Impact of high rate of employment turnover on productivity and growth of organization: A study on Asda

This dissertation proposal evaluates the impact of high rate of employment turnover on the productivity and growth of Asda. It covers the management or business problem, literature review and research methodology.

Dissertation Proposal
(Impact of high rate of
employment turnover on the
productivity and growth of
organisation)

Contents
INTRODUCTION...........................................................................................................................1
Purpose of research......................................................................................................................1
Research aim................................................................................................................................1
Research Objectives.....................................................................................................................1
The management or business problem.............................................................................................2
Literature review..............................................................................................................................3
The concept of employment turnover in context to organization................................................3
The issues faced by Asda due to high rate of employment turnover within an organization......3
The effective strategies adopted by Asda to decline employee turnover within an organization3
Research methodology.....................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Purpose of research
Employee turnover described as total number of employees who leave or give resign to an
organisation during a given period of time or usually a year (Yadewani and Wijaya, 2021). Due
to this the growth and productivity is also affected. In following research, selected company is
Asda which is a multinational retail organisation of UK. The company was founded in 1949 and
its founders are Sir Noel Stockdale, Peter and Fred Asquith and its headquarters is situated in
Leeds UK. The research covers the management or business problem, literature review and
research methodology.
Research aim
"To evaluate the impact of high rate of employment turnover on the productivity and
growth of organization” A study on Asda
Research Objectives
 To understand the concept of employment turnover in context to organization.
 To analyze the issues faced by Asda due to high rate of employment turnover within an
organization.
 To determine the effective strategies adopted by Asda to decline employee turnover
within an organization.
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The management or business problem
The problem which has been identified in this research is impact of high rate of employment
turnover on the productivity and growth of Asda. Many of the employees of the company leave
the organisation within 1 year due to which growth and productivity of the company is declined.
This becomes critical issue for the management of the company to retain talented employees in
the organisation for their smooth operations as well as achieve their objectives and goals in better
manner (Wang and Zhi, 2021). This makes Asda in order to identified the ways which help
company in resolving these problems in effective manner. The ways which help company to
reduce high rate of employment turnover in the organisation are described below:
Hire the right people- The first thing that the management of Asda need to do is to hire
right candidate for the right job so, he feel comfortable in order to conduct their task in better
manner as well as not feel to leave the organisation in a small period of time (Haque, Fernando
and Caputi, 2019).
Create positive working environment- This refers to an effective ways which is required
by the company to develop in the organisation for reducing high rate of employment turnover in
the organisation (Khandelwal and Shekhawat, 2018). A positive working environment of a
company encouraged employees to stay in the organisation, work effectively as well as help in
improving the growth and productivity.
Offer competitive salary- Every employees need to proper salary from their organisation in
order to perform effectively in the organisation. If they think that the competitive organisation is
offer more salary so, they leave the organisation for them. This makes Asda in order to offer
competitive salary for making their employees influenced to stay in the organisation (Verma and
Kesari, 2020).
Offer flexible working- In today's era many organisation offers flexible working
environment to their employees where employees can effectively schedule their timing hours and
task according to their convenience (Karande and Shyamala, 2019). This will also help Asda in
order to encourage their employees to stay in the organisation as well as help in improving the
productivity and growth of the organisation in better manner.
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Literature review
The concept of employment turnover in context to organization
According to view point of Holliday (2021), employee turnover is describe as the total
number of employees who leave the organisation in a certain period of time. It includes those
candidates who exist voluntarily along with the those employees who are laid or fired off in the
organisation are also known as involuntarily turnover. Voluntarily leave employees leave the
organisation for seeking higher salaries, better benefits, a more optimal work and like balance,
career progress or to escape an toxic or ineffective manager.
As per the view of Roder (2019), employee turnover describes as major concern for all
size of businesses. Employee turnover is describes as loss of talent in the workforce of an
organisation over a certain period of time. It includes any kind of employee departure such as
layoffs, resignations, retirements, terminations, location transfers or even deaths of employee.
