Work Environment and Employee Turnover in the Insurance Industry in Kenya

Purpose: The purpose of this study was to determine the influence of work environment on employee turnover in the insurance industry in Kenya. Methodology: Descriptive explanatory research design was applied by the study. The study target population was 404 senior staff working in the 48 insurance companies in Kenya. Based on Krejcie and Morgan sample size determination formula the sample size for this study was 197 respondents. The 197 managers were chosen with the help of stratified random sampling technique. Primary and secondary data was collected where questionnaires were used to collect primary data. The study used SPSS version 25 software to analyse the data. Both descriptive and inferential analyses were carried out. Results from analysed data were presented in tables. Results: The inferential statistics results revealed a negative significant relationship between work environment on employee turnover in the insurance industry in Kenya at p<0.05. Work environment on employee turnover in the insurance industry had a Pearson's correlation of (r= -.769, p<0.05). Since the p-value (0.023) was less than the selected level of significance (0.05), the relationship was considered significant. This therefore suggests that work environment affects employee turnover in the insurance industry in Kenya. The R-squared for the relationship between work environment and employee turnover in the insurance industry in Kenya was 0.404; this is an indication that at 95% confidence interval, 40.4% variation in employee turnover in the insurance industry in Kenya can be attributed to changes in work environment. However, the remaining 59.6% variation in employee turnover in the insurance industry in Kenya suggests that there are other factors other than work environment that explain employee turnover in the insurance industry in Kenya. Unique Contribution to Theory, Practice and Policy: Theory Z used in this study may be used to anchor future studies on describing how providing a job for life with a strong focus on the well-being of the employee, both on and off the job increases employee loyalty to the company. The study recommends that the management of insurance companies should always build a conducive work environment through emphasis on goals. Create a harmonious non-physical work environment and pay attention to the physical work environment of employees at work. According to the study, policy makers should formulate policies that will ensure that insurance companies build a work environment that attracts, retain and motivate its employees so that to help them work comfortable and increase organization productivity.