TALENT RETENTION AND ORGANIZATIONAL PERFORMANCE IN FAMILYOWNED RETAIL BUSINESSES IN THE NAIROBI METROPOLITAN REGION

Abstract

This study aimed at examining the relationship between talent retention and the performance of family owned retail businesses in the Nairobi metropolitan region. The choice of the retail sector was because family businesses in the retail sector in Kenya have experienced a lot of turbulence over the years especially after the exit of the founders from their management. The study adopted the Human Capital Theory as proposed by Schultz (1961) to expound on the concept of Talent retention. The research population consisted of 438 branch managers and their deputies drawn from 219 retail companies in the Nairobi Metropolitan Region in Kenya. The sample consisted of two hundred and seventy-four managers and their deputies who were chosen from family owned retail stores in the Nairobi metropolitan region that have more than 8 branches. Questionnaires were used to collect primary data. The study adopted a quantitative research design. Regression analysis was used with the SPSS software used in data analysis. The Pearson's R-correlation was used to determine the strength and direction of the relationship between the variables. The results show a significant positive effect of talent retention (β = 0.346, p<0.001) on the performance of family businesses. The study therefore concludes that talent retention increased organizational performance.