EMPLOYEE RECRUITMENT AND RETENTION PRACTICES ADOPTED BY BARCLAYS BANK OF KENYA

BY

FAITH GORETTY A. ONG’IYO

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA), SCHOOL OF

BUSINESS, UNIVERSITY OF NAIROBI

NOVEMBER 2013

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DECLARATION

This research project is my original work and has never been submitted for examination to any

other university or college for an award.

Signature ……………………… Date…………………………….

ONG’IYO FAITH GORETTY

D61/70835/2009

This research project has been submitted for examination with my approval as university supervisor

Signature ……………………… Date…………………………….

DR. S. N.M NZUVE

SCHOOL OF BUSINESS

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ACKNOWLEDGEMENT

My gratitude goes to the Almighty God, who through his Grace gave me the insight, strength,

good health and perseverance to complete this study.

My deep felt gratitude goes to my supervisor Dr. S. N.M Nzuve for his invaluable guidance,

suggestions, patience and prompt feedback that contributed to the success of this study.

I would like to pass my sincere gratitude to my friends Isabella Ngoko, Eunice Opiyo and Sarah

Amisi for their moral support and encouragement.

To the staff and the management of Barclays Bank of Kenya Ltd for their acceptance to

participate in the study. God bless you.

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DEDICATION

I dedicate this work to my dear husband Eng. Evans Oluoch Ouma. He is my source of strength

and has been my motivator throughout the entire period of study.

And to my sons Chiwo and Mitch, I encourage you to work very hard in life and to reach the

epitome. This is my blessing to you.

To my mother Mrs. Isdorah Ong’iyo, you instilled in me the need to work hard from a young

age. These are the fruits.

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ABSTRACT

Organizations today are faced with challenges owing to the dynamism and complexities of the

market. It is therefore important that they attract and retain the right employees in order to

survive in the market, and to champion organizational goals. People are the assets on which

competitive advantage is built, whether in the public or private sector, whether in the corporate

world or in the world of education. The one thing that competitor organizations cannot imitate is

people and their skills. The objective of the study was to determine the factors affecting

recruitment and retention of employees in Barclays Bank of Kenya Limited. In trying to achieve

the objectives of the research, the study adopted a case study design where interview questions

were developed and administered the target respondents who were the human resource managers

in charge of recruitment and retention. The study found that there are many factors affecting the

recruitment and retention of employees. The factors are basically the same and related. Chief

among the factors that influence employee recruitment are pay attractiveness, organizations

external work environment, availability of qualified staff, organizations recruitment procedures

and advertisement channels among others. The main factors influencing employee retention are

job satisfaction, organizational commitment to employees, pay, conditions of service, staff

welfare, , gender sensitivity, conflict management system, staff development, advancement

opportunities, flexibility of work arrangement, job stress, employee attachment to the

organization, training opportunity, responsibilities and commitment outside the organization. The

study has made a number of recommendations which bank should implement in order to retain

their staff. There is need to adopt appropriate recruitment policies which ensures that the best

candidate are the ones hired for the right jobs

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TABLE OF CONTENTS Declaration ..............................................................................................................................i

Acknowledgement...................................................................................................................ii

Dedication...............................................................................................................................iii

Abstract .................................................................................................................................iv

CHAPTER ONE: INTRODUCTION

1.1 Background of the study………………………………………………………………………………………….1

1.1.1 Employee Recruitment Practices………………………………………………………………………….....2

1.1.2 Employee Retention Practices….................................................................................3

1.1.3 Barclays Bank of Kenya ……………………………………………………………………………………………4

1.2 Problem Statement ……………………………………………………………………………………….………..5

1.3 Objective of the study………………………………………………………………………………………….…..7

1.4 Value of the study……………………………………………………………………………………….…………...7

CHAPTER TWO: LITERATURE REVIEW

2.1 Recruitment practices……………………………………..………………………………….……….............8

2.2 Employee Retention practices………………………………………………………………………..……....13

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction..............................................................................................................18

3.2 Research design……………………………………………………………………………………………………….18

3.3 Data collection …………..……………………………………………………………………………………………18

3.4 Data Analysis……………………………………………………………………………………………………........18

CHAPTER FOUR: DATA ANALYSIS , RESULTS & DISCUSSION

4.1 Introduction ……………………………………………………………………………………………………….…..20

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4.2 Experience & Education qualification of the respondents ……………………………..………20

4.3 Recruitment planning ……………………………………………………………………………………………..20

4.3.1 Recruitment policy ………………………………………………………………………………………………...21

4.3.2 Recruitment procedures adopted ……………………………………………………………………….….21

4.4 Retention practices…………………………………………………………………….…………………………..23

CHAPTER FIVE: SUMMARY, CONCLUSION & RECOMMENDATION

5.0 Introduction ………………………………………………………………………………………………….……..26

5.1 Summary ……………………………………………………………………………………………………………...26

5.2 Conclusion ………………………………………………………………………………………………………….…27

5.3 Recommendations ………………………………………………………………………………………….…..…27

5.4 Limitations ………………………………………………………………………………………………………….…27

5.5 Suggestions for further study ……………………………………………………………..………………...27

References ………………………………………………………………………………………………….…………………..…28

Appendix 1: Letter of Introduction………………………………………………………………………………........32

Appendix 2: Questionnaire ……………………………………………………………………………………….………..33

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CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Human resource is the lifeblood of an organization, procurement of human resource in an

organization is therefore an intricate affair which not only consumes the organizations time but

also financial resources that would otherwise be used in other alternative economically viable

ventures. Human resourcing is basically concerned with an organization obtaining and retaining

the human capital it needs and employs them productively. Acquisition and maintenance of

competent human resource is therefore a key part of human resource management. Armstrong

(2004) emphasizes the need for human resource maintenance that matches or integrates the

organizations business strategies and resourcing strategies thereby enhancing the organization to

achieve sustainable competitive advantage.

