EMPLOYEE DEVELOPMENT AND RETENTION IN GOLIS TELECOM BOSASO, SOMALIA BY MOHAMUD ISSE JAMA I~ ~ fl ~1~ZL1 MHR/46454/151/DF A DISSERTATION SUBMITIED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF ARTS IN HUMAN RESOURCE MANAGEMENT OF KAMPALA INTERNATIONAL UNIVERSITY Nov1 2016 DECLARATION MOHAMUD ISSE JAMA, declare that this Dissertation is a result of my ~wn Jependent research and has not been submilled to any institution of higher learning • any award where the work of others has been consulted and due acknowledgement s been made. Jn . te 94/li /2-4~ APPROVAL is is to certify that the research under the topic Employee Development and tention in Golis Telecom Bosaso Somalia has been under my supervision and is now 3dy for submission to the college of economics and management. ~ME OF SUPERVISOR.~(~DLJa... ~ JE: ...j~”l.1...,.9~D 6 DEDICATION ledicate this work to the almighty ALLAH who has brought me this far in my life and has never abandoned me nor forsaken me hence giving me a reason to never give and always go on. I greatly give him thanks ~lso dedicate this thesis to my family; specially my dear sister Hawo Isse Jama, my usin Idil Abdullahi Jama and my bro Said Isse Jama for their encouragement d continuous financial, spiritual and moral support throughout my studies to ensure I t educated. They laid the foundation and set the goals. Thank you very much and God bless you abundantly 3 ACKNOWLEDGEMENTS ALLAH be the glory for the far He has brought me. I most sincerely thank to my pervisor, Dr. Olutayo K. Osunsan for his patience, continuous support, couragement and endless commitment in providing the guidance and assistance -oughout the development of this thesis. appreciation also goes to my classmates at the University for their Input and nstant encouragement to move on in spite of the many challenges. I thank the 3nagement of the Golis Telecom, Bosaso, Somalia that allowed me to collect data and who provided the data I needed. my family, you have been a great encouragement in this journey. To my dear sister wo Isse Jama, dear Cousin Idil Abdullahi Jama, and dear brother Said Isse Jama, o stood by me, encouraged me and believed in me against all odds to accomplish my sam, God bless you. you all who made the completion of this work possible, may God bless you. 4 LIST OF TABLES Table 3.1: Target population, sample size and sampling techniques 33 Table 3.2: Determination of validity of Questionnaire 35 Table 3.3 Cronbach’s Alpha of Reliability statistics 35 Table 4.1: Demography of the respondents 38 Table 4.2: Means, standard deviations, ranks and interpretation of responses of the respondents on employee engagement, competency mapping and employee career development 42 Table 4.3: Means, standard deviations, rankings and interpretation of responses on employee retention in Golis Telecom Company 47 Table 4.4: Pearson’s correlation co-efficient Index for the employee engagement and employee retention 50 Table 4.5: Pearson’s correlation co-efficient index between competency mapping and employee retention 51 Table4.6: Pearson’s correlation co-efficient index for the career development and employee retention in Golis telecom company 52 Table 4.7: The ANOVA table of the multiple regression for prediction and Hypothesis testing 53 Table4.8: Model summary of multiple regression analysis of employee engagement, competency mapping, career development and employee retention in Golis Telecom Company in Somalia 54 Table 4.9 Co-efficient of the multiple regression model 54 5 LIST OF FIGURES Fig 1: Conceptu& Framework 21 6 TABLE OF CONTENTS CLARATION 1 ~PROVAL 2 DICATION 3 :KN0wLEDGEMENT5 4 5T OF TABLES 5 TOF FIGURES 6 BLE OF CONTENTS 7 STRACT 10 IAPTER ONE 11 D Introduction 11 Background 11 [.1 Historical Perspective 11 L.2 Theoretical Perspective 13 L.3 Conceptual Perspective 13 .4 Contextual Perspective 14 Problem statement 15 ~Purpose of study 16 ~Objectives of study 16 ~Research questions 16 Research hypotheses 16 Scope of the study 17 ‘.lGeographical Scope 17 ‘.2 Theoretical scope 17 ‘.2 Content Scope 17 Significance of the study 17 7 IAPTER TWO .19 :TERATURE REVIEW .19 DINTRODUCTION 19 1 THEORETICAL REVIEW 19 2 CONCEPTUAL FRAMEWORK 21 3 RELATED LITERATURE 21 3.1 Employee engagement on employee retention 21 3.2 Competency mapping on employee retention 24 3.3 Career development on employee retention 27 iAPTERTHREE 31 ETHODOLOGY 31 )INTRODUCTION 31 L Research design 31 ~ Research Population 31 3 Sample size 32 1 Sampling procedure 33 Sources of Data 34 S Research instrument 34 ~‘ Validity and reliability of Instruments 34 3 Data Analysis 36 Ethical considerations 36 .0 Limitations of the study 37 8 IAPTER FOUR 38 ~.TA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 38 D. Introduction 38 IAPTER FIVE 56 [SCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS 56 ) Introduction 56 1 Discussions 56 ~ Conclusions 58 3 Recommendations 59 Contribution to Knowledge 60 5 Suggestion for Further Study 60 ~FERENCES 61 PEN DIX A: QUESITIONNARE 64 9 ABSTRACT ie study aimed at