WORKFORCE RETENTION STRATEGIES AND PERFORMANCE OF KENYA REVENUE AUTHORITY EMPLOYEES
Abstract
This study investigated how career growth, recognition, benefits, and organizational culture impact employee performance of KRA. Thus, the study provided an exhaustive understanding of retention strategies within the context of a government agency. Herzberg's Two-Factor Theory and Goal Setting Theory anchored this study. A descriptive research design was adopted for this study. The study targeted 300 senior management staff, 1,200 middle management staff, and 5,000 operational employees, but sampled 376 respondents. This study developed structured questionnaires and interview guides as data collection instruments. The study data was analyzed using both descriptive and inferential statistics, evaluating the relationship between the study variables. Descriptive statistics summarized the demographics and characteristics of the respondents. Inferential statistics assisted in making conclusions regarding the relationships between independent variables {career growth opportunities, employee recognition, employee benefits, and organization culture} and the dependent variable of employee performance. The findings showed that career growth opportunities positively influence performance; employees are motivated by the prospect of clear promotion paths, professional development programs, and mentoring. The study has also established that recognition is one of the key motivation factors affecting productivity. When employees feel appreciated and recognized for their contribution, they tend to perform better and show greater levels of engagement. The study further considered that employee benefits were found to influence performance through job satisfaction and organizational commitment. The results demonstrated that a positive culture promoting teamwork, innovation, and open communication strongly supports employee performance. The study recommended that the Authority should consider technology-infused career development programs designed to link accessibility promotion growth and career opportunities with individual areas of interest. Knowledge programs may be expanded to incorporate peer-to-peer recognition systems and real-time digital acknowledgment platforms. KRA may want to consider setting in place some additional wellness programs such as mental health support and childcare services, which were identified by the employees as lacking.
References
Al-Suraihi, W. A., Samikon, S. A. Al-Suraihi, A. H. A. & Ibrahim, I. (2021). Employee turnover: Causes, importance and retention strategies. European Journal of Business and Management Research, 6, 1-10
Aparapa, M.(2021). Impact of Reward and Recognition on Employees Performance. International Journal of Creative Research Thoughts (IJCRT)
Bullah, A. A., & Kwasira, J. (2021). Influence of employee recognition on job satisfaction among public sector employees in Kenya. International Journal of Human Resource Studies, 11(1), 1–15.
Bullough, S. (2018). UEFA champions league revenues, performance and participation 2003-2004 to 2016-2017. Managing Sport & Leisure, 23(1/2), 139–156. https://doi.org/10.1080/23750472.2018.1513341
Deloitte. (2019). Global Human Capital Trends: Leading the social enterprise— Reinvent with a human focus. Deloitte Insights.
Egbinola, A. (2022). Effects of employment benefits on productivity of employees in Estonia. Tallinn University of Technology
Etalong. T. and Chikeleze. F. (2023). Effect of Organizational Culture on Employee Performance: A Survey of Selected Public Sector Organizations in Enugu
Gomero, G (2022). The factors that influence revenue collection success in the Beneshangul Gumzu region: the case of Assosa town. Journal of Positive School Psychology. 2022, Vol. 6, No. 2, 5788– 5797
Herzberg, F. (1959). The motivation to work. New York: John Wiley & Sons.
Hussain, S., Khaliq, D., Nisar, Q., Zamir Kamboh, A., & Ali, S. (2019). The impact of employees’ recognition, rewards and job stress on job performance. *SEISENSE Journal of Management, 2*(2), 69-82. https://doi.org/10.33215/sjom.v2i2.121
International Academic Journal of Arts and Humanities. (2023). Influence of planning and target setting on organizational performance at Kenya Revenue Authority. International Academic Journal of Arts and Humanities, 2(2), 34–49.
International Academic Journal of Innovation, Leadership and Entrepreneurship. (2020). Influence of organizational culture on performance of Kenya Revenue Authority. International Academic Journal of Innovation, Leadership and Entrepreneurship, 1(3), 12–25.
Jack, M. W. (2015). Effect of diversity management practices on organizational performance in public sector organizations in Kenya. Journal of Human Resource and Sustainability Studies, 3(4), 45–56.
Jilcha, K & Zergaw, T. (2022). Employee retention strategies and the perceived impact on firm performance: a case of the case of Ethiopia telecom.
Journal of Applied Psychology, 89 (4), 575–590.
Judge, T. A., & Ilies, R. (2004). Affect and job satisfaction: A study of their relationship.
Kakui, J and Gachunga, H. (2017). Effects of career development on employee performance in the public sector: a case of national cereals and produce board. Vol. 3, Iss. 3 (19), pp 307-324, Aug 17. DOI:
Kamaamia. A. (2017). The effect of organizational culture on organizational performance: a case of Kenya School of Monetary studies (KSMS). United States International University – Africa.
Kenya Revenue Authority (KRA) Annual Report. (2022). 2021/2022 Annual Report. Kenya Revenue Authority.
