The Impact of Training on Employee Turnover in the UK Retail Sector: A Case Study of Zara

BUSINESS AND
MANAGEMENT
DISSERTATION

ABSTRACT
From the study below it is identified that providing training to employees is the major
responsibility of company in order to get successful. The major reason underlying this fact is that
training improves the knowledge and working efficiency of employees to a great extent. This is
pertaining to the fact that when employees are given training relating to latest changes then this
motivates employees that company is taking care of development of employees. Hence, the
employees in turn try to work in proper and effective manner and assist them in attaining aim of
business.
From the literature review section, it was found that there are several methods of training
which are helpful in providing training. These methods were instructor led learning, e- learning,
mentoring and many others. Further it was identified that if company employs trained staff then
this assist business in attaining its objectives in proper and effective manner and improve its
business. With the help of research methodology section, it was seen that use of quantitative
research type was useful in getting the views of various respondent relating to training and
development. Further with help of data analysis and discussion it was clear that training is very
important for company to use. In the end some recommendation for improvement were provided
like use of on the job training method, including soft skill training and many others.

TABLE OF CONTENTS
CHAPTER 1.0 - INTRODUCTION................................................................................................4
Background.................................................................................................................................4
Aim and objectives......................................................................................................................5
Significance.................................................................................................................................5
Rationale.....................................................................................................................................5
Structure of dissertation..............................................................................................................6
CHAPTER 2.0 - LITERATURE REVIEW.....................................................................................7
CHAPTER 3.0- RESEARCH METHODOLOGY........................................................................13
CHAPTER 4.0 - DATA ANALYSIS............................................................................................16
CHAPTER 5.0- DISCUSSION.....................................................................................................29
CHAPTER 6.0 - CONCLUSION AND RECOMMENDAITON.................................................32
6.1 Conclusion..........................................................................................................................32
6.2 Recommendation................................................................................................................33
REFERENCES..............................................................................................................................34
APPENDIX....................................................................................................................................37
Questionnaire............................................................................................................................37
List of tables
Table 1: Concept of training and development..............................................................................18
Table 2: latest training methods is used.........................................................................................19
Table 3: Positive role of training...................................................................................................20
Table 4: benefit of using training methods....................................................................................21
Table 5: methods employed by company......................................................................................22
Table 6: best method to train employees.......................................................................................23
Table 7: trained employees are helpful in managing employee tunrover......................................25
Table 8: many benefits are present by using employing and recruiting trained employees..........26
Table 9: major significance of employee engagemnt....................................................................27

Topic- An investigation into the impact of training on employee turnover in the UK retail sector-
a case of Zara”
CHAPTER 1.0 - INTRODUCTION
Background
Training and development is very essential to be used in the corporate business world and
this is essential because of the reason in global business there are many different types of
advancement and continuous changes (Rodriguez and Walters, 2017). Thus, training and
development for employees of organization is very essential to provide them with opportunities
of growth and development. The training is defined as providing of information and knowledge
relating to things in which people are lacking. If company will provide for proper training and
development for the employees, then this will motivate employees to work in company in happy
and satisfied manner.
On the other side retaining of employees is defined as influencing the employees to not
leave company and go to some other company or competitors. The major reason behind this is
that if large number of employees leaves company then this decreases goodwill of company
(Holland and Collins, 2020). The major reason underlying this is the fact that if employee
turnover is high then it implies that company is not providing better services and good working
environment to employees and due to that reason they are leaving company (Employee turnover:
definition, types, causes of employee turnover, 2017).
The current research is based over company Zara which is a large Spanish retailer dealing
in apparel. This company mainly specializes in fashion products like shoes, clothes, different
accessories, beauty products and other related goods and services to consumer. The company
was founded by Rosalia Mera and Amancio Ortega and was founded in year 1974 and was
headquartered in Municipality of Arteixo which is placed in Spain. The current study will outline
importance of training and development in retention of employees within company for a longer
period of time. This retention is essential for company to manage as there are many different
types of advancement taking place in working environment which may affect the working of
company (Abba, 2018). Thus, for this training and development is very essential for company to

use as in fashion industry there are frequently many changes and upgradation which company
need to adapt.
Aim and objectives
Research aim:
“To investigate the importance of training in reducing employee turnover of business
organisation". A case on Zara
Research objectives:
 To identify the role of training in business organization.
 To determine the techniques of training used by company to train their employees.
 To evaluate the significance of trained employees for success and growth of Zara.
Research questions:
 What is the role of training in business organization?
 What are the techniques of training used by company to train their employees?
 What is the significance of trained employees for success and growth of Zara?
Significance
The major significance of this research study is for Zara as this will assist the company in
understanding major reason for providing effective training to employees. In addition to this it
will also assist company in gaining knowledge relating to various techniques of providing
training to employees. Along with this the study is also of significance to other researcher who
are conducting similar research and for competitors of Zara as well. This is due to the fact that
techniques used by Zara can also be applied to other competitors as well.
Rationale
In this highly competitive world there are many different types of changes which are
frequently taking place in external environment of business. The major reason for selection of
topic of importance of training for retention of employees within company I that training is
current issue. This is necessary because of reason that when employees will be acquainted with
different types of training related to latest changes taking place in external environment then they
will be motivated. In addition to this another major reason for selection of topic is that this will
assist the company in improving working capacity of company. In addition to this another major