The integration of business and staff maintenance strategies is based on the understanding of the

direction in which the organization is going and the resulting human resource needs in relation to

the projected activity levels. The business strategies and the staff maintenance strategies must be

unified into an appropriate structure in order to achieve corporate success by instituting

mechanisms aimed at maintaining the competent staff. Jones and Wright (1992) observed that

after successful employee recruitment and selection procedure an organization should enhance

retention of competent staff while at the same time encouraging the ineffective ones to leave the

firm. The mechanisms that must be put in place to retain and maintain competent staff includes

establishing a sound compensation policies , promotions, renewal of contracts and providing

opportunities for career development Since the significance of maintenance of competent staff

helps the organization operationalize its corporate business goals and also enhances the

attainment of corporate success hence is fundamental.

According to Spector (2000), competitive employee recruitment practices are important in

securing an effective workforce. In other words, the ideal employee recruitment practices

facilitate finding the right person for the job. These practices have implications for business

performance, image with customers and industry, staffing levels and profitability. Recruiting and

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hiring an employee is only a first step. Building awareness of the importance of employee

retention is essential. Taylor and Collins (2000) cite that the cost associated with employee

turnover can include lost customers and business as well as damaged morale. In addition, there

are costs incurred in screening, verifying credentials and references, interviewing, hiring and

training a new employee. The direct and indirect costs associated with employee turnover can

range between 70 and 200 percent of salary (Hailey et al, 2005). As such, employee retention is

of tremendous essence.

Once the right staff persons have been recruited, retention practices provide the tools necessary

to support staff. A strategic approach to employee retention may include adopting effective

methods of engagement, safe and healthy workplaces and creating flexible work arrangement

(Mendonsa, 1998). Retention practices help create an inclusive and diverse workforce where

barriers are reduced and individuals can participate in the workplace. Today, employers have to

meet the challenges of attracting the right employee for the job while creating a positive work

environment to keep them. According to Mendonsa (1998), the employee retention strategy

initiatives are designed to assist employers in retaining their current workforce by supporting in

areas that encourage the use of best practices.

1.1.1 Employee Recruitment Practices

Employee recruitment forms a major part of an organization’s overall resourcing strategies,

which identify and secure people needed for the organization to survive and succeed in the short

and medium term. According to Edwin Flipo, Recruitment is the process of searching the

candidates for employment and stimulating them to apply for the jobs in the organization.

Recruitment practices are defined by Zottoli and Wanous (2000) as the process of generating

applications or applicants for specific positions to be filled up in the organizations. Employee

recruitment practices refer to the process of attracting, screening and selecting qualified people

for a position within an organization. Organizations use these processes to increase the likelihood

of hiring individuals who possess the right skills and abilities to be successful at their jobs

through the years; it has been observed that, employee recruitment practices are intrinsically

linked to retention. Nankervis (2002) argues that, employers who employ recruitment practices

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create positive organizational reputations and improve their ability to attract workers through

incentives and benefits that increase retention success.

The effort to retain the best personnel begins with recruiting. Attracting and retaining the best

people is one and the same thing. Both require creating and maihntaining a positive reputation,

internally as well as externally (Landau, 1994). Employers must be honest with the recruits about

the beliefs, expectations, organizational culture, demands, and opportunities within the

organization. By representing the organization realistically, a department will attract those who

will be content working within the culture (Marx, 1995). Denton (1992, p.47) follows this up by

stating that “the better the match between recruits and the organization the more likely you are

you are to retain them.’ Lynn (1997) believes that you must take time during the hiring process

make wise decisions. The employer must be candid about the working conditions,

responsibilities, opportunities and other details to reduce the chances of making hiring mistakes.

Taylor and Cosenza (1997) strengthen this though by noting that it is imperative that companies

give prospective employees a true picture of the organization, if they hope to match the

personality type with the climate and culture of the organization. There are two fundamental

recruitment practices, internal and external recruitment. Internal recruitment seeks to fill

positions from among the rank of those currently employed. External recruitment is the process

of ensuring a suitable supply of successors for current and future senior or key jobs.

1.1.2 Employee Retention Practices

Employee retention is defined by Denton (1992) as a systematic effort by employers to create

and foster an environment that encourages current employees to remain with the organization.

Retention strategies strengthen the ability of business to attract and retain their workforce.

Approaches to employee retention comprise: communication, formulation of a recruitment

model, using a competence based recruitment procedure, making recruits understand their role,

and using a realistic job preview. Carney (1998) believes that the key to employee retention is

quite simple: communicate, communicate, and communicate. Communication with employees

must begin early on in the relationship. During recruitment, coming up with a recruitment model

may be an option to the human resource department in conducting employee retention oriented

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employee recruitment (stone, 2002). Solutions of this type will deliver a reduction in the cost per

hire and develop a multi channeled recruitment model. This will provide wider access to talent

by attracting candidates that are retainable.

According to Klein (2001) to ensure high retention, recruitment practices should be based on a

candidate’s knowledge, skills and abilities relevant to those specifically required for the duties of

the position. Such practices should be free from discrimination (adhering to legislation) and

patronage (such as employing friends). An effective recruitment helps new workers understand

their role and where they fit within the organization. It also equips them with the tools they need

to perform their work role (Carney, 1998). A comprehensive recruitment process can benefit

workers performance and retention.

1. 1.3 Barclays Bank of Kenya Ltd

Barclays Bank PLC is one of the world’s largest global financial services provider, it has 300

years of history and expertise in banking. Barclays Africa is the leading bank in Africa with

businesses in several countries across Africa and also business in several other countries in

Africa where it has collaborative arrangements with other banks.

Barclays Bank is the leading bank in Kenya having started operating in the country over 90

years. The bank was listed in the NSE in 1986 and currently has over 6000shareholders.

Financial strength coupled with extensive local and international resources have positioned

Barclays Bank of Kenya as a foremost provider of financial services. Barclays Bank is currently

the largest business unit in the Barclays family in terms of contribution to profit and size of

operations. The Bank has established an extensive network of over 119 outlets with 231 ATMs

spread across the country. (www.barclays.com)

Barclays Bank is a multinational bank incorporated in the United Kingdom and has grown to be

the dominant banking institution in Kenya, it has its network spanning all over Kenya. The bank

has been able to tackle competitive challenges effectively for it to be and remain competitive

(Mwarey, 2008). Barclays Bank is one of the key players in Kenya’s banking industry. The

deregulation of Kenyan banking industry has increased levels of competition; this increase in

competition has made a demand on BBK. The bank has developed a range of products i.e.

