EFFECT OF HYGIENE FACTORS ON STAFF RETENTION AMONG EMPLOYEES IN COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA

Abstract

The issue of employee motivation is important as it establishes a substantial foundation for high performance levels and less unproductive time. Some motivating factors are revealed by a number of surveys conducted between both operational and professional employees to be influential across an organization. The general objective of the study was to investigate the effects of Herzberg’s hygiene factors on staff retention in selected commercial banks in Nairobi County, Kenya. The specific objectives were as follows: to determine the effect of hygiene factors (supervision, company policies and administration, working conditions, salaries, job security and relationship with colleagues) on employee retention in commercial banks in Nairobi County; and to determine the combined effect hygiene factors on staff retention commercial banks in Nairobi County. This study adopted a descriptive research design and the researcher conducted a field survey in selected commercial banks within Nairobi County, Kenya. The study purposively picked a representation from the 13 selected commercial banks from all 42 banks in Nairobi. Sampling was done from a sample of 355 employees and 199 questionnaires were received giving a response rate of 56%. The results of Pearson’s correlation analysis showed that hygiene factors had a significant positive relationship with staff retention. Specifically, the results showed that supervision and salaries and remuneration had significant positive correlations with staff retention. Finally, the results of multiple regression analysis testing the combined effect of hygiene factors on retention found that salaries and remuneration, working conditions and relationship with colleagues were the only significant predictors of staff retention. The study recommended the need for the bank administrators to properly align retention practices with the needs and values of employees.