Kibet, G.& Kalei, A. (2021). The Impact of Employee Benefits on The Employee Productivity at Kenya Tea Packers. International Journal of Management Studies and Social Science Research
Kim, S., & Fernandez, S. (2017). Employee engagement and turnover intention: Public vs. private sector employees. Public Management Review, 19(10), 1438–1464. https://doi.org/10.1080/14719037.2017.1292288
Kimiru, J. M. (2012). Effects of reward and compensation systems on employee performance at Kenya Revenue Authority. International Journal of Business and Social Science, 3(21), 302–307.
Locke, E. A. (1968). Toward a theory of task motivation and incentives. Organizational Behavior and Human Performance, 3 (2), 157-189.
Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57 (9), 705–717.
M’Mbui, J. W. (2011). The effect of performance appraisal systems on employee performance at Kenya Revenue Authority. International Journal of Business Administration, 2(4), 112–120.
Marampa, A., Khananda, R. Anggraeni, A. (2021). The Effect of Organizational Culture on Organizational Performance. International Conference on Rural Development and Entrepreneurship 2019
Mohamed, S. A. (2013). The impact of organizational culture on employee performance in public sector organizations in Kenya. International Journal of Business and Social Research, 3(2), 35–44.
Mugaa L. G., Guyo W., & Odhiambo R. (2018), Influence of Recognition Schemes on Employee Performance in Large Commercial Banks in Nairobi City County in Kenya. Journal of Human Resource & Leadership Vol 2(2) pp. 56-73.
Munga, J. (2020). Influence of employee benefits on employee performance in Kenyan public organizations: A case of Kenya Revenue Authority. African Journal of Business Management, 14(9), 297–305.
Muthumbi, D.M., & Kamau, J. (2021). Effect of career development on employee performance in Deloitte Limited, Kenya. Journal of Human Resource and Leadership, 1(1), 9-16.
Mutuiri, C., Gichunge, E., & Nzioki. S. (2022). Influence of Employee Benefits Strategy on Employee’s Performance in Public Hospitals in Nairobi County. International Journal of Professional Practice (IJPP) Vol .10 Issue No. 1, 2022
Natanael, F., Kirani, A., Dewi, P, Gracia, R., Loei, J., Muyandi, M., Kalfin (2024). The Effect of Training and Career Development on Company Performance: A Systematic Literature Review. International Journal of Humanities, Law, and Politics. 2. 19-25. 10.46336/ijhlp.v2i1.57.
Nneji, N & Asikhi, P. (2021). Organizational Culture and Organizational Performance: A Review of Literature. 3. 361-372. 10.35629/5252-0301361372.
Nyakio Ng’ang’a, J., Mwangi, M., & Kibera, F. (2024). Organizational culture and employee performance in Kenya’s public sector: A case of Kenya Revenue Authority. Journal of Public Administration and Policy Research, 16(1), 55–67.
Nyamai, M., & Minja, D. (2023). The effect of employee recognition on performance: Evidence from Kenya Revenue Authority. Journal of African Management Studies, 5(2), 88–102.
Otieno, P., & Mwangi, R. (2023). Challenges and solutions to employee retention in Kenya’s public sector: A case study of Kenya Revenue Authority. Journal of Public Administration and Policy Research, 15(3), 45–57.
PwC. (2022). Kenya Employee Benefits Survey Report 2022. PricewaterhouseCoopers Kenya.
Sastera, B. and Mauludin, H. (2018). The Influence of Employee Benefits Programson Employee Morale and Employee Performance in PT. CJI Pasuruan. International Journal of Business and Management Invention (IJBMI).
Sikira, R., Madaba, R., & Filbert, R. (2024). Impact of recognition on employees’ performance in the manufacturing industries in Tanzania: A case of Tanga Cement Company. International Journal of Scientific Research and Management (IJSRM), 12*(3), 6059-6073. https://doi.org/10.18535/ijsrm/v12i03.em11
Sorn, M. K., Fienena, A, R. L. Ali, Y. Rafay, M. & Fu, G. (2023). The effectiveness of compensation in maintaining employee retention. Open Access Library Journal, 10, 23- 29
Spector, P. E. (1997). Job satisfaction: Application, assessment, cause, and consequences. Thousand Oaks, CA: Sage Publications.
Sudiardhita, K., Mukhtar, S., Hartono, B., Sariwulan, T., & Nikensari, S. I. (2019). The effect of compensation, motivation, and organizational culture on employee performance at KRA. International Review of Management and Marketing, 9(3), 11–18.
Thangjam, T. (2021). Top 30 employee retention strategies for the new work World. New York: Prentice Hall Torsabo, N. & Ezekiel, R. (2021). Effect of work environment on retention in Adamawa State University Mubi, Nigeria. International Journal of Research and Innovation in Social Science, 5(10), 350- 360
Tubbs, S. L. (1986). A theory of goal setting and task performance. Psychological Review, 93(1), 40–66.
Wanjiru, J.N., & Ombui, K. (2021). Effect of career development on employee performance at the Aga Khan University Hospital. Journal of Human Resource and Leadership, 1(1), 17-24.
