INFLUENCE OF RECRUITMENT AND SELECTION CRITERIA ON EMPLOYEE RETENTION IN THE INSURANCE INDUSTRY IN KENYA

Abstract

Purpose: The important of employee retention cannot be overlooked since it has a direct implication on the overall performance and image of an organization. The purpose of this study was to explore the influence of recruitment and selection criteria on employee retention in the insurance industry in Kenya. The general objective of the study was to assess the influence of recruitment and selection criteria on employee retention. The independent variables under study were the catchment area, job specifications, employment incentives and individual attributes. The dependent variable was employee retention.

Methodology: The study adopted a descriptive research design. The target population consisted of 392 employees from the insurance industry in Kenya. Stratified random sampling was used to select a representative sample population of 194 respondents. The questionnaires attracted a response rate of 61%. The data collected from the questionnaires was analysed using descriptive and inferential statistics. Means as a measure of central tendency and standard deviations to measure dispersion were computed with the aid of the statistical Package for Social Sciences (SPSS) Version 22. The outcome from the quantitative analysis was presented in form of tables and graphs. Content analysis was undertaken on the qualitative data and the outcome presented in continuous prose. In performing the quantitative analysis, the descriptive statistics were captured using frequencies and percentages.  Inferential statistics were used to establish the relationship between the independent and dependent variables through a multiple linear regression model. Analysis of Variance was used to establish the level of significance of the independent variables on the dependent variable. A normality test confirmed that the data was normally distributed.

Results: The study established that the catchment area, job specifications, employment incentives and individual attributes were all critical factors in influencing employee retention. The catchment area was found to contribute most to employee retention when internal candidates were selected for employment as priority as this was linked to career advancement. Individual attributes were found to have an insignificant positive effect on employee retention ratings.

Policy recommendation: The study recommended the need for less significant job specifications to be considered alongside the critical qualifications in an effort to attract and retain younger employees, and increased use of job referrals to source and recruit new employees. The study further recommended that employers should aim to make jobs more attractive to candidates by varying the financial and non-financial incentives.