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different types of saving and current accounts fit for high and low income earners. The bank also

offers card and loan facilities e.g. Barclay card, Barclay Loan and even Scheme Loans (Mutugi,

2006). Barclays Bank also offers customer facing and support functions. Customer facing

functions include retail banking, corporate banking and merchant banking while support function

include service deliver Human Resource risk management finance, treasury, communication and

marketing. Barclays Bank contributes to the development of the banking industry in Kenya.

1.2 Problem statement

In today rapidly changing business environment, a well defined recruitment and retention

practices are necessary for organizations to respond to its human resource requirements in time,

it is therefore important to have a clear and concise recruitment and retention policies and

practices in place, which can be executed effectively to recruit and retain the best talent pool for

the selection of the right candidate at the right place quickly. Creating suitable recruitment and

retention practices is the first step in the efficient hiring process. A clear and concise recruitment

and retention practices help ensure a sound recruitment process (Martin and Bartol, 1998).

Within some organizations, the human resource department manage all hiring process. In other

companies human resource directs hiring procedures but hiring managers or committees perform

recruitment tasks. Inevitably the lack of a systematic technique for employee recruitment results

in inappropriate choices for respective jobs hence the misdirection of skill and talent. This failure

translates to a loss to both the employer on one end in the form of mediocre worker productivity

as well as the employees whose aptitudes are underutilized hence wasted talent capacity (Cole,

1997).

Human resource managers need to ensure that recruitment and retention practices that are

adapted are coherent and consistent with their firms’ business strategy and with other associated

functions of human resources such as planning, training and development, pay and benefits and

performance management (Mugao, 2004). Hsu et al (2000) in their studies state that the company

size and ownership pattern among other variables have some influences upon human resource

management practices.

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The bank is competing for the same customers in the already saturated market, the need to

therefore gain a competitive advantage over each other and having the right employees for the

right job is critical for the organizations success. Barclays bank has in the past lost many of its

employees to competition and layoffs. It lost 200 workers 2years ago and another 100 this year.

The hiring of a new employee is a very important function, the bank is finally beginning to

realize that the employees are their most important assets; therefore development of appropriate

recruiting practices can prevent the costly error of hiring the wrong person for a particular

position. Hiring the wrong person can be costly in terms of advertising, interviewing, training,

and administrative expenses. Then there is the time lost in the selection process, disruption in the

department due to the position needing to be filled, and the negative effects on productivity and

morale when a new hire performs a job unsuccessfully (Hall et al, 1986). According to Dessler,

1991, recruitment and retention, as a human resource management function, is one of the

activities that impacts most critically on the performance of an organization.

Research undertaken on recruitment and retention practices include, Sagwe (2009) on Human

Resource procurement and retention practices used by commercial banks in Kenya, Nyanjui

(2009) who did a survey of employee recruitment and selection practices of United Nations

agencies operating in Gigiri, Maranga (2011), who in her study in employee recruitment and

retention practices among the mobile networks operating in Kenya concluded that effective

recruitment and selection practices enhances employees productivity. However, this researcher

is not aware that there has been a study that has focused on recruitment and retention

practices in Barclays Bank in Kenya. This research fits the current context in this field of study,

since current researches do not seem to specifically focus on recruitment and retention practice in

Barclays Bank of Kenya Ltd.

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1.3 Objective of the study

To determine the recruitment and retention strategies adopted by Barclays Bank of Kenya Ltd.

1.4 Value of the study

This study will be important to various stakeholders especially the Human Resource

practitioners, the banking industry, other companies, and researchers and students of human

resource as discussed below.

The human resource practioner will gain an understanding of how critical managing the

employee turnover is to the organizations and therefore recommend strategies to fast track the

development of human capital as a source of competitive advantage for organizations.

The management in the banking industry will also find the results of this study useful in terms of

enlightening them on the industry practice as regards turn over management. The

recommendations given shall help the managers in increasing their investment in attracting and

retaining the best talent in their banks.

Other companies will also find this study a useful resource by pointing out the importance of

turnover in their organizations. The information gathered will provide a basis of developing a

policy framework on recruitment and retention practices.

Lastly, the researchers as well as students of human resource management will find this study a

useful guide in carrying out more research on this area and more discussions on the importance

of turnover

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CHAPTER TWO: LITERATURE REVIEW

2.1 Recruitment Practices

Employee recruitment forms a major part of an organization’s overall resourcing strategies,

which identify and secure people needed for the organization to survive and succeed in the short

to medium term. According to Edwin Flippo: Recruitment is the process of searching for the

candidates for employment and stimulating them to apply for jobs in the organization.

Recruitment practices are defined by Zottoli and Wanous (2000) as the process of generating

applications or applicants for specific positions to be filled up in the organizations. Recruitment

is the activity that links the employers and the job seekers. In other words, it is a process of

searching for and obtaining for jobs so that the right people in right number can be selected.

Kretovics and Cambridge (1998) indicate that the policies and detail plans and the procedures

and practices for recruitment should be devised and put in place by every organization. These are

necessary to ensure that recruitment practices are systematic, consistent and responsive to

internal needs. Plans typically contain references to quantity, quality, time and cost as well as

identifying those responsible for achieving the required results. Recruitment practices should be

flexible enough to permit human resource staff, in particular to respond flexibly to demands

made on them both by the recruiting departments and potential candidates.

According to Hsu and Leat (2000), planning for present and future staff, job analysis and

preparation of job description and job specification were all more important than recruitment.

Their study further revealed that recruitment is the only process of hiring that varied with firm

size where large firm considered recruitment more important than middle and medium sized

firms. From their findings, small firms had a mean of 3.62, medium firms 3.67 and large firms

4.72. The recruitment process is viewed as a process of attracting sufficient and suitable

employees to apply for vacancies in the organization. The principle purpose of recruitment

activities is to identify the most suitable applicants and persuade them to accept a position in the

organization. It also serves to meet legal and social obligations regarding the demographic

compositions of its workforce. Finally it helps increase the success rate of the selection process

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by reducing the number of applicants who are poorly qualified or have wrong skills. (Gatewood,

field and Barrack, 1987).

