Effect of Green Reward Management Practices on Employee Retention in the Athi River EPZs, Kenya
Abstract
Employee retention is crucial for organisational success, particularly in Kenya’s Export Processing Zones (EPZs), where turnover rates are higher than the acceptable 10% or below. High turnover rates in the EPZs are often associated with poor working conditions that could be detrimental to employee well-being. Implementation of green reward practices could improve these working conditions by creating a healthy and sustainable work environment. This study examined the effect of green reward management practices on employee retention in the Athi River EPZ. The study was anchored on Social Exchange Theory and adopted a descriptive research design. The study had a target population of 56 EPZs with 20,000 employees as the unit of observation. Cochran’s formula was used to obtain a sample size of 377 respondents. Stratified random sampling was used to distribute the sample across departments in the EPZs. Data was collected using a structured five-point Likert scale questionnaire. A pilot study involving 30 participants was conducted to measure the reliability of the research instrument. Descriptive statistics in means, percentages, and standard deviation were employed, while correlation and regression analysis were applied for inferential statistics. The study found that green reward management practices have a positive and statistically significant effect on employee retention (β = 0.435, p < 0.001). The study recommends integrating green reward management practices to improve employee retention in workplaces
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