EFFECT OF BENEFITS PROGRAMS ON EMPLOYEE RETENTION: A CASE OF SAFARICOM PLC

Abstract

The general objective of the study was to examine whether benefit programs have an impact on the rates of retention of Safaricom PLC’s employees, with a target population of 249 staff in management. The study was guided by three theories namely; Social exchange theory, Herzberg’s Two-Factor theory and Adam’s equity theory. The sample size comprised of 120 staff in management at Safaricom PLC carefully selected using Yamane formula for sampling from a population of 249 staff in management. The study findings therefore based on the four objectives found a psitive correlation between each of the independent and dependent variables with health benefits having Pearson correlation coefficient of r=0.781, P<0.05, work-life balance at r=0.713,P<0.05, Employee assistance programs at r=0.678,P<0.05 and leadership programs at r=0.763,0.05. All the study variables also had significant  results p<0.05 showing that the benefits programs implemented by Safaricom positively influence employee retention. The value of R Square is 0.772. This meant that 77.2% of the variance in employee retention at Safaricom PLC can be explained by; health benefits, work-life balance, employee assistance programs and leadership programs.It also recommended that there ought to be a comprehensible communication among employees and senior management for an effectual employee benefits program policy. To completely comprehend the situation at the Safaricom PLC, the study recommended future studies should focus on 22.8% of other variables not covered by this study to explain employee retention at Safaricom PLC.

Key Words: Health Benefits, Work-Life Balance, Employee Assistance, Leadership Programs, Employee Retention

CITATION: Wayayi, L., & Ogolla, D. (2019). Effect of benefits programs on employee retention: A case of Safaricom PLC. Reviewed Journal International of Business Management, 1 (1), 82-98.