EMPLOYEE MOTIVATION AND STAFF TURNOVER IN THE TEXTILE AND APPAREL SECTOR IN KENYA. A SURVEY OF FIRMS IN THE EXPORT PROCESSING ZONES IN ATHI RIVER, MACHAKOS COUNTY

GLADYS NGONYO MULWA, JEDIDAH MULI, PhD

Abstract


This research examined how incentive affects employee turnover in the textile and apparel sector. A descriptive survey design was employed. Firms in the textile and apparel sector comprised the unit observation in this study. Employees of the firms were the unit of analysis. The research used a sample size of 224 participants. Data was gathered via the use of a self-administered questionnaire. A preliminary investigation was conducted at two companies operating in the textile and apparel industry inside the Export Processing Zone (EPZ) located in Athi River. The research included a subset of 22 individuals employed within these enterprises. The collected data was subjected to analysis using the Statistical Package for the Social Sciences (SPSS), using both descriptive and inferential statistical techniques. Descriptive statistics, including frequency distributions, rates, means, and standard deviations were used to provide a comprehensive summary of the data. In contrast, inferential analysis was conducted using multiple linear regression to draw conclusions and make predictions based on the observed relationships between variables. The confidence interval for the regression study will be set at 95%. The results of the study were presented in form tables and figures. The study found a strong positive correlation (r=0.852) between the predictors (leadership, compensation, training, and promotions) and the dependent variable (staff turnover). According to the results, 72.6% of the variance in staff turnover can be explained by the combined influence of leadership, compensation, training, and promotions. The regression model was statistically significant, as evidenced by the low p-value of .000.Training (p<0.001), compensation (p=0.016) and leadership (p<0.001) were all significant. Compensation had the highest beta coefficient -0.452 indicating that it was the most important of the four variables while promotions (β =.001) was the least important. The study concluded that motivation significantly influenced turnover. Training, compensation, promotions, and leadership all play a role in determining staff turnover, with compensation being the most influential factor. To reduce staff turnover in the textile and apparel sector it was recommended that organizations ensure that they provide competitive compensation packages to their employees. Companies in the textile and apparel sector also ought to implement promotions as a way of motivating employees in order to lower turnover rates.

Key Words: Training, Compensation, Promotions, Leadership, Staff Turnover, Textile and Apparel

CITATION: Mulwa, G. N., & Muli, J. (2024). Employee motivation and staff turnover in the textile and apparel sector in Kenya. A survey of firms in the export processing zones in Athi River, Machakos County. The Strategic Journal of Business & Change Management, 11 (1), 487 – 505. http://dx.doi.org/10.61426/sjbcm.v11i1.2865


Full Text:

PDF

References


Ainer, C. D., Subramaniam, C., & Arokiasamy, L. (2018). Determinants of turnover intention in the private universities in Malaysia: a conceptual paper. In SHS Web of Conferences (Vol. 56, pp. 1-8). EDP Sciences.

Alkhawaja, A. (2017). Leadership Style and Employee Turnover a Mythical Relationship or Reality? https://digital.sandiego.edu/solesmalscap/16/

Amah, O. E., & Oyetuunde, K. (2020). The effect of servant leadership on employee turnover in SMEs in Nigeria: the role of career growth potential and employee voice. Journal of Small Business and Enterprise Development.

AON (2021). 2021 health survey results https://www.aon.com/2021-health-survey-results. https://www.aon.com/2021-health-survey-results

Avery, J. (2015). Harvard Business Review: How Promotions Affect Employee Retention. Harvard Business Review. Retrieved from https://hbr.org/2015/04/how-promotions-affect-employee-retention.

Beckmann, J., & Heckhausen, H. (2018). Motivation as a function of expectancy and incentive. In Motivation and action (pp. 163-220). Springer, Cham.

Belete, A. K. (2018). Turnover intention influencing factors of employees: an empirical work review. Journal of Entrepreneurship & Organization Management, 7(3), 1-7.

Berdud, M., Cabasés, J. M., & Nieto, J. (2016). Incentives and intrinsic motivation in healthcare. Gaceta sanitaria, 30, 408-414.

Bibi, P., Ahmad, A., & Majid, A. H. A. (2018). The impact of training and development and supervisor support on employee’s retention in academic institutions: The moderating role of work environment. Gadjah Mada International Journal of Business, 20(1), 113-131.

