Effects of the work environment on agent retention in the life insurance industry in Zambia

Abstract

High turnover among life insurance agents remains a significant challenge in Zambia's insurance industry, affecting service quality, customer relationships, and organizational performance. This study investigated the effect of the work environment on agent retention in the life insurance industry in Zambia. The study was guided by Herzberg’s Two-Factor theory. A descriptive cross-sectional mixed-methods design was adopted, combining quantitative and qualitative approaches. Data were collected from 173 insurance agents using structured questionnaires and from 10 human resource managers through semi-structured interviews. Quantitative data were analyzed using descriptive statistics, correlation analysis, and multiple regression, while qualitative data were analyzed thematically. The findings revealed that work environment has a positive and statistically significant effect on agent retention (β = 0.638, p < 0.001). The adjusted regression model explained 44.3% of the variation in agent retention (Adjusted R² = 0.443), indicating that workplace conditions play an important role in influencing agents' decisions to remain with their organizations. Qualitative findings further showed that supportive supervision, adequate work resources, employee recognition, and a positive organizational culture contribute to higher retention levels. Demographic characteristics such as gender, age, education level, and tenure were not significant predictors of retention. The study concludes that agent retention is largely influenced by organizational factors, particularly the quality of the work environment. Life insurance companies should therefore invest in creating supportive and conducive working conditions to improve agent retention and organizational sustainability.