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Increasing competitiveness has influenced the retention of knowledge-based human resources in manufacturing firms for sustainable performance in a changing business environment. This study examined effective work environments, compensation and benefits, and training and development. The study was guided by research questions, hypotheses, and Job-Embeddedness Theory. A cross-sectional research design was used for data collection with a sample size 329 staff. A content validity on the instrument was carried out and reliability was through the use of Cronbach Alpha. The study adopted the linearity and multicollinearity tests to ascertain data accuracy, while correlational analysis was used to test the hypotheses at 0.01 level of significance. Findings revealed that an effective work environment relates to organizational performance (r =.354 (35.4%), n= 322, p>0.05). The second hypothesis shows compensation and benefit relates to organizational performance (r =.577 (57.7%), n= 322, p>0.05). The findings on the third hypothesis reveal that training and development relate to organizational performance (r =.743 (74.3%), n= 322, p>0.05). The study concludes that improved organizational performance significantly depends on HR policies and practices to retain the workforce in a volatile and knowledge-driven environment. The study recommends among other things that management should review the policy framework of the firms to ensure that the work environment appeals to the confidence of the employees and encourages teamwork and collaboration.
Lawrence et al. (Fri,) studied this question.