Factors influencing employee turnover intentions in tech startup organizations in Kenya

Abstract

Employee turnover has long been a challenge for organizations striving to attract and retain top talent. In newly established start-up environments, particularly within the tech sector, small teams must retain institutional knowledge and minimize recruitment costs to sustain operational continuity. This study investigated the factors influencing employee turnover intentions in tech start-up organizations in Kenya. The research was motivated by a notable rise in employee exits in start-ups, which poses a threat to long-term sustainability and growth. The study was anchored in Social Exchange Theory (SET), which posits that employees evaluate their organizational relationships based on perceived reciprocity and balance between contributions and rewards. The research objectives were to determine the rate of turnover intention, examine the key organizational and individual-level drivers of turnover intention, and explore strategies that could mitigate this trend within the Kenyan tech start-up sector. A descriptive research design was used, and data were collected through structured questionnaires administered to employees across various start-ups in Nairobi County. A total of 52 valid responses were analyzed using descriptive statistics, correlation analysis, and binary logistic regression. The results revealed that 65.4% of respondents had considered leaving their current employer within the past three months. Key predictors of turnover intention included dissatisfaction with compensation and benefits, limited opportunities for career growth, job insecurity, and challenges with work-life balance. Conversely, leadership style and organizational culture, though rated positively, did not significantly predict turnover intention in the regression analysis. Based on the findings, the study recommended that start-up organizations prioritize competitive compensation structures, structured career development opportunities, and flexible work models to support retention. The study also offered theoretical insights by highlighting the importance of adapting SET to account for contextual challenges in start-up environments, such as job insecurity and limited advancement pathways. However, the study was limited by its cross-sectional design, geographical focus on Nairobi, and exclusive reliance on employee self-reports. These constraints suggest the need for longitudinal and multi-stakeholder research to validate and expand on these findings.