CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizations invest a lot in their employees in terms of induction and training, developing,

maintaining and retaining them in their organization. Therefore, managers at all costs must

minimize employees turnover. Although, there is no standard framework for understanding the

employee turnover process as a whole, a wide range of factors have been found useful in

interpreting employee turnover (Kevin,2004). Therefore, there is need to develop a fuller

understanding of the employee turnover, more especially, the sources - what determines

employee turnover, effects and strategies that managers can put in place to minimize turnover.

With globalization which is heightening competition, organizations must continue to develop

tangible products and provide services which are based on strategies created by employees.

These employees are extremely crucial to the organization since their value to the organization

is essentially intangible and not easily replicated (Meaghan,2002). Therefore, managers must

recognize that employees are major contributors to the efficient achievement of the

organizations success (Abbasi,2000). Managers should control employee turnover for the

benefit of the organization success. The literature on employee turnover is divided into three

groupings: sources of employee turnover, effects of turnover and the strategies to minimize

turnover. High rate turnover of employees is a challenge, in various organizations currently. To

retain the most resourceful employees ought to be a major issue in any organization. Giving a

high pay to the workers may not work and can be too expensive. The most effective way of

controlling high rate of turnover in any organization is to address their essential needs. Having a

high quality of employees is vital to any organizations excellence since the provided service by

1
the employees is vital to any organizations image and affects the perception of the customer

towards the quality of the service offered.

The employees on the front line are directly accountable for the face service to the customer,

quality of the service and satisfaction, and all of these are essential for a solid performance.

(Hartline et al 2003). The turnover of key employees can have a disproportionate impact on the

business. The people that organization wishes to retain is often the ones most likely to leave. It

was claimed by (Reed 2001) that every worker is five minutes away from handing in his or her

notice, and 150 working hours away from walking out of the door to a better offer. There is no

such thing as a job for life and todays workers have few qualms about leaving employers for

greener pastures. Concerted action is required to control employee turnover but there are limits

to what any organization can do. It is also necessary to encourage the greatest contribution from

existing talent and to value them accordingly. Employee turnover can cost a company a lot of

money.

On average, each employee who leaves the company costs the organization approximately 38%

of his annual wage to replace him, according to (Morey,2010) this number do not take into

account the poor office morale, lost expertise and other consequences of poor employee

retention. One key in controlling employee turnover is to continue to grow and develop job and

career enhancing skills. There are a couple of secrets about what employees want from training

and development however, training and development opportunities are not just found in

external training classes and seminars. These ideas emphasize what employees want in training

and development opportunities. They also articulate your opportunity to create devoted growing

employees who will benefit both your business and themselves through your training and

development opportunities. Mass education and training produce many labor force which can

cost potential employers less to recruit, high job expectations-trained staff expects much in

2
terms of increased remuneration and privileges which many employers cannot afford, reduced

loyalty/obedience most trained staff who understand their employment rights are not as

loyal/obedient as the illiterate, untrained staff.

1.2 Statement of the Problem

The impacts of labor turnover is extensively recognized in the hospitality literature and they can

be regarded as either positive or negative. Turnover can be considered a positive effect as

removing undesirable employees can lead to a higher quality labor force. For employees, the

changing of workplaces creates an opportunity to learn something new. However, the negative

side of turnover is seen when staff voluntarily leave their workplace because they are unhappy

with their work. When negative turnover occurs it affects the profitability of the hotel. This is

realized not only in the direct costs associated with replacing employees but also in the loss of

productivity and service quality.

Staff turnover severely impacts the quality of delivered services, compromises customers

perceived value and general organizational performance decreases and the severity of these

effects are increased in relation to the level of service offered. Hospitality labor turnover rates

in Kenya hospitality set between 30-80% depending on location, staff relations, corporate

culture, human resource strategies and job types claim that it is a dangerous mistake to

disregard high turnover and accept it as an industry problem as there are organizations who

manage to sustain minimal employee turnover. Therefore, organization should be proactive in

finding solutions to high turnover. However, for labor retention strategies to be successful, it is

imperative that organization have an understanding of the causes of turnover.

3
1.3 Objective of the study

1.3.1 General objective

The general objective of the study was to assess the factors that influence employee turnover in

the selected five star hotels Nairobi County Kenya

1.3.2 Specific Objectives

The study was guided on following objectives:

To determine whether remuneration affect employee turnover in the selected five star

hotels Nairobi County Kenya

To determine how Job satisfaction affect employee turnover in the selected five star

hotels Nairobi County Kenya

To determine whether demographic factors affect employee turnover in the selected five

star hotels Nairobi County Kenya

1.4 Research Questions

How does remuneration affect employee turnover in the selected five star hotels

Nairobi County Kenya?

