THE MEDIATING EFFECT OF EMPLOYEE REMUNERATION ON THE RELATIONSHIP BETWEEN LEADERSHIP PRACTICES AND TURNOVER INTENTION OF TECHNICAL STAFF IN KENYAN SCHEDULE OPERATING PASSENGER AIRLINES
Abstract
Purpose of the study: The objective of the study was to examine the mediating effect of employee remuneration on the relationship between leadership practices and turnover intention of technical staff in the Kenyan schedule operating passenger airlines.
Statement of problem: The global airline industry is facing various challenges. One of the major challenges is related to the turnover of highly skilled technical staff. The turnover intention of staff is viewed as a direct predictor of actual intention. The turnover intention of employees is heavily affected by leadership practices and remuneration policies.
Research Methodology: The data for the study was collected from all the 12 Kenyan schedule operating passenger airlines. The research design used by the study was descriptive cross-sectional survey design. A total of 335 sample respondents were selected using proportionate stratified sampling technique from the population of 2058 technical staff.
Research Findings: The results from the data analysis indicated that there is no significant mediating effect of employee remuneration on the relationship between leadership practices and turnover intention as there is no significant influence of employee remuneration on turnover intention when controlling for leadership practices (β =0.02 & p-Value=0.224>0.05).
Conclusions: The study concluded that there is no significant mediating effect of employee remuneration on the relationship between leadership practices and turnover intention of technical staff in Kenyan schedule operating passenger airlines
Recommendations: The study recommended practitioners to deviate from the traditional assumption of considering remuneration as a sole influencer of staff turnover intention and consider leadership practices in the staff retention strategy of an organization.
Key words: Airlines, Employee Remuneration, Leadership Practice, Technical Staff, Turnover Intentions
References
Alkhawaja, A. (2017). Leadership Style and Employee Turnover A Mythical Relationship or Reality? https://digital.sandiego.edu/solesmalscap/16/
Armstrong, M. (2014). Human Resource Practices. Handbook of Human Resource Management Practice. Kogan page.
Baron, M., & Kenny, A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(1), 1173-1182.
Bass, M. (1985). Leadership and performance beyond expectations. Collier Macmillan.
Dansereau, F., Graen, B., & Haga, W. (1975). A vertical dyad linkage approach to leadership in formal organizations. Organizational Behavior and Human Performance,1(13), 46–78.
Dei Mensah, R. (2014). Effect of human resource management practices on retention of employees in the banking industry in Accra, Ghana (Doctoral dissertation, School of Business, Kenyatta University. Kenya.
Dessler, G. (2012). Fundamentals of human resource management (2nd ed.). Pearson.
Hansen, L., & Moskowitz, J. (2006). The effect of compensation on aviator retention. Alexandria, VA: Center of Naval Analyses. https://www.cna.org/CNA_files/PDF/d0014925.a2.pdf .
IATA. (2013). Special Report: Unlocking Africa’s potential. https://airlines.iata.org/reports/special-report-unlocking-africas-potential
IATA. (2017), Future of airline industry 2035. https://www.iata.org/policy/Documents/iata-future-airline-industry.pdf
ICAO. (2008). Skills shortage in Aviation fields in Africa. Working Paper. Https://Www.Icao.Int/WACAF/AFIRAN08_Doc/Sp-fi_Wp35_En.Pdf#Search=PILOTS%20TURNOVER
ICAO. (2014). Challenges related to the projected shortage of skilled aviation personnel. https://www.icao.int/about-icao/70th-anniversary/Documents/ICAO-Model-ouncil_WP_UAE.pdf#search=technicians%20turnover
Kaizemi, S. (2017). Challenges of recruitment and retention of skilled employees in a Namibian Bank (Doctoral dissertation). University of South Africa
Kinyanjui, N. (2015). Evaluating employee turnover and the adoption of modern retention strategies in Kenyan insurance firms (Doctoral dissertation). Strathmore University. Nairobi, Kenya.
