The Effect of Training and Development on Productivity of Employees in Listed Investment Firms in Kenya

Abstract

The objective of this research was to assess how training and development impact employee productivity in investment companies listed in Kenya. Maslow's Hierarchy of Needs, Hawthorne Effect, and Expectancy Theory were the guiding principles of this study. A literature review was conducted to define the variables of the study. The research was conducted using a descriptive design, and the target population was made up of 72 participants, consisting of 15 human resource managers and 57 human resource staff from the 15 listed investment firms on the Nairobi Stock Exchange. The study utilized the census sampling technique, with all 72 individuals participating. To gather primary data, questionnaires were distributed after being tested for reliability and validity. The data collected was analyzed using descriptive statistics such as standard deviation and means, as well as inferential statistics using the Statistical Package for Social Sciences (SPSS) version 25.0 software. Correlation coefficients were employed to assess the relationship between the variables in the study. The data findings were presented using tables and pie charts to facilitate the interpretation of results and draw conclusions and recommendations. According to the research conducted in Kenya on investment firms, it was discovered that training and development have a substantial and direct impact on employee productivity. The study showed that training and development had a beta coefficient of 0.490 and a p-value of 0.000. The regression model analysis revealed that training and development is a strong predictor of employee productivity. According to the study, training and development has a considerable impact on the performance of employees working in listed investment firms in Kenya, as evidenced by the adjusted R-square value of 0.793. The research suggests that companies should focus on all aspects of training and development as they have a significant and positive impact on employee performance in this sector.