-75%
Solution
Executive Summary
In this business report, it will provide an in-depth analysis of the employee retention strategies and impact on organisation performance and profitability. In order to achieve this intended focus, this report focuses on the Almarai organisation in Saudi Arabia. The rationale of this report will be informed by the fact that employee retention tops as the major issue affecting the modern organisations success in their business environment. The analysis entail the application of an in-depth research evaluation with the entire area of focus evaluated in terms of the primary and secondary research linked with the objectives and aims of this report.
The findings from the literature review will highlight that the employee retention plays a critical role in both the total and strategic rewards and holistically influencing profitability and performance. The secondary research aligns with the current occurrence in the organisation where there has been an intense issues with retention particularly after the emergence of COVID-19 pandemic. The study findings will indicate that employee retention problem significantly affects the organisation competitiveness and also their productivity. This is with an intention of succeeding in accomplishment of their assigned goals. Additionally, the findings of this report will suggests that high employee retention is as a consequence of lack of reduced employee well-being, ineffective communication, lack of employee voice, lack of employees investment, reward and compensation structure and the selection process adopted.
The importance of carrying out this study will be guided by the fact that there current exist a significant literature gap in section of employees retention, their productivity and performance. Most critically, the view of the employees on the employee retention context has a significant implication on the organisation success in their operations. In particular, in the leadership and management, due to the intense issues with employees retention, this has equally affected how the organisation performs and leverages on competitive advantage in their business sector.
In summarising this business report, it will be evaluated the scope in which the reviewed research work outcomes is applicable amongst the management teams for promoting the employees retention as a best practice. This is while integrating the organisation resources and output which are collaborated.
At the end, in this report recommendations, the existence of the identified aspects in the business environment contribute to increased employee retention will be recommended. A successful management of employee retention has a positive impact on their employee performance positively impacting their overall well-being, work-life balance and job satisfaction. This is particularly instrumental for leadership and management where the work environment has substantially been impacted.
Table of Contents
Task 1.1 Terms of Reference for Project. 5
1.2.1 Employees Turnover Today. 6
1.2.2 Employee Turnover on Organisation Performance and Profitability. 6
1.2.3 Employee retention leadership and management approaches. 7
Task 2.1 Differences of Primary and Secondary Data. 8
Task 2.2 Justifying Research Methods. 9
Task 2.3: Ethical Issues Connected with Project 10
Task 3.1 Costs of options of collection and data analysis. 11
Task 3.2 Evidence of Analysis, Organising and Interpreting Data. 11
People practice strategies to support turnover management strategy. 13
Almarai organisation Employees Turnover Perceptions. 15
Leadership and Management Strategies to mitigate employee turnover for Almarai Organisation. 15
Task 2.3 Findings Presentation. 16
Task 4.1: Project Conclusions. 17
Task 4.3: Reflective Analysis. 19
Appendix 1: Gantt Chart for Plan. 26
Appendix 2: Research Questionnaire. 26
Appendix 3: Stay Interview Questions. 28
Task 1.1 Terms of Reference for Project
1.1 Background
The turnover contribute to negative effects to performance of organisations. In CIPD (2023), this entail the percentage of employees who leave organisation at a stipulated period of time calculated in percentage of entire workforce in a period of 1 year. After COVID-19 pandemic and eventual economic challenges, organisations have largely been impacted by turnover increase. In line with People Management (2023), upto 16.4% of the employees resigned in 2022. This represent a major increase of past 10% in year 2021 with turnover rate representing 23% in year 2020 and 15% in 2020. Taking into account of Saudi Arabia where Almarai has based on their operations, using the Hays 2021 Salary & Employment Report survey highlight approximately 3,500 employers and employees who represent 57% of employees already left their job roles. Also, this report highlighted in Saudi Arabia, turnover is ranked higher more than global average percentages of 56% with employees interested to switch job roles in a timeline of 12 months. Taking into account of Almarai case, having turnover, performance is reduced, increase in need for resourcing new staff, a lot of costs incurred which could be avoided.
- Research Aim
The aim of this study is to evaluate employee retention strategies and impact on organisation performance and profitability. This is achieved through a focus on Almarai organisation where the best strategy of mitigation of employees turnover is identified.
