Perceived HRM Practices and Employees’ Retention: The Importance of Job Embeddedness and Job Satisfaction in Non- Governmental Organizations in, Kenya.

Abstract

This study examined the relationship between perceived human resource management practices and employee retention in non-governmental organizations in Nairobi County, Kenya. The primary goal of the study was to investigate the impact of human resource management practices on employee retention within non-governmental organizations in Nairobi County in Kenya. Specifically, the study sought to determine the influence of leadership style, work environment, and career development on employee retention or intention to leave.  The study also explored the mediating role of job satisfaction and the moderating effects of job embeddedness on employee retention. The research was enriched by the theoretical foundations based on Mixed Model of Employee Retention, Trait Theory, Hierarchy of Needs Theory, and Job Embeddedness Theory. The research adopted an explanatory research design. The study targeted 201 non-governmental organizations operating within Nairobi County. The study sample was selected using stratified and random sampling, which included 69 non-governmental organizations based in Nairobi County of Kenya. The study employed questionnaires. A pilot test was conducted with 7 employees from the non-governmental organizations, who were subsequently excluded from the final study. The data was analysed using logit model to test the effect between the independent variables and the dependent variable. In addition, the model was also used to analyse the mediation and moderation relation effect. The findings established that leadership style, work environment, and career development opportunities had a positive and significant effect on employee retention in Non-Governmental Organizations in Kenya. Furthermore, job satisfaction was found to play a key role in moderating the relationship between human resource management practices and employee retention in non-governmental organizations. Additionally, the study found that job embeddedness mediated employees’ attachment to their organizations. Based on these findings, the study recommended that organizations adopt effective human resource management practices that harmonises with both the needs of the organization and the employee to improve retention and enhance organizational performance.

Keywords: Employees Retention, Job Embeddedness, Job Satisfaction, Human Resource Management, NGOs, Kenya.

DOI: 10.7176/EJBM/17-3-04

Publication date: April 30^th 2025