Influence of Automated Compensation and Reward Strategies on Employee Retention in County Government Health Departments in Upper Eastern Kenya

Abstract

This study aimed to determine how automated compensation and reward strategies influence employee retention in County Government Health Departments in Upper Eastern Kenya. Employee retention is a persistent human resource challenge in the health sector, as delays, inaccuracies, and limited transparency in compensation and reward administration can negatively impact employee satisfaction and willingness to remain with an organisation. The research was grounded in Expectancy Theory and adopted a positivist research philosophy. A mixed-methods cross-sectional survey design was implemented. The target population included 2,480 health workers from Meru, Tharaka-Nithi, Marsabit, Samburu, and Isiolo counties. A sample of 344 respondents was selected through a multistage procedure involving proportionate stratification by county and staff cadre, followed by selection within the strata. Data collection utilised structured closed-ended questionnaires and interview schedules, with a pilot test conducted among 34 respondents at Embu County Hospital. Quantitative data were analysed using descriptive statistics, Pearson correlation, and simple linear regression in SPSS, while qualitative interview data were analysed thematically. The regression model indicated that automated compensation and reward strategies had a positive and statistically significant influence on employee retention (β = 0.725, R² = 0.526, F = 365.397, p < 0.001). The study concluded that automated compensation and reward strategies significantly influence employee retention. These findings offer practical evidence for county human resource, treasury, and finance managers to strengthen accurate, timely, transparent, and technology-enabled compensation and reward systems for healthcare employees.