CHAPTER FOUR
DATA ANALYSIS, PRESENTATION, INTERPRETATION AND
DISCUSSION
4.1 Introduction
This chapter presents the results of data analysis, discussion and interpretation of the findings
from the study examining the effect of human resource management practices (reward practices,
performance appraisal, promotion opportunities and training) on employee retention at Nestlé
Kenya Limited. The chapter covers response rate, pilot test results, descriptive statistics of
demographic characteristics of respondents and responses of the questionnaire items of the study
variables. It also presents results of reliability analysis using Cronbach's Alpha, and multiple
regression analysis testing hypothesized relationships.
4.2 Pilot Test
Mugenda and Mugenda (2003) reported that a pilot test can be conducted on ten percent (10%)
of the study sample, which gives a pilot study sample of 17 employees. The purpose of the pilot
study was to identify ambiguity or inconsistencies in the questionnaire. The pilot study was
carried out at Kevian Kenya Limited. Fifteen (15) questionnaires were returned giving a response
rate of 88%. The data from the pilot study was tested for reliability using SPSS. The overall
result of reliability analysis of the pilot study using Cronbach alpha was α = 0.858 which was
within the recommended threshold of 0.70.
4.3 Response Rate
A total of 171 questionnaires were distributed to employees at Nestlé Kenya Limited across
different management levels using stratified random sampling as outlined in Chapter Three. Of
these distributed questionnaires, 136 were completed and returned, representing an 80.0%
response rate. This response rate significantly exceeds the 50% minimum threshold
recommended for survey research by Mugenda and Mugenda (2003), thereby ensuring both
reliability and generalizability of findings.
Table 4.1: Response Rate
4.4 Reliability Analysis
Reliability analysis using Cronbach's Alpha coefficient was conducted to test internal
consistency of measurement scales as shown in Table 4.2.
Table 4.2: Results of Reliability Analysis
Scale Number of Items Cronbach's Alpha Remarks
Reward Practices 9 0.977 Excellent
Performance Appraisal 9 0.832 Good
Training 9 0.891 Good
Promotion Opportunities 9 0.979 Excellent
Employee Retention 8 0.971 Excellent
All Questionnaire Items 44 0.930 Excellent
The results in Table 4.2 shows excellent reliability for all constructs with overall reliability of
α = 0.930. The Cronbach alpha coefficients for the study variables are as follows: Training
(α = 0.979), Reward Practices (α = 0.977), Promotional Opportunities (α = 0.891), Performance
Appraisal (α = 0.832) and Employee Retention (α = 0.971). All reliability coefficients
substantially exceeded Nunnally's (1978) recommended minimum threshold of 0.70, thereby
confirming that measurement instruments used were internally consistent and reliable.
4.5 Demographic Characteristics of the Respondents
The analysis of the respondents' demographics included gender, age, education level,
management level, years worked at Nestlé Kenya Limited and years in current position.
Demographic profiles of the respondents were essential to contextualize the results, as they
provided information regarding the structure of the study sample.
4.5.1 Gender of Respondents
The study analysed the gender distribution of the respondents as shown in Figure 4.1 below:
Gender of the Respondents
Female
51
(37.5%)
Male
85
(62.5%)
Male Female
Figure 4.1. Gender of the Respondents
The results of gender distribution at Nestlé Kenya Limited as shown in Figure 4.1 has shown that
male respondents were predominant with 62.5% (85), while female respondents comprised
37.5% (51). This distribution reflects the typical gender composition within manufacturing
operations in Kenya's food processing sector. Although there is gender disparity between male
and female employees, it is noted that Nestlé Kenya Limited has complied with the gender two-
thirds rule as enshrined in the Constitution of Kenya, 2010 that states that no more than two-
thirds of the members in any elective or appointive positions shall be of the same gender.
4.5.2 Age of Respondents
Age of the respondents was crucial in determining their career stage and likely level of
commitment. The results of Figure 4.2 show the distribution of respondents by age as shown
below.