When a firm decides to recruit they must be able to reach the desired pool of

applications from which they make their selection from . According to Breaugh and Starke

(2000), the firms can reach these desired applicants through both internal and external

sources. When a vacancy occurs, the normal practice , in many firms is to carry out a search

within the company to identify possible candidates before turning to the outside sources.

individuals may be considered for promotions into positions for lateral transfer and in some

rare cases demotion .Recruitment from within is the primary method of obtaining candidates

at the management level . Some survey indicates that 90% of management positions are filled

internally (Dessler, 1991). Internally the job openings could be known to employees either

through posting or using talent search procedure . Job posting provides an internal

candidate pool of those who vie for the advertised position . Posting involves placing an

announcement of the vacancy on the bulletin board , magazines or via memorandums to the

department ( Ryan and Ployhart,2000).

The enterprise could also make use of skills data bank as the internal source of

recruitment. The employees will often update the employer of newly acquired skills and

knowledge and the employee files update in case of job openings employer will use skills

bank of present employees to source for recruits. Employees morale and performance is

enhanced when job opening is filled from within , also having been in the company the

candidate is more committed to the goals and vision of the firm. And another advantage

is that there is more accuracy in accessing skills and less orientation is needed. The

shortfalls of job posting is that many well qualified individuals may fail to volunteer for

consideration because they fear reprisal on the part of superiors and those not qualified

for the job may get discounted leading to low morale ( Kretovics and Cambridge 1998).

According the Miner and Crane(1995) , talent search is usually used when a company

anticipate a number of future vacancies at the highly skilled and lower management level

and wished to recruit candidates for promotions from within the firm. The search is widely

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advertised and the employees are asked to notify the human resource officer if they wish

to be considered for various training programs that will qualify them for promotions.

Those who indicate interest are administered and an extensive battery of psychological test

and evaluated in various other ways .The people finally selected are given appropriate

training and are placed in a reserve talent pool while continuing in their regular jobs until

selected from promotion . A variance of this practice involves the use of a short battery of

psychological test that is given to all lower level employees . Candidate for the more

refined screening are then identified on the basis of test scores rather through a competitive

process .

When a firm opts to reach qualified applications outside the firm they could use any one

or more of the following sources to reach the desired application; college recruitment ,

campus and college graduates are a prime source of managerial , professional and sale

personnel. Campus recruiting is an extensive operation. Graduates at both the bachelors and

masters levels in a variety of disciplines are sought by the company recruiters. Almost all

colleges have at least one placement office to coordinate the visit of company

representatives and arranging interviews with the employer( Dessler, 1991). Few companies

are associated with this approach one is that recruitment is conducted exclusively by the

larger firm while small companies fill their limited needs in other ways , the result is that

many individuals who might otherwise prefer a smaller firm are attracted to the larger one

simply have no opportunity for exposure to small firms in the campus placement office .

With more experience in the business world they tend to gravitate to smaller companies

thus organizations experiences very high turnover rates . Those to be hired can become

very disillusioned with their initial employer . A second issue is that even those who accept

the offer often back out before arriving to start work , in such case recruitment costs are

totally lost. The mode is also time consuming from the recruiters perspective ( Wright ,

McMahan and Williams 1994). Employee referrals and walk inns is also a source of

candidates with announcement of job openings and request being posted on the

organization bulletin board . Employees can then inform friends and relatives and tell them

to apply .Referrals are a good source of candidate and often result into high quality of

employees . The success of referrals depends on the morale of the employee. Employers may

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offer the employees bonuses and prices for employees who are hired and stay with the

company for a specified period. Job applicants will also walk in and submit their resume to

organization in case of job opening they could be called upon .( Miner, Crane 1995).

Another source of external recruitment is employment agencies. Agencies are commercial

enterprises for supplying employers with candidates for jobs they are of two types ;office

staff employment agencies which mainly deals with clerical ,typing and office machine

operator vacancies . The employer informs the agency of the vacancy and the agent

submits any suitable candidate from on its register . when a candidate is engaged the

employer pays a fee to the agency part of which is refunded if an employee leaves within a

specified time . The other type is selection agencies for senior staff which usually undertakes

the complete recruitment process and the first stages of selection for managerial and

professional vacancies . The agency analyzes the job, prepares job and personal specifications

advertizes , sends out application forms and interviews the selected candidates sometimes

selecting them also .The employer is then presented with short listed candidates to make the

final choice this however and expensive mode because the employer pays a substantial fee

whether or not the right candidate is found . Agencies are also of disadvantage in that in

many cases it is impossible for an outside body to understand what kind of person will fit in

with the current management of the company and it is also very difficult for the agency to

follow and validate its recommendation( Graham , Bennet 1998).

Advertisement are another popular method of recruitment of external candidates two things

to consider when using advertisement as a source of candidates are the media to use and

the construction of the advert ( Singh and Finn 2003). The media will determine the cadre of

candidate one will want to reach. For example to clerical jobs low level jobs and

administrative jobs the local newspaper will best fit. The Local newspaper is readily

available to locals who could be potential candidates . For specialized jobs trade and

professionals journals and magazines will be most appropriate to use .When needing to

recruit large numbers for long period an entrepreneur will could consider using outdoor

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advertising . This includes the use of road side billboard posters on street board and buses. Point

of purchases as a form of media is very useful to reach large number of candidates

involves using , poster , banners , brochures and placement offices , radio and telephone

adverts is not commonly but cannot be absolutely ruled out as ineffective .Generally

advertisement should aim at procuring a small number of well qualified candidates as

quickly and as cheaply as possible (Graham and Bennet 1998).