Organisations usually calculate their rate of employee turnover when they want to predict its
impact on their customer service, productivity or even their morale.
The issues faced by Asda due to high rate of employment turnover within an organization
In the opinion of Alex (2021), when the employee turnover happens in the organisation,
companies may lose its employee productivity, be forced to recruit new employees, suffer from
lower morale, miss their sales opportunities as well as they have also need to deal with additional
expenses and many more. The issues faced by the Asda due to high rate of employment turnover
within an organisation includes lack of growth opportunity, decreased their productivity,
increases their recruitment costs, lower their company morale, lost sales and many more.
According to Nelson (2021), high rate of employment turnover can impact the business
both emotionally and financially. The issues faced by Asda when their employees leave their
business, it decreases their productivity, increase their cost of recruitment and replacement hiring
and they have to spend more time and money for interviewing, advertising and many more in
order to find better replacement for it. It also affects the growth of organisations in order to
survive in the competitive market in effective manner.
The effective strategies adopted by Asda to decline employee turnover within an organization
` As per the view of Jacobsen (2022), most of the human resource departments faced
intense challenges in order to reduce their employee turnover in the organisation for smooth
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running operations. There are many ways which help company in order to reduce their employee
turnover. The effective strategies adopted by the management of Asda in order to decline their
employee turnover in the organisation includes careful consideration of hiring process, firing
unfitted employees, offering competitive salary and benefits as well as encouraging gratitude and
generosity.
In the view point of Kappel (2017) employee turnover is describes as something
company with workers experiences. The strategies that the management of Asda adopted in order
to reduce their employee turnover are includes hiring the right candidates, offering competitive
pay and benefits, giving praise, showing career path as well as allowing flexible work schedule.
These strategies help company in order to make their employee comfortable and influenced to
work in the organisation for long-term.
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Research methodology
Research Philosophy- It is divided in two categories and that are interpretivism and
positivism (Velte, 2020). The researcher who conducted following research uses positivism
research philosophy in order to collect, analyse and use the quantitative data for the specific
topic. The benefit of using this strategy is that it take less time which help researcher to achieve
required aim of their research topic.
Research Approach- It is also classified in two parts that are deductive and inductive
approach. The researcher of the following research, select deductive research approach as it
helps in analysing the qualitative data of impact of high rate of employment turnover on the
growth and productivity of the organisation (Jansson-Boyd, 2018). The benefit of using this
approach is that it make easier way for understanding and evaluating by gaining data.
Research Strategy- It is usually present in many forms which includes case study,
experiment, survey, ethnography, grounded theory and archival research. In this conducted
research, the researcher used survey research strategy. The benefits of using this strategy is that it
is a cost effective strategy and provide numerical data by collecting data and information from
small and long enterprises (de Haan, 2021).
Research choice- It exist in two types that are qualitative and quantitative (Daniel,
2019). The researcher who conducted following research uses quantitative method as it provide
numerical data which helps in calculating and understanding data in well manner. The benefit of
using this m method is that it deliver accurate and reliable information related to research.
Time Horizon- It is divided in two parts that are longitudinal and cross-sectional. In the
following conducted research, researcher select cross-sectional approach as it make deriving
information valuable and reliable (Gass, Loewen and Plonsky, 2021). The benefit of using this
time horizon is to conduct the research is small time to gain various advantages of it.
Data Collection- It is available in two part which includes primary and secondary. In the
current research, the researcher used both methods of collection in order to gain valuable and
reliable information. The benefit of using these methods as it consist low cost and provide
reliability in order to achieve the research objectives (Shkoler, 2018).
Data Analysis- There are many types of techniques in data analysis which includes
frequency distribution and thematic (Taguchi, 2018). The researcher who conducted current
research used frequency distribution in order to calculate the numerical data effectively. The
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benefit of using this data analysis, it helps in analysing and evaluating the numerical data and
information of the research in easy way.