How does Job satisfaction affect employee turnover in the selected five star hotels

Nairobi County Kenya?

How does demographic factors affect employee turnover in the selected five star hotels

Nairobi County Kenya?

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1.5 Significance of the Research

Other researchers will benefit since the finding of this study will add on other studies already

carried out on performance hence adding on to secondary data. The study is also significance to

the customers, stakeholders and employees; it will also help to provide information to related

organization or bodies which have interest on the same field.

1.6 Scope of the Study

This study is restricted to five star hotels in Nairobi County hence the findings and conclusions

drawn from this study will be representative of Nairobi County only.

1.7 Limitations of the Study

This research proposal faces several limitations by finances for traveling to the research site and

for typing, printing, photocopying and posting. The researcher might encounter various

hindrance while carrying out the exercise. It is difficult to access some information needed to

carry out the study due to secrecy of the organization, some of the respondents did not give

information needed without confirming that the information was going to be disclosed to any

other party.

1.8 Assumption of the Study

This study was based on the assumptions that employees selected for the study provided true

information about themselves. Further to this, the human resource office provided relevant

information concerning the employees working in the sampled hotels.

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1.9 Defining Of Terms

Employee Turnover: Employee turnover is the number of permanent employees leaving the

company within the reported period versus the number of actual active permanent employees on

the last day of the previous reported period

Job Satisfaction: Employee satisfaction is the terminology used to describe whether employees

are happy and contented and fulfilling their desires and needs at work

Employee Motivation: Motivation is an employees intrinsic enthusiasm about and drives to

accomplish activities related to work. Motivation is that internal drive that causes an individual

to decide to take action

Hospitality: Industrial activities which involve the host in providing foods and

accommodations to a visitor or traveler or tourist

Hotel?

1.10 Conceptual Framework

The conceptual framework is intended to develop awareness and understanding of the

situation under scrutiny and communicate this effectively. According to Mugenda, (2011),

conceptual framework involves forming ideas about relationships between variables in the

study and showing these relationships diagrammatically.

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Figure 1.1 Conceptual Frameworks

Independent variable Dependent variable

Remuneration

Job Satisfaction
Employee Turnover

Demographic factors

Source: Author (2015)

The conceptual framework shows the association between three independent variables

Leadership; Remuneration; Training and Development and dependent variable of the study is

employee turnover.

1.11 Variable explanations

Remuneration

Employees may remain with an organization because there are constraints against leaving and

incentives for staying. It is important for organizations to structure the economics of the

relationship in a way that will not obstruct commitment. One of the reasons to stay in a

relationship is because it makes sense economically. Pay makes continuation of the employment

relationship worthwhile because there is mutual dependence.

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Job Satisfaction

How happy an employee is in a job has profound effects on behavior and commitment. In

relation to commitment, job satisfaction and work-life satisfaction are very important. It makes

employees feel effective in their roles (that they can positively influence organizational

outcomes).

Demographic factors

Demographic variables are also known as personal characteristics. The longer that an employer

and employee benefit from their relationship, the more costly the ending of it will be. This is

why tenure is negatively associated with turnover.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this chapter the study introduces an enthusiastic reader to the literature review regarding

factors influencing employee turnover. The discussion covers employee turnover and factors

influencing employee turnover.

2.2 Employee turnover

Employee turnover is the rotation of workers around the labor market; between firms, jobs

and occupations; and between the states of employment and unemployment (Abassi et al.

2000). The term turnover is defined by Price (1977) as the ratio of the number of members

who have left an organization during the period being considered divided by the average

number of people in that organization during the period. Frequently, managers refer to

turnover as the entire process associated with filling a vacancy. Each time a position is

vacated, either voluntarily or involuntarily, a new employee must be hired and trained.

Woods, (1995) describes this replacement cycle as turnover .This term is also often utilized

in efforts to measure relationships of employees in an organization as they leave, regardless

of reason.

2.3 Factors influencing employee turnover

Factors influencing employee turnover are: job satisfaction; remuneration; and demographic

factors.

2.3.1 Job satisfaction

Job dissatisfaction leads to thoughts of quitting an organization, which in turn leads to an

intention to search for other employment opportunities. An intention to search also leads to a

9
decision to leave or stay. As a result, intention to leave is the final step to labor turnover.

Thus, Robbins (1998) adds that some studies in the USA showed that approximately 17-20%

of nurse aides reported an intention to leave and eventually quitted their jobs. It therefore

follows that when the job market is good workers move more easily to other positions, if there

is the desire to leave. Indeed, it is the intent to quit, coupled with greater opportunity to find

alternative employment that makes labor turnover more likely. Labor turnover decisions

therefore depend on both wanting to leave and being able to do so. Job satisfaction is more

often considered the primary factor, but level of commitment to an organization also plays a

key role in labor turnover.

