Effect of Employee Retention Strategies on Organizational Performance in Mergers in Kenya: A case of Quick Mart Ltd

Abstract

This dissertation investigated on the effect of employee retention strategies on organizational performance in mergers, in Kenya. Employee retention post-merger has become a challenge to organizations due to uncertainties brought about by mergers, and employees are not sure whether they will still have their jobs. This study involved a case study research design which helped in exhausting the merits, efficacy, and relevance of employee retention strategies in organizational performance in mergers. It identified and explained employee retention strategies employed by organizations during the merger process and their impact on organizational performance post-merger. The objective of this study was to investigate the effect of rewards, communication, job security and work-life balance employee retention strategies on organizational performance post-merger. This study was necessary in order to provide future merging organization with the optimum employee retention strategies that can help them retain their competent, mission critical and highly valued employees post-merger and ultimately achieve organizational performance. The study’s targeted population included 535 employees of Quick Mart Limited. They included managers, executive staff, supervisors, and sub-ordinate staff of six branches of Quick Mart Limited located in Nairobi. Stratified sampling technique was used in this study. Sample population was 30 percent of the target population. A total 161 respondents made up the sample population. A mixture of open and close-ended questions questionnaire was used as the data collection tool in this study. Questionnaires were delivered to the respondent physically at the supermarket branches. The researcher collected qualitative data from the respondents which was analyzed to bring to light the reality of the subject matter. A pilot study was conducted through 10 percent of the sample population. A total of 16 questionnaires were distributed to part of the sample population at Quick Mart Ruai branch, analyzed, tested for validity and reliability, and corrected before issuing questionnaires to the sample population. Validity and reliability of this research was realized through eliminating bias and increasing the researcher’s trustworthiness using triangulation. Descriptive data analysis was used in this study. Analysis of qualitative data was done through developing and applying codes, identifying themes, patterns, relationships, and summarizing the data. The findings of the study were that reward, communication and job security employee retention strategies have a positive and statistically significant association with organizational performance, while work-life balance does not. The researcher concluded that rewards, communication, and job security employee retention strategies have a significance influence on organizational performance while work-life balance does not. The researcher recommended that future research can be performed focusing on other employee retention strategies like employee-management relationships, HR policies, working conditions as well as training and development. This research can take the form of a case study and it can further the knowledge on employee retention strategies employed in retaining the competent and highly valued employees post-merger. For any organization to perform well in the marketplace, they have to start by performing well internally through having satisfied and happy employees.