According to Graham and Bennet (1998) , very senior manager are sometimes recruited by

a process search or head hunting . Its advocates , believe that the best candidate are not

those who reply to adverts or look for new jobs in other ways but those who are

successful in their present jobs and not thinking of moving elsewhere . On receipt of a

commission from a client the head hunter will search for potential candidates in

competing businesses , In membership lists of professional and through confidential head

hunting networks . Selected individuals are then approached discreetly and following a

discussion regarding the job and its remunerations one or two of them are introduced to the

clients firm . Advantages are head hunting are that the head hunters posses expert knowledge

of the salary levels and fringe benefits necessary to attract good caliber candidates , also if

targeted candidates does not want the job he or she may suggest somebody suitable and

who may be interested in the job. On the other hand head hunting is highly disruptive on

successful business who stand to lose expensively trained senior manager and an unsuitable

candidate might bribe the head hunter a person for a vacant job.

The other form of recruitment is through job fairs which aims to bring those interested in

finding a job into those companies searching for applicants . job fair are open forums at

which employer can exhibit their companies have to offer so that job seekers can make

informed choices, they are considered one of the most effective ways for the job seekers to

land jobs . At the job fair employers have a large pool of candidates on which to draw ,

while job seekers have the opportunity to shop around dozens sometimes hundreds of

employers all in one place . Notwithstanding the fact that the fair is more relaxed than at

the interview , the employer are still on the lookout for qualified potential employees who

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have interest dedication and initiative ( Dessler ,1991). Singh and Finn (2003) propose that

advertising on the internet should supplement conventional recruitment practices.

Hsu and Leat ( 2000) agree with culturally relativist argument that recruitment practices are

culturally sensitive across national boundaries , recruitment methods also vary significantly

according to the nature of business and the size of the firm . Larger firms use transfers job

rotation and employee referrals more frequently whereas smaller firms use direct

application technique .

2.2 Employee Retention Practices.

Orient new employees properly and give them the support they need. Be sure you give new

employees helpful tips for dealing with job realities. (Hackett, 1996) This can be accomplished

effectively in an employee orientation program. It’s also a good idea to place new employees in

work groups with positive attitudes. And make sure that new employees receive the support they

need from their supervisor, especially during the first three months on the job. Once employed,

new recruits should have a good induction and socialization experience. This involves meeting

with other employees, understanding the structure of the company, what the different employees

are responsible for, how they are expected to interact with employees in other departments, who

to go to for help, how to use the office IT and telephone systems. During this period employees

will also learn how to socially adapt to their new workplace (Kim et al 2005). They will need to

understand the social norms of acceptable behavior and the unwritten rules for interaction.

Without this knowledge they may make social mistakes that will affect their smooth

introduction.

Following an effective induction employees then form a psychological contract with the

company to deliver what is required. The new employees then identify with the new company

and build productive relationships with their management, peer group and subordinates.

According to Caldwell (2009), author of “New Employee Orientation,” “most new employees

arrive for the first day of work full of enthusiasm and excitement. This initial interest can either

be put to positive use, or destroyed, depending on how it is nurtured.”If we think about it, when

our new employees succeed, our organizations succeed. Jones and Wright (1992) observe that it

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makes pretty good sense that the first step on the road to everyone’s success is a thorough, well-

planned orientation program. Such a program can reduce turnover and save a company thousands

of dollars. No matter the size of the organization, it should not leave new employee orientation to

chance.

Training programs and Career Development should be effective. Nothing will make a new

employee leave faster than a sense of failure. If your training programs don’t help employees

meet job expectations, (Milman and Ricci, 2004) most people will look for greener pastures that

foster employee development and success. Take some time and learn how "accelerated learning"

techniques can help you improve your training programs and speed up the learning process for

your employees. Spector (2002) emphasizes the need to provide plenty of training opportunities

to keep employees interested and in line with professional development standards in the market.

Allow for multiple roles or allocate different tasks to encourage variety and motivation. Set goals

for employees or involve them by sitting down with them and asking them about their future

aspirations within the organization.

According to Huselid (1995) and Walsh and Taylor (2007), an organization needs to base

promotions on your employee’s performance and cultivate a perception of fairness in career

progression. If there are ample opportunities for growth and career progression in your

organization and you have demonstrated to employees that they have long term prospective, then

your employees will be more likely to stay on. One of the leading causes of employee turnover is

poor training—or not even offering an employee training program at all. A proven way to

counteract the threat of attrition in your business is to provide targeted training that focuses on

skill development. It’s also important to offer training on an ongoing basis. Failing to follow-up

will put your business at risk of falling into the same age-old pitfall that costs your company big

when it comes to employee turnover.

An employee training program is only as effective as the time and investment you put into it.

Although setup and implementation will have an upfront cost, when you work with a

professional business coach you can ensure that the training program is built for success, offering

your employees the training they desire to improve productivity and performance. To get the

15

most out of your employee training program, your organization must be committed to continual

learning. Don’t just schedule times for business coaching sessions—schedule times for ongoing

education, follow-up, and assessments on an individual basis. Meet with employees after

coaching sessions to gather feedback so you can continue to improve your training, and ensure

you’re offering exactly what employees need to excel at their jobs and be motivated to stay with

your company.

Management at all levels needs to support your employee training program and organizational

learning efforts. Remember that if leaders only financially support it, the results can be less than

ideal. Senior management should actively participate in training programs, reinforcing their

importance to both individual and organizational success, encouraging company-wide

participation, and even allocating the resources necessary to further employee training outside of

the office (Huselid, 1995). Companies often forget to align their employee training program with

their core values, vision, and objectives. For employees to grow within an organization—and

want to stick around—they need to have a clear picture of what they are expected to achieve.

Training should be used to emphasize and clarify company objectives so that all employees are

working toward the same end result. Consider providing access to transcripts, online learning

materials, and other essential resources that can expand employees’ roles in the company and

encourage them to take their training to the next level. Keep plenty of resources available and

make sure employees know you have an open door policy—always ready and willing to provide

the extra training and support they need (Hailey et al, 2005).

The research study by Delery and Doty (1996) found that the rewards of employee training

programs are too numerous to count, but only when they’re conducted properly. If they’re not

well thought-out and appropriately executed, they can quickly go off the rails and cause

employees to question whether they’re working for the right organization. That’s why many

companies rely on reputable business coaching companies to lead training sessions and ensure

feedback is communicated and understood. Consider business coaching as a catalyst for

company-wide advancement, and use it as a guide for developing long-term goals, setting

expectations, and continuous improvement. Implementing an employee training program is a

sure-fire way to reduce employee turnover and boost employee satisfaction. And, as we know,

16

when you retain the best employees, you are able to compete at a much higher level in the

marketplace.