Similarly, Lewis (1983) maintains that the basic reason why dissatisfied or satisfied employees

remain on a job is inertia. That is, there is no force causing them to leave. Thus, the degree to

which employees like their job is influenced by a combination of characteristics of the

environment, the job and the employees personality. Satisfied employees are those who have

freedom to make job-related decisions, work with people who are friendly, believe that

working is an important part of life, have mobility within the organization, work for

supervisors who actively assist their subordinates, contribute to the organization, and receive

adequate monetary compensation.

In fact, interpersonal outcomes such as satisfactory treatment by a supervisor, more strongly

predict job satisfaction than tangible outcomes such as pay and promotion. Moreover, among

established employees, expectations can be influenced, or altered, by opportunity factors such

as changes in the job market. When an employee is presented with an attractive alternative

position, his or her expectations of the current job are likely to be increased, making it more

difficult for the organization to meet these expectations. As a result, job satisfaction may

erode, giving rise to an intent to leave.

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2.3.2 Remuneration

Most employees feel that they are worth more than they are actually paid. There is a natural

disparity between what people think they should be paid and what organizations spend in

compensation. They further argue that when the difference becomes too great and another

opportunity occurs, turnover can result. Pay is defined as the wages, salary, or compensation

given to an employee in exchange for services the employee performs for the organization.

According to Kusluvan (2003), one of the major causes of friction between the employers and

their employees is a real or perceived lack of fairness in the distribution of wages.

Kusluvan (2003 further indicates that, there are two extreme approaches to the determination

of wages. At one extreme, there is a total transparency in which every employee can know

what everyone else earns while on the other end, are employers who not only keep secret what

they pay each employee but also make a condition of employment that salaries are not to be

discussed between staff. Arriving at a fair system of awarding wages and salaries is not easy

and too often is a matter of expenditure, Kusluvan (2003). Subsequently, the pay systems have

been used to address specific managerial problems or goals.

Thus, it is important to recognize the relative importance of each job, and remove any

potential causes of dissatisfaction. Kusluvan (2003) concludes by stating that, it is vital to

adopt a methodical system of evaluating jobs so that wages and salaries are fairly distributed to

all. It is evident that, voluntary termination of employment is on the increase within the

hospitality industry (Phillips and Connell, 2003). This arises when an employee has the

opportunity to take other employment that offers more attractive conditions. These researchers

further revealed that because employees leaving voluntarily have not been dismissed by the

employer, they are probably the employees that an employer would most like to retain. It is for

the same reason that these employees should be interviewed to determine their reasons for

leaving. The exit interview may reveal specific information regarding conditions of

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employment, competitors conditions and the quality or otherwise of supervision, training and

selection procedures.

2.3.3 Demographic factors

Demographic variables are also known as personal characteristics and are widely used in

turnover research (Price, 1995). Despite a wealth of research, there appear to be few

characteristics that meaningfully predict turnover, the exceptions being age and tenure which

were examined to have a direct impact on intention to leave. The longer that an employer and

employee benefit from their relationship, the more costly the ending of it will be. This is why

tenure is negatively associated with turnover. In particular, the benefits of long public sector

tenure in terms of wages, job security, and pension rights will decrease intention to leave. Age

has been found to be negatively correlated with the probability of job turnover intent

(Henneberger & Souza-Poza, 2007). Based on the matching theory, younger people have an

experimental stage at the beginning of their professional life.

A change is less attractive, since the available time to redeem the costs associated with a job

turnover diminishes with age. Emphasizing the turnover rate amongst employees, McGlaham

(2006) remarks that the mobility rate is such that a young employee entering the work force

after graduation can expect to have an average of twelve different jobs by the time such an

employee attains the age of 40 years. Various studies examined the effect of gender on job

mobility. Economic studies however e.g. Clark, (1997); Souza- Poza, (2007) concluded that

due to the lower expectations of women about their careers, they seem to have a higher job

satisfaction on identical jobs than men, which generally reduces job turnover inclinations.

2.4 Theoretical Review

Theory of decision making and The Image theory (Beach, 1990), describes the process of how

individuals process information during decision making. The underlying premise of the model

is that people leave organizations after they have analyzed the reasons for quitting. Studies
12
have shown that turnover intention is a good measure of actual turnover behavior, and that

attitude is an immediate determinant of turnover intention but relatively few studies have

focused on the motivational factors underlying turnover intention, such as job autonomy and

work motivation (Richer et al., 2002), and how these variables are related to affective

commitment. The attraction-selection-attrition (ASA) framework is used to analyze the

turnover and turnover intention of employees (Schneider, Goldstein, and Smith, 1995).