- Research Objectives
- To pursue secondary research on the concept of employees turnover and impact on performance and profitability and best practice in their mitigation
- To conduct primary research in evaluating the need for facilitating employees in different areas to ensure they stay for long in the organisation
- To generate SMART recommendations on employees turnover management to ensure organisations maintain their performance
- Project Methods, Cost and Timeline
This study would focus on the application of qualitative method (semi-structured interviews) and quantitative (survey) in a single case study context. The entire process costs approximately $2,000 as there are costs incurred to translate the study content and also findings, analysis of data and to proof-reading. The entire process would be carried out within a timeline of 5 weeks (see the following figure);
Figure 1: Gantt Chart of the Timeline of Project
1.2 Literature Review
The available literature evaluating the employees turnover evidence that it occur involuntarily with the engaged entities failing to control it directly (Ahmad, 2022; Laulié & Morgeson, 2021; Persolia et al., 2020). However, they identify voluntary turnover as having a major impact on costs incurred in the organisation, profits, dominating markets and employees relations. The turnover concept is further identified by Alternam et al. (2021), Barkhuizen and Gumede (2021); Peltokorpi et al. (2022) and Rubenstein et al. (2020) majorly focus on the downward turnover which represent a strategy used in managing redundancies or representing alternatives to staff termination. A resource-based theory is insufficient in regard to change process contextualisation and voluntary turnover with failure to appropriately identify results obtained in the organisation.
A relevant theoretical concept relevant for this study is Social Exchange Theory. As evidenced in Harden et al. (2019), the basic assumption of the theory is that turnover intentions are appropriately predicted from the evident organisation support and leaders-member exchange process. In line with Hussain et al. (2020), it is clear that by improving entire reactions, exchanges initiate an improvement in sense of being committed in the organisation operations. A high-level commitment lead to improving expectations level while working in the organisation and lowering intention to leave.
1.2.1 Employees Turnover Today
This prevail in an event the employees end up leaving their jobs in a voluntary basis before termination or reassigning of their contracts. According to Akunda et al. (2018), employees turnover contribute to entities allowing competent staff to leave which affect services provision and performance. To support the findings, Azeez (2017) note that through the capacity of retention of best employees, organisations encounter immense issues. The rationale of this is that negative employees turnover affect performance (CIPD, 2022). Put differently, a study by Lee et al. (2018) noted that introduction of the voluntary employees turnover and increased including layoff and termination. In supporting the findings, Rissanen (2017) note that the organisations which encounter voluntary turnover prioritise on appropriate approaches of investing on person-job fit, appropriately managed organisation and valuable job functions. Besides, owing to the existence of other factors which are not linked with the noted factors, it is possible to encounter employees turnover leading to economic and stakeholder challenges. Hence, in Rakhra (2018), the best strategy to implement the employees retention is to start with appreciating the employees retention causative factors and initiate appropriate approaches to guide the management to retain top performing employees. This is evidenced in Ma et al. (2018) as inclusive of staff embeddedness to increase level of employee retention. As evidenced in CIPD (2017), the best practice include best employees resourcing, selection and investing in L&D strategies. Further, this grant a chance for easily implementing organisation strategy.
1.2.2 Employee Turnover on Organisation Performance and Profitability
As evidenced in considered literature, employees turnover have an influence on performance and profitability of organisation. This is supported by Kurdi and Alshurideh (2020) research which highlight with employees retention affecting economic, psychological, affiliation and self-actualisation, they similarly influence profits and productivity of organisations. Having similar insights, management of turnover contribute to acquiring knowledge eliciting positive implication to innovation performance with HRM being a moderating variable of entire relations of knowledge development and innovativeness. From a broad context, Kundu and Lata (2017) evidence existence of supportive working environment with an increased engagement level.
There exist research works which have linked lacking of direct correlation of employees turnover, performance and profitability levels. From a different context, Phillips (2018) evidence that employees turnover has limited impact on performance and profitability of organisation. To support the findings, Papa et al. (2018) note the challenge required to be incurred in influencing the knowledge acquisition having positive relations, innovation and performance. This is however disputed in CIPD (2020) report evidencing the costs incurred including less employees retention, administering resignation process, resourcing and selection incurred costs and induction of newly resourced employees. Stay interviews guide the process to deliberate and decide on the set of issues leading to turnover therefore reduced levels.
1.2.3 Employee retention leadership and management approaches
A set of approaches have been recommended in various research evaluating best strategy of lowering staff turnover. For example, Kumar and Mathimaran (2017) identify appropriate practice pursued by an entity as dependent of their area of practice, reasons leading to turnover occurrence and other external factors. Therefore, in Rombaut and Guerry (2020) recommendation which used Uplift modelling strategy inclusive of compensation and recognition, capacity development and flexible working opportunities. At the time of COVID-19, research in Elsafty and Ragheb (2020) provide a recommendation on need to pursue total reward system. Put differently, Morrell et al. (2018) evidence that entities successfully manage the employees retention informed by capacity for justifying the necessity to model turnover scope as an evidence of predictability and preventative approaches.