Evaluate employees consistently and fairly. Employees who feel mistreated by management are

more likely to pack their bags. Klein (2001) notes that to promote fair treatment of all

employees, use a structured performance management program for evaluating employees in

relevant areas in a consistent manner. In particular, be sure to communicate regularly to your

successful employees (i.e., the people you don’t want to leave) that you value their talents and

contributions to the organization.

According to Becker and Huselid (1999), Managers often overlook how important a positive

work environment is for staffers, and how far meaningful recognition and praise from managers

can go to achieve that. Walsh and Taylor (2007) notes that awards, recognition and praise might

just be the single most cost-effective way to maintain a happy, productive work force. Simple

emails of praise at the completion of a project, monthly memos outlining achievements of your

team to the wider division, and peer-recognition programs are all ways to inject some positive

feedback into a workforce. Also, consider reporting accomplishments up the chain. A thank you

note to the employee is good. Copying higher-ups makes that note even more effective. In

today’s ultra-competitive business environment the demand for qualified talent is greater than

ever. As the workplace continues to change, it becomes apparent that successful organizations

are those that can attract, retain, develop, and lead a diverse workforce.

A major driving force behind retaining good employees is maintaining high morale in the

workplace Choe et al (2006). Yes, it is important to have strong management and leadership in

any organization. Too often, front line managers do not have a formally defined process which

supports their company’s performance management strategy Delery and Doty (1996). When this

process is missing or fragmented, companies place themselves at risk: conflicting expectations

regarding roles and goals, lack of standardized methods and unclear communication can create

significant ramifications. Also, the company image, relationships between the managers and

employees, as well as the quality of work is impacted. This can lead to a decrease in employee

17

morale and job satisfaction, which ultimately impacts the long-term growth and success of the

organization.

Cho et al (2006) investigated the relationship between the use of human management practices

and organizational performance. It found that companies providing incentive plans to employees

are more likely to experience lower turnover rates among non managerial employees. The

authors theorize that a firm would further reduce its turnover rate if it applies reward systems in

the form of incentive plans to more employees across the organization. Setting the right

compensation and benefits is important too. Work with human resources to get current data on

industry pay packages, and get creative when necessary with benefits, flexible work schedules

and bonus structures. – Review compensation and benefits packages at least annually. Pay

attention to trends in the marketplace and have HR update you. A blanket policy on shaving

salaries and benefits might help save money in the short term, but it may create permanent,

harmful issues with recruiting and retention Miner and Crane (1995)

18

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter will identify the research design, define the population, identify the data collection

instrument as well as procedures for collection and analysis of the data. Sunders, Lewis and

Thornhill (2007) points out that the research questions informs the choice of research strategy,

the choices of data collection techniques and analysis procedures, and the time horizon over

which to undertake the research project

3.2 Research Design

The research design was a case study. Case study refers to the collection and presentation of

detailed information about a particular participant or small group, frequently including the

accounts of subjects themselves .According to Cooper and Schidler (2006) research design is the

blue print for the collection measurement and analysis of data and aids the researcher in the

allocation of limited resources by posing crucial choices in methodology. Sunders et al (2007)

defines it as the general plan of how to go about answering the research questions.

3.3 Data collection

The researcher collected primary data. An interview guide is a set of questions or issues to be

raised in the course of an interview. Primary data will be obtained from the respondents through

designed interview guides. The interview guide will have sections that will profile the respondent

and main questions relating to the research. The respondents to be interviewed will be the human

source managers in charge of recruitment and retention of staff in the bank.

3.4 Data Analysis

According to Yin (1994), data analysis consists of examining, categorizing, tabulating or

otherwise recombining the evidence to address the initial propositions of a study. To Jorgensen

(1989), the main aim of this process is to assemble or reconstruct data in a meaningful or

19

comprehensible fashion. The data obtained from the interview guide will be analyzed using

content analysis. It is appropriate because of its indepthness.

20

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSIO N

4.1 Introduction This chapter describes data findings from the field, its analysis and interpretations thereof. The

study was to establish the recruitment and retention practices that are common in Barclays Bank

of Kenya. Data was collected from the target respondents who were the ten human resource

managers charged with responsibility of recruitment and retention practices and analyzed in line

with the objective of study. The data was collected using an interview guide with open ended

questions allowing for further probing during the interview. All the ten human resource

managers were interviewed leading to a 100% response rate.

4.2 Experience and Educational Qualification of the Respondents

The study sought to find out the year of experience the interviewees have had in the industry.

Educational levels were also to be established, this was to act as a guide in establishing whether

the target respondents were able to tackle recruitment and retention practices related questions.

As from the study, the respondents had been in the organization for a long duration, three of the

respondents had been with organization for more than fifteen years and five have been with their

employer for more than ten years and two were below ten years. All the respondents were

university graduates, most having post graduates. This the level of education expected for top

level managers in an organization to enable them take up decisional responsibilities with regard

to recruitment and retention decisions of an organization. This implied that they had enough

experience and knowledge of the organization to enable them respond effectively to the

questions regarding this study.

4.3 Recruitment Planning

Barclays Bank has a well outlined recruitment plan which is largely issued to human Resource

strategic plan. The HR strategic plan is also in tandem with the corporate strategy. The

recruitment plan is however quite flexible based on several factors that occur in the external

environment. The plan is based on employee attrition and succession planning. Currently,

recruitment exercises are conducted as positions fall vacant. In this regard the available

21

vacancies are largely filled internally unless particular specialized skills attributes are required.

The banks recruitment plan is therefore externally flexible and is meant to take shape based on

both the corporate strategy and the human resource strategic plan which provide a blue print for

the organization.

4.3.1 Recruitment policy

Barclays bank being a global player has a standardized policy framework that outlines salient

areas which must be considered in line with the guidelines. The people screening global

standards must be adhered to by all concerned in the markets in which Barclays operate. The

document is received annually based on the inevitable changes in the global arena. The policy

embraces equality and diversity and the organization is committed to giving equal opportunities

and respecting the diverse nature and backgrounds of potential candidates.

