The Influence of Employer Value Proposition on Turnover Intent at the Giz Kenya Limited

Abstract

Employee turnover has always been a matter of concern for organizations because of the impact it has on the organization’s cost relating to recruitment and selection, induction and training of new personnel as well as loss of knowledge gained by the employee while on the job.A big portion of the current job market is candidate-driven, which means employers need to make more effort to attract quality talent and retain employees.The study thus sought to determine the influence of employer value proposition on turnover intent at GIZ Kenya Limited.The study was anchored on two theories namely Social Exchange Theory and Expectancy Theory.The study undertook both the empirical and theoretical review where the concept of employer value proposition was analyzed.The target population for this study is the 330 employees at the GIZ Kenya where 181 were sampled. Primary data was collected using self-administered questionnaires.The regression analysis findings revealed a statistically significant effect of employer value proposition on turnover intent as shown by significance level of 0.000 which is <0.05.This affirms that the model is statistically fit as an estimator of the employee turnover intent.The coefficient of determination (R2) 0.521 value implied that 52.1% of turnover intent at GIZ Kenya limited is attributed to employer value proposition, whichis a significant percentage.a unit increase in compensation reduces employee turnover intent by 0.345. On the other hand, a unit change in employment benefits triggers a decline in turnover intent by 0.457. Similarly, a unit change in career development causes a 0.415 decline in turnover intent. Additionally, a unit change in work environment will lead to 0.439 reduction in turnover intent while a unit variation in company culture will suppress turnover intent by 0.363 units. Companies should therefore appreciate that pay and a conducive work environment is an important factor for employee retention and reduced turnover intents hence labour organizations and other relevant authorities should recommend minimum pay scales for both private and public sector organizations to encourage uptake of employment opportunities offered by different institutions to reduce unemployment and improve the livelihoods of its citizens.