Impact of Employee Retention on Business

Requirement

Prepare a research proposal on "Impact of Employee Retention on Business Performances. A study on Al Tayer Group Dubai, Bloomingdale’s Department Store".

Solution

Introduction

Successful retention of the employees in the organizations is achieved through various techniques. The companies use various human resource policies to keep the employees with the organization and for the longer period. Most of the researchers have realised that having employees within the organization for longer period of time leads to stable environment with the organization. This stability gradually converts into the organizational success. The researchers believe that the employees’ retention for longer period of time within the organization is the indicator of having employee friendly environment with the organization. The retained employee eventually impacts the turnover and financial performance of the organization positively. Moreover, the large number of retained employees leads to conservation of knowledge for longer period that can be propagated to the fresh employees. Such transmission of knowledge reduces the future effort of conducting the business as the past knowledge work as base on which future problems are tackled effectively. 

At Allassignmenthelp.com the students can get the best assignment writing help from experts. Our writers have expertise in providing excellent business management assignment help in all the areas of management. We are also offering management presentations assignment help in all the different parts of the world.

Few of the researches have realised that employee retention is mostly associated with the human resource practices within the organization. The effectiveness of the human resource practices can be understood from the total number of employees that have been retained for longer period. Moreover, if the organization is focused on using high performance work practices, then it is likely that good employees will join the organizations that are likely to stay for longer. The high performance work practices include various factors such as having robust selection and recruitment procedures, and lucrative incentives. Moreover, it includes other factors such as proper performance management system and activities that require all the employees to work together and collaborate with each other and foster team spirit. Such activities are poised to retain most of the employees sighting favourable work environment and this leads to the better organizational performance.
The paper will be developed to study the impact of employee retention on the business performance. The study that will be conducted will try to look at the practical aspect of the research to understand whether the theoretical views are agreed upon by the actual data from the field. To understand the objective, the paper will consider Al Tayer Group Dubai, Bloomingdale’s Department Store for the study. The store will be analysed on the employee retention rate in the past five years and the growth it has achieved since then. Moreover, the paper will also look into interviewing and surveying the people who are associated with the store and can give some practical input to further the research.
Research Aim
The aim of the current research is to understand the impact of employee retention on the business performance through a case study of Al Tayer Group Dubai, Bloomingdale’s Department Store.

Research Objectives

To understand the factors those are critical for the retention of employees within the organization.
To understand the factors those impact the business performance
To understand the relationship between the employee retention and the business performance

Research Questions

What are the critical factors in employee retention?
How the factors related to employee retention impacts the business performance?

Methodology

This paper will focus on primary and secondary method of data collection. The primary data collection method will call for the use of surveys through distributing questionnaires. Secondary sources will be the already compiled data and studies by the other researchers on the similar subject. The secondary sources will be the journals that have been prepared by the researchers in the past. The main focus on the data collection would be from the surveys. The selected journals will be related to employee retention, factors that impact the business performance, management of the employees in the organizations and similar other papers.
The hybrid research method has been decided as the suitable procedure to conduct this research. The hybrid method is the specific combination of qualitative and quantitative method. The reason behind the selection of mixed approach is that, the qualitative data is not sufficient enough to reach the conclusion. Numerical assertion strengthens the final result and conclusion. The paper will try to compare theoretical views given by various researchers to the data that will be generated form the surveys. The combined result is likely to give proper evidence and support to the subject being studied. 
The theoretical part will focus on development of model that will guide the research ahead. The model will state the factors that induce employee retention and the factors that contribute to business performance. The combined model will then be used to develop hypotheses. These hypotheses will then be tested based on the data collected from the surveys.

  • Sampling Method
    There are various sampling method for the purpose of surveying and data collection. However, the researcher of this paper has decided to use convenience sampling method to conduct the research. The reason behind the selection of this method is that convenience sampling method will help the researcher in saving ample time and cost. Moreover, the researcher will not be limited to certain factors and thus can collect data as required by this research. A questionnaire will be distributed to the respondents (company employees) and they will be given enough time to fill and respond to the questions.

  • Sampling Size
    The current sampling size has been limited to 100 for the brevity. However, depending on the responses, the researcher may consider increasing the sample size. The respondents selected for the research are the professionals working in various organizations.  

  • Data Analysis
    The collected data will be analysed using regression and correlation method. These tools will be used to understand the correlation and dependency between these two factors. Data Analysis tool pack from MS Excel will be used for the purpose.