Sampling- It is also divided in two categories that are non-probability and probability. In
the current research, the researcher select probability method in order to get accurate data and
information (Harari and Lee, 2021). The benefit of using this sampling as it helps in collecting
correct and reliable information and data from massive data.
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CONCLUSION
From the above discussion, it has been concluded that the high rate of employment
turnover of the organisation directly affects its growth and productivity. This creates various
issues for the company in order to operate their business in smooth manner. It is important for
them to find effective strategies to reduce the employee turnover in the organisation which
includes hiring the right people, creating positive working environment as well as offering
competitive salary and flexible working schedule to them.
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REFERENCES
Books and Journals:
Yadewani, D. and Wijaya, R., 2021. The Effect of Compensation and Career Development on
Employee Turnover Intention in the Culinary Sector. ADPEBI International Journal of
Business and Social Science, 1(1), pp.37-44.
Wang, X. and Zhi, J., 2021. A machine learning-based analytical framework for employee
turnover prediction. Journal of Management Analytics, 8(3), pp.351-370.
Haque, A., Fernando, M. and Caputi, P., 2019. The relationship between responsible leadership
and organisational commitment and the mediating effect of employee turnover
intentions: An empirical study with Australian employees. Journal of Business
Ethics, 156(3), pp.759-774.
Khandelwal, A. and Shekhawat, N., 2018. Role of talent retention in reducing employee
turnover. Available at SSRN 3186397.
Verma, B.K. and Kesari, B., 2020. Does the morale impact on employee turnover intention? An
empirical investigation in the Indian steel industry. Global Business Review, 21(6),
pp.1466-1488.
Karande, S. and Shyamala, L., 2019. Prediction of employee turnover using ensemble learning.
In Ambient communications and computer systems (pp. 319-327). Springer, Singapore.
Velte, P., 2020. Institutional ownership, environmental, social, and governance performance and
disclosure–a review on empirical quantitative research. Problems and Perspectives in
Management, 18(3), p.282.
Jansson-Boyd, C.V., 2018. Quantitative research: Its place in consumer psychology.
In Quantitative Research Methods in Consumer Psychology (pp. 1-21). Routledge.
de Haan, E., 2021. What Works in Executive Coaching: Understanding outcomes through
quantitative research and practice-based evidence. Routledge.
Daniel, K.M., 2019. Introduction to Quantitative Research. Understanding Nursing Research:
First South Asia Edition, E-Book: Building an Evidence-Based Practice, p.29.
Gass, S., Loewen, S. and Plonsky, L., 2021. Coming of age: The past, present, and future of
quantitative SLA research. Language Teaching, 54(2), pp.245-258.
Shkoler, O., 2018. Using contemporary quantitative techniques. In Quantitative Research
Methods in Consumer Psychology (pp. 22-58). Routledge.
Taguchi, N., 2018. Description and explanation of pragmatic development: Quantitative,
qualitative, and mixed methods research. System, 75, pp.23-32.
Harari, L. and Lee, C., 2021. Intersectionality in quantitative health disparities research: a
systematic review of challenges and limitations in empirical studies. Social Science &
Medicine, 277, p.113876.
Online:
Holliday, M., 2021, [Online]. Available through :
<https://www.netsuite.com/portal/resource/articles/human-resources/employee-
turnover.shtml?mc24943=v2>
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Roder, N., 2019, [Online]. Available through : <https://www.zenefits.com/workest/what-is-
employee-turnover-and-why-it-matters/>
Alex, 2021, [Online]. Available through : <https://matterapp.com/blog/causes-and-effects-
employee-turnover>
Nelson, N., 2021, [Online]. Available through : <https://www.wolterskluwer.com/en/expert-
insights/identifying-and-addressing-employee-turnover-issues>
Jacobsen, D., 2022, [Online]. Available through :
<https://www.workhuman.com/resources/globoforce-blog/12-surefire-tips-to-reduce-
employee-turnover>
Kappel, M., 2017, [Online]. Available through :
<https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-
turnover/?sh=6c4215d75001>
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