Effect of Strategic Human Resource Innovative Practices on Employee Retention: A Survey of Floriculture Firms in Nakuru County

Abstract

Abstract Employee retention is critical to the success of any organization. When employees leave an organization frequently, it can create a number of negative consequences, including increased costs associated with recruitment, training, onboarding new employees, loss of institutional knowledge and experience as well as a negative impact on morale and productivity. The flower industry in Kenya has been facing high employee turnover rates, which can be costly for organizations in terms of recruitment and lost productivity. Therefore, the purpose of this study was to determine the effect of strategic human resource innovative practices on employee retention among floriculture firms in Nakuru County. The specific objectives of this research were to analyze the effect of professional development practices, performance related pay practices, recreational services and flexible work arrangements on employee retention among floriculture firms in Nakuru County. This research adopted the expectancy theory and self-determination theory. A descriptive research design was used in this research. The population of the study was 55 employees from each of the 55 floriculture firms in Nakuru County. Census technique was used where one employee from each floriculture firm was involved in the study. The study collected primary data through questionnaires that were administered through Google forms and analysed using statistical package for social sciences. The relationship between dependent and independent variables was shown using correlation coefficients and a multiple linear regression model. The findings revealed that all four independent variables had a significant positive effect on employee retention. Professional development practices were the most influential (β = 0.642, p = 0.000), followed by flexible work arrangements (β = 0.309, p = 0.000), recreational services (β = 0.270, p = 0.008), and performance-related pay practices (β = 0.219, p = 0.022). The R square value of 0.750 indicated that 75% of the variance in employee retention could be explained by the combined independent variables. The study concluded that these strategic human resource practices are crucial for fostering a supportive and engaging work environment that encourages employees to remain with their organizations. Based on these findings, the study recommends that floriculture firms invest in and enhance their professional development programs, ensure fair and performance-based compensation, provide a variety of recreational services to promote employee well-being, and adopt flexible work arrangements to accommodate diverse employee needs. Further research is suggested to explore these relationships in different industries and regions as well to examine additional factors that may influence employee retention.