Influence of Employee Retention Strategies on Organizational Performance of Custom and Border Organizations in Kenya

Abstract

Employee retention in government organizations worldwide is a significant challenge owing to fluctuating demand and frequent job changes by many employees. Knowledge of how parastatals retain competent employees is crucial owing to the increased demand for optimal performance. Custom and border organizations in Kenya recognized the emerging challenge of organizational performance and therefore put various measures to retain employees. Despite the efforts, still, their performance is low. The study's objective was to determine the influence of employee retention strategies on the organizational performance of customs and border organizations in Kenya. The specific objectives were to determine the influence of recruitment, and the influence of training, to establish the influence of compensation, and to determine the influence of talent management on the organizational performance of customs and border organizations in Kenya. The study was anchored on Mcgregor theory X and theory Y of Motivation. The research employed a descriptive research approach. The study targeted 16 individuals in top executive positions, 83 individuals in middle management positions, and 104 individuals in lower management positions from the Kenya Revenue Authority, the Kenya Ports Authority, and the Kenya Airports Authority. The study used the stratified random sampling method and the Taro Yamane formula to come up with a sample size of 218 participants. The researcher utilized questionnaires with both closed and open questions to gather primary data. Before administering all the questionnaires to employees, a pilot study was conducted on 10 participants with the application of a Cronbach alpha of more than 0.7 being considered an appropriate reliability score measure. Descriptive statistics were presented via frequencies, percentages, standard deviation, and mean. Data analysis was conducted using descriptive and inferential statistics to establish the link between the variables whereas content analysis was used to analyze qualitative data. Results were presented on, tables, graphs, and narratives. The study revealed a beta value of 0.243 and a p-value of 0.002 between recruitment and the organizational performance of customs and border organizations in Kenya. The study revealed a beta of 0.336 between training and organizational performance of customs and border organizations in Kenya. In addition, the study revealed a beta of 0.222 between compensation and organizational performance of customs and border organizations in Kenya. Lastly, the study revealed a beta value of 0.310 and a p-value of 0.001 between talent and organizational performance of custom and border organizations in Kenya. The study concluded that recruitment, training, compensation, and talent management had a significant influence on the organizational performance of customs and border organizations in Kenya. The study recommended that customs and border organizations in Kenya should be imperative for human resource management to prioritize in-service training programs to continually enhance employee skills and work performance. The study also recommended that customs and border organizations in Kenya should prioritize the recruitment of a qualified workforce with relevant experience and necessary training to boost productivity levels. The study also recommended that customs and border organizations in Kenya should make a concerted effort to enhance talent management practices, focusing on efficient talent identification, retention, and development strategies. Lastly, the study recommended that customs and border organizations in Kenya should recognize the importance of employee well-being by providing adequate leave and off days which significantly contribute to job satisfaction and worker efficiency. Overall, customs and border organizations in Kenya should prioritize qualified recruitment, continuous training, transparent compensation, and robust talent management to enhance organizational performance and employee retention.