Effect of Flexible Work Arrangements on Employee Turnover in Commercial Banks in Uasin Gishu County, Kenya

Employee retention in commercial banks in Kenya is a significant issue as annual turnover rates for employees range between 25-30 per cent and cost the banking sector KSh 3.2 billion on recruitment costs, training costs, and lost productivity annually. In the more rural counties like Uasin Gishu other hurdles for commercial banks are seasonal agricultural financing cycles, labour markets that are competitive for the banks, poor work-life balance mechanisms which affect stability and efficiency of the workforce. This paper investigated the impact of flexible work arrangement on employee turnover on commercial banks in Uasin Gishu County. The theory was based on spillover theory. The research was descriptive research using correlational research design derived from positivism research philosophy targeted 1200 employees of 18 licensed commercial banks operating in Uasin Gishu County. Stratified random sampling and Yamane's formula were adopted for selecting sample of 300 respondents. Structured pilot tested questionnaires with 5-point likert scales were used to gather primary data. Validity of results was assured using expert judgement and factor analysis and reliability was established using Cronbach's alpha (0.756). Descriptive and inferential statistics have been used (including correlation and regression analysis). Findings indicated that flexible work arrangements had a significant positive effect on employee retention (v = 0.450, t = 8.345, p < 0.000), with flexible work arrangements accounting for 20.2% variance of employee turnover. The research recommends development of structured flexible work policies, implementation of systematic schedule flexibility options, expansion of remote work facility, development of compressed workweek programs, and to provide reasonable work location autonomy based on operational requirements and organizational capacity. Keywords: Flexible Work Arrangements, Employee Turnover, Commercial Banks, Work-Life Balance, Employee Retention