Cherry, K. (2017). The Incentive Theory of Motivation. 2017.

Choi, U. Y., & Kim, H. S. (2020). Expectancy Theory for Accounting Students’ Motivation to Study Major Electives. Korean journal of management accounting research 20(1), 147-172.

Dai, X. (2018, September). Application of Incentive Theory in Personnel Management in Colleges and Universities. In 2018 4th International Conference on Social Science and Higher Education (ICSSHE 2018). Atlantis Press.

De Simone, S. (2015). Expectancy value theory: Motivating healthcare workers. American International Journal of Contemporary Research, 5(2), 19-23.

Dietz, D., & Zwick, T. (2021). The retention effect of training: Portability, visibility, and credibility1. The International Journal of Human Resource Management, 1-32.

Engidaw, A. E. (2021). The effect of motivation on employee engagement in public sectors: in the case of North Wollo zone. Journal of Innovation and Entrepreneurship, 10(1), 1-15.

Export Processing Zones Authority (2022). Garments and Garment Related Activities. https://epzakenya.com/garments-and-garment-related-activities/

Gandhi, A., Yu, H., & Grabowski, D. C. (2021). High Nursing Staff Turnover in Nursing Homes Offers Important Quality Information: Study examines high turnover of nursing staff at US nursing homes. Health Affairs, 40(3), 384-391.

German Economic Institute (2022). 2021 Annual Economic Report. https://www.iwkoeln.de/en/press/press-releases.html

Gneezy, U., Kajackaite, A., & Meier, S. (2020). Incentive-based interventions. In The Handbook of Behavior Change (pp. 523-536). New York, NY: Cambridge University Press.

Habib, A., Sheikh, M. H., & Nabi, N. (2018). Employee Turnover & It’s Impact on Apparel Industry in Bangladesh: A Case Study of Mondol Group. Human Resource Management Research, 8(3), 63-68.

Han, Y. (2016, November). Analysis of Business Management and Personnel Incentive Theory. In 4th International Conference on Management Science, Education Technology, Arts, Social Science and Economics 2016 (pp. 1577-1580). Atlantis Press.

Heo, M., Kim, N., & Faith, M. S. (2015). Statistical power as a function of Cronbach alpha of instrument questionnaire items. BMC medical research methodology, 15(1), 1-9.

Imran, R., Allil, K., & Mahmoud, A. B. (2017). Teacher’s turnover intentions: Examining the impact of motivation and organizational commitment. International Journal of Educational Management, 31(6), 828-842.

Jensen, J. D. (2018). Employee motivation: A leadership imperative. International Journal of Business Administration, 9(2), 93-98.

Karimi, K. N. (2019). The Influence of Training and Development Practices On Employee Retention at Madison Insurance Company Limited, Head Office, Nairobi, Kenya (Doctoral dissertation, UoN).

Kenya Association of Manufacturers (2021). Why the Textiles and Apparels Sector?https://kam.co.ke/why-the-textiles-and-apparels-sector/

Kenya Institute for Public Policy Research and Analysis (2022). Constraints along the Cotton Textile and Apparel Value Chain in Kenya. https://repository.kippra.or.ke/bitstream/handle/123456789

Lee, T. W., Mitchell, T. R., Holtom, B. C., McDaneil, L. S., & Hill, J. W. (2017). The unfolding model of voluntary turnover: A replication and extension. Academy of Management journal, 42(4), 450-462.

Liu, X. (2021). Application of Incentive Theory in Hospitals’ Human Resource Management. Proceedings of Business and Economic Studies, 4(4), 26-30.

Lorincová, S., Štarchoň, P., Weberova, D., Hitka, M., & Lipoldová, M. (2019). Employee motivation as a tool to achieve sustainability of business processes. Sustainability, 11(13), 3509.

Maaitah, A. M. (2018). The role of leadership style on turnover intention. International Review of Management and Marketing, 8(5), 24.

Malek, K., Kline, S. F., & DiPietro, R. (2018). The impact of manager training on employee turnover intentions. Journal of Hospitality and Tourism Insights.

Meymandpour, R., & Pawar, P. (2018). Study of expectancy motivation in IT developers. Telecom Business Review, 11(1), 6.