According to Barclays Plc group Chief executive, John Varley, ‘Diversity touches upon

everything we do as a business, form shareholder value, employee wellbeing, customer

satisfaction and loyalty, to our contribution to and reputation in the communities we serve’.

Equality and diversity therefore is a critical facet of the Barclays Bank of Kenya recruitment

policy and currently the ratio of male to female employees is six to four. The same also applied

at management levels. The composition of the workforce significantly indicates the

operationalisation of this policy. It is apparent that Barclays Bank of Kenya has a well outlined

recruitment policy which is drawn from the global standards stipulated by the group.

4.3.2 Recruitment Practices Adopted.

Human resource Department has a pertinent role of ensuring that the best candidates are attracted

so as to develop and sustain a high performance organization through its people, policies and

practices. In this regard the recruitment strategies at Barclays Bank of Kenya are geared towards

promoting a high performance organizational culture which is correlated to the banks vision thus

the bank has five guiding principles which include ; customer focus, best people, pioneering,

22

trusted and winning together which are meant to promote unity of purpose among the over three

thousand employees.

Internal recruitment is mainly through an internal job advertisement (I.J.A) whereby all job

vacancies and their respective requirements are posted as and when they occur. Prospective

applicants therefore are always on the look for arising vacancies. This is intended to enhance

employee growth and loyalty. It provides a spectrum of hope for the employees and encourages

motivation with respect to career progression. International vacancies within the Barclays group

are also posted within the group’s intranet and all employees who are qualified are eligible to

apply online irrespective of their countries of origin. This has widened the scope for

opportunities for the employees giving them a chance to seek for jobs outside their countries of

origin. Applicants can also submit their resumes to a joint pool which is centrally managed and

candidates can benefit from future vacancies or related opportunities. This has been an exciting

strategy especially to the young people commonly referred to as the y generation who are

motivated to undertake challenging tasks.

The bank has also embraced career growth through talent search. Within the HR function there is

a talent management department which is charged with the responsibility of ensuring that talents

are nurtured within the organization. Through this programme highly talented employees are

identified and assigned highly challenging roles. Related to this is the reward management

scheme which rewards high performers. In some instances exceptional performance is rewarded

among the sales people and lead generators. Some departments such as I.T, finance and treasury

with specialized skills usually take their staff for further training and strive to retain their skilled

members of staff.

Internal recruitment strategies are therefore given the first priority before considering the

external sources to boost employee motivation and performance. Barclays bank of Kenya has

quite elaborate strategies for external recruitment. Firstly, vacancies are posted on the company’s

website. Through this potential candidates can access prospective vacancies and duly apply. In

addition advertisements are also posted on the daily newspapers especially where large numbers

23

of employees are required. This is because the intended audience is larger compared to internets

based sources.

The agency has a database for all the top management levels employees who are potential

executives. Besides, the agency sources for potential candidates outside the organization.

Locally, for certain roles which demand specialized skills and for top management roles, the

bank engages local recruiting agencies such as manpower and Hawkins which can reach out to

wider scope of potential candidates.

The bank also has the Graduate Emerging Managers (G.E.M) programme which intends to

attract highly qualified graduates to be trained on different areas of management and later posted

in respective functions as managers based on their qualifications. This has been in place and has

seen fresh graduates with exceptional qualifications get an opportunity to serve in different

managerial positions in the bank upon completion of their training.

Lastly, Barclays bank of Kenya has initiated universities fares whereby the HR plans visits to the

local universities to showcase their numerous opportunities within the organization. Through

these events the organization is able to clearly indicate its core values, guiding principles,

mission and vision to the potential candidate so that the students become aware of the bank

stands for. Hence only the qualified candidates are attracted.

4.4 Retention Practices

Barclays bank has faced challenges in retaining their staff as there has been interbank’s staff

movement especially in the top banks in Kenya. The trend has been that whenever a bank goes

through expansion which in turn leads to massive job opportunities they are likely to pick from

other banks in a bid to get experienced staff. Barclays Bank had such rapid expansion in 2006

and employed over 3000 employees. Over the past five years the bank recruited heavily, mostly

sales agents, to expand its reach as its rivals moved to capture the retail market. After this period

they stopped employing so as to consolidate themselves especially after experiencing a soaring

wage bill. In 2012, Barclays Bank's staff costs rose by more than Sh500 million or 6.4 per cent in

24

2012 to reach Sh7.8 billion. Two years ago, the bank laid off 200 workers as it sought to reduce

the cost to income ratio that stood at 54 per cent. This year the bank laid of over 50 workers in

the ongoing restructuring.

Despite these challenges the bank has tried to retain its key and critical staff and try to maintain

exits to just below the 8% threshold as per their policy. Remuneration is one area that the bank

uses as retention. The positions in the bank are graded and they are from B1 upto B7 then one

moves to being a director. The monetary values attached to these grades are higher compared to

what other banks are offering. This has helped the bank to retain most of its staff. They also

issue allowances that will enable their staff to execute their functions; such allowances are not

limited to cell phone allowance, traveling allowance, overtime and meal allowances for those

who work until late in the night or early morning.

The bank retains employees by counter offering. Counter offer is a strategy to contest the offer

that has been granted by competitors to recruit the employee from the employing organization.

The senior official of the affected section shall in consultation with the Human Resource

Practices section recommend to the HOD that a counter offer be granted to retain a particular

employee. He/she must also indicate to the HOD that how does he/she plan to improve the

situation should the very same employee be given another better offer that outweighs his/her

initial counter offer.

