2025, Vol. 7, Issue 1, Part E

author(s)
Laura Mamuli, David Butali and Pamela Nafula Nyongesa

abstract
Savings and Credit Cooperative Organizations (SACCOs) in Kenya are vital to fostering financial inclusion and economic growth by offering affordable financial services. However, the increasingly competitive financial services sector poses significant challenges for SACCOs in attracting, retaining, and engaging top talent. This study explores the potential of adopting innovative Employee Experience Design (EXD) as a transformative human resource (HR) strategy to address these challenges. By leveraging the Purple Ocean Strategy-a hybrid approach that blends traditional competitive practices with innovative differentiation-SACCOs can enhance employee satisfaction, retention, and organizational performance. The study adopted a descriptive research design, analyzing HR practices, EXD adoption, and the application of the Purple Ocean Strategy in 10 selected SACCOs in Nairobi County, Kenya. The findings reveal that most SACCOs rely heavily on traditional HR practices such as manual record-keeping and inconsistent employee appraisals, contributing to disengagement and high turnover rates. While some SACCOs have implemented flexible work arrangements and employee wellness programs, the overall adoption of innovative EXD strategies remains limited. Respondents noted that integrating EXD approaches-such as personalized learning opportunities, digital HR tools, and hybrid work models-has the potential to significantly improve employee morale, productivity, and retention. Moreover, the study demonstrates that SACCOs that combine traditional HR practices with innovative differentiation, as outlined in the Purple Ocean Strategy, report improved employee experience and organizational outcomes. The research concludes by proposing actionable recommendations, including modernizing HR systems, fostering employee-centric cultures, and adopting digital tools to streamline operations. By addressing gaps in current HR practices and embracing innovative EXD strategies, SACCOs can improve their competitiveness, retain top talent, and sustain long-term organizational success. This research contributes to the growing field of HR innovation by providing a framework for SACCOs to navigate the dynamic labor market while enhancing employee satisfaction and organizational performance.