Ministry of Industrialization, Trade and Enterprise Development (2021). Kenya apparel and textile industry. https://documents1.worldbank.org/curated/en/441761468000939834/

Monster (2021). Employee turnover rate. https://www.monster.co.uk/

Murage-Macharia, C. N., & Kanyua, E. (2016). Factors influencing employee turnover in private chartered Christian universities in Nairobi City County. International Journal of Innovative Development & Policy Studies, 4(3), 15-32.

Mwaniki, E. W., & Muturi, W. (2020). Factors affecting labour turnover in organizations: a case study of delmonte limited, Kenya. International Research Journal of Business and Strategic Management, 1(1).

Naseer, A., Perveen, K., Afzal, M., Waqas, A., & Gillani, S. A. (2017). The impact of leadership styles on staff nurses’ turnover intentions. Saudi J Med Pharm Sci, 4929(10B), 1133-8.

Nimri, M., Bdair, A., & Al Bitar, H. (2015). Applying the expectancy theory to explain the motivation of public sector employees in Jordan. Middle east journal of business, 10(3), 70-82.

Ntenga, E. K., & Awuor, E. (2018). Leadership style and employee turnover intentions in organizations in Kenya: A case of XYZ company. Journal of Human Resource & Leadership, 2(3), 87-109.

Okyere-Kwakye, E., Nor, K. M., Assampong, I. E., & Awang, S. R. (2018). Employees’ turnover: Examining its causes in the Ghanaian banking industry. International Journal of Academic Research in Business and Social Sciences, 8(2), 349-362.

Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics, and Business, 7(8), 577-588.

Pathan, S. S., & Vinay, R. (2021). Employee Turnover and Attrition in India: An Overview. Allana Inst of Management Sciences, Pune, 11, 19-21.

Quantum (2022). 2021 Operations Performance. https://www.firstquantum-2021-annual-report.com/

Rajapakshe, W. (2018). An analysis of major factors affecting labor turnover in the apparel industry in Sri Lanka: Policy Alternations for Solving the Problem. International Journal of Academic Research in Economics and Management Sciences, 7(3), 214-231.

Shiundu, A. (2022). The key to Kenya’s industrial growth. https://www.dandc.eu/en/article/kenyas-textile-and-apparel-sector-struggling-various-bottlenecks

Shrift, A. G. (2016). Job Hopping Motives: An Extension of the Unfolding Model of Voluntary Employee Turnover.

Silva, J. B. J. (2017). Absenteeism and labor turnover and its impact on production costs in the special occasion wear industry (Doctoral dissertation).

Sitati, N. (2017). Effects of reward management practices on employee retention in the Hotel Industry in Kenya (Doctoral dissertation, COHRED-JKUAT).

Stull, K. M., Kelloway, M. J., & Francis, E. L. (2018). A systematic review of training and staff turnover: Exploring the role of training in retention. International Journal of Training and Development, 22(2), 146-161. doi: 10.1111/ijtd.12136

Syahreza, D. S., Lumbanraja, P., Dalimunthe, R. F., & Absah, Y. (2017). Compensation, employee performance, and mediating role of retention: A study of differential semantic scales.

VanGraan, B. (2020). The impact of working from home on the job embeddedness of former office workers (Doctoral dissertation, University of Pretoria).

Vizano, N. A., Sutawidjaya, A. H., & Endri, E. (2021). The Effect of Compensation and Career on Turnover Intention: Evidence from Indonesia. The Journal of Asian Finance, Economics, and Business, 8(1), 471-478.

Vroom, V., Porter, L., & Lawler, E. (2015). Expectancy theories. Organizational behavior, 1, 94-113.

Wangare, K. G. (2017). Influence of employees’motivation on staff turnover in technical, vocational education and training institutions, Nyeri County, Kenya.

Wangare, K. G. (2017). Influence of employees’motivation on staff turnover in technical, vocational education and training institutions, Nyeri County, Kenya.

Yang, H. (2008). Efficiency wages and subjective performance pay. Economic Inquiry, 46(2), 179-196.

Young, D. S. (2018). Handbook of regression methods. CRC Press.

Yousuf, M., & Saqib, M. (2021). Impact of Job Satisfaction on Employee Turnover Intention at Bank Al-Habib. Journal of Entrepreneurship, Management, and Innovation, 3(1), 1-26.




DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2865

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.