Kinyili, J. (2015). Role of human resource management practices on retention of staff in public health institutions in Machakos county (Doctoral dissertation). Jomo Kenyatta University of Agriculture and technology. Nairobi, Kenya.
Kissoonduth, K. (2017). Talent Management: attracting and retaining academic staffs at selected public higher education institution (Doctoral dissertation). The University of South Africa. Pretoria, South Africa.
Lisa, H., & Maria, H. (2007). What leaders can do to keep their key employees- retention management. Goteborg university.
Maicibi, A. (2005). Pertinent Issues in Management; Human Resource and Educational Management. Net Media Publishing.
Masum, A., Azad, M., Hoque, K., Beh, L.-S., Wanke, P., & Arslan, Ö. (2016). Job satisfaction and intention to quit: an empirical analysis of nurses in Turkey. National Center for Biotechnology Information. Http//doi: 10.7717/peerj.1896.
Miring’u, A. (2017). Drivers of labor mobility intentions of teachers in public tertiary institutions in Kenya (Doctoral dissertation). Jomo Kenyatta University of Agriculture and Technology, Kenya.
Mokaya, S. & Luke, K. (2008). Factors that Influence Labor Turnover of Aircraft Maintenance Engineers in Kenya: A Case of Kenya Airways. Paper presented at Makerere University Business School International Management and Conference. Nairobi, Kenya.
Mutuma, K., & Manase, G. (2013). An evaluation of the remuneration scheme in relation to staff turnover in Kenyan private universities: Case study of the Kenya Methodist University. Journal of Poverty, Investment and Development,2(1), 12-24.
Nachmias, F., & Nachmias, D. (2008). Research Methods in the Social Sciences (5th Ed.). Martin‘s Press, Inc.
Nahar, R., Islam, R., & Ullah, T. (2017). Identifying the factors for reducing employee turnover rate in aviation business: Bangladesh context. Australian Academy of Business and Economics Review, 3(1), 39-46.
Ndinya M., Nzulwa, J. & Kwena, R. (2017). Factors Affecting Employee Retention in Non-Governmental Organizations in Nairobi county. Kenya Strategic journal of management.
Ng'ethe, M. (2013). Determinants of Acadamic Academic Staff Retention in Public Universities in Kenya (Doctoral Dissertation). Jomo Kenyatta University of Agriculture and Technology. Kenya.
Northouse, P. (2016). Leadership, theory and practice, (7th Ed). West Michigan university.
Nunnally, J. (1978). Psychometric theory (2nd Ed.). New York: McGraw-Hill.
Pauline, N. (2017). A review of existing turnover intention theories. International journal of economics and management engineering, 11(11).
Price, J. (1977). The study of turnover. Iowa State Press.
Reina, S., Rogers, M., Peterson, J., Byron, K., & Hom, W. (2018). Quitting the boss? The role of manager influence tactics and employee emotional engagement in voluntary turnover. Journal of leadership and organizational studies, 25(1), 5-18.
Revenio, J.,Van, D., Adila, A., & Amer, A. (2017).The Impacts of Job Satisfaction on Employee Turnover: A Case Study of Oman Air in Oman. European Academic Research,5 (1).
Taylor, P., Mulvey, G., Hyman, J., & Bain, P. (2002). Work organization, control and the experience of work in call centres. Work, employment and society, 16(1), 133-150.kaiz
Thi Ai Can, T. (2020). The impact of organizational culture on the employee intention to stay and the mediating role of remuneration. Science & Technology Development Journal, 3(4), 367-378. https://doi.org/https://doi.org/10.32508/stdjelm.v3i4.580
Uludağ, O., Khan, S. & Guden, N. (2011). The effects of job satisfaction, organizational commitment, organizational citizenship behaviour on turnover intentions. Florida International University, 29 (2), 1-21.
Wakabi, M. (2016). Leadership style and staff retention in organizations. International Journal of Science and Research, 5(1), 412-416.
Yamane, T. (1973). Statistics: An introductory analysis (3rd ed.). New York: Harper and Row.