reason for this topic selection is personal and academic interest of researcher in gaining
knowledge relating to importance of training.
Structure of dissertation Introduction- this is the first chapter of dissertation which deals with introducing topic of
research and aim and objective relating to topic of research. This also includes the reason
for selection of research topic. Literature review- this is the section of dissertation in which various types of articles and
different published articles and other journal and published data relating to research topic
is selected. Research methodology- under this section of dissertation various methods relating to
research are selected with reason for selection as well. This is a section which will list out
all methods used for completion of selection. Data analysis- the data analysis section is the one which deals with analysis of collected
data relating to research topic. Here complete set of data is analysed and evaluated to
draw some meaning from it.
 Conclusion and recommendation- this is the last section of dissertation which includes
drawing conclusion from data evaluated in data analysis section. Here conclusion is
drawn and the recommendation is provided for improvement of work.

CHAPTER 2.0 - LITERATURE REVIEW
2.1 Introduction
This is the chapter which includes the analysis of the secondary sources of information
with the help of the articles, journals and other published data sources relating to the research
topic that is importance of training in retaining the employees within the company. This is the
chapter which will gather the secondary data from the already published source like different
types of books, journals, articles and other published data. In this different view of different
authors and publishers and it is critically reviewed (Noe and Kodwani, 2018). In simple words
the views of various authors relating to the importance of training in the retention of employees
will be criticized and evaluated. This is done in order to gain some detailed information and
knowledge relating to the topic of research.
2.1.1 Role of training in business organization
Memon, Salleh and Baharom (2016) stated that, training is one of the key significant
procedure which is highly significant in better development of key skills of human within
organization. Training is one of the key prominent measure which helps in increasing the skills
and key relevant knowledge of employees in order to carry out specific job. Training is of utmost
priority for organization because it leads to high degree of success and development to company.
It is highly beneficial and fruitful for employees and employers of organization. Highly trained
employees must effectively focus on becoming highly productive and efficient. Training has key
relevant role of improving the one's own capability, capacity, performance and productivity of
the company. Training is useful in acquiring and applying the skills, attitude, ability and
knowledge which is highly required to perform specific job within organization (Nica, 2016).
Memon and et.al. (2020) investigated that, training is useful because it effectively allows
the employees to sharpen the skill set, acquiring of key relevant new skill and knowledge,
increasing productivity, performing better and be effective leaders. The major reason underlying
this statement is that when the employees of the company are provided with the various methods
of training. Thus, with the help of the different types of training methods it will be helpful for the
employees in understanding their weakness and work upon it (The importance of training and
development in the workplace, 2020). This is majorly pertaining to the fact that when the when
the employees will undergo the different types of the training methods then they will realize the
areas in which they are lacking. Thus, this is the major role and importance of training and

development as this will assist the employees in addressing the issues they are facing and to
improve it with help of the various methods of training.
On the contradictory side Hoffman and Burks (2017) argues that the major role of
training within the company is to increase the goodwill or the reputation of the company. The
major motive behind this is that when the company is using all the latest methods and techniques
of providing training to the employees then this will create a good image of the company. In
addition to this it will also create a good image of the company among the consumers as they
will like the fact that the company is taking care of the employees by providing them
acquaintance with the latest trends going on in the business environment. Moreover, this will
build and increase the trust and loyalty of the employees towards the company. The major reason
underlying this fact was that when company will take care of the employee and their personal
and professional development then this will increase the morale of the employees.
Furthermore, in addition to this Ismail (2016) criticized that major role or importance of
training and development within company is increase in innovation and creativity level of
employees. The reason stating this is that when employees will be having more knowledge of
latest techniques and trends going on in the external environment then this will help them in
thinking innovatively. Thus, this will result into better working and increase in their efficiency of
the employees. With the assistance of the latest technology and the latest trend the employees
will be able to think in more innovative and better manner and this will enhance the working
capacity of the employees and will develop more new and innovative ideas and will assist in
more improved working.
On the other side Islam and et.al. (2018) defends that the major role of the effective
training and development is the reduction in the employee turnover. The employee turnover is
the situation wherein the employees of the company leaves the organization and goes in other
companies or the competitors. This situation arises when the employees of the company are not
satisfied with the working and the operations of the company (Tulangow, Saerang, and
Rumokoy, 2018). Thus, if the training and development within the company will be good and
effective then the employees will be more attracted towards working in the company. Hence, as a
result of this the trust and interest of the employees increases towards the company.
2.1.2 Various techniques of training to be used by company in order to provide information to
employees and retain them.