Effects of Human Resource Management Practices on Employee retention in hotels in Nairobi City County, Kenya

Abstract

Finding, integrating, developing, compensating, and retaining skilled employees is the task of the human resource department. Due to intense rivalry, Kenya's hotel business is particularly vulnerable to the danger of employee turnover. This study was conducted to determine the impact of employee retention practices on selected hotels in Nairobi City County, Kenya. The study specifically looked at how compensation affected employee retention, how employee engagement affected it, how career management affected it, and how job security affected it. The study was conducted in Nairobi City County and used an explanatory research approach. Four hypotheses resulting from the study's four distinct objectives were put to the test: The Maslow Hierarchy of Needs, Herzberg Two Factor, and Adams Equity Theories all provided insight for the study. 296 respondents from 44 hotels in Nairobi City County were the study's target audience. The sample size for the study, which used both descriptive and inferential statistics, was 170 respondents. The primary tool for gathering data was structured questionnaires. Every objective had a Cronbach Alpha developed, and when the results were analyzed, it was discovered that the reliability of compensation was the greatest (0.882), followed by that of employee engagement (0.804), career management (0.763), and job security (0.753). Although inferential analysis used correlation and multiple regressions, descriptive statistics analysis used the mean and standard deviation. According to Pearson's correlation data, human resource management methods were associated to employee retention. .796 correlation coefficient. Human Resource Management practices (compensation, engagement, career management, and job security) were regressed against the dependent variable in a multiple regression to determine the link between the independent and dependent variables (retention of employees). The analysis of the results revealed a positive association between the analyzed factors, as shown by compensation (= 0.269, P 0.001), employee engagement (=0.17, P 0.001), career management (=0.589, P 0.001), and job security (=0.294, P 0.001). The study came to the conclusion that job security, career management, salary, and employee engagement all had a significant and advantageous impact on employee retention. As a result, it was recommended that managers create a system of compensation, benefits, and rewards in which employees are given positive recognition and rewards for good performance, and that both the government and the hotel sector should implement a career planning program. These recommendations were made to encourage employees to reduce their intentions to leave their jobs. To increase employee retention, employees should be involved in a variety of organizational tasks, such as decision-making, to help them feel important to the company. By providing the terms and conditions of employment to the employees and ensuring an effective procedural dismissal whereby employees are informed of any planned dismissal and the reasons for the same, hospitality organizations can ensure that employees have the assurance of their job security, which will increase their satisfaction.