Relationship between Strategic Performance Management and Employee Retention in Commercial Banks in Kenya

Abstract

The purpose of the study was to examine the relationship between strategic performance management practices and employee retention in commercial banks in Kenya. A survey design was used to gather the information needed to achieve the objectives. Qualitative and quantitative techniques were used. The study was carried out in commercial banks in Kenya which had operating Licenses from the Central bank of Kenya. Questionnaires were used to collect the data. The data was analyzed using descriptive statistics mainly percentages and frequency distribution. Correlation and regression analysis were used to test the relationship between the variables. The study established that organizations used strategic performance management through clear action value plan, target setting, setting of the realistic budgets, forecasting, performance measurements and review and finally compensation based on performance. The strategic performance management influenced the employee retention. The study recommended that the management of all commercial banks should employ more strategic performance management practices with the view of enhancing employee retention.