Impact of employee commitment on retention in state financial corporations in Kenya

Lucania Vincent Maluti, Tobias O. Warentho, John O. Shiundu

Abstract

The economic downturn being experienced the world over has created a hostile labour market and the need to cut down on operating costs and thus compelling organizations to invest in committed employees. Since committed employees strive to achieve organizational ideals in circumstances that are sometimes extremely extra-ordinary, it seems to give firms an assurance that such employees are unlikely to be lost to their competitors. In consideration of the above, the objective of this paper is to explore the various employee commitment initiatives as exercised by both employees in relation to the impact they have on employee retention in state corporations in Kenya in the last 5 years (2005 – 2010). A questionnaire was used to collect data. Pearson’s correlation coefficient was used to measure the relationship between variables whereas simple regression coefficient was used to test the hypotheses at a significance level of 0.05. The results indicated that there was no significant impact of employee commitment on employee retention.

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