The Influence of strategic human resource management practices on firm performance of insurance firms in Kenya

Abstract

The purpose of this study was to establish the influence of strategic human resource management (SHRM) practices on performance of insurance companies in Kenya. This research used a descriptive cross-sectional survey design approach and structured questionnaires were used for data collection. The researcher targeted all the 55 insurance companies in Nairobi county-Kenya. The overall response rate was 74.5% with the respondents being the HR managers. Multiple regression analysis and correlation analysis (Karl Pearson) were used to analyze data. The finding of the study was; training and development practices and employee relations practices influenced firm performance while compensation and recruitment practices were insignificant to firm performance. The study recommended that; management of insurance companies should put greater emphasis on training and development programs to attain higher performance. Further emphasis health employee-employer relationships as well as implementation of SHRM strategies should continue in the industry. The regulatory body in the insurance sector should encourage human capital growth and empowerment within the industry. However, future studies should comprise of both monetary and non-monetary indicators to measure firm performance as well as conduct this research in other Kenyan industries using different set of SHRM practices.