Attraction refers to the fit between an individuals needs, values, and personal characteristics

and those of an organization. Selection involves job applicants choosing each other on the

basis of this anticipated fit between the person and the characteristics of the job. Attrition

refers to employees leaving the organization because they do not fit. The attraction-selection-

attrition framework considers turnover to be the consequence of a misfit between job

characteristics and an individuals needs and values (Moynihan and Pandey, 2008).

The more general person-environment fit literature provides ample evidence of the negative

consequences of misfits on Human Resource Management outcomes such as job satisfaction

and turnover (Wagner, 2003). Employee turnover is expensive from the view of the

employer/organization. The reason a lot of attention has been paid to the issue of turnover is

because turnover has significant effects on organizations. (Mahon, 1992) argue that high

turnover rates might have negative effects on the profitability of the organization if not

properly managed. Some of the costs associated with employee turnover include costs of

searching for a suitable substitute, selection between competing substitutes, induction of the

chosen substitute and formal and informal training of the chosen candidate until he/she attains

performance levels equivalent to the individual who quit and work output which is affected or

maintained at the cost of overtime payment. Additionally, there are administrative costs

involved in addition and removal from the payroll and the associated final dues. Turnover has

many invisible costs (Phillips, 1990) which are a result of incoming employees, morale of co-

13
workers closely associated with the departing employee, pressure on remaining staff, loss of

social capital and filling of the vacant position.

2.5 Review of Past Studies

According to Ivancevich and Glueck, staff turnover is the net result of the exit of some

employees and entrance of others to the organization. Singh et al, (1994), also define staff

turnover as the rate of change in the working staffs of a concern during a definite period.

Kossen defines the staff turnover as the amount of movement in and out (of employees) in

an organization. Turnover, as per Wikipedia (the free encyclopedia), in a human resources

context refers to the characteristic of a given company or industry, relative to rate at

which an employer gains and lose staff. Price (1977) defines turnover as the degree of

individual across the membership boundaries of a social system.

Macy & Mirvis (1976) viewed turnover as any departure beyond organizational

boundaries. Mobley stated that turnover is the cessation of membership in an organization

by an individual who received monetary compensation from the organization.

Organizations invest a lot on their employees in terms of induction and training,

developing, maintaining and retaining them in their organization. Therefore, managers at

all costs must minimize employees turnover. Although, there is no standard framework

for understanding the employees turnover process as a whole, a wide range of factors

have been found useful in interpreting employee turnover Kevin et al. (2004). Therefore,

there is a need to develop a fuller understanding of the e m p l o y e e turnover.

These employees are extremely crucial to the organization since their value to the

organization is essentially intangible and not easily replicated (Meaghan et al, 2009).

Therefore, managers must recognize that employees are the major contributors to the

efficient achievement of the organizations success (Abbasi et al, 2010). Managers should

control employee turnover for the benefit of the organization success.

14
Denvir & McMahon (2011) reported that "High levels of turnover can become substantial

and detrimental to the organization. It prevents relationships between employees and

employers. It involves heavy administrative costs and a substantial loss of productivity

through the breaking up of teams who are used to working together. Yet managers may

have difficulty understanding and or accepting employee turnover within their

organization, due to a myopic perspective of the situation. However, identifying the

underlying causes, quantifying the problem, and identifying possible solutions to high

employee turnover can prove to be valuable information for managers who wish to make

a difference (Mobley, 2009).

2.6 Summary and Gap Identification

The key findings of the study were lack of financial support to new agents, inadequate on the

job training, lack of a good career policy, poor supervision of sales agents, dissatisfaction with

remuneration methods and lack of involvement in decision making were found to influence

turnover. These staff movements from different departments have triggered the need for a fact

finding mission to determine the perceived reasons for the turnover and suggest workable

alternatives to counter these problems. The above mentioned studies did not focus on the

employee turnover variables of the hospitality industry in Kenya. This study therefore sought

to bridge this gap in knowledge by studying the factors influencing employee turnover in

Kenyas hospitality industry. From the review of the literature as well as other related studies

that have been conducted on the area of labor turnover in the hospitality industry, there are

distinct gaps that this study elicited and attempted to fill.

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This section of the study encompasses the different approaches, which the researcher used to

address the methodological issues. The chapter is presented in the different topics of the

research design, target population, sampling procedures and sample, data collection

instruments, data collection procedures, validity and reliability of the study instruments, ethical

considerations and data analysis techniques used for the study.

3.2 Research Design

The study employed descriptive research design. The major purpose of descriptive research

design is to describe the state of affairs as it is at present. Descriptive research according to

Mugenda (2011) is a process of collecting data in order to answer questions concerning the

status of the subjects in the study. This design was appropriate in this study because it ensured

in-depth analysis and description of the various phenomena under investigation. The study

involved both qualitative and quantitative data.

