CAREER DEVELOPMENT PRACTICES AND EMPLOYEE PERFORMANCE IN THE INSURANCE COMPANIES IN KENYA

Abstract

The purpose of the study was to establish effect of career development practices on employee performance in insurance companies in Kenya. The study was anchored on the Human Capital Theory which is relevant to the research because it explains that personnel are incentivized by educational, mentoring, and coaching initiatives which enhance their expertise and capacity towards carrying out tasks. The study adopted descriptive research design. The populations of study were six NSE listed insurance companies in Nairobi offering general insurance while the target population was 1066 employees. Stratified random sampling design was used. The study adopted Yamane (1972) formulae for sample determination aided in generating 291 sample size from the target population of 1066. Primary data was collected by use of structured questionnaires that was subjected to validity tests such as face validity, construct, content and criterion validity tests. Questionnaire was subjected to reliability tests aided to assess the internal consistency of the aided by Cronbach alpha. Analysis of data involved use of descriptive analysis comprising of mean, standard deviation, frequencies and percentage ratings. Inferential analysis constituted correlation analysis and regression analysis. Findings were presented by use of Tables. The findings revealed that structured career paths had a strong and statistically significant influence on employee performance (β = 0.371, p < 0.001), with a very strong positive correlation (r = 0.952). This suggests that employees perform better and are more likely to remain in organizations where career progression opportunities are clearly defined, transparent, and consistently enforced. The study recommended that policymakers in Kenyan insurance companies should establish and enforce structured career path policies with transparent promotion criteria, competency-based progression systems, and regular career development reviews. Embedding clear career growth opportunities into organizational strategies was highlighted as vital for supporting both employee performance and long-term retention. The study concluded that structured career paths significantly contribute to building a motivated, skilled, and high-performing workforce, while also reducing employee turnover in the insurance sectors.