Barclays bank reward employees who are high performers and value creative within the

Department. It rewards and recognizes excellent work though the reward system linked to the

Performance appraisal and Development programmme conducted by the line managers at the end

of every year. The high achievers who form 60% of the entire staff population in the

performance graph will score either an A or a B grade. These are known as high performers and

exceeds target group. Within the first quarter of the next year they will be awarded cash bonus of

more than double their salary and the salary will go up by a percentage margin depending on the

overall performance of the bank. They will also be eligible to apply for jobs for promotions

within the organization. There is also high marks awarded for any staff member who will have

25

come up with a new idea that has transformed the bank. This is known as pioneering. Certificates

and cash is awarded

As a retention strategy, the bank also offers financial assistance where the staff members are

encouraged to take loans with the bank at staff friendly rates. The Credit and Assessing team

through the Human source department may provide financial assistance to employees who want

to further their education, after approval by the line manager. Staff education loans are given at

no interest rates. The other loan such as mortgages and home improvements loans are given at

very low rates. Some of the loans are not secured and the staffs are allowed to top up their loans

especially after a salary increment due to good grades or promotions. However when one leaves

the bank the interest rates of the loans are immediately changed to the prevailing customer rates

which are sometimes upto three times. This deters those who would want to leave especially for

small increments. The staff also enjoy free accounts with no charges on bank transactions such as

bankers cheques and so on.

The bank gives career growth opportunities to employees by assisting them to acquire

competencies that will improve their ability to work in other areas within the department. The

bank has a well trained and coordinated group within the Human resource department that

mainly deals with training of the staff. The Learning and Development department popularly

known as the L and D department has created the ‘The Barclays University’. Here intense

induction of new staff is done and in-house training for continuing staff is conducted by the

trained Land D staff. They also conduct developmental sessions for the managers. The senior

managers are also sponsored for trainings such as MBA programmes with the universities. They

are however bonded after this for a period of months or years depending on the amount of money

used on them for the course.

26

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATI ONS

5.0 Introduction

This chapter gives a summary of the analysis, conclusions, recommendation, limitations and

suggestions for further study.

5.1 Summary

The study aimed at establishing the recruitment and retention practices adopted by Barclays

Bank of Kenya. The study showed that Barclays bank has a well formulated recruitment and

retention policy which is applied by all countries within the Barclays group. The resourcing

policy embraces diversity and inclusion. The document is also regularly reviewed to respond to

changes in the external environment and amendments to the local legal frameworks. Recruitment

planning is also undertaken by Barclays Bank and the recruitment plans are dependent upon

strategic human resource planning and the entire corporate plan. With respect to recruitment,

internal sources involved include: internal job advertisements and talent search\management.

Externally the bank attracts potential candidates through job postings on the company website,

advertisements in the daily newspapers, use of recruitment agencies, graduate programmes and

college or university fares.

The need to recruit in the organization arises mainly due to staff turnover and growth within the

company. Most of the candidates are recruited through either internal or external sources. When

a vacancy arises, a search within the company is carried out to identify prospective candidates

e.g. use of skills data banks, rotations, transfers and promotions before turning to external

sources of advertising. Newspaper advertising is also commonly used, though internet

advertising is quickly picking up. Recruitment agencies, employee referrals and walk ins are also

commonly used. Headhunting is another form of external recruitment, though it’s only used to

recruit senior managers. Job fairs are also rarely used.

27

5.2 Conclusions

Recruitment and retention is a fundamental role of the human resource function and is of critical

essence in developing human capital within organizations. It undertakes to bring on board

qualified candidates with the right skills and attitude to advance the organizational objectives.

5.3 Recommendations

Recruitment through agencies should be thoroughly monitored and the respective agencies to be

hired properly screened to ascertain compliance with the policy framework. Besides the

recruitment strategies should also be regularly reviewed to embrace the changes in the external

environment and the apparent dynamic human resource practice.

5.4 Limitations

The study was limited to an individual organization and this may not provide appropriate

information to policy formulators in the industry. The study should have been broad enough to

bring on board other banks in order to show industry trended. As much as feedback received was

100%, the data collection process faced a few challenges: time was a major limitation; it was

difficult to get appointments to see the human resource officers, since most of the time they were

held up in meetings. When available they had limited time to answer questions, but further

probes assisted with this.

It was also difficult to convince the respondents that the information given was basically for

research purposes. They feared that the information given could reflect negatively on the

performance of the company in future.

5.5 Suggestions for further study

Some of the areas of study that could be carried out in future includes: identifying the challenges

that managers face in implementing the recruitment and retention practices, the impact of proper

recruitment and retention practices on the overall performance of an organization.

28

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APPENDIX 1: LETTER OF INTRODUCTION

To:

………………………………..

………………………………..

Dear Sir/ Madam,

RE: REQUEST FOR RESEARCH DATA

I am a student of the University of Nairobi, pursuing a postgraduate degree in business

administration (MBA). I am undertaking a research project entitled employee recruitment and

retention practices adopted by Barclays Bank of Kenya as part of the academic requirements

towards completion of the course. To assist me accomplish, I am humbly requesting that you

complete the questionnaire herewith attached.

All the information you volunteer will be treated with utmost confidence and at no time will your

name, title or that of the firm be mentioned in the report whatsoever. However, the findings of

the research can be availed to you upon completion.

Your cooperation will be highly appreciated. Thank you.

Yours Faithfully,

Faith Ong’iyo

32

MBA STUDENT

APPENDIX 2: QUESTIONNAIRE

………………………………………………………………………………………………….

PART 1: Background of Respondents

1. What is your position at Barclays Bank of Kenya?

…………………………………………………………………………………..

2. How long have you worked for Barclays?

……………………………………………………………………………….

PART 2

EMPLOYEE RECRUITMENT AND RETENTION PRACTICES.

1. How recruitment done in the organization? is there a relationship between the mode and how

long the employees stay in the organization?

2. What are some of the incentives offered to the employees and do these play a role on whether

employees stay or leave?

3. Which performance management tools do you use and how do these tools assist in retaining

the best employees?

4. Briefly discuss how the following recruitment practices affect recruitment and retention

practices.

i. Transfers

ii. Promotions

iii. Job Rotation

iv. Talent Search

v. Media Advertising

vi. Colleges and University

vii. Walk in applicants

viii. Employee referrals

ix. Recruitment Agencies

33

x. Head hunting

5. Which training opportunities do you offer your staff and is there a correlation between the

level of training accorded to an employee and his retention?

6. How is your pay compared to your competitors? Have you lost any employees who cited the

pay as a reason for leaving?