3.3 Target Population

The sample population of the study is 120 participants comprising of Human resource

managers; Lower level management; Middle management employees who are on permanent

employment in both set of hotels. The study considers only the permanent employees, as they

will provide informative details regarding their work hence the target population for this study

is approximately 120 participants

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3.4 Study area

This research was carried out in Nairobi County. Nairobi is the most active economic centre in

the country and covers an approximate area of 684 square kilometres. It has the highest urban

population in East Africa, with an estimated population of between 3 and 4 million and has

grown to become the largest city in Kenya, and one of the largest cities in Africa.

Approximately 170 participants of five-star hotels in Nairobi county Kenya will be chosen to

comprise the population.

3.5 Sample Design and Sampling Procedure

Slavin (2011), observed that due to limitations in time, funds and energy a study can be carried

out from a carefully selected sample to represent the entire population. A stratified random

sampling technique will be used. It is necessary to pick from the strata developed and simple

random sampling from each strata is used. This ensured that every respondent had equal and

independent chance of being selected into the sample.

3.6 Validity and Reliability

Before the actual study, a pilot study will be used. The questionnaire will be pre-tested to a

selected sample. The procedure used in pre-testing the questionnaire was similar to the actual

to be used in the study. This will be done in order to ensure the relevance of the items to the

study, gain knowledge on how to administer the instruments, and test the validity and

reliability of the instruments, thus check if there are ambiguities in the instruments.

3.6.1Validity

The process of developing and validating an instrument is in large focused on reducing error

in the measurement process. Validity indicates the degree to which the instrument measures

the constructs under investigation (Mugenda, 2011). It also refers to the extent to which the

17
instrument measures what it purports to measure. There are three types of validity tests which

include content, criterion and related construct validity. Content validity refers to the degree to

which the instrument fully assesses or measures the construct of interest. The questionnaire

provided an adequate measure that covers the content area of the research questions. Meaning

the questions in the questionnaire must give adequate answers to the research questions of the

study.

3.6.2 Reliability

Reliability is the extent to which a questionnaire or any measurement procedure produces the

same results on repeated trials. It is the stability or consistency of scores over time or cross

rates. The reliability will be measured to find out the degree to which the measuring items

would give similar results over a number of repeated trials.

3.7 Data Collection

In this study, both primary data and secondary data will be collected. Primary data was

collected using questionnaires. Self-administered questionnaire will be used in this study to

collect quantitative data. For the secondary data, the data will be collected from published

books, journals as well. The researcher assured the respondents that information collected was

for research purpose only and the responses from the respondents was treated anonymously.

3.8 Data Analysis and Presentation

The study generates both qualitative and quantitative data. Descriptive statistics such as mean

and range will be used to analyze the quantitative data obtained. Inferential techniques such as

regression analysis and chi-square will be used to analyze relationships among the variables.

Data collected from questionnaire will be in particular subjected to significance tests using

these correlation techniques, to establish linear relationships between the variables. Qualitative

data will be thematically organized and presented in narrative forms. Data will be analyzed on
18
SPSS using both descriptive and inferential techniques. ANOVA, correlation analysis and

regression analysis will be used in order to establish relationships among the variables.

3.9Logical and ethical considerations

Logical and ethical considerations will be adhered to during the research work. The researcher

acquired official permit to conduct the research In addition to this, a formal permission is to be

sought from all the hotels either through the human resource manager or through the owners of

the hotels to access the employees.

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 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter focuses on the findings of the study, which are presented in tables, charts, and

graphs of responses from the sample of the study. The section is presented in subtopics related

to three study objectives of the study and a description of the socio demographic

characteristics of the study respondents.

4.2 Socio Demographic Data

4.2.1 Age of respondents

respondents were aged above 45 and accounted for 33.3 percent of the sample, those in the age

group 25 29 were 8.6 percent, age group 30 34 was represented at 18.3 percent, age group

35 39 at 16.1 percent and age group 40 - 44 accounted for 22.6 percent. As indicated in Table

4.1 the majority of the respondents were above 40 years and this has an implication given that

older employees tend to be more satisfied with their job and this leads to more productivity.

Table 4.1: Age of respondents

Age Group Frequency Percent

25-29 8 8.70
30-34 17 18.47
35-39 15 16.30
40-44 21 22.82
45 and above 31 33.70
Total 92 100.00
Source: Survey Data, (2016)

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4.2.2 Respondents Gender

Figure 4.1 shows the gender distribution of the respondents. Figure 4.1 shows that 53% who

were the majority were male while 47% were female. The finding shows that the study had

adequate gender representation

Figure 4.1: Respondents gender

Source: Survey Data, (2016)

4.2.3 Levels of Education

Figure 4.2 indicates (45%) who were the majority, were degree holders, 36% have diploma

certificates while 19% were masters holders. This shows that the employees of the selected

hotel are well educated which is vital for innovation and performance of the hotel industry.

