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INFLUENCE OF COMPETENCY MANAGEMENT ON EMPLOYEE RETENTION IN SERVICE PROVIDER ORGANIZATIONS IN KENYA
Abstract
Retaining talented employees is a critical management issue in both private and public organizations. Employees form a key component of any organization. However, as a result of globalization, economic growth and shortage of skilled labor, many organizations including service providers are finding it difficult to retain valued employees. Turnover is even occurring against a background of varied human resource management interventions to improve employee retention. Employee retention is one of the challenges facing many organizations both public and private. Retention of talented employees has become an even greater challenge confronting human resource practitioners due to talented candidates in the global job skills market having the luxury of choice. The objective of this study was to investigate the influence of competency management on Employee Retention in the service provider sector in Kenya. This study was informed by human capital theory. Explanatory research design guided the study. The target population of this study was 519 employees of Mobile service provider organizations. The sample size was 226 respondents. Stratified, purposive and simple random sampling was used to select respondents. The data was collected using self-administered questionnaires. The data was analyzed using both descriptive and inferential statistics to explore the various variables of the study using Statistical Package for Social Sciences Software version 22. From the regression model, (R2 = .630) shows that competency management practices account for 66.3% variation in employee retention at service provider organizations. There was a positive significant relationship between competency management practices and employee retention at service organizations (β1=0.751 and p<0.05). There is a positive and significant relationship between competency management and Employee Retention in the service provider organizations in Kenya. Competency management should always be considered as a key component and outcome of strategic human resource management for enhanced employee retention and performance. Organizations should consider competency management as core human resource practices if they were to retain their employees.
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DOI: http://dx.doi.org/10.46827/ejhrms.v4i2.819
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