited. The study incorporated seven Human Resource Management practices namely; recruitment and selection, learning and development, reward and motivation, job design, succession planning, work-life balance and performance management. The study was based on Becker’s human capital theory and Hormans’ social exchange theory. The study adopted a descriptive survey design and the study’s population comprised of the 97 millennials at Consolidated Bank of Kenya Limited. Thus, the study conducted a census of all the 97 millennial employees. Questionnaires were used to collect the primary data which was summarized through descriptive statistical tools and the regression model to establish the relationship between the variables. The study results revealed that recruitment and selection had a positive and insignificant relationship with retention of millennial employees while learning and development had a negative and significant relationship with retention of millennial employees at Consolidated Bank of Kenya Limited. Further, reward and motivation results indicated a positive and significant relationship with the retention of millennial employees while job design had a positive and significant relationship with retention of millennial employees whilst succession planning had a negative and insignificant relationship with retention of millennial employees at CBKL. Lastly, work-life balance had a negative and a significant relationship with retention of millennial employees while performance management had a positive and significant relationship with retention of millennial employees at CBKL. The study concluded that learning and development, reward and motivation, job design, work-life balance and performance management significantly affected retention of millennial employees at CBKL.