Figure 4.2 shows the respondents level of education.

21
Figure 4.2: Level of education

Source: Survey Data, (2017)

4.3 Factors influencing employees turnover

The respondents were asked to rate the factors on a scale of 1 to 5 ranging as 5=extremely

influence, 4=fairly influence, 3=neutral, 2=somewhat influence and 1 = not at all. A five point

likert scale was used to interpret the respondents responses. According to the scale, those

factors which were not considered at all were awarded 1 while those which were extremely

influencing turnover were awarded 5. Within the continuum are 4 for fairly influencing

turnover, 3 for neutral and 2 for somewhat influencing turnover. The mean (weighted average)

and standard deviation were used to analyze the data from the responses received as shown in

the table overleaf.

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Table 4.2: Factors Influencing Employees Turnover

Factors Mean Std deviation

Unmet expectations about the job 3.98 0.721
Lack of satisfaction with the job 4.01 0.728
Lack of recognition for work done 3.89 0.827
Lack of flexibility in the job 4.21 0.717
Involvement in the job 4.09 0.716
Incentives and rewards 3.98 0.871
Position in the organization 2.89 0.917
Service is delivered accurately 3.28 0.726
Nature of the job 3.82 0.672
Lack of job security 3.78 0.712
Lack of supervisory support 3.72 0.722
Poor working environment 4.02 0.812
Job stress 4.04 0.911
Inadequate working tools 4.02 0.654
Lack of a clear job description 3.77 0.672
Role conflict 2.87 0.716
Workload 3.72 0.777
Work-life balance 3.61 0.726
Poor hiring practices 3.22 0.726
Poor managerial style 3.72 0.621
Lack of equal pay for equal work done 3.72 0.716
Pay and benefits in the organization 3.62 0.711
Training and development opportunities 3.77 0.672
Level of education 3.99 0.712
Presence of external opportunity 4.01 0.817
Macroeconomic environment 3.88 0.728
Globalization 3.77 0.726

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Table 4.2 above shows the extent to which the respondents perceived the factors to be

influencing turnover in the selected 5 star hotels in Nairobi county.

According to the researcher, those factors with a mean between 0.5 and 1.5 were not

influencing turnover, those factors with a mean greater than 1.6 but less than 2.5 were

somewhat influencing turnover. From the respondents summary in table 4.2 above there

was no score between 0.5 and 1.5 therefore all the factors mentioned above influenced

turnover to a neutral or fair extent. The factors with a mean greater than 2.6 but less than 3.5

were neutral. The factors that were found to have a neutral effect on the turnover were

position in the organization (M=2.89), accurate service delivery (M=3.28), inadequate

working tools (M=4.02) role conflict (M=2.87) and poor hiring practices (M=3.22).

The factors with a mean greater than 3.6 but less than 4.5 were fairly influencing turnover.

The factors that were found to be fairly influencing turnover were unmet expectations about

the job (M=3.98), lack of satisfaction with the job (M=4.01), lack of recognition for work

done (M=3.89), lack of flexibility in the job (M=4.21), involvement in the job (M=4.09),

incentives and rewards (M=3.98), nature of the job (M=3.82), lack of job security (M=3.78),

lack of supervisory support (M=3.72), poor working environment (M=4.02), job stress

(M=4.04), lack of a clear job description (M=3.77), workload (M=3.72), work life balance

(M=3.61), poor managerial style (M=3.72), lack of equal pay for equal work done

(M=3.72),pay and benefits in the organization (M=3.62), training and development

opportunities (M=3.77, level of education (M=3.99), presence of external opportunity

(M=4.01), macroeconomic environment (M=3.88) and globalization (M=3.77).The factors

with a mean greater than 4.6 would be termed as extremely influencing turnover. There was

no mean score greater than 4.6 hence it can be extrapolated that none of the factors listed

above were perceived to be extremely influencing turnover. The standard deviation was also

used to analyze the responses. The higher the standard deviation the higher the level of

24
dispersion among the respondents the standard deviation for all the factors listed was less

than one meaning there was general consensus by the respondents. A standard deviation of

more than one would mean there was no consensus among the respondents.