For a distinct context, the employee retention is challenging achieving organisations retention owing to the issues which are linked to achievement of organisation resilience. This is supported by Khalid and Nawab (2018) report evaluating Generation X and Y and scope of influence of employees retention. This is noted in Mishra and Mishra (2017) as the Generation Y possessing varying value systems and demands different from past populations. This is however distinct from the report in Almarai (2023) which note on necessity for consistency in change through managing human resources in tandem with entire demands of the employees to achieve their overall expectations. Further, by noting on most appropriate strategy to come up with stay interviews, the report evidenced the process as being achieved through initiating positive results with change successfully implemented. The conclusion developed is similarly supported by Elsafty and Ragheb (2020) which evidence the best practice in managing employees turnover in most organisations and particularly during COVID-19 pandemic as being unique with leadership and management playing an instrumental role.
Task 1.3 Research Question
To achieve this project, the research question to be pursued include;
RQ: What is the role of employees turnover on performance and profitability and best leadership and management mitigation strategy in Almarai?
Therefore, as evidenced in this research, this project findings would entail best leadership and management strategy to be followed in management of turnover. For Almarai organisation case, it is important prioritising on turnover issues to achieve competitiveness in their area of practice. This is at the same time leveraging on competitive advantage and dominating their industry.
As evidenced in literature review section, a gap exist on employees turnover issues leading to impact on stakeholders relations. Reducing the turnover therefore lead to the need to identify the causative factors of turnover prior its occurrence and investing in appropriate metrics necessary to evaluate turnover mitigation approach.
Task 2.1 Differences of Primary and Secondary Data
The use of primary data entail using the first-hand data obtained by a researcher directly. This is different from secondary data which is a form of desk research obtained from the readily existing sources (Cerar et al., 2021; Silevew, 2019).
Considering this research, primary and secondary data was referred to. The rationale of this is that primary data is appropriate as it facilitate use of survey and observations while qualitative primary data being obtained by use of focus groups, interviews and observations. The secondary data is conversely important to source the available literature and apply it to support primary data obtained through the application of interviews and questionnaires.
Additionally, considering this research, through the application of Almarai entity, primary and secondary sources which are qualitative (textual) and quantitative (statistical) were obtained. Additionally, through the application of stay interviews in Almarai, this entail a form of secondary data sourced. Therefore, application of primary and secondary data to analyse turnover scope lead to possibility of managing issues with one strategy by using the strength of the other.
The decision of using either primary or secondary data is dependent on existence and detailed nature of the data. In an event the secondary data is not available/insufficient, sourcing of primary data is identified as essential to answer the research questions. Also, data, whether primary or secondary could either be qualitative (textual) or quantitative (statistical). The quantitative primary data can be sourced by use of surveys or observations, with qualitative primary data being sourced by use of interviews, focus discussions and observations (Silevew, 2019). Taking into account of this research, data is sourced by use of data from qualitative (semi-structured interviews) and quantitative (survey by use of questionnaire) data from the primary sources by use of case study design. The data sourcing is data in a sequential manner from the interviews and later using surveys.
Task 2.2 Justifying Research Methods
In research work, quantitative and qualitative methods are applicable (Younas & Durante, 2023; Natow, 2020). Application of quantitative approaches such as surveys significantly valid in the process of engaging respondents with unambiguous and simplified answers of questions asked to gain confident findings (Miller et al., 2020; Cerar et al., 2021). The qualitative methods which are used entail the interviews, focus groups, observations which grant holistic findings and better explanation (Rezigalla, 2020). As aforementioned, this research aim is evaluating the implication of employees turnover to performance and profitability with best leadership and management mitigation approach for Almarai identified. The relevance of using the primary data is facilitating researcher in using qualitative (interview) and quantitative (surveys) in a specified case for Almarai turnover levels. Further, richness level of challenges are not appropriate in this research as it targets to resolve the problem by getting a solution in an entity therefore constraining the current research to improving richness scope.
In the current research, quantitative research was preference owing to various rationale. To begin with, in line with Fainshmidt et al. (2020), the way quantitative research is implemented offer an appropriate opportunity for pursuing a holistic hypothesis testing. For example, by using the quantitative research, it becomes possible testing implications pf the identified independent variables including performance, motivation, engagement and motivation while dependent variable is employees turnover and retention. Further, in pursuing the research in the area of turnover, statistical data reliability is noticeable characterised by quantitatively in a manner researcher is positioned to leverage on less engagement with different research respondents (Khmil et al., 2019). Additionally, despite of the noted advantages linked with application of quantitative research to evaluate issues of turnover for Almarai case, quantitative research is also characterised with a set of disadvantages. Also, the quantitative data is not holistic in regard to how effective it is. This can be evaluated through prioritising the evident relations of various study variables including turnover impact on performance and profitability of an organisation. Additionally, exit and stay interviews are relevant for evaluating reasons individuals are willing to stay while exit interviews generate in-depth data regarding to best practice for turnover cases management by Almarai.