Age of the Respondents
32
40 (23.5%) 32
35 22 (23.5%)
(16.2%) 40
30 (29.4%)
25
20 10
(7.4%)
15
10
5
0
Below 25 Years 25 - 34 Years 35 - 44 Years 45 - 54 Years 55 Years and
above
Figure 4.2. Age of the Respondents
The results in Figure 4.2 shows the age distribution of the respondents. Most respondents were
aged 25-44 years (69.1%) which shows that majority of the respondents were relatively youthful
and may bring energy and innovativeness to the organization. Specifically, the results indicate
that 16.2% of the respondents were aged below 25 years, 29.4% (40 respondents) were 25-34
years and 23.5% (32 respondents) were 35-44 years. Further, the analysis has shown that 23.5%
(32 respondents) were aged 45-54 years while 7.4% (10) were aged 55 years and above. The
results showing that 92.6% of the respondents were aged between 25–54-years indicates that
most employees were of prime working age, which may contribute to greater organizational
commitment and retention due to work experience and career growth.
4.5.3 Level of Education
The educational level among respondents was crucial in determining their competency and job
performance. Table 4.4 shows the distribution of respondents by education level.
Table 4.3: Level of Education of Respondents
Level of Education Frequency Percentage
Secondary School 2 1.5
Certificate 21 15.4
Diploma 50 36.8
Bachelor's degree 46 33.8
Postgraduate degree 17 12.5
TOTAL 136 100
The findings in Table 4.4 indicate the education level of the respondents. The majority of
respondents (83.1%) held Diploma level education or above, with 36.8% (50) holding Diplomas,
33.8% (46) holding Bachelor's degrees and 12.5% (17) holding Postgraduate degrees. Only
16.9% had Certificate level (15.4%) or Secondary School (1.5%) education. This distribution
reflects appropriate qualification levels for food processing operations at Nestlé Kenya Limited.
4.5.4 Management Level
The distribution of respondents by management level was crucial in understanding their roles
within the organization. Table 4.5 shows the distribution by management level.
Level of Management
70
60
51
50 (37.5%) 68
(50%)
40 17
(12.5%)
30
20
10
0
Top Management Middle Management Lower Management
Figure 4.3 Management Level
The findings in Figure 4.3 show that Lower Management had the highest representation at 50.0%
(68 respondents), followed by Middle Management at 37.5% (51 respondents) and Top
Management at 12.5% (17 respondents). This distribution aligns with typical organizational
hierarchies where operational staff form the largest group while the top management are few due
fewer managerial positions.
4.6 Descriptive Statistics of the Responses of Human Resource Management Practices and
Employee Retention
This section presents the results of descriptive statistics of the variables of the study. The
respondents were asked to provide their perception on the independent variables which is human
resource management practices consisting of reward practices, performance appraisal, training
and promotion opportunities and the dependent variable (employee retention). The respondents
were asked to rate their views on a 5-point Likert scale where 1 = Strongly Disagree; 2 =
Disagree; 3 = Neither agreed nor disagreed; 4 = Agree; 5 = Strongly Agree. Pimentel (2019)
reported that mean scores can be interpreted as follows: Strongly disagree (M = 1.00 - 1.79),
Disagree (M = 1.80 - 2.59), Neither agree nor disagree (M = 2.60 - 3.39), Agree (M = 3.40 -
4.19), Strongly agree (M = 4.20 - 5.00).
4.6.1 Descriptive Statistics of the Responses of Human Resource Management Practices
This section presents the results of descriptive statistics on Human Resource Management
Practices (HRM) and employee retention. HRM practices which is the independent variables of
the study. The respondents were asked to indicate their perception on the components of HRM
practices as follows:
[Link] Reward Practices
The respondents were asked to indicate the extent to which they agree or disagree with different
aspects of Reward Practices as presented in Table 4.4 below.
Table 4.4: Descriptive Statistics of Responses on Reward Practices
Item N Mean SD
The salary I earn is adequate to meet my financial needs 136 3.64 0.86
I receive recognition for my contributions to the company, for
136 3.62 0.83
example, maintaining food safety standards
Fringe benefits that I receive encourage me to stay with the
136 3.61 0.77
company
Bonuses for achieving targets have motivated me to exceed my
136 3.60 0.83
job requirements
The rewards that I receive match my performance in skill-
136 3.60 0.81
intensive tasks
Salary and benefits that I receive enhances my intention to remain 136 3.60 0.83
Attractive allowances support my work commitment 136 3.59 0.81
My salary is competitive with industry standards 136 3.58 0.8
The salary I receive encourages me to perform better 136 3.57 0.83
Overall 136 3.60 0.82
The results in Table 4.4 shows the mean scores of responses on items on reward practices. The
overall mean score was M = 3.60 which indicated most of the respondents agreed with the items
on reward practices, implying that the majority of employees agreed that the reward practices at
Nestlé Kenya Limited were satisfactory and positively influenced their work performance and
retention intentions.