establishing the effect of employee development on employee tention in Golis Telecom Company Bosaso, Somalia with details in employee gagement, competency mapping and career development as the variables that ~asure employee retention. The objectives were: to establish the relationship between ~ployee engagement on employee retention, to establish the relationship between mpetency mapping on retention and to establish the relationship between career velopment on employee retention. The hypothesis was; there is significant positive ationship between employee development on employee retention. A regression del encompassing all the variables was developed after carrying out diagnostics tests model fit and consistency. The results indicate that employee engagement has sitive relationship on employee retention. Furthermore, the results also indicate that th employee competency and employee career development have a positive ationship on employee retention, The overall model was significant on the basis of ~ F-statistic and the coefficient of determination that was reported by the data. On ~ other hand, the multiple regression analysis also reveals that all these independent riables combined together account for 64.9% of changes in employee retention as ~ be observed from the regression model summary. The study thus concluded that ~ combination of all the independent variables when regressed against employee :ention also produces p-value which is less than 0.05 and thus rendering the entire )del statistically significant. It is thus recommended that future studies should carry t a comprehensive analysis to further establish the influence of the latter variables ci to ascertain their influence on the overall rate of employee retention in various lipanies. 10 CHAPTER ONE INTRODUCTION O Introduction ‘us chapter presents the background, problem statement, purpose, objectives, search questions, hypothesis, scope and significance of the study. 1 Background ~is background was presented on four perspectives namely; historical, theoretical, nceptual and contextual perspectives. 1.1 Historica’ Perspective obalization has not only increased competition among organizations but has also sated new window of opportunity for the workforce. In the view of Wheelock (2010) Hanief, et al, (2013), the economic situation of the world has increased the portance of talent management and retention. She further adds that intellectual pital is always an asset for any organization which they must invest in. People, :ellectual capital and talent are ever more critical to organizational strategic success. taming talented employees is the priority of many organizations and it is the key ferentiator of human capital management (Mohammed, 2015). It is one of the critical ues facing organizations today and the biggest challenge faced by HR in modern onomy (Lathitha, 2012) because of shortage of skilled workers, economic growth and jh employee turnover. )bally, the demand for competent employees was high especially for key decision ~king workforce; therefore, organizations are exposed to a continuous competitive ht for the best and talented employees. Indeed, there was a paradigm shift from man resource to human capital which consists of knowledge, skills and capabilities of people employed in an organization which was indicative of their value (Armstrong, 10). 11 Sweden country, a survey called the employee development Barometer conducted by iskriften Personal & Ledarskap, Sveriges human resource Forening & Stardust )nsulting in 2012 on a set of respondents comprised 40% human resource managers, % human resource professionals and 30 % line managers, revealed that very few 6 %) are pleased with their present employee development, and agree that more 3ources need to be placed on this in the future, Furthermore, only 24 % answered ~t they have a employee development strategy which connects basic human resource ~cesses such as recruitment, on-boarding and performance evaluation. Over half of ~ respondents agree that employee development is one of the most important issues iay, while 81 % think it will be a growing concern in the future. At the same time, ly 33 % believe that their organization has come to an agreement on what employee velopment is, and only 23 % have a clear definition of “development” in their ~anization. This leads to the conclusion that even though companies are aware of iployee development and value it, the first steps in adopting employee development ye been taken by very few companies, and furthermore, there are few companies ~t have a holistic point of view on employee development (Yllner, 2013). Africa, Murungi (2012), in his study on staff retention strategies in Kenya, states that my state corporations in Kenya are faced with the challenge of staff retention caused movement of staff to organizations that are receptive to change. In Kenya, many ~anizations have not yet embraced the concept of employee development and thus :e critical challenges in recruitment and retention of talented staff.