Influence of Human Resources Management Strategies on Employee Retention in the Medical Insurance Industry, in Kenya

Abstract

The most important assets in any institution are human resources. Retention of experienced and efficient employees in a firm is important since it reduces hiring costs. The objective of the research was to determine the link between human resources management strategies and the retention of employees in the medical insurance industry in Kenya. The specific objectives were; to examine the effects of training and development, reward and compensation strategies, recruitment and selection, and employee relations on retention of workers in the Kenyan medical insurance industry. The study design was the descriptive method. The unit of observation was the medical insurance industry. The unit of analysis was the staff at the medical insurance companies. The study targeted 150 top-level managers and 300 HR managers in the medical insurance firms in Nairobi County. A probabilistic sampling design was used to generate a sample size of 212 respondents in the hospitality sector Questionnaires were designed to collect primary data that was quantitative. Descriptive and inferential statistics were used to analyze the data whereas the findings were shown through tables, charts, and narratives. Mean scores and standard deviation were used to analyze the Likert scale. Regression analysis was carried out to find out the association between human resources management strategies and employee retention. To determine the significance level of the model ANOVA was adopted. Recruitment, selection, and employees’ retention revealed a β=0.726, training, development and retention revealed a β=0.743, employee relation, and retention revealed a β=0.791whereas rewards, compensation, and retention revealed a β=0.807. Rewards and compensation had the greatest effect on retention among employees in medical insurance companies in Kenya. The study concluded that training, recruitment, employees’ relations, and rewards strategies had a significant and positive relationship with staff retention in the medical insurance industry in Kenya. The recommends medical insurance companies to use recruitment agencies and internal staff recommendations in recruiting and selecting employees; this ensures that the firm hires committed and productive workers. The study also recommends for the management of insurance companies invest more in training activities to ensure the employee is effective. The insurance company management should also adopt strategies that create an environment in which employees feel a sense of voice encouraging employee development. Finally, the study recommended for medical insurance companies give fair compensation to their employees by coming up with policies that ensure that employees get equitable rewards after doing their jobs.