-67%
Solution
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
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