Employee performance
EMPLOYEE RETENTION STRATEGIES AND EMPLOYEE PERFORMANCE
Influence of Employee Retention Strategies on Performance of Employees at Somtel
Telecommunication Company, Borama Office, Somaliland
Yusra O. Ali
Amoud University
A Thesis Submitted in Partial Fulfilment of the Requirements for the award of Master
Degree of Business Administration in Project Planning and Management
August 2020
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DECLARATION AND APPROVAL
Declaration by the Student
I, Yusra O Ali, declare that this thesis on ‘Influence of Employee Retention Strategies
on Performance of Employee at Somtel Telecommunication Company, Borama Office,
Somaliland’ is my own original work and has not been presented for an award of a degree or
diploma in any other university or institution
______________________
Date:
Yusra O. Ali
MBA/01/1086/2018/BR
Approval by the Supervisor
This thesis entitled ‘Influence of Employee Retention Strategies on Performance of
Employee at Somtel Telecommunication Company, Borama Office, Somaliland’ was done
under my guidance and was submitted to the School of Postgraduate Studies and Research,
Amoud University for examination by my Approval as candidate’s supervisor.
_______________________
Dr. Mohamed M Jibril
Faculty of Business and Public Administration
Amoud University, Somaliland
Date:
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DEDICATION
To my beloved parents, Mr. Omar Ali Obsiyeh and Mrs. Safiya Ibrahim Farah whose tireless
effort and determination laid down the foundation of my education
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ACKNOWLEDGMENTS
First sincere gratitude goes to the almighty Allah for enabling me to complete my
studies. Without the help of Allah, this project would not be accomplished successfully, I
take this opportunity my gratitude to everyone who supported me in the course of preparation
of this thesis, I wish to express my heartfelt thanks, sincerest gratitude and warm
appreciations to my research advisor and supervisor, Dr. Mohamed Muse Jibril (PhD), for
being remarkable mentor for me. I am thankful for your guidance throughout my course and
the assistance rendered to me at all stages of my research. Also I would to thank to the Dean
of School of Postgraduate Studies and Research, Mr. Mukhtar Abdi Omar (PhD candidate),
who has continuously and vigorously helped me to complete this thesis. I would like also to
thank to administrative staff of the School of Postgraduate Studies and Research, especially
Mrs. Saeda A. Omar (Associate Dean) and Mr. Zakaria M. Ahmed (Assistant Dean) as well
as the librarians (Mohamed and Ahmed) and the rest of the group who were directly or
indirectly involved in the completion of this thesis.
I would like to thank to my dear father Mr. Omer Ali Obsie
and my dear mother Ms.
Safia Ibrahim Farah, my dearest aunties Sada I. Farah and my Grand Mother Halima E.
Nour, and my brother Ibrahim O Ali
and sisters, who always gave me constant
encouragement and assisted me to the completion of this thesis. Special gratitude for their
physical and psychological support that kept me focused and determined. Last but not least, I
would like to express my appreciation to all my friends, classmates and colleagues at work
for their encouragement. Finally, I thank the respondents for their collaboration and patience
during data collection.
Yusra O. Ali
August, 2020
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ABSTRACT
This study investigated influence of employee retention strategies on performance of
employee at Somtel Telecommunication Company, Borama Office, and Somaliland.
Employee retention strategies is important as they involve strategic actions to
keep employees motivated and focused so they elect to remain employed and fully productive
for the benefit of the organization. Performance of employees at Somtel Telecommunication
Company has been poor, as reflected by the preliminary survey done by the researcher. This
survey found that 60% of the customers do not get the services as per promised schedules;
80% of them do not get the staffs at counters of the company; and 53% of them do not get
right services. Despite the decline in performance of employee, the influence of employee
retention strategies has not been investigated, yet theory suggests a positive association. The
study specifically investigated the influence of employee retention strategies on service
quality, creativity and effectiveness. Guided by the Needs Hierarchy Theory, the study used a
cross-sectional survey research design on a random sample of 60 employee of Somtel
Telecommunication Company. Data was collected using questionnaire method in July 2020,
and analyzed using simple linear regression method. The study established that employee
retention strategies have a significant effect on service quality, [F (1, 50) = 4.085, p = .000],
R =.714, R²adj = .496. It also established that employee retention strategies do not have a
significant effect on creativity of employees, [F (1, 50) = 4.085, p = .123], R= .061, R² adj. =
.037, and effectiveness of performance, [F (1, 50) = 4.085, p = .515], R= .011, R² adj. = .015.
The study concluded that employee retention strategies have no significant influence on
performance of staff at Somtel Telecommunication Company, Borama Office, since two out
of the three variables of employee performance were not significant with employee retention
strategies. The researcher recommended that the service quality of employees be improved.
This can be done by providing appropriate compensation, bonuses and nonmonetary rewards.
Trainings and development programs should also be organized to enhance the service quality
of employees. The study also recommends employees to increase their creativity skills by
using appropriate critical thinking skills and innovation approaches to improve their work and
get better results. Moreover, the researcher recommends that employees should be controlled
and supervised to be punctual, complete required tasks on time and maintain achieving
organizational targets and goals. Finally, the researcher recommends that a study be
conducted to include other branches of Somtel in Somaliland, with more elements of
employee retention strategies and employee performance.
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TABLE OF CONTENTS
DECLARATION AND APPROVAL .......................................................................................ii
DEDICATION ......................................................................................................................... iii
ACKNOWLEDGMENTS ........................................................................................................ iv
ABSTRACT ............................................................................................................................... v
TABLE OF CONTENTS .......................................................................................................... vi
LIST OF TABLES .................................................................................................................. vix
LIST OF FIGURES ................................................................................................................... x
CHAPTER ONE: INTRODUCTION ........................................................................................ 1
1.1
Background of the Study ................................................................................................ 1
1.2
Statement of the Problem ................................................................................................ 4
1.3
Research Objectives ........................................................................................................ 5
1.3.1
General Research Objective .................................................................................... 5
1.3.2
Specific Research Objectives .................................................................................. 5
1.4
Research Hypotheses ...................................................................................................... 6
1.4.1
General Research Hypothesis .................................................................................. 6
1.4.2
Specific Research Hypotheses ................................................................................. 6
1.5
Research Questions ......................................................................................................... 6
1.5.1
General Research Question ..................................................................................... 6
1.5.2
Specific Research Questions ................................................................................... 6
1.6
Scope of the Study .......................................................................................................... 7
1.7
Significance of the Study ................................................................................................ 7
1.8
Conceptual Framework ................................................................................................... 7
CHAPTER TWO: REVIEW OF RELATED LITERATURE................................................. 10
2.1
Introduction ................................................................................................................... 10
2.2
Employee Retention Strategies and Service Quality .................................................... 10
2.3
Employee Retention Strategies and Creativity of Employees ...................................... 11
2.4
Employee Retention Strategies and Effectiveness of Performance ............................... 12
CHAPTER THREE: RESEARCH METHODOLOGY .......................................................... 14
3.1
Introduction ................................................................................................................... 14
3.2
Research Area ............................................................................................................... 14
3.3
Research Design............................................................................................................ 14
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3.4
Study Population ........................................................................................................... 15
3.4.1
Target Population .................................................................................................. 15
3.4.2
Accessible Population............................................................................................ 15
3.5
Sample and Sampling ................................................................................................... 15
3.5.1
Sample Size ........................................................................................................... 15
3.5.2
Sampling Techniques ................................................................................................... 15
3.6
Data Collection ............................................................................................................. 16
3.6.1
Data Collection Method......................................................................................... 16
3.6.2
Data Collection Instrument .......................................................................................... 16
3.6.3
Research Procedures .............................................................................................. 17
3.7
Quality Control ............................................................................................................. 17
3.7.1
Piloting ......................................................................................................................... 17
3.7.2
Validity of Instruments .......................................................................................... 17
3.7.3
Reliability of Instrument ........................................................................................ 18
3.8
Data Analysis ............................................................................................................ 19
3.9
Ethical Considerations............................................................................................... 20
CHEPTER FOUR: RESULTS AND FINDINGS ................................................................... 21
4.1
Introduction ................................................................................................................... 21
4.2
Background Factors ...................................................................................................... 21
4.2.1
Gender of Respondents .......................................................................................... 22
4.2.2 Age of Respondents ........................................................................................................ 22
4.2.3 Educational Level of Respondents................................................................................ 23
4.2.4
4.3
Work Experience of Respondent ........................................................................... 24
Measurement of Variables ............................................................................................ 25
4.3.1
Employee Retention Strategies and Service Quality ............................................. 27
4.3.2
Employee Retention Strategies and Creativity of Employees ............................... 30
4.3.3
Employee Retention Strategies and Effectiveness of Performance ....................... 33
CHAPTER FIVE: SUMMARY OF FINDINGS, DISCUSSION, CONCLUSION AND
RECOMMENDATIONS ......................................................................................................... 37
5.1
Introduction .................................................................................................................. 37
5.2
Summary of Findings .................................................................................................... 37
5.3
Discussion ..................................................................................................................... 38
5.4
Conclusion .................................................................................................................... 40
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5.5
Recommendations ......................................................................................................... 41
5.5.1
General Recommendations .......................................................................................... 41
5.5.2
Recommendation for Further Research ....................................................................... 42
REFERENCES ........................................................................................................................ 43
APPENDIX A: RESEARCH BUDGET .................................................................................. 48
APPENDIX B: WORK PLAN ................................................................................................ 49
APPENDIX C: QUESTIONNAIRE FOR EMPLOYEES ...................................................... 50
APPENDIX D: Reliability Test ............................................................................................... 55
APPENDIX E: VALIDITY TEST RESULTS ........................................................................ 56
APPENDIX F: TABLES OF SAMPLE SIZE ......................................................................... 57
APPENDIX G: RESEARCH APPROVAL ............................................................................. 58
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LIST OF TABLES
Table 1: Experts’ Validity Assessment Reports ……………………….…………………… 18
Table 2: Codes and Scores of Variables ……………...…………………………………….. 27
Table 3: Service Quality with Employee Retention Strategies …………………………..… 28
Table 4: Regression of Service Quality on Employee Retention Strategies ……………….. 29
Table 5: Creativity with Employee Retention Strategies ……………….………………..… 31
Table 6: Regression of Creativity on Employee Retention Strategies ……………….…….. 32
Table 7: Effectiveness with Employee Retention Strategies ……………………………..… 34
Table 8: Regression of Effectiveness on Employee Retention Strategies ………..….…….. 35
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LIST OF FIGURES
Figure 1: Conceptual Framework ……………………………..…………………….……….. 8
Figure 2: Gender of Respondents …………………………………………………..………. 22
Figure 3: Age of Respondents ……………………………………………………………… 23
Figure 4: Educational Level of Respondents …………………………………….………… 24
Figure 5: Work Experience of Respondents ……………………………………………..… 25
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CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
Employee retention may seem a relatively new concept, but it goes back over 20 years
when the term first appeared in an academic journal in 1990. Prior to that, during the 1970s
and 1980s human resource management focused on employee satisfaction (Mowday, 1998).
But this had little or no connection to performance as it was more about the employee than
the organization or employee’s relationship with it (Chiaburu, 2013).In the early 1980s,
employees became concerned about their duration in the work (Morel, 2007). In Africa, for
example, about 7.7% of all full-time company staff left their institutions for other places
within one year – from fall 1997 to fall 1998. Of these, only 29% were retirees; the remaining
71% left for a variety of reasons (Jain, 2013). Job mobility and voluntary job changes
increased dramatically, and employers became concerned with employee turnover and search
for management tools for employee retention began (Jo, 2009).Today, employee retention is
a common management concept and a wide area of study. While specific methods now exist
for ensuring employee retention, its effect on performance is based more on theory than as
empirical evidence. The same position is replicated in Somaliland and in Somtel Company in
particular. There is no empirical link between employee retention strategies and employee
performance in Somtel Company, despite the declining performance of the organization.
Employee retention strategies have been defined differently by different ways.
Employee
retention
strategies refer
to
retain employees and
reduce turnover and
(Kossivi,
Employee
2016).
policies
attrition
companies
and
retention strategies
follow
in
order
to
ensure employee engagement
involve strategic actions
to
keep employees motivated and focused so they elect to remain employed and fully productive
for the benefit of the organization (Sheridan, 1999). Employee retention strategies are the
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systematic efforts to develop an environment that encourages and motivates employees to
remain employed in the organization. (Westerman, 2007). In this study, employee retention
strategies are defined as the policies and procedures that an organization follows to keep its
best employees in the organization and hence maintain a lower turnover.
There are various strategies that organizations follow to retain their employees. These
include flexible working hours, timely promotions and employee engagemen (Branham,
2000).
Other strategies for employee retention include career development programs,
bonuses, compensation and recognition (Donoghue, 2006). Monetary rewards, open
communication and feedback, annual performance reviews and work-life balance are other
strategies for retaining employees in the organization (Allen, 2008). In this study, employee
retention strategies were characterized as employee compensation, monetary rewards and
recognition. Employee compensation refers to the benefits (cash, vacation, etc.) that an
employee receives in exchange for the service they provide to their employer (Allen,
2008).Monetary rewards are financial rewards provided to employees for meeting their goals.
This may include cash awards, bonuses, commission, gift cards, and more (Mitchell, 2001).
Employee recognition is the open acknowledgement and expressed appreciation for
employees’ contributions to their organization (Shaw, 2005).
Employee performance is a key factor in the performance of an organization
(Diefendorff, 2002). Employee performance is the ability and output of an employee (Dabale,
2014). Employee performance is the ability of an employee to accomplish a mission based on
the expectations of the organisation (Tsai, 2011).It refers to the job-related activities expected
of workers and how well those activities are executed,(Rosen, 1986). These authors view
performance in terms of employee output. This study defines employee performance as how
workers behave in the work place and how well they perform the job or duties obligated to
them.
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Measurement of performance depends on the type of work being performed.
Employee performance can be measured through the quality, quantity creativity, timeliness
and effectiveness of the output (Parida, 2006). It can be also measured through creativity and
punctuality (Dishon-Berkovits, 2002). Other measures of performance are punctuality,
personal habits, work attitude, and personal presentation (Adkins, 1996). Time management,
ownership, and work improvement are also other indicators (Berger, 2005). This study
focused on service quality, creativity, and effectiveness. Quality is accomplishment by a strict
and consistent commitment to set standards of uniformity to satisfy specific pre-set
requirements (Pyzdek, 2003). Quality can be measured from accuracy, reliability and fitness
for use. Creativity is what happens when an individual produce something that is novel as
well as appropriate, generative or influential (Oke, 1999). Creativity can be measured from
innovation, critical thinking and problem solving. Effectiveness is the degree to which
objectives are achieved and the extent to which targeted problems are solved (Coello, 2007).
Effectiveness can be measured from achievement of desired result and completing tasks on
time.
United Kingdom was the first country in the world to industrialise in nineteenth
century before it was overtaken by the USA. For most of the twentieth century, the UK
employee performance increased by about 1.6% a year (Championing Better Work &
Working Lives, 2017). In 2015, the US and Japan together accounted for 47% of global
employee performance (Championing Better Work & Working Lives, 2017). In Africa,
employee engagement declined between 2015 and 2017 from 65.3% to 60.2% (Yeado, 2017).
There is no proper documentation of employee performance in Somaliland. However, the
performance of employee in Somtel Telecommunication Company has been low for the last
four years. In a preliminary investigation, it was found that 60% of the customers were not
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provided services as per promised schedules; 80% of the customers did not get the staffs at all
counters of the company; and 53% of the customers did not get right services. Despite
declining performance of Somtel Company, the influence of employee retention has not been
investigated and remains unknown yet.
This study was based on the Needs Hierarchy Theory developed by Abraham Maslow
in 1943. Abraham saw human needs in the form of hierarchy ascending from the lowest to
the highest (Maslow, 1943). According to this theory, human needs are arranged in five
levels which are satisfied in series: the basic or physiological needs including food, water,
warmth, shelter and sleep; security or safety needs including desire to be free of physical
danger and fear of loss of job, property, or shelter; social needs which are the feelings of
belongingness or acceptance by others; esteem needs including self-respect, autonomy and
recognition; self-actualization which is the desire to become what one is capable of
becoming, to maximize one’s potentials and to accomplish something great (Maslow, 1943).
This study is premised on the fact that employee needs is a factor that often influence
retention, since the desire to always keep satisfied can make an employee want to remain.
Therefore by using employee needs, employers and organizations could influence the
retention and performance of employees.
1.2
Statement of the Problem
Retention is theoretically related to performance of employees. Low turnover (or high
retention) is expected to raise employee morale and improve organizational performance.
High employee retention should lead to high employee and organizational performance.
Therefore, low employee performance raises question about employee retention. Performance
of employees of Somtel Telecommunication Company has been poor, as reflected by the
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preliminary survey done by the researcher. This survey found that 60% of the customers do
not get the services as per promised schedules; 80% of them do not get the staffs at counters
of the company; and 53% of them do not get right services. Despite the decline in
performance of employee, the influence of employee retention strategies has not been
investigated, yet theory suggests a positive association. There is need to determine the effect
of employee retention strategies on performance of employee in Somtel Telecommunication
Company as a means of using retention a strategy to improve performance. Without this
information there is no evidence of the role of employee retention strategies on employee
performance.
1.3
Research Objectives
1.3.1 General Research Objective
The general objective of this study was to determine the influence of employee
retention strategies on performance of employees in Somtel Telecommunication Company,
Borama Office, and Somaliland.
1.3.2 Specific Research Objectives
The specific research objectives of this study were to:
1.
Determine the influence of employee retention strategies on service quality at Somtel
Telecommunication Company in Borama Office.
2.
Establish the influence of employee retention strategies on creativity of employee at
Somtel Telecommunication Company in Borama Office..
3.
Determine the influence of employee retention strategies on effectiveness of services
provided by employee at Somtel Telecommunication Company in Borama Office.
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1.4
Research Hypotheses
1.4.1 General Research Hypothesis
This study was guided by the general hypothesis that employee retention strategies
have a significant influence on performance of employees at Somtel Telecommunication
Company in Borama Office, Somaliland.
1.4.2 Specific Research Hypotheses
This study was guided by the following specific research hypotheses:
1.
Employee retention strategies have a significant effect on service quality at Somtel
Telecommunication Company in Borama Office.
2.
Employee retention strategies have a significant effect on creativity of employee at
Somtel Telecommunication Company in Borama Office.
3.
Employee retention strategies have a significant effect on effectiveness of services
provided by employee at Somtel Telecommunication Company in Borama Office.
1.5
Research Questions
1.5.1 General Research Question
The general research question of this study was – What is the influence of employee
retention strategies on performance of employees at Somtel Telecommunication Company,
Borama Office?
1.5.2 Specific Research Questions
The specific research questions of this study were:
1.
What is the Influence of employee retention strategies on service quality at Somtel
Telecommunication Company in Borama Office?
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2.
What is the Influence of employee retention strategies on creativity of employee at
Somtel Telecommunication Company in Borama Office?
3.
What is the Influence of employee retention strategies on effectiveness of services
provided by employee at Somtel Telecommunication Company in Borama Office?
1.6
Scope of the Study
This study on the influence of employee retention strategies on performance of
employee
at
Somtel
Telecommunication
Company
was
conducted
at
Somtel
Telecommunication Company, Borama office. This study used a cross-sectional survey
design on a random sample of 60 employees. This study focused specifically on service
quality, creativity and effectiveness with respect to employee retention strategies. Data was
collected using questionnaires, and analysed using simple linear regression, and reported in
tables and figures.
1.7
Significance of the Study
This study will provide information which could be used to improve the quality of
employees at Somtel Telecommunication Company specifically and generally of employees
in private companies in Borama district and in Somaliland as a whole. The study produced
valuable knowledge to companies to improve the quality of their employees and can be used
as a reference by other researchers and readers generally.
1.8
Conceptual Framework
This study was based on the Needs Hierarchy Theory and guided by the framework
depicted in Figure 1.
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Employee Retention
Strategies
Employee Performance
(DV)
(IV)
(IV)
Service Quality
Quality



Compensation
Monetary rewards
recognition



Accuracy
 Accuracy
Reliability
 Appearance
Fitness for use
 Usefulness
Creativity



Innovation
Critical think
Problem solving
Effectiveness

Achievement of
desired result
 Completing tasks on
time
 Time management
Figure 1. Conceptual framework of retention strategies and performance of employees.
The conceptual framework depicted in Figure1 shows the relationship between
employee retention strategies and performance of employees. Employee retention strategies
are characterized as compensation, monetary rewards and recognition. Employee
performance is conceptualized as service quality, creativity and effectiveness. Service quality
is operationalized as accuracy, reliability and fitness for use; creativity as innovation, critical
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thinking, problem solving; and effectiveness as achievement of desired result and completing
tasks on time. The framework holds that if the employee retention strategies are high, quality,
quantity and effectiveness of output will be increased.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1
Introduction
This chapter reviews literature related to employee retention strategies and
performance of employee. It is based on the themes of the study and reviewed along service
quality, creativity and effectiveness.
2.2
Employee Retention Strategies and Service Quality
Quality is the value of work delivered by an individual, team or organization (Ulrich,
1996). According to Barsky (1992), quality is those features of products which meet
customer needs and thereby provide customer satisfaction. Quality means freedom from
deficiencies and errors that require doing work over again or that result in field failures,
customer dissatisfaction, and customer claims (Juran, 2002).
Quality serves various roles in organization. According to Anderson (1994), quality
products help to maintain customer satisfaction and loyalty and reduce the risk and cost of
replacing faulty goods. Quality makes to satisfying your customers and retaining their loyalty
so they continue to buy from you in the future (Berry, 1995).Qualityproducts make
an important contribution to long-term revenue and profitability (Gummesson, 1998).They
also enable the company to charge and maintain higher prices.
Several studies indicate the relationship between employee retention strategies and the
quality of output. A study by Kanand and Kumari (2013) investigated employee retention
strategies and quality of performance in Covenant University in Nigeria. They found that
employee retention strategies does affect the quality of performance of the organization.
Another study byNaresh, Doland and Barr (2013) studied employee turnover in leading
telecommunication organization in the State of Karnataka. They found that employee
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retention strategies have no significant effect on quality service of the company. A study by
Onyeizugbe (2012) investigated the impact of employee retention strategies in Brazil
telecommunication companies using sample of 264 people comprising employees and
employers. He found that employee retention strategies influence the quality of output of
organization. These studies show that there is a relationship between employee retention and
quality of output. However, all these studies were conducted outside Somaliland and Borama
district.
2.3
Employee Retention Strategies and Creativity of Employees
Creativity is to think or do something differently. It is a kind of fantasy in which new
ideas are promoted and that new ideas are essential to the advancement of human society
(Finke,1995). According to Bhasin (2011), creativity is defined as the tendency to generate or
recognize ideas, alternatives or possibilities that may be useful in solving problems,
communicating with others and entertaining ourselves as well as others. Creativity can be
defined on a variety of levels: cognitively, intellectually, socially, economically, spiritually,
and from the perspective of different disciplines within the arts, sciences, and humanities
(Lindauer, 2003).According to Thurston (1955) any action is to be creative if it has
immediate solution to the kind of thinking which has always been innovative.
Creativity is an important attribute in any organization. According to Ramaswamy
(2010), there is a direct link between creativity and important organizational outcomes such as
productivity and quality; because creative thinking increases the quality of solutions to
organizational problems, helps to stimulate profitable innovations, revitalizes motivation,
upgrades personal skills and catalyses effective team performance. Nowadays creativity and
innovation are becoming extremely important to the success of all business organizations;
because they are facing major and rapid changes in the environment. To cope effectively with
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the change, organizations must become more innovative, developing the ability to quickly plan
and implement adoptions to change their environments (Gupta, 1996).
Several studies indicates the relationship between employee retention strategies and
creativity. A study was done by John and Hanna(2015) on effect on employee retention
strategies on creativity at work place in Midwestern manufacturing company. This study was
conducted with sample of 99 employees from the Midwestern manufacturing company. They
found there is strong relationship between employee retention strategies and creativity.
Another study by Reza and Bagheri (2013) investigated the effect of employee retention
strategies on creativity in librariesof Kenya .A study used descriptive cross-sectional survey
design to examine three purposively selected libraries. They found that employee retention
strategies have no significant effect on the creativity at work place.
Another study by
Wenjing and Bart (2014) investigated the relationship between employee retention strategies
and creativity of employees in Korean Government. They found that employee retention
strategies do not affect creativity of employees at organizations. These studies show the
relationship between employee retention strategies and creativity. However, all these studies
were conducted outside Somaliland and Borama district. Hence, there is need to investigate
the effect of employee retention strategies on creativity of employees at Somtel
Telecommunication Company, Borama Office, Somaliland.
2.4
Employee Retention Strategies and Effectiveness of Performance
According to Rosenholtz (1985), effectiveness is capability of producing a desired
result or the ability to produce desired output when something is deemed. Effectiveness
means a product has intended or expected outcome or produces a deep, vivid impression
(Bartus, 2014). According to Nezu (1993), effectiveness is the degree to which objectives of
targeted problems are solved.
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Organizational effectiveness is important for several reasons .According toPfeffer
(1999) effectiveness is important for growth by increasing efficiency, as well as the
profitability of the organization. According to Matthews (2011), effectiveness is essential for
improving result. It serves as a check-in to see how well internal procedures are meeting with
an initial vision. It provides investors, donors, or employees with an idea of the company's
strengths, and it highlights areas of ineffectiveness that can be the focus of improvements
(Dees, 2003). Organizational effectiveness for a business will generally be expressed in terms
of how well its net profitability compares with its target profitability. Additional measures
might include growth data and the results of customer satisfaction surveys (Johnson, 2006).
There are several studies that support the relationship between employee retention
strategies and effectiveness of output. A study by Aidah and Nasazi (2012) studied the effect
of employee retention strategies on effectiveness of performance in the biggest
telecommunication companies operating in Uganda. They found that employee retention
strategies have an influence on the effectiveness of employee performance in the
telecommunication companies. Another study by Mariyam, Imnaand Hassan (2011) used a
sample of 230 employees from 14 retail outlets in Male (The capital of Maldives) selected
using convenient sampling. The researchers found that there is positive relationship between
employee retention strategies and effectiveness in the organization. Another study by Chan
and Lynn (1991) studied the impact of employee retention strategies on effectiveness of
performance of employee in telecommunication companies in United Kingdom. They found
that employee retention strategies have a positive effect on effectiveness of performance in
the organization. These studies show that employee retention strategies have an impact on
effectiveness of performance.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Introduction
This chapter describes the research area, research design, research location, sample
size, sample techniques, the way of collecting data, and techniques of data analysis that was
used in this study.
3.2
Research Area
This study was conducted in Somtel Telecommunication Company, Borama Office.
Borama is the capital city of the Awdal region of Somaliland. It is located 110 km west of
Hargeisa, the capital city of Somaliland. Borama lies at 8o N and 11oN above the sea level
(UNHCR, 2014).
3.3
Research Design
This study was conducted using cross-sectional survey design. Surveys that are
carried out at a just one point in time are known as a cross-sectional (Bethlehem, 1993).This
design is best suited to studies aimed at finding out the prevalence of a phenomenon,
situation, problem, attitude or issue, by taking a cross-section of the population. They are
designed to study some phenomenon by taking a cross-section of it at one time (Babbie,
1989).
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3.4
Study Population
3.4.1 Target Population
The target population of the study comprised 60 employees that are working in
Somtel Telecommunication Company, Borama office (Somtel Telecommunication Company,
2019). Performance of Somtel Telecommunication Company had declined this period, and
this makes a suitable ground for a study on employee retention strategies-performance
relationships.
3.4.2 Accessible Population
The accessible population was the same as the target population since all the
employees of Somtel Telecommunication Company can be reached by the researcher within
the available time and available resources.
3.5
Sample and Sampling
3.5.1 Sample Size
The sample contained 52 employees of Somtel Telecommunication Company. The
sample size was determined according to Krejcie and Morgan (1970) Sample Determination
Table. This table recommends a sample size of 52 for a population of 60 at 95% level of
confidence and 5% margin of error.
3.5.2 Sampling Techniques
This study will employ simple random sampling to select the individual employees. In
a simple random sampling, each member of the population has an equal probability of being
Employee performance
16
chosen (Adam, 2019). Simple random sampling affords each employee the same chance of
being included in the sample. This improves the representativeness of the sample.
3.6
Data Collection
3.6.1 Data Collection Method
Data was collected using questionnaire survey method. The questionnaire survey is a
very well-known and widely-used research technique for quickly and efficiently gathering
and analyzing data from a population under study (Dörnyei, 2009). To collect sufficient data
in the very short time available, the researcher employed drop-off-and-pick technique of
questionnaire
survey.
Drop-off-and-pick survey
is a
survey technique
in
which
a
researcher drops off questionnaires for respondents to complete in their own time; the
completed forms are returned back to the researcher or picked up again at some later date
(Brace, 2018).
3.6.2
Data Collection Instrument
Data was collected from the respondents using questionnaires. A questionnaire is a set
of questions to be answered by respondents without the personal aid of an investigator
(Chenail, 2011). This tool enables the researcher to collect a lot of information in every short
time. The questionnaire featured semi-structured questionnaire. Semi Structure questionnaire
contains both open-ended and closed ended questions (Zhou, 2017). The use of semistructured questionnaires enables a mix of qualitative and quantitative information to be
gathered. (Harris, 2010).
Employee performance
17
3.6.3 Research Procedures
The researcher sought permission from the School of Postgraduate Studies and
Research and from the Somtel Telecommunication Company. The instrument was piloted in
Gabiley district. Once the instrument was validated, the researcher proceeded to collect data
from 52 employees of Somtel Telecommunication Company using questionnaires.
3.7
Quality Control
3.7.1 Piloting
The instrument was piloted in Somtel Telecommunication Company, Gabiley office,
since this is the nearest office of Somtel Telecommunication Company to Borama office. The
instrument was administrated to 20 employees in Somtel Telecommunication Company,
Gabiley office .employee. Piloting enables the researcher to determine the adequacy of
instructions and how well they flow (Bryman& Bell, 2007). Piloting helps the researcher to
identify and correct the limitations of the instrument being used.
3.7.2 Validity of Instruments
Validity is the ability of the tool to measure what it purports to measure. The expert
judgment method was used to determine the validity of the instrument. Two experts evaluated
the relevance of each item in the instruments to the study objectives and rated each item on
the 1-4 scale, where 1 is Not Relevant (NR), 2 is Somewhat Relevant (SWR), 3 is Quite
Relevant (QR) and 4 is Very Relevant (VR). From the assessments, the results summarized in
Table 1 were obtained.
Employee performance
18
Table 1
Experts’ Assessment Reports
Judge 1
Judge 2
1
2
3
4
Total
1
0
0
1
0
1
2
0
0
1
1
2
3
0
0
4
5
9
4
0
0
5
4
9
Total
0
0
9
9
21
Note. Shaded area indicates items rated relevant (3 and 4) by both judges.
Validity was determined using Content Validity Index (CVI). CVI =
n3/4
N
, where
n3/4 are the items rated 3 or 4 by both judges, and N is the total items in the instrument. CVI
=
18
21
= 0.857. This makes the index acceptable compared to the required index of 0.70.
3.7.3 Reliability of Instrument
Reliability is the measure of the degree to which a data collection instrument yields
consistent results or data after repeated trials (Mugenda & Mugenda, 2003). Test-retest
method was used to test reliability of the research instrument by comparing the result of one
half of a test with the result form. The researcher administered the same instrument twice to
Employee performance
19
20 employees at Somtel Telecommunication Company, Gabiley Office, in June 2020. A
Cronbach’s alpha reliability index of 0.936 was reported. This was acceptable reliability since
it is greater than 0.70, the lowest accepted reliability index allowed in social science research.
3.8
Data Analysis
Data was analysed using simple linear regression. Simple linear regression is
statistical method that allows us to summarize and study relationships between continuous
variables (Royston, 1999). Percentages were used to present the background data It describes
the linear dependence of one variable on another. It can predict values of one variable from
values of another based on historical relationship between independent variable and
dependent variable.
The general linear model of simple regression, also known as “the regression
equation” is
Y' = aX + b + 𝜀 + … Eq 1;
where Y' is the predicted value, X is the predictor variable, a is the coefficient of regression
and b is the constant term .
Data was analyzed at 0.05 level of significance, 95% level of confidence, and 5%
margin of error since these are the conventionally used parameters in social science research.
The 95% level of confidence demonstrates that any findings made have a 95% probability of
being true. The 0.05 level of significance indicates the degree to which a null hypothesis can
be false if it was true if only 5 in 100. The 5% margin of error indicates the maximum
expected differences between the true population parameter and a sample estimates of that
parameter cannot go beyond ±5.
Employee performance
20
3.9
Ethical Considerations
The researcher was inform the participants the study intention. The researcher will
obtain all relevant permits and permissions before embedding on the study. The informed
consent of each respondent will also be obtained before administering the questionnaire.
Further and more importantly, the data will be analyzed professionally without fudging.
Employee performance
21
CHEPTER FOUR
RESULTS AND FINDINGS
4.1
Introduction
This study investigated the Influence of employee retention strategies on performance
of employees at Somtel Telecommunication Company, Borama Office, Somaliland employee
retention strategies are defined as the policies and procedures that an organization follow to
keep its best employees in the organization and hence maintain a lower turnover. 3Employee
performance is defined as how workers behave in the work place and how well they perform
the job or duties obligated to them. It is measured by service quality, creativity and
innovation and effectiveness. The study arose from the fact that performance of Somtel
Company had declined overtime, but the associated factors had not been determined. Yet
Somtel Company is a very important corporation in Borama town and in Somaliland. The
sample size of the study was 63 employees, but the researcher obtained 40 completed
questionnaires. This was 77.7% questionnaire return rate which is acceptable response return
rate, being more than 70% return rate in social science research. This chapter describes how
data was compiled, analyzed and interpreted, and presents the results and findings of these
processes in line with the research objectives. The background data is presented first.
4.2
Background Factors
The study collected data on the background factors of the respondents: on gender, age
of the respondents, educational level and work experience. The purpose of presenting the
background information is to allow the level of determination of the extent of generalizability
of the study findings by the end users. The background information is reported in the
following sub-sections.
Employee performance
22
4.2.1 Gender of Respondents
Respondents indicated their gender; the responses are shown in Figure 2.
Gender of Respondents
5%
95%
Male
Female
Figure 2. Gender of Respondents
Figure 2 shows the distribution of respondents by gender. It shows that majority
(95%) of the respondents were males; only 5% of the respondents were female. There are
more males than females in the sample. But this reflect the employment distribution in all
sectors in Somaliland
4.2.2 Age of Respondents
Respondents were asked to indicate their age. They responded as shown in Figure 3.
Employee performance
Frequancy
23
18
16
14
12
10
8
6
4
2
0
17
13
6
4
20-25
26-35
36-45
Age of Respondent
56 and above
Figure 3. Age of respondents
Figure 3 shows the distribution of respondents based on their age. It shows that most
(42.5%) of the respondents are aged between 26 and 35 years, while 32.5% of them aged
between 20 and 25 years, 15% of them aged between 20 and 25 years and 10% of them aged
between 20 and 25 years. This shows that most of the workers are young adults.
4.2.3 Educational Level of Respondents
Respondents were asked to indicate their highest educational level and they responded
as show in Figure 4.
Employee performance
24
30
24
Frequancy
25
20
15
10
10
5
4
2
0
Master
Bachelor
Diploma
Certificate
Eduational level of respondents
Figure 4. Educational level of Respondents
Figure 4 shows the distribution of respondents based on their highest educational
level. It shows that majority (60%) of the respondents hold bachelor’s degree, while 25% of
them hold diploma, 10% of them have master degree, and 5% of them have certificates. This
sample therefore reflected all level of education.
4.2.4 Work Experience of Respondent
The Respondents were also asked to indicate their work experience and they
responded as show in Figure 5.
Employee performance
25
12
12
Frequency
10
10
10
8
8
6
4
2
0
below3 years
3-5 years
6-8 years
9 years
Work Experiance of Respondent
Figure 5. Work Experience of the respondents
Figure 5 shows the distribution of respondent by their work experience. It shows that
most (30%) of the respondents have a work experience of below 3 years, while 25% of them
have 3-5 years’ work experience, 25% have a work experience of 6-8 years. Therefore most
employees have inadequate work experience.
4.3
Measurement of Variables
This sub-section describes how the variables were measured to determine the
influence of employee retention strategies on performance of employee at Somtel
telecommunication Company, Borama Office. The study was guided by three specific
objectives: to determine the influence of employee retention on service quality, creativity and
effectiveness at Somtel Telecommunication Company, Borama Office, Somaliland. Each of
these variables was measured individually. Service quality is operationalized as accuracy,
reliability, and fitness for use; creativity was operationalized as innovation, critical thinking,
and problems solving; and effectiveness was operationalized as achievement of desired result
Employee performance
26
and completing tasks on time. Respondents were asked to react to several statements on these
variables intended to assess the status of each variable by indicating Strongly Agree, Agree,
No Comment, Disagree and Strongly Disagree. Responses were scored on an interval scale
such that strongly agree was scored 5, agree 4, no comment 3, disagree 2 and strongly
disagree 1.
For service quality on a scale of 5-23, scores were rated such that 5-10 scores were
regarded as poor and coded 3; scores of 11-16 were regarded as medium and coded 2; and
scores of 17-23 were regarded as good and coded 1. For creativity on a scale of 8-40, scores
were rated such that scores of 8-18 were rated as poor and coded 3; scores of 19-29 were
rated as medium and coded 2; and scores of 30-40 were rated good and coded 1. For
effectiveness on a scale of 6-30, scores were rated such that scores of 6-13 were rated poor
and coded 3; scores of 14-21 were rated medium and coded 2; and scores of 22-30 were rated
good and coded 3. Variables were coded and scored as summarized in Table 1.
Employee performance
27
Table 2
Codes and Scores of Variables
Employee Performance
Service Quality
Creativity
Effectiveness
Score
Code
Status of Variable
17-23
1
Good
11-16
2
Medium
5-10
3
Poor
30-40
1
Good
19-29
2
Medium
8-18
3
Poor
22-30
1
Good
14-21
2
Medium
6-13
3
Poor
4.3.1 Employee Retention Strategies and Service Quality
The first objective of this study was to establish the influence of employee retention
strategies on service quality at Somtel Telecommunication Company, Borama office. Service
quality was operationalized as accuracy, reliability and fitness for use. Respondents were
asked to react to several statements on the service quality. Service quality was characterized
as good, moderate and poor, and compared against the employee retention strategies. The
results obtained are summarized in Table 2.
Employee performance
28
Table 3
Service quality with employee retention strategies
Employee Retention Strategies
Mean Performance (%)
N
N-Percent
S
Good
27.0769
13
32.5
4.71631
Moderate
20.0000
7
17.5
3.46410
Poor
13.3000
20
50
6.067322
Total
18.9500
40
100
8.07322
Note. N = Sample; S = Standard Deviation
Table 3 shows the service quality at Somtel Telecommunication Company, Borama
Office against employee retention strategies. It shows that the service quality of employees
under good retention strategies was higher. (M = 27.0769%, S = 4.71631) than the service
quality of employees under moderate retention strategies (M = 20.000%, S = 3.46410), and
the service quality of employees under poor retention strategies (M = 13.3000%, S =
6.067322). The overall service quality of employees at Somtel Telecommunication Company,
Borama Office was 18.9500% (S = 8.07322). Table 3 suggests that service quality at Somtel
Telecommunication Company, Borama, and Office varies with employee retention strategies
and that better the employee retention strategies, better the service quality. But only 32.5% of
the employees were under good retention strategies. This indicates that majority of employee
at Somtel Telecommunication Company, Borama Office were under poor retention strategies.
This could lower the service quality at Somtel Telecommunication Company, Borama Office.
Employee performance
29
The data in Table 3 was analyzed using simple linear regression to determine
if there was significant relationship between employee retention strategies and service quality
at Somtel Telecommunication Company, Borama Office, and to test the null hypothesis that
employee retention strategies does not affect service quality at Somtel Telecommunication
Company, Borama Office.
H01: Employee retention strategies have no significant effect on service quality at
Somtel Telecommunication Company, Borama Office.
The results summarized in Table 3 were found.
Table 4
Regression of Service Quality on Employee Retention Strategies
Model
B
Constant
4.64
Retention
.451
R
R2
R2 adj.
Std.ϵ
F
t
Sig.
.003
.714
.509
.496
3.62
39.432
6.28
.000
Strategies
Note. F (1, 50) = 4.085; R2 adj. = R2 adjusted.
In Table 4, F is a measure of the overall significance of the simple linear regression
model. F (1, 50) = 4.085, 𝜌 = .000, which led to rejection of the null hypothesis. Employee
retention strategies have significant effect on service quality at Somtel Telecommunication
Company, Borama Office. Service quality of employees under good retention strategies was
higher than the service quality of employees under poor retention strategies. Hence, the study
Employee performance
30
established that employee retention strategies have significant effect on service quality at
Somtel Telecommunication Company, Borama Office.
Further, in Table 4, B (0.451) is the unstandardized simple linear regression
coefficient indicating the weight of service quality and its strength on the simple linear
regression model. From the value of B and the constant term, the simple linear regression
model was developed as:
SQ = 4.64 + 0.451 ERS … Eq- 2;
where SQ = predicted service quality, and ERS is the status of employee retention strategies.
This shows that for a unit change in the status of employee retention strategies, service
quality changes by about 0.451 units.
In Table 4, R is the correlation between service quality and employee retention
strategies. R = .714 indicates that there is a high positive association between service quality
and employee retention strategies. Service quality increases with increasing employee
retention strategies. R2 is the variance in service quality that is explained from employee
retention strategies. R2 adj. = .496 shows that 49.6% of the variance in service quality at
Somtel Telecommunication Company, Borama Office can be explained from the employee
retention strategies The remaining 50.4% are due to other factors. Hence, service quality at
Somtel Telecommunication Company, Borama Office can be improved by up to 49.6% using
good retention strategies, other factors notwithstanding.
4.3.2 Employee Retention Strategies and Creativity of Employees
The first objective of this study was to establish the influence of employee retention
strategies on creativity at Somtel Telecommunication Company, Borama office. Creativity
was operationalized as Innovation, Critical think and Problem solving. Respondents were
asked to react to several statements on the creativity. Creativity was characterized as good,
Employee performance
31
moderate and poor, and compared against the employee retention strategies. The results
obtained are summarized in Table 5.
Table 5
Creativity with employee retention strategies
Employee Retention Strategies
Mean Performance (%)
N
N-Percent
S
Good
22.0000
7
17.5
10.95449
Moderate
198750
16
40
7.21919
Poor
16.8235
17
42.5
7.43501
Total
18.9500
40
100
8.07322
Note. N = Sample; S = Standard Deviation
Table 5 shows the creativity at Somtel Telecommunication Company, Borama Office
against employee retention strategies. It shows that the creativity of employees under good
retention strategies was higher. (M = 220000%, S = 10.95449) than the creativity of
employees under moderate retention strategies (M = 198750%, S = 721919), and the service
quality of employees under poor retention strategies (M = 16.8235%, S = 7.43501). The
overall creativity of employees at Somtel Telecommunication Company, Borama Office was
18.9500% (S = 8.07322). Table 5 suggests that creativity at Somtel Telecommunication
Company, Borama, and Office varies with employee retention strategies and that better the
employee retention strategies, better the creativity. But only 17.5% of the employees were
under good retention strategies. This indicates that majority of employee at Somtel
Employee performance
32
Telecommunication Company, Borama Office were under poor retention strategies. This
could lower the creativity at Somtel Telecommunication Company, Borama Office.
The data in Table 5 was analyzed using simple linear regression to determine if there
was significant relationship between employee retention strategies and creativity at Somtel
Telecommunication Company, Borama Office, and to test the null hypothesis that employee
retention strategies does not affect service creativity
at Somtel Telecommunication
Company, Borama Office.
H02: Employee retention strategies have no significant effect on creativity at Somtel
Telecommunication Company, Borama Office.
Table 6
Regression of Creativity on Employee Retention Strategies
Model
B
Constant
14.218
Retention
.226
R
R2
R2 adj.
Std.ϵ
F
t
Sig.
.000
.248
.061
.037
.173
2.487
1.577
.123
Strategies
Note. F (1, 50) = 4.085; R2 adj. = R2 adjusted.
In Table 6, F is a measure of the overall significance of the simple linear regression
model. F (1, 50) = 4.085, 𝜌 = .123, which led to acceptance of the null hypothesis. Hence, the
study established that employee retention strategies have no significant effect on creativity of
employees at Somtel Telecommunication Company, Borama Office.
Employee performance
33
Further, in Table 5, B (0.226) is the unstandardized simple linear regression
coefficient indicating the weight of creativity and its strength on the simple linear regression
model. From the value of B and the constant term, the simple linear regression model was
developed as
CR = 14.218 + 0.226 ERS … Eq- 3;
where CR = predicted creativity, and ERS is the status of employee retention strategies. This
shows that for a unit change in the status of employee retention strategies, creativity changes
by about 0.226 units.
In Table 6, R is the correlation between creativity and employee retention strategies.
R = .248 indicates that there is a low positive association between creativity and employee
retention strategies. R2 is the variance in creativity that is explained from employee retention
strategies. R2 adj. = .037 shows that only 3.7% of the variance in creativity of employees at
Somtel Telecommunication Company, Borama Office can be explained from the employee
retention strategies The remaining 96.3% are due to other factors. Hence, creativity of
employees at Somtel Telecommunication Company, Borama Office can be improved by up
to only 3.7% using good retention strategies, other factors notwithstanding.
4.3.3 Employee Retention Strategies and Effectiveness of Performance
The first objective of this study was to establish the influence of employee retention
strategies on effectiveness at Somtel Telecommunication Company, Borama office.
Effectiveness was operationalized as Achievement of desired result, completing task on time.
Respondents were asked to react to several statements on the effectiveness. Effectiveness was
characterized as good, moderate and poor, and compared against the employee retention
strategies. The results obtained are summarized in Table 7.
Employee performance
34
Table 7
Effectiveness with employee retention strategies
Employee Retention Strategies
Mean Performance (%)
N
N-Percent
S
Good
22.0909
11
27.5
8.82558
Moderate
14.3750
8
20
4.92624
Poor
19.0476
21
52.5
8.11465
Total
18.9500
40
100
8.07322
Note. N = Sample; S = Standard Deviation
Table 7 shows the creativity at Somtel Telecommunication Company, Borama Office
against employee retention strategies. It shows that the effectiveness of employees under
good retention strategies was higher. (M = 22.0909%, S = 8.82558) than the effectiveness of
employees under moderate retention strategies (M = 14.3750%, S =4.92624), and the
creativity of employees under poor retention strategies (M= 19.0476%, S =8.11465). The
overall effectiveness of employees at Somtel Telecommunication Company, Borama Office
was 18.9500% (S = 8.07322). Table 7 suggests that effectiveness at Somtel
Telecommunication Company, Borama, and Office varies with employee retention strategies
and that better the employee retention strategies, better the effectiveness. But only 27.5% of
the employees were under good retention strategies. This indicates that majority of employee
at Somtel Telecommunication Company, Borama Office were under poor retention strategies.
This could lower the effectiveness of performance at Somtel Telecommunication Company,
Borama Office.
Employee performance
35
The data in Table 7 was analyzed using simple linear regression to determine if there
was significant relationship between employee retention strategies and effectiveness of
performance at Somtel Telecommunication Company, Borama Office, and to test the null
hypothesis that employee retention strategies does not affect effectiveness of employee at
Somtel Telecommunication Company, Borama Office.
H03: Employee retention strategies have no significant effect on effectiveness at
Somtel Telecommunication Company, Borama Office.
Table 8
Regression of Effectiveness on Employee Retention Strategies
Model
B
Constant
13.117
Retention
.110
R
R2
R2 adj.
Std.ϵ
F
t
Sig.
.000
.106
.011
.015
.167
.433
.658
.515
Strategies
Note. F (1, 50) = 4.085; R2 adj. = R2 adjusted
In Table 8, F is a measure of the overall significance of the simple linear regression
model. F (1, 50) = 4.085, 𝜌 = .515, which led to acceptance of the null hypothesis. Hence, the
study established that employee retention strategies have no significant effect on
effectiveness of performance at Somtel Telecommunication Company, Borama Office.
Further, in Table 8, B (0.110) is the unstandardized simple linear regression coefficient
indicating the weight of effectiveness and its strength on the simple linear regression model.
Employee performance
36
From the value of B and the constant term, the simple linear regression model was developed
as
EF = 13.117 + 0.110 ERS … Eq- 4;
where EF = predicted effectiveness, and ERS is the status of employee retention strategies.
This shows that for a unit change in the status of employee retention strategies, effectiveness
changes by about 0.110 units.
In Table 8, R is the correlation between effectiveness and employee retention
strategies. R = .106 indicates that there is a low positive association between effectiveness
and employee retention strategies. R2 is the variance in effectiveness that is explained from
employee retention strategies. R2 adj. = .015 shows that only 1.5 % of the variance in the
effectiveness of performance at Somtel Telecommunication Company, Borama Office can be
explained from the employee retention strategies The remaining 98.5% are due to other
factors. Hence, effectiveness at Somtel Telecommunication Company, Borama Office can be
improved by up to only 1.5% using good retention strategies, other factors notwithstanding.