Hence, in order to source relevant insights pertaining to implication of turnover on entities profitability and performance, quantitative and qualitative research are used. Also, for the research question noted, dependent and independent variables would be evaluated to determine correlation. Through this process, quantitative research would be the most relevant. In line with the information existing on the turnover area of study in organisations, it was applied in development of information and to source secondary data. Also, this was applied to test and pilot interviews to evaluate the relevance of the area of study. The pilot interviews was done after sharing invitation emails for the interviews with most appropriate data obtained.
In order to pursue research focusing on the employees turnover, it was important to identify the entire costs incurred in the research. For example, considering the application of surveys, costs are less since it is implemented online by google sheets contrary to face-to-face paper based questionnaires. For the google sheets used, they reduce overall spent costs and expenses, the amount of time for travelling, and inviting respondents in answering the questions. The paper-based filling of questionnaires surveys use a lot of time which is resolved by inclusion of interviewers.
The process followed to select a research design include comparison of advantages and disadvantages and at the same time trade-offs of selecting a particular design (Younas & Durante, 2023; Natow, 2020). Comparatively, case study design has an advantage to enable researcher for identifying omissions or new hypotheses and variables, examination of intervening variables, constructing historical explanation of various situations, high-level construct validity and using contingent generalisation (Miller et al., 2020). Further, case study design is selected owing to flexible nature offered for allowing application of various research methods (Cerar et al., 2021). The trade-offs in selecting a case study design entail issue with case selection and issues evidenced by selection biasness having immense impact as opposed to pure statistic design (Rezigalla, 2020). Additionally, generalisation of the case studies is contingent on similar conditions between cases and where it is generalised. The primary weakness of using case study is representativeness of findings obtained to general population of target.
An awareness of the different advantages, limitations and trade-offs, it is clear that case study design is the most appropriate for the current research. To begin with, case study design facilitate researcher to use qualitative (interviews) and quantitative (surveys) within a specified context. Also, the richness issues are not relevant in this research since the start is sourcing for a problem solution in an organisation hence limiting the study to one case enhancing richness level. In regard to parsimony, design allows research to identify appropriate research methods less costly. For example, for the surveys, the costs is lower as it was done online through a google enabled platform as opposed to paper-based surveys. Considering the online platforms lower the incurred costs/expenses, time is also lowered inclusive of the time to be used to travel, call for an appointment and entering data from the software programs.
In this research, quantitative research was preferred due to a set of reasons. To start with, as evidenced in Fainshmidt et al. (2020), the manner in which the quantitative research is pursued provide a relevant chance to support an appropriate support a detailed test of hypothesis. For instance, through the application of quantitative research, it is possible to test the impact of the noted independent variables which are motivation, organisation performance, productivity and motivation with the dependent variable being the employees turnover and retention. In line with Khmil et al. (2019), statistical data reliability level is evidenced in the quantitative in a way that the researcher is in a position of leveraging on less engagement with various research respondents. The outcome of this is avoidance of biasness which have a high likelihood of distortion of the obtained research findings. This is different in qualitative research where it entail engaging the investigator playing an active role in the research being a catalyst. As evidenced in Yang et al. (2020), the outcome of this is an increase in bias in research. Further, albeit of the identified advantages associated with use of quantitative research, the quantitative research also has their disadvantages. These entail the implementation of the research in a tightly controlled environment. The outcome of this include richness and detailed nature of the research. Further, the quantitative data is limited in regard to its effectiveness, this would be reviewed by considering the relationship existing among the different study variables such as the impact of turnover on the organisations performance and profitability.
As illustrated in table 1, there are a set of differences of quantitative and qualitative research;
Table 1: Differences of Quantitative and Qualitative Research
Therefore, as shown in table 1, for the purpose of gathering appropriate insights on impact of turnover on organisations performance and productivity, quantitative research has been applied. Further, the identified research question, the dependent variable and independent variables would be investigated for identifying their correlation. By working on this, quantitative research would be appropriately applied.
Task 2.3: Ethical Issues Connected with Project
Please click the following icon to access this assessment in full
