Impact of Compensation and Rewards and Training and Development on Employee Engagement and Retention in UK Retail Industry

Research Project
(To undertake a systematic analysis of qualitative
information with the aim to analyse the practices of human
resource management (training
& development and compensation &rewards and its impact
on employee engagement and retention)
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Background of the topic and chosen organisation.......................................................................3
Research rational.........................................................................................................................3
Research Aim...............................................................................................................................3
Research Objectives.....................................................................................................................3
Research questions.......................................................................................................................4
Mini outline of the report.............................................................................................................4
LITERATURE REVIEW................................................................................................................5
What is the importance of compensation and rewards and training and development for
employees within an organisation?..............................................................................................5
What are the types of compensation and rewards and training and development offered to
workforce for retaining and developing employees within UK industry?.................................6
What is the impact of compensation and rewards on retention of employees and performance
of business?..................................................................................................................................7
What are the major challenges faced by UK industry while selecting types of rewards and
compensation within the workplace?...........................................................................................8
RESEARCH METHODOLOGY....................................................................................................9
Research design...........................................................................................................................9
Ethical consideration and limitation..........................................................................................11
DATA AND ANALYSIS..............................................................................................................11
CONCLUSION..............................................................................................................................25
RECOMMENDATION.................................................................................................................26
REFERENCES..............................................................................................................................27
APPENDIX....................................................................................................................................29
Timeline chart............................................................................................................................29
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INTRODUCTION
Background of the topic and chosen organisation
Compensation is a form of financial return that is being received by the workforces. To
attract and retain employee in an organisation one of the vital way that can be provided by
human resource department is to offer attractive compensation package. In recent time were
hiring talent and retain them is so crucial for the company and this can be done with the help of
compensation and benefit (Ashton, 2018). Financial and non-financial perks help the organition
to satisfy their employee as well as to boost the morale within them. To conduct the
investigation, the chosen industry is UK retail industry (Yao, Qiu and Wei, 2019).
Research rational
The major reason to conduct the research is to find out the problem which company can
face if they did not understand the importance of compensation and benefit in retaining and
developing employee within an organisation. If employee does not feel satisfy by the financial
reward, they are receiving then this will affect them and they will work with less motivation
(Gope, Elia and Passiante, 2018). Compensation and benefit also helps in enhancing the
performance and productivity of employee. Thus, the current investigation will help in finding
the significant importance of compensation and benefit for organisation and employee retention
and development.
Research Aim
To identify the importance of compensation and rewards and training and development on
employee retention and development within an organisation. A study on UK retail industry
Research Objectives
 To determine the importance of compensation and rewards and training and development
for employees within an organisation.
 To discern the types of compensation and rewards and training and development offered
to workforce for retaining and developing employees within UK industry
 To evaluate the impact of compensation and rewards and training and development on
retention of employees and performance of business
 To identify the challenges faced by UK industry while selecting types of reward and
compensation and training and development within the workplace
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Research questions
1. What is the importance of compensation and rewards and training and development for
employees within an organisation?
2. What are the types of compensation and rewards and training and development offered to
workforce for retaining and developing employees within UK industry?
3. What is the impact of compensation and rewards and training and development on
retention of employees and performance of business?
4. What are the challenges faced by UK industry while selecting types of reward and
compensation and training and development within the workplace?
Mini outline of the report
This report will be covering various chapters like literature review, research methodology,
data analysis, conclusion and recommendation chapters. These chapter are important as it will
aid in completing the investigation in systematic manner.
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LITERATURE REVIEW
What is the importance of compensation and rewards and training and development for
employees within an organisation?
According to (Polnaya, Nirwanto and Triatmanto, 2018), Compensation and reward can
be defined as a salary or compensation such as non-monetary or other monetary rewards
provided by an organization for its employees in return of their best services. Training and
development means enