GREEN HUMAN RESOURCE MANAGEMENT PRACTICES AND THEIR EFFECT ON EMPLOYEE RETENTION: A STUDY OF ATHI RIVER EXPORT PROCESSING ZONES, KENYA

Abstract

Employee retention is crucial for organizational success, particularly in Kenya’s Export Processing Zones (EPZs), where turnover rates are higher than the acceptable 10% or below. High turnover rates in the EPZs are often associated with poor working conditions that could harm employee well-being. The adoption of green HRM practices presents an opportunity to create a healthier and more sustainable work environment. This study examined the effect of Green Human Resource Management (GHRM) practices on employee retention in the Athi River Export Processing Zone (EPZ). Specifically, it aimed to assess the effect of green performance management, green reward management, green training and development, and green recruitment and selection on employee retention. Using 56 EPZs with 20,000 employees as the point of observation, the study used a descriptive research design. 377 respondents made up the sample size, which was determined using Cochran's formula. The sample was distributed among the departments in the EPZs using stratified random sampling. Data was collected using a structured questionnaire employing a five-point Likert scale, which was administered to employees working within the Athi River Export Processing Zone. To test the reliability of the research tool, a pilot study with 30 participants was carried out. Descriptive statistics in the form of means, percentages, and standard deviation were employed, while correlation and regression analysis were applied for inferential statistics. The results indicated that GHRM practices explained 27.2% of the variation in employee retention. Among the practices, green reward management (β = 0.435, p < 0.001) and green performance management (β = 0.120, p = 0.042) had statistically significant effects on employee retention. However, green recruitment and selection (p > 0.095) and green training and development (p = 0.091) did not show significant effects. The study recommended the integration of green reward practices and performance management practices to improve employee retention in workplaces. For further research, the study recommends the same research in other sectors to provide comparative insights across different industries and geographic locations. The study also recommends longitudinal research to examine the long-term impact of these practices on retention. These findings provide insights for policymakers to strengthen employee retention strategies and offer empirical evidence for future research on green HRM practices.