ORGANIZATIONAL CULTURE AND EMPLOYEE RETENTION IN FAITH-BASED UNIVERSITIES IN KENYA
Pius Kithuka Muia - PhD Candidate, Department of Business Administration, School of Business and Economics, Kisii University, Kenya
Dr. Ruth Ogega (PhD) - Lecturer Department of Business Administration, School of Business and Economics, Kisii University, Kenya
Dr. Henry Omosa, (PhD) - Lecturer Department of Business Administration, School of Business and Economics, Kisii University, Kenya
ABSTRACT
Employee retention is a vital concern for higher education institutions, and in faith-based universities in Kenya and the world at large, organizational culture has emerged as a central area of scholarly and managerial interest because it shapes how employees identify with the mission, values and norms of their institutions. The purpose of this study was to determine the effect of organizational culture on employee retention in faith-based Universities in Kenya. The study was anchored on Psychological Contract Theory. The study adopted a positivist research philosophy and realist ontology informed the study, using a quantitative cross-sectional survey design. The target population comprised 2,000 academic and non-academic employees from 22 registered faith-based universities in Kenya. A sample of 333 respondents was drawn from five selected universities using stratified and simple random sampling techniques, of whom 325 returned usable questionnaires. Data were collected using structured questionnaires administered to staff and faculty. Instrument reliability was established through a pilot study involving 33 employees at Hekima University College in Nairobi, while content validity was ensured through expert review. Data were analyzed using SPSS, employing descriptive statistics (means and standard deviations) and inferential statistics including Pearson product-moment correlation and simple linear regression. The study found that organizational culture has a positive and statistically significant effect on employee retention (β = 0.700, t = 13.832, p < .001), with organizational culture explaining 37.2% of the variance in employee retention. Employees generally perceived the culture of faith-based universities as positive and mission-aligned, characterized by shared values, clear norms, open communication, fair treatment and recognition. The null hypothesis was therefore rejected. The study recommends that faith-based universities deliberately cultivate value-driven, inclusive and recognition-oriented cultures as a strategic mechanism for enhancing employee retention.