Relationship Between Medical Allowance and Employee Retention at the Teachers Service Commission, Nairobi Kenya

Abstract

This study looked into the effect of medical allowance on employee retention at Kenya's Teachers Service Commission. Research design was a descriptive survey. 350 TSC employees from the finance, audit, human resource management, development, and administration were targeted. A sample of 186 was obtained using the Yamane formula and stratified random sampling method. Questionnaires were employed. Collected quantitative data was analyzed on a computer using the Statistical Package for Social Sciences (SPSS) summarized into frequencies and percentages and presented in the form of tables, figures, and pie charts. Inferential analysis facilitated the identification of the relationship between study variables. The results revealed a beta value of.610, indicating that a unit increase in medical allowance would result in a 60.3% increase in employee retention. Furthermore, the t-statistic was 9.807, and the associated p-value was 0.000, which is less than the p<.05 level of significance. As a result, the null hypothesis is rejected and the alternative is accepted, leading to the conclusion that there is a statistically significant association between medical allowance and staff retention at Kenya's Teachers Service Commission. To enhance employee retention, the study recommends that the commission should consider providing employees with a dedicated allowance for medical expenses which demonstrates the organization's commitment to supporting their health and well-being, which is crucial for fostering loyalty and satisfaction among the workforce. The commission should ensure that the employees have access to adequate healthcare coverage because it helps them to alleviate financial burdens associated with medical expenses, reducing stress and improving overall job satisfaction.