Brief Literature Review

The researchers have identified that the performance of each employees impact the firm in one way or the other (Arthur, 1994). This thought has been common among many academicians. The researches in this field gained momentum after the realization that the retention and the performance of the individual staffs are likely to impact the performance of the organization in an affirmative manner (Bailey, 1993). Moreover, having employee retained in the organization for longer period provides a unique competitive advantage for the organization. The employee retention is induced not only by few factors. There are myriad factors that contribute to the retention of the employees. One of the important factors is the working environment. Researchers suggest that environment in which the employees perform have substantial impact on them. Therefore, having a favourable and suitable environment is imperative for the sustained growth and performance of the employees (Baron, 1986). Healthy and favourable environment also helps in retaining the employees for longer period. Work environment with the organization is composed of various things. Beginning from the behaviour of colleagues to the treatment of a particular employee by the senior manager, all are considered within a healthy environment for the employees. The other factors that have been identified are pay structure, monetary and non-monetary reward.
The policies of Human Resource Department impacts the way people are being handled in the organization. It impacts the each façade of the employee management, be it relationship in psychological terms or others (Boudreau, 1991). Therefore, it is imperative to understand the relationship between the human resource practices that impact the employee turnover prior to understanding the relationship between the employee retention and the business performance. 
According to Bailey (1993), employees are the most underutilised resources in the organization, and the reason is that the employees rarely work with full potential and if the employees are motivated enough to support the organization then it is likely that the organization will save much costs. The same researcher states that the practices of the human resource management has the likely effect on the motivation level of the employees and if there exists a favourable organizational structure within, then motivating the employees becomes comparatively easier (Becker and Huselid, 1992). The likely improvement in the environment can be such that it allows the employees to take responsibilities for their action and complete autonomy on what they do. 
Human Resource Practices impact the skill levels of the employees via acquiring the developing the organization’s human resource. The HRM should focus on standard recruitment and selection procedure that selects qualified candidates those fit into the culture of the organization (Boudreau). Such activities will have substantial impact on the overall employees group and which is eventually impact the organization in positive manner. Moreover, the HRM can provide regular training to the new and old employees to improve their skills continuously. This activity on one hand will increase the skill of the employees and will make them more efficient. On the other hand, it will help them in motivating towards the goal and objectives of the organization.
Some of the research papers have abundantly discussed the way motivation impacts the employee retention, but have rarely discussed the direct correlation between the employee retention and its impact on the performance of the organization. There are various motivational theories that explain the factors that contribute to the motivation of the employees and help the organizations retain the employees. The motivation has been defined as the psychological process that arouses the positive feeling among the people towards any actions or things and pushes them to act enthusiastically. Maslow’s need theory () states that people are motivated due to five factors beginning from physiological process and ends at self-actualization. Maslow has stated that people continuously want something or the other. This quality allows them to get motivated for something or the other based on the desire. The desire of certain things, help the organization to use in the favour of themselves and motivate the employees for the organization’s own good or to retain many of them.  There are also various other motivational theories such as McClelland’s Need Theory, Equity Theory, Expectancy Theory, Vroom’s Original Theory, Porter and Lawler’s Extension. These theories fundamentally stated the factors those contribute to the organizations’ goal to motivate the employees. However, the literatures discussing such elements have rarely shed light on the way the employee retention impacts the business performance. 
The factors that define the performance of the organizational successes are its yearly sales, improved production capacity, increase in the number of loyal customer, growth in the market share, growth in the stock price of the company, and increase in the brand value. The factors that contribute to the employee retention are work environment, motivation, pay-grade, colleagues, and personal factors. The personal factors do not impact the decision to leave the organization as much as it is impacted by the internal factors of the organization. Most of the researches have discussed this relationship, but rare are those journals or researches that discuss the direct correlation between those. This paper has focused on this area of discussion and will try to bring out the logics that contribute to the business performance and to what extent it is related to the employee retention. 
From this study, it can be stated that human resource practices play vital role in the retention of the employees through focusing on important aspects on regular basis. The reviews suggest the factors that contribute to the employee retention. However, there is less evidence of studies that focus on direct correlation between employee retention and business performance. Therefore, the paper will focus on studying the same through various research procedures.

Place Order For A Top Grade Assignment Now

We have some amazing discount offers running for the students

Place Your Order

Resources and Data Collection

The data collection for this research will be focused on surveys and online journals. A questionnaire will be prepared and will be distributed to hundred local organizations through online medium. The surveys will be the source of primary data. The respondents, as stated earlier, will be the employees working in various organizations across industries. The secondary data will be collected from online journals and websites, and sites of various organizations. For instance, employee history will show the attrition rate of the company and the respective growth will give sense into the relation between the both. The primary and secondary data will help in analysing the actual situation of the organization and ascertaining the results as per the research questions.

References

  • Newman, Isadore, and Carolyn R Benz. Qualitative-Quantitative Research Methodology. Carbondale, Ill.: Southern Illinois University Press, 1998. Print.

  • Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

  • Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2010). Business research methods (8th ed.). Mason, HO: Cengage Learning.

  • Arthur, J.B. 1994. Effects of human resource systems on manufacturing performance and turnover Academy of Managerial Journal, 37: 670-687

  • Bailey, T. 1993. Discretionary effort and the organization of work: Employee participation and work reform since Howthorne. Working paper, Columbia University, New York.

  • Baron, R. M., & Kenny, 1986. The moderato-mediator variable distinction is social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51: 1173-1182.

  • Becker, B.E. & Huselid, M.A. 1992. Direct estimates of SD and the implications for utilisation analysis. Journal of Applied Psychology, 77:227-233.

  • Boudreau, J.W. 1991. Utility analysis in human resource management decisions. In M.D. Dunnette & L.M. Hough (Eds.), Handbook of Industrial and organizational psychology (2d ed.), vol. 2:621-745. Palo Alto, CA: Consulting Psychologists Press.

Get Quality Assignment Without Paying Upfront

Hire World's #1 Assignment Help Company

Place Your Order