4.3 Intrinsic factors of Job Satisfaction

Job satisfaction is a psychological factor described as a collection of positive and/or

negative feelings that an individual holds towards his or her job. Intrinsic factors of job

satisfaction are those that are associated with the employees job and are within the

managements control. It was observed that the intrinsic factors of job satisfaction influence

up to 36.115% of the total variability. The following variables are all predominantly

influenced by intrinsic factors of Job Satisfaction that affect rate of job turnover. Unmet

expectations about the job, Satisfaction with the job, Recognition for work done, Flexibility

in the job, Incentives and rewards, Position in the organization, Lack of job security, Lack of

supervisory support, Poor working environment, Job stress, Inadequate working tools, Lack

of a clear job description, Workload, Work-life balance and Training and development

opportunities.

4.4 Remuneration factor

Economists view the employees decision, whether he wants to leave or stay, as a result of a

rational cost-benefit assessment (Mueller & Price, 2013). Economic determinants include

pay, training and company size. Economic factors affecting rate of employee turnover

explain up to 12.709% of the total variability. The following variables are influenced mainly

by economic factors that affect rate of turnover:

i. Pay and benefits in the organization

ii. Involvement in the job

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 4.5 Demographic Factors

Demographic variables are also known as personal characteristics and are widely used

in turnover research (Price, 2011). Despite a wealth of research, there appears to be few

characteristics that meaningfully predict turnover, the exceptions being age and tenure

which were examined to have a direct impact on intention to leave. Therefore it was

observed that demographic factors explained 5.178% of the total variability.

4.7 Factor Analysis

Factor analysis is a multivariate statistical method that yields the general relationship

between variables by showing multivariate patterns that may help to classify the original

data. It also enables the distribution of resulting factors to be determined. Fifteen

statements were considered in this study. The 15 statements were included in the factor

analysis because they were thought to relate to the constructs which the researcher intended

to measure. Factor analysis using Principal Component Analysis (PCA) was conducted to

reduce the data and to develop the convergent validity of meaningful constructs. In order to

determine the number of factors to be used, the variance co-variance of the variables was

computed. Then, the Eigen value and Eigen vectors were evaluated for the variance

covariance matrix and the data was transformed into factors. Further, the factor scores

which were obtained were used to arrive at the regression model.

4.8 Summary of the chapter

In this chapter, various findings and discussions were observed, analyzed and presented in

graphical tables, ratios and other data analysis tools. In the subsequent chapter, major

findings of the study are summarized using the study objectives. Conclusions and

recommendations are also presented using the same objectives.

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 CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter presented the discussion of key data findings, conclusion drawn from the

findings highlighted and recommendation made there-to. The conclusions and

recommendations drawn were focused on addressing the objective which was to determine

to investigate the causes of job desertion amongst Rapid Deployment Unit personnel at

Embakasi Base in Nairobi.

27
5.2 Discussions of Key Findings

From the respondents sampled, majority were male while the rest was female. From these

findings, it was extrapolated that majority of the employees in selected 5 star hotels in

Kenya were male. A few of the respondents were aged between 41 and 50 years, a slightly

higher number were aged between 20 and 30 and the highest number of respondents were

aged between 31 and 40 years hence it was deduced that majority of the staff were aged

between 31 and 40 years. From the responses received, all of the factors influenced job

desertion to a fair extent. None of the factors extremely influenced turnover. The factors that

were found to have a neutral effect on the turnover were position in the organization,

accurate service delivery, inadequate working tools, role conflict and poor hiring practices.

The factors that were found to be fairly influencing turnover were unmet expectations about

the job, lack of satisfaction with the job, lack of recognition for work done, lack of

flexibility in the job, involvement in the job, incentives and rewards, nature of the job, lack

of job security, lack of supervisory support, poor working environment, job stress, lack of a

clear job description, workload, work life balance, poor managerial style, lack of equal pay

for equal work done, pay and benefits in the organization, training and development

opportunities, level of education, presence of external opportunity, macroeconomic

environment and globalization.

The employees rating of the overall organization performance yielded results where

majority of the respondents indicated that 5 star hotels in Kenya had effective

communication, good working practices, departmental cooperation was promoted, equal

opportunities in regard to age, race, gender and disabilities was demonstrated and inter

departmental cooperation was promoted.

The study also found that in the selected 5 star hotels in Kenya, employees were happy that

the salary was always on time and there was adequate exposure on the job. The respondents

28
were asked whether they considered changing their current jobs and from the findings more

than three quarter of the respondents indicated that they would not change their jobs while

the rest indicated that they would change their jobs. The respondents who indicated that they

would change their jobs indicated that they would want to improve their career. Further they

indicated that a better paying job would make them move from their current jobs. They also

indicated that unmet expectations about the job, lack of satisfaction with the job, lack of

recognition for work done,

Lack of flexibility in the job, incentives and rewards, position in the organization, lack of

job security, lack of supervisory support, poor working environment, job stress, inadequate

working tools, lack of a clear job description, workload, work-life balance, poor hiring

practices, poor managerial style, equal pay for equal work done and training and

development opportunities would influence their decision to leave the organization. The

study established that economic factors affecting rate of employee turnover explain up to

12.709% of the total variability. Economic factors influencing turnover were pay and

benefits in the organization and involvement in the job. Role conflict is explained

significantly by sociological factors that affect rate of employee turnover which influenced

up to 10.083% of variations in rate of employee turnover. Age and tenure where the

demographic factors which were examined to have a direct impact on intention to leave.