Employee performance
37
CHAPTER FIVE
SUMMARY OF FINDINGS, DISCUSSION, CONCLUSION AND
RECOMMENDATIONS
5.1
Introduction
This study investigated the influence of employee retention strategies on performance
of employees at Somtel Telecommunication Company Borama Office. Data was collected
from 60 employees of Somtel Telecommunication Company Borama Office, and analyzed as
reported in chapter four. This chapter presents a summary of findings, draws a conclusion
based on the findings and gives recommendations for the improvement of performance of
employees, and recommendations for further research.
5.2
Summary of Findings
The first objective of this study was to determine the influence of employee retention
strategies on service quality at Somtel Telecommunication Company Borama Office. Service
quality was characterized as accuracy, reliability and fitness for use. Most (50%) of
employees have a poor service quality, with an average service quality of 13.3000%, S =
6.067322. Employee retention strategies have significant effect on service quality at Somtel
Telecommunication Company, Borama Office [F (1, 50) = 4.085, p = .000] and account for
49.6% of the variance in service quality, R² adj. = .496, p = .000.
Secondly, the study determined the influence of employee retention strategies on
creativity of employee at Somtel Telecommunication Company, Borama Office. Creativity was
characterized as innovation, critical thinking, and problem solving. Most (42.5%) of employees
of Somtel Telecommunication Company were having poor creativity. The study established that
employee
retention
strategies
have
no
significant
effect
on
creativity
at
Somtel
Employee performance
38
Telecommunication Company Borama Office, [F (1, 50) = 4.085, p = .123], and account for only
3.7% of the variance in creativity of employees, R² adj. = .037, p = .123.
Lastly, the study determined the influence of employee retention strategies on
effectiveness of performance at Somtel Telecommunication Company Borama Office.
Effectiveness of performance was characterized as achievement of desired result, and completing
task on time. Majority (52.5%) of employee at Somtel Telecommunication Company were having
poor effectiveness. The study established that employee retention strategies do not have a
significant influence on effectiveness of employees at Somtel Telecommunication Company
Borama Office. [F (1, 50) = 4.085, p = .515] and account only for 1.5% of the variance in the
performance of employees, R² adj. = .015, p = .515.
The study therefore found that:
i.
Employee retention strategies have significant effect on service quality at Somtel
Telecommunication Company, Borama Office [F (1, 50) = 4.085, p = .000], and
account for 49.6% of the variance in service quality, R² adj. = .496, p = .000.
ii.
Employee retention strategies have no significant effect on creativity of employees at
Somtel Telecommunication Company Borama Office, [F (1, 50) = 4.085, p = .123] and
account for only 3.7% of the variance in creativity of employees, R² adj. = .037, p = .123.
iii.
Employee retention strategies do not have a significant influence on effectiveness of
performance at Somtel Telecommunication Company, Borama Office. [F (1, 50) = 4.085,
p = .515] and accounts only for 1.5% of the variance in performance of employees, R²
adj. = .015, p = .515.
5.3
Discussion
This section discusses the findings of the study as summarized in 5.2. The study
investigated three specific objectives and made three main findings; one on each objective.
Employee performance
39
First, the study found that employee retention strategies have significant effect on
service quality at Somtel Telecommunication Company, Borama Office [F (1, 50) = 4.085, p =
.000]. This indicates that employee retention strategies have significant effect on service
accuracy, reliability and fitness for use. This finding is in line with the findings of a study by
Kanand and Kumari (2013) who investigated employee retention strategies and quality
service in Covenant University in Nigeria and found that employee retention strategies do
affect the quality service of the organization. It also agrees with the findings of a study by
Naresh,
Doland
and
Barr
(2013)
who
studied
employee
turnover
in
leading
telecommunication organization in the State of Karnataka, and found that employee retention
strategies have significant effect on quality service of the company. This finding is also in
agreement with a study by Onyeizugbe (2012) investigated the impact of employee retention
strategies in Brazil telecommunication companies using sample of 264 people comprising
employees and employers. He found that employee retention strategies influence the quality
service of organization.
Secondly, the study found that employee retention strategies have no significant
influence on creativity of employees at Somtel telecommunication company Borama Office
[F (1, 50) = 4.085, p = .123]. This finding disagrees with the findings of John and Hanna
(2015) who investigated the effect of employee retention strategies on creativity at work
place in Midwestern manufacturing company. This study was conducted with sample of 99
employees from the Midwestern manufacturing company. They found there is strong
relationship between employee retention strategies and creativity. It also disagrees with the
findings of another study by Reza and Bagheri (2013) who investigated the effect of
employee retention strategies on creativity in libraries of Kenya. A study used descriptive
cross-sectional survey design to examine three purposively selected libraries, and found that
Employee performance
40
employee retention strategies have a significant effect on the creativity at work place. But
this finding agrees with the findings of a study by Wenjing and Bart (2014) who investigated
the relationship between employee retention strategies and creativity of employees in Korean
Government. They found that employee retention strategies do not affect creativity of
employees at organizations.
Lastly, the study found that Employee retention strategies have no significant
influence on effectiveness of performance at Somtel Telecommunication Company, Borama
Office, [F (1, 50) = 4.085, p = .515]. This finding disagrees with the finding of a study by
Aidah and Nasazi (2012) who studied the effect of employee retention strategies on
effectiveness of performance in the biggest telecommunication companies operating in
Uganda. They found that employee retention strategies have an influence on the effectiveness
of employee performance in the telecommunication companies. It also disagrees with the
findings of another study by Mariyam, Imna and Hassan (2011) who used a sample of 230
employees from 14 retail outlets in Male (The capital of Maldives) selected using convenient
sampling. The researchers found that there is positive relationship between employee
retention strategies and effectiveness in the organization. This finding also disagrees with the
findings of another study by Chan and Lynn (1991) who studied the impact of employee
retention strategies on effectiveness of performance of employee in telecommunication
companies in United Kingdom. They found that employee retention strategies have a positive
effect on effectiveness of performance in the organization.
5.4
Conclusion
This section makes a conclusion of the study in conformity with the findings and the
discussion previously made. The general objective of this study was to ascertain the influence of
employee retention strategies on performance of employee at Somtel Telecommunication
Employee performance
41
Company, Borama Office, Somaliland. The study specifically focused on three objectives: the
influence of employee retention strategies on service quality; the influence of employee retention
strategies on creativity, and the influence of employee retention strategies on effectiveness of
employees at Somtel Telecommunications Company in Borama Office. The study found that
employee retention strategies have a significant influence on service quality, [F (1, 50) = 4.085, p
= .000], R= .714, R² adj. = .496. But employee retention strategies had no significant effect on
creativity, [F (1, 50) = 4.085, p = .123], R= .061, R² adj. = .037, and effectiveness of
performance [F (1, 50) = 4.085, p = .515], R= .011, R² adj. = .015. In light of the discussion
above and in reference to the findings, the study concludes that employee retention strategies
have no significant effect on performance of employees at Somtel Telecommunication Company
in Borama Office. This is because out of the three variables of employee performance, two of
them were not significant with employee retention strategies. Employee retention strategies
have a significant effect only on the service quality at Somtel Telecommunication Company.
5.5
Recommendations
5.5.1
General Recommendations
Based on the findings and conclusion drawn above, this study presents the following
recommendations: first, the study found that most (50%) of the employee at Somtel
Telecommunication Company, Borama Office had poor service quality. The researcher
recommends that the service quality of employees be improved. This can be done by
providing appropriate compensation, bonuses and nonmonetary rewards. Trainings and
development programs should also be organized to enhance the service quality of employees.
Secondly, the study noted that most (42.5%) of the employee at Somtel
Telecommunication Company, Borama Office had poor creativity. The study recommends
Employee performance
42
the company employees to increase their creativity skills by using appropriate critical
thinking and innovation skills to improve their work and get a better results.
Finally, the study found that majority (52.2%) of the employee at Somtel
Telecommunication Company in Borama Office had poor effectiveness. The study
recommends that employees should be controlled and supervised to be punctual and complete
required task on time and maintain achieving organization target and goals.
