Effects of employee tenure on organisational performance: a case study of Kenya revenue authority western region, Kenya

Abstract

Employee performance offers value-added by creating, developing, and maintaining the relationship with the customers. Many organisations in many countries are faced with the threats of poor productivity. This is mainly because of the many constraints influencing organisational systems of performance, for example employee tenure. It is obvious that the results of those constraints are discouraging investors and ultimately the organisation which is lagging behind. Being successful in such situations partly depends on the employee tenure and to what extent the tenure influences employee performance. The purpose of this study was to evaluate the effects of employee tenure on organisational performance. The objectives of this study were: to determine the level of employee tenure in Kenya revenue authority western region; to determine the influence of knowledge competency on organizational performance; to examine the influence of skills support system on organizational performance; to determine the influence of stable work environment on organizational performance and to examine the effects of cost effectiveness on organizational performance. The study employed a case study design. The study was carried out in Kenya Revenue Authority Western Kenya region. The target population for the study was 370 employees. From the target population, a sample size of 250 was picked using non-probability sampling. Data was collected using questionnaires and document analysis. Data was analysied using descriptive and inferential statistics with regressions and correlations established. The findings showed that employee tenure has significant effects on organisational performance since knowledge competency has a maximum reported influence of 69%. Further it was reported that skills support system had a maximum influence of 68%. In addition, information on tenure stable work environment showed that the maximum reported influence was around 58.0%. While information on employee tenure cost effectiveness has a maximum of -76.0%. It was concluded that the performance of the case organisation met expectations, solid, exceed expectations and was exceptional at various periods. Employee tenure has effects on performance, and that all the four components of employee tenure; Knowledge Competency, Skills Support System, Stable Work Environment and Cost Effectiveness, influence performance and their effects were independent. The study recommended that organizations ought to ensure that longer employee tenure should be achieved when that tenure improves performance at all times and no form of retrenchment practices be done due to employee overstay.