Therefore it was observed that demographic factors explained 5.178% of the total

variability.

5.2 Conclusion

None of the listed factors were perceived to be extremely influencing employee turnover.

The factors that were found to be fairly influencing turnover were unmet expectations about

the job, lack of satisfaction with the job, lack of recognition for work done, lack of

flexibility in the job, involvement in the job, incentives and rewards, nature of the job, lack

29
of job security, lack of supervisory support, poor working environment, job stress, lack of a

clear job description, workload, work life balance, poor managerial style, lack of equal pay

for equal work done, pay and benefits in the organization, training and development

opportunities, level of education, presence of external opportunity, macroeconomic

environment and globalization. Other factors that came out from the survey that would

influence employees decision to quit include the current medical cover which does not

include the employees nuclear family, lack of transport to and from work, poor pay increase

and merit guidelines and better pay packages.

5.3 Recommendations

From the findings the study found that one of the major factors that was influencing job

desertion amongst Rapid Deployment Unit personnel at Embakasi Base in Nairobi.was

alcohol. The respondents indicated that they consider changing their jobs because of

consistent lengthy operations and unrealistic expectations This study therefore

recommends that Rapid Deployment Unit personnel and other organizations in similar

industries should consider revising their operation and the expectation of their employees.

The study also found that there were no clear job descriptions and this would make

employees consider changing their jobs. This study therefore recommends that the

management of selected 5 star hotels in Kenya should ensure there are clear job descriptions

for their employees. This study makes a recommendation that the management of selected 5

star hotels in Kenya should train its supervisors and managers on promoting work- life

balance without affecting the operations. The study revealed that the pay and merit increase

practice currently in place was considered inadequate by a majority of the respondents.

Selected 5 star hotels in Kenya should also look into their performance management and

craft compensation packages that are considered competitive in order to retain its talented

workers.

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 5.4 Recommendations for further research studies

From the study and related conclusions, the researcher recommends further research in the

area of the role of economic factors in influencing job turnover in the selected 5 star hotels

in Nairobi County. Further researcher studies should be done on the role of Salary and

rewards on job turnover in hospitality industry in other counties.

References

Gross, M. J. (2015). The Routledge handbook of tourism and hospitality education.

Heeks, R. (January 01, 2011). E-Commerce in Developing Economies.

Kenya Marketing & Publications Company. (2010). Directory of hotels in Kenya. Nairobi:

Noble Printers & Publishers.

Reigel,C.D.(2011) Turnover: Conceptual model. In D.G. Rutherfold (Ed),Hotel

nd
management and operations (2 Ed, .page (433-438). New York: Van Nostrand

Reinhold.

31
 Serena Hotels Kenya (2007) Getting Results, the Wellness Program of Serena Hotels.

Taylor, S. 2002 People and Organization Employee Resourcing. Prentice-Hall, Sidney;

Australia.

Turker.N. (1998) A model of the management of Labour turnover in Hotels, Purdue

University; Lafayette,I N, Published PhD. Thesis

APPENDIX: A.

Questionnaire

This questionnaire is to be used for a study to determine the effect of rewards on intrinsic

motivation in five star hotels in Nairobi, Kenya. The respondents to this questionnaire have

been selected randomly and the responses given will be treated with utmost confidentiality.

Do not write your name anywhere in the questionnaire.

32
Part A: Bio Data (Tick where appropriate).

1. Name of Hotel. 2.

Designation .

3. Length of service

Below 1 year 1 5 years 5-10 years

10-15 years Over 15 years

4. Academic qualifications

A Diploma B. Higher Diploma C. Degree

D. Post Graduate Diploma E Masters

SECTION B.

1. Can you please describe whether demographic factors affect employee turnover in the

selected five star hotels Nairobi County Kenya?

33


2. Can you please explain how Job satisfaction affect employee turnover in the selected five

star hotels Nairobi County Kenya?

3. Can you please describe whether remuneration affect employee turnover in the selected

five star hotels Nairobi County Kenya?

APPENDIX: B

NO. ACTIVITY COST (KSH)

1 Stationery 3,000.00

2 Binding 3,000.00

3 Typing & printing 10,000.00

4 Transport 5,000.00
34

5 Literature search 10,000.00