5.5.2
Recommendation for Further Research
The study was limited to Somtel Telecommunication Company in Borama Office due
to resource constrains. Further, the study only focused on service quality, creativity of
employees and effectiveness of performance despite the wide variety of performance
indicators. The researcher recommends that a study be conducted to include other branches of
Somtel in Somaliland, with more elements of employee retention strategies and performance
of employee. This will help explain why the performance of employee at Somtel had declined
in the last years and increase external validity of the study.
Employee performance
43
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Employee performance
48
APPENDIX A
RESEARCH BUDGET
No.
1.
2.
3.
Item
Stationery
Transportation
Personnel
Description
Unit Cost
Estimated Amount
(USD)
(USD)
Photocopy papers
30
50
Pens
5
Notebooks
5
Envelopes
10
Piloting
30
Data collection
5
Two field
10
15
350
350
40
40
35
assistants for 2
days
4.
Data entry and
One auxiliary
analysis
person for 30
days, and
Submission fee
5.
Contingency
6.
Total cost
Extra costs
490
Employee performance
49
APPENDIX B
WORK PLAN
No.
Phase
Time (Months)
Dates
Sequence
1. 1.
Development of proposal
7
Nov 2019 – May 2020
A
2. 2.
Piloting of instruments
1
June 2020
B
3. 3.
Data collection
1
July 2020
C
4. 4.
Data organization, analysis
2
July – Aug 2020
D
2
July – Aug 2020
E
and interpretation
5. 5.
Typing/Editing/Report
Writing/Submission
Keys: A - E indicate how the research steps to be taken will be carried out where A is the first
step and E is the last
Employee performance
50
APPENDIX C
QUESTIONNAIRE FOR EMPLOYEES
Dear respondent,
My name is Yusra Omer Ali a Master’s student from Amoud University under the School of
Postgraduate Studies and Research, in the business and administration department of project
planning and management. Am conducting a research study on the, “Influence of Employee
Retention on Performance of Employee at Somtel Telecommunication Company”.
Therefore, you are randomly selected to participate on this study which is purely academic.
This exercise will be conducted with the utmost privacy and confidentiality and is intended to
last for approximately 30 minutes.
I appreciate your kind support in advance.
SECTION A
DEMOGRAPHIC DATA
Instructions:
Please choose an option by ticking the most appropriate answer to you.
1. Indicate your Gender?
1) Male
2) Female
2. Age category of the respondent
1) 20- 25years
2) 26 -35 years
3) 36-45years
4) 46-55 years
6) 56 years and above
3. Please indicate your highest education level
a) PhD
Master’s degree
d) Ordinary Diploma
b) PGD
(c) Bachelor’s Degree
e) Professional certification
f) Others Specify………………………………………………………………………
4. Please indicate how long you have worked at JPLG projects local government of Borama
1) 3 years & below
2) 3 - 5 years
3) 6 - 8years
4) 9years and above
Employee performance
51
SECTION B
Employee Retention Strategies
This section provides statements on the employee retention strategies used by Somtel
Compny. For the items below choose the most appropriate statement that best suits your
understanding by ticking in one of the boxes below on a five Likert scale as follows:5) strongly Agree (SA), 4) Agree (A), 3) Undecided (U) 2) Disagree (D), and 1) Strongly
Disagree (SD).
Statements
1. Our organization has a compensation policy.
2.
I always get bonuses when I do extra jobs.
3. I am well paid in my work.
4. I usually receive appropriate benefits when I
accomplish the required tasks.
5. There is an annual ceremony to motivate the
employees based on their performance.
6. I am highly appraised by my manager when do
good job.
7. The employees are promoted based on their
performance.
5
4
3
2
1
(SA)
(A)
(U)
(D)
(SD)
Employee performance
52
SECTION C
Service Quality
This section provides statements on the Influence of employee retention and quality Service
of performance employee. For the items below choose the most appropriate statement that
best suits your understanding by ticking in one of the boxes below on a five Likert scale as
follows:5) strongly Agree (SA), 4) Agree (A), 3) Undecided (U) 2) Disagree (D), and 1) Strongly
Disagree (SD).
Statements
5
4
3
2
1
(SA)
(A)
(U)
(D)
(SD)
8. I always finish the assigned job as best as I can.
9. I usually try to satisfy the customers as
accurately as possible.
10. We normally deliver reliable services to our
customers.
11. We strive to keep our customers accountable
when we do their job.
12. How do you rate your suitability for service delivery?
a. Very suitable
b. Suitable
c. Not suitable
Employee performance
53
SECTION D
Creativity oF Employees
This section is based on the Influence Employee Retention on creativity of Employee
Performance. For the items below choose the most appropriate statement that best suits your
understanding by ticking in one of the boxes below on a five Likert scale as follows:- 5)
strongly Agree (SA), 4) Agree (A), 3) Undecided (U) 2) Disagree (D), and 1) Strongly
Disagree (SD).
Statements
I consider myself to be creative person
I am engaged in creative type work on a regular
basis
Creative idea simply occur to me without even think
about them
I typically wait the flash of inspiration before I
begin working
I have to be in the right mood or feeling to do
creative work
When I get new idea, I get totally absorbed by it
until I have pursued it completely
I feel that new ideas possess me and guide me
through to completion almost automatically
My creativity comes from careful planning and
forethought
5
4
3
2
1
(SA)
(A)
(U)
(D)
(SD)
Employee performance
54
SECTION E
Effectiveness of Performance
This section provides statements on how Employee retention influences Effectiveness of
performance employee of the Somtel Company. For the items below, choose the most
appropriate statement that best suits your understanding by ticking in one of the boxes below
on a five Likert scale as follows:- 5) strongly Agree (SA), 4) Agree (A), 3) Undecided (U)
2) Disagree (D), and 1) Strongly Disagree (SD).
Statements
We have the skill we need to do our jobs effectively
We are strong committed to a shared mission
My team has a strong sense of accomplishment relative
to our work
We focus on big strategic issues as much as on dayto-day activities
We set and meet challenging goals
We make sure our work helps the organization
achieve its goals
5
4
3
2
1
(SA)
(A)
(U)
(D)
(SD)
Employee performance
55
APPENDIX D
Reliability Test
Respondent
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Test 1
Test 2
67
61
65
80
93
76
65
60
54
53
43
40
27
29
34
47
82
89
43
44
65
60
34
31
35
29
35
50
90
82
33
41
72
45
67
69
79
79
87
85
Employee performance
56
APPENDIX E
VALIDITY TEST RESULTS
Items
Judge 1
Judge 2
1.
1
3
2.
3
3
3.
3
3
4.
3
4
5.
3
4
6.
4
3
7.
2
4
8.
3
4
9.
4
3
10.
3
3
11.
3
4
12.
4
3
13.
4
3
14.
3
3
15.
3
4
16.
4
4
17.
4
4
18.
2
3
19.
4
4
20.
4
4
21.
4
3
Employee performance
57
APPENDIX F
TABLES OF SAMPLE SIZE
Sample Size at Confidence = 95% Sample Size at Confidence = 99%
Margin of Error - Percent
Margin of Error – Percent
Population
5.0
3.5
2.5
1.0
5.0
3.5
2.5
1.0
10
10
10
10
10
10
10
10
10
20
19
20
20
20
19
20
20
20
30
28
29
29
30
29
29
30
30
50
44
47
48
50
47
48
49
50
75
63
69
72
74
67
71
73
75
100
80
89
94
99
87
93
96
99
150
108
126
137
148
122
135
142
149
200
132
160
177
196
154
174
186
198
250
152
190
215
244
182
211
229
246
300
169
217
251
291
207
246
270
295
400
196
265
318
384
250
309
348
391
500
217
306
377
475
285
365
421
485
600
234
340
432
565
315
416
490
579
700
248
370
481
653
341
462
554
672
800
260
396
526
739
363
503
615
763
1,000
278
440
606
906
399
575
727
943
1,200
291
474
674
1067
427
636
827
1119
1,500
306
515
759
1297
460
712
959
1376
2,000
322
563
869
1655
498
808
1141
1785
2,500
333
597
952
1984
524
879
1288
2173
3,500
346
641
1068
2565
558
977
1510
2890
5,000
357
678
1176
3288
586
1066
1734
3842
7,500
365
710
1275
4211
610
1147
1960
5165
10,000
370
727
1332
4899
622
1193
2098
6239
25,000
378
760
1448
6939
646
1285
2399
9972
Note. Adopted from Krejcie and Morgan (1970) Tables.
Employee performance
58
APPENDIX G
RESEARCH APPROVAL