| dc.description.abstract | The insurance sector in Kenya is one of the contributors to the Kenyan Gross Domestic
Product (GDP). As part of organizational growth the sector has to find a way of
maintaining its most important capital, the human capital. According to a review done by
Insurance Regulatory Authority in Kenya in 2014, the insurance sector is expected to
increase its contribution to the G.D.P from the current 3.1% to 5%in the next five years.
Madison Insurance Company Kenya Limited (MICK) is one of the players in this
industry with a market share of 1.8% of the insurance industry. The employee turnover
rate however has increased in the last two years from 22.2% to 35.3% in the years 2013
and 2014 respectively, despite a continuous review of remuneration. The main purpose of
the study was to investigate the relationship between non-monetary motivation and
employee retention in the Insurance Sector. The specific elements of the non-monetary
factors that co-relate highly with employee retention is unknown. The objectives of the
study are to establish the relationship between job security; employee career
development; work environment; employee recognition and employee retention in
MICK. The conceptualization views non-monetary motivation factors as the independent
variables, while employee retention factors are the dependent variables and was guided
by the Herzberg's Two Factor Theory. The study was conducted through exploratory
research study design where the researcher sought to establish the perceptions of
respondents on the non-monetary motivation factors. The study area was Madison
Insurance Kenya. The target population was the 182 junior employees and supervisors of
Madison Insurance and the sample size was 65 obtained through simple random
sampling. The study used questionnaires administered by the researcher to collect data.
Reliability of the instrument was measured using Cronbach's Alpha Coefficient
registering a score of 0.78. Validity was tested with the help of a human resources expert.
Factor analysis was used for data analysis. The study established that job security had
insignificant relationship with retention as it had only one factor loading. Career
development elements, promotion opportunity (r=.748) and addressing development
needs(r=.706) two factor loadings. Work environment attributes, good work life balance
(r=.835), relationship with supervisor (r=.875) and healthy/safe environment (r=.875) had
three loadings. Employee recognition attributes, groups are recognized (r=.801);
consistency/faimess(r=.783); recognition when doing a good job (r=.787) and employees
recognize each other (r=.766) had the highest number of loadings. The results show that
these elements are above (r=.7) with high number of factor loadings and so concludes are
important in determining retention of employees. The study concludes that availability of
these non-monetary forms will increase the chances of employees staying in an
organization. The study is important because it will give the human resource department
in MICK and the industry a clear picture on the specific non-monetary forms of
motivation that can help in employee retention. To academics, it will underscore the
extent to which these forms of motivation are perceived important and will also allow for
further research on the appropriate model to measure perceptions with regard to
motivation. It will add to the data in the insurance sector the importance of these forms | en_US |
