Strategic Human Resource Outsourcing Motivators and Their Effect on Outsourced Employee Retention among Oil and Gas Companies in Kenya
DOI:
https://doi.org/10.53819/81018102t3164Abstract
Employee retention among outsourced workers remains a significant organizational challenge, owing to the fact that these employees frequently perform comparable roles to permanent employees while receiving unequal benefits. Such disparities erode perceptions of fairness, job security, and organizational belonging, lowering motivation and increasing turnover intentions, particularly in skill-intensive industries such as oil and gas. In response, this study looked at how strategic motivators affect employee retention in Kenyan oil and gas companies. The study used Resource Dependency Theory and a pragmatist philosophy to guide the research, which used a mixed-methods approach. The study targeted 219 oil and gas firms and drew a sample of 125, collecting responses from 211 Heads of Human Resources and Procurement, resulting in an 84.4% response rate. Semi-structured questionnaires were used to collect quantitative and qualitative data, and their validity and reliability were confirmed via expert review and Cronbach's Alpha. Descriptive statistics, correlation, and multiple regression analyses were used to test hypotheses and determine statistical significance. The independent variables accounted for 52.9% of the increase in employee retention. Strategic human resource motivators had a positive and statistically significant effect on retention (β = 0.207; p = 0.011). Based on these findings, the study recommends that the Ministry of Labor and Social Protection create sector-specific outsourcing frameworks that mandate annual vendor compliance reporting on outsourced employee retention indicators. Policy frameworks should address disparities between permanent and outsourced employees by mandating inclusion in training, career development, remuneration reviews, and welfare initiatives in the oil and gas industry. Firms are also encouraged to improve HR governance by using standardized contracts, risk management systems, and strategic alignment of outsourcing decisions to increase outsourced employee retention. Lastly, organizations should assess which HR functions generate the most value when outsourced to improve employee support and satisfaction.
Keywords: Strategic, Human Resource Outsourcing, Motivators, Outsourced Employee Retention, Oil and Gas Companies
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