Specifically, most of the respondents agreed that the salary they earned was adequate to meet
their financial needs (M = 3.64), that they receive recognition for their contributions to the
company, for example, maintaining food safety standards (M = 3.62), that their fringe benefits
encouraged them to stay with the company (M = 3.61), that bonuses for achieving targets
motivated them to exceed their job requirements (M = 3.60), that the rewards they received
matched their performance in skill-intensive tasks (M = 3.60), that the salary and benefits that
they receive enhances their intention to remain (M = 3.60), that attractive allowances support
their work commitments (M = 3.59), that their salary was competitive with industry standards for
similar roles in food processing (M = 3.58) and that the salary they received encouraged them to
perform better in tasks like production or quality control (M = 3.57).
In conclusion, the mean scores for reward practices ranged between M = 3.57 and M = 3.64
indicated that majority of the respondents were satisfied with their rewards which is consistent
with Pimentel (2019) scale which indicates that majority of the respondents indicated that they
agreed with the statements on reward practices.
[Link] Performance Appraisal
The respondents were asked to indicate the extent to which they agree or disagree with different
aspects of Performance Appraisal as presented in Table 4.5 below.
Table 4.5: Descriptive Statistics of Responses on Performance Appraisal
Item N Mean SD
I clearly understand the purpose of performance appraisal in my
136 3.91 0.67
organisation
Performance appraisal enhances my intention to remain with the
136 3.85 0.74
company
Performance appraisal feedback is communicated through
136 3.82 0.73
written communication
Performance appraisal makes me better understand my roles in
136 3.79 0.68
the company
My manager regularly discusses my job performance with me 136 3.74 0.72
I clearly understand my manager's comments and opinion during
136 3.69 0.71
performance feedback
Performance appraisal review has helped improve my output 136 3.69 0.78
Performance appraisal at my organisation is fair 136 3.57 0.79
Performance appraisal reflects my performance objectively 136 3.51 0.80
Overall 136 3.73 0.74
The results in Table 4.5 presents the mean scores of responses on items on performance
appraisal. The overall mean score was M = 3.73 which, according to Pimentel (2019) indicated
that most of the respondents agreed with the items on performance appraisal which implied that
most of the employees were satisfied with various aspects of performance appraisal. Specifically,
the mean scores show that most of the respondents agreed with the statements as follows: that
they clearly understand the purpose of performance appraisal in their organization (M = 3.91),
that performance appraisal enhanced their intention to remain with the company (M = 3.85) and
that performance appraisal feedback was communicated through written communication (M =
3.82). Further, the mean scores show that performance appraisal enabled them to better
understand their role (M = 3.79), their manager regularly discussed their job performance with
them (M = 3.74), that they clearly understood their managers comments and opinion during
performance feedback (M = 3.69), that their performance appraisal review had helped them to
improve their output (M = 3.69), that their performance appraisal in their organization was fair
(M = 3.57) and that performance appraisal reflected their performance objectively (M = 3.51).
In summary, most of the respondents indicated that they clearly understood the purpose of
performance appraisal and that it enhances their intention to remain with the company. They also
indicated that performance appraisal in their organization was fair and objective.
4.7 Inferential Statistics
The inferential statistics used in this study to test the study hypotheses are Pearson's moment
correlation analysis and multiple regression analysis. Pearson's correlation analysis was used to
test the strength and direction of the relationships between human resource management
practices and employee retention. Multiple regression analysis was used to establish the effect of
human resource management practices on employee retention.
4.7.1 Results of Pearson's Correlation Analysis
Pearson's correlation analysis was used to establish the direction and strength of the relationships
between human resources management practices (reward practices, training, promotion
opportunities and performance appraisal) and employee retention among employees at Nestlé
Kenya Limited. According to Field (2005) correlation coefficients which are less than 0.35 are
regarded to represent weak or low relationships, 0.36 to 0.67 moderate relationships and 0.68 to
0.90 high or strong relationships. The results are shown in Table 4.9.
Table 4.9: Results of Pearson's Correlation Analysis
Reward Performance Promotional Employee
Training
Practices Appraisal Opportunities Retention
Reward Practices 1 .720** 0.154ns .633** .430**
Performance
.720** 1 .645** .487** .495**
Appraisal
Training 0.154ns .645** 1 .543** .413**
Promotional
.633** .487** .543** 1 .557**
Opportunities
Employee
.430** .495** .413** .557** 1
Retention
Note: ** Correlation is significant at the 0.01 level (2-tailed); ns – Not Significant
H₀₁: Reward practices do not have a significant effect on employee retention
The results of the correlation analysis in Table 4.9 shows that there was a moderate significant
positive relationship between reward practices and retention of employees at Nestlé Kenya
Limited (r = 0.430, p < 0.01). This means that employee retention enhances when employees are
satisfied with their rewards. On the other hand, retention declines when employees are
dissatisfied with their rewards. Consistent with this study, Shrestha and Prajapati (2023) found
that compensation practices had significant positive effect on employee retention among
employees in banks and financial institutions in Nepal. Similarly, Andoh et al. (2024) found that
reward and compensation had significant positive correlation with employee retention among
employees in private universities in Ghana. Kiran, Mubashir, Shaikh, Naseem and Shaikh (2023)
found that compensation was a significant positive predictor of employee retention among
employees in manufacturing sector in Pakistan.
H₀₂: Performance appraisal does not have a significant effect on employee retention
The results of the correlation analysis in Table 4.9 shows that there was a moderate significant
positive relationship between performance appraisal and retention of employees at Nestlé Kenya
Limited (r = 0.495, p < 0.01). This implies that employee retention enhances when employees
are satisfied with performance appraisal. Consistent with this study, Absalom and Kytule (2021)
found that performance appraisal goal setting and feedback had significant positive effect on
employee retention in Mobile Telecommunication Companies in Nairobi County. Similarly,
Hossain and Islam (2023) found that performance appraisal systems had significant positive
effect on employee motivation and retention in private banking industry in Bangladesh.
H₀₃: Training does not have a significant effect on employee retention
The results of the correlation analysis in Table 4.9 shows that training had a moderate significant
positive relationship with retention of employees at Nestlé Kenya Limited (r = 0.413, p < 0.01).
This means that employee retention enhanced when employees were satisfied with training
opportunities. Consistent with this study, Andoh et al. (2024) found that training and
development had significant positive correlation with employee retention among employees in
private universities in Ghana. In contrast, Noranee, Som, Adam, Aziz and Shahruddin (2021)
found that training and development had insignificant effect on employee retention in private
universities in Malaysia.
H₀₄: Promotion opportunities do not have significant effect on employee retention
The results of the correlation analysis in Table 4.9 shows that promotion opportunities had
significant moderate positive relationship with retention of employees at Nestlé Kenya Limited
(r = 0.557, p < 0.01). This means that employee retention enhances when employees are satisfied
with promotion opportunities. On the other hand, dissatisfaction with promotion opportunities
was likely to reduce employee retention. Consistent with this study, Obunga, Were & Muchelule
(2024) found that employee job promotion practices had significant positive effect on employee
retention among Non-Governmental Organizations in Kenya. Similarly, Makena and Mwende
(2020) found that job promotion on employee retention among employees in hotels in Kenya.
Shakya (2024) found that promotions had significant positive effect on employee retention in
Commercial Banks in Nepal. Chukwu (2019) found that intentions to leave declined when
employees were satisfied with promotions and when promotions were timely, regular and
transparent.
4.7.2 Results of Multiple Regression Analysis
Multiple regression analysis was carried out to determine the joint effect of human resource
management practices (reward practices, performance appraisal and training) on employee
retention. Prior to regression analysis, tests were conducted to rule out multicollinearity using
Variance Inflation Factor (VIF). According to Akinwande, Dikko and Samson (2015) VIF above
10 is a sign that multicollinearity exists. For this study, VIF values ranged between 2.606 and
5.285, all below 10, thus ruling out multicollinearity.
Table 4.10: Results of Multiple Regression Analysis determining the effect of Human
Resource Practices on Employee Retention
Model Summary
Model R R² Adjusted R² Std. Error of Estimate
1 0.687a 0.412 0.4055 3.6410
a. Predictors: (Constant), Reward practices, Performance appraisal, Training and Promotion opportunities
The results of the regression model summary in Table 4.10 indicate that human resource
management practices (reward practices, performance appraisal, training and promotion
opportunities) jointly accounted for 41.2% of the variance in employee retention among
employees at Nestlé Kenya Limited (R Square = 0.412). This means that 58.8% of the variance
in employee retention was contributed by other factors not in the study.
Table 4.11: Analysis of variances (ANOVAa)
Model Sum of Squares df Mean Square F Sig.
Regression 25.362 3 8.454 18.269 .000b
Residual 44.465 132 0.337
Total 69.827 135
a. Dependent Variable: Employee Retention
b. Predictors: (Constant), Reward practices, Performance appraisal, Training and Promotion opportunities
The ANOVA results in Table 4.11 show F-statistic of 18.269, p = 0.000 which indicates that the
human resource management practices (reward practices, performance appraisal, training and
promotion opportunities) were significant predictors of employee retention. Thus, the null
hypothesis which stated that human resource management practices (reward practices,
performance appraisal, training and promotion opportunities) jointly do not have significant
effect on employee retention was rejected while the alternative hypothesis which stated that
human resource management practices (reward practices, performance appraisal, training and
promotion opportunities) jointly have significant effect on employee retention was accepted.
Table 4.12: Results of Regression Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model
Std.
B Beta T Sig. VIF
Error
1 (Constant) 0.847 0.391 2.166 0.033
Reward Practices 0.608 0.154 0.634 3.939 0.000 3.160
Performance Appraisal -0.417 0.275 -0.307 -1.514 0.133 5.285
Promotional Opportunities 0.618 .050 0.614 8.325 0.000 3.160
Training 0.581 0.143 0.588 4.065 0.000 2.606
a. Dependent Variable: Employee Retention
The standardized beta coefficients shows that reward practices (β = 0.634, p = 0.000), promotion
opportunities (β = 0.614, p = 0.000) and training (β = 0.588, p = 0.000) were statistically
significant positive predictors of employee retention. This implies that employee retention
enhanced when employees were satisfied with their rewards, training programmes and promotion
opportunities. This is consistent with studies that found that reward practices, promotion
opportunities and training were significant positive predictors of employee retention (Shakya,
2024; Shrestha & Prajapati, 2023; Kiran et al., 2023; Obunga et al., 2024; Makena & Mwende,
2020; Noranee et al., 2021).
On the other hand, the standardized beta coefficients showed that performance appraisal was an
insignificant negative predictor of employee retention among employees at Nestlé Kenya
Limited (β = -0.307, p = 0.133). This implies that performance appraisal does not have
significant effect on employee retention. Contrary to this study, Shravani and Chandra (2024)
found that performance appraisal system, performance-based reward and quality feedback had
significant positive effect on employee retention. Similarly, other research studies found that
performance appraisal positively influenced employee retention (Andoh et al., 2024; Absalom &
Kyule, 2021; Hossain & Islam, 2023; Sabo & Suleiman, 2022).
4.8 Chapter Summary
This chapter presented comprehensive analysis of data collected from 136 Nestlé Kenya Limited
employees, representing an 80% response rate. The pilot test conducted at Kevian Kenya
Limited with 17 employees achieved 88% response rate with overall reliability of α = 0.858.
Demographic analysis revealed diverse representation across gender (62.5% male, 37.5%
female), management levels (50% lower, 37.5% middle, 12.5% top), age groups (76.4% aged 25-
54 years), and educational qualifications (83.1% diploma level or above).
Descriptive statistics found that the overall mean scores for each HRM practices, with mean
scores ranging from 3.47 to 3.88 on a five-point scale. Reliability analysis confirmed excellent
internal consistency for all measurement scales, with Cronbach's alpha coefficients exceeding
0.83. The results of correlation analysis found statistically significant positive relationships
between HRM practices (reward practices, performance appraisal, training and promotional
opportunities) and employee retention. The results of multiple regression analysis found that
reward practices, promotion opportunity and training were significant positive predictors of
employee retention while performance appraisal had insignificant effect on employee retention.