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Investigating the effect of retention bonding on employee performance in FinTech companies in Kenya- business research project
| Institution | Kisii National Polytechnic |
| Course | Business , hrm |
| Year | 3rd Year |
| Semester | Unknown |
| Posted By | MAKORI KERECHA |
| File Type | docx |
| Pages | |
| File Size | 2.71 MB |
| Views | 851 |
| Downloads | 0 |
| Price: |
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Description
Employee performance is an important factor that influences the success of organizations in any sector. However, poor employee performance is a key issue in the Kenyan financial services sector. To improve performance, organizations invest significantly in training and developing their employees. In this regard, the current study investigated the effect of retention bonding contracts on the performance of employees in the Kenyan financial services sector. This study was informed by the Social Exchange Theory (SET) and the organizational justice theory (OJT). The philosophy that guided the current research is positivism. The descriptive cross-sectional survey was employed to examine the association between retention bonding and employee performance. The population consisted of 3100 employees working for 93 FinTech companies in Kenya. The sample size comprised of 306 employees selected from FinTech companies. First, the findings revealed that that retention bonding period had a significant positive regression coefficient. Secondly, the results showed that retention bonding amount also had a significant regression coefficient. In addition, the regression coefficient for retention bonding fairness was also significant. The implication of these findings is that improving aspects of retention bonding period, such as duration of retention, flexibility in determining the duration, employee input in determining the duration, and parameters used to determine the duration, can lead to improvements in employee performance in FinTech companies in Kenya. Additionally, these findings suggest that improving aspects of retention bonding amount, such as reasonable bonding amounts, factoring years an employee has worked, penalties, pro-rating the amount and parameters used to determine the amount, can improve the performance of employee in FinTech companies in Kenya. The results also indicate that improving the fairness of retention bonding in terms of reducing its restrictiveness and penalizing language, providing payback options, and clear communication of retention bonding to employees, can help improve the performance of employees in FinTech companies in Kenya.
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