Influence of Motivation Strategy on Turnover Costs of Manufacturing Companies in Eldoret, Kenya

Abstract

Firms are facing major decisions and challenges as they begin to realize the value of people that make up the organization. The aim of the study was to determine the effects of motivation strategy on company turnover costs. The equity theory and transaction cost theory was adopted by the study. The study adopted correlation research design. Target population was 130 respondents with a sample size of 99 respondents determined by use of Yamane formulae. Questionnaires were used as data collection instruments and data collected was analyzed using descriptive statistics and inferential statistics. From the results the motivation strategy predicts turnover costs in manufacturing companies. From the regression results the R square is .620, thus motivation strategy explained 62% of the variance in turnover costs in manufacturing companies. The motivation strategy (b₁=0.1.068) had significant relationship with turnover costs in manufacturing companies. The motivation strategy influences turnover costs. The management firms should increase the motivation strategies of their employees by adopting both intrinsic and extrinsic motivation practices in order to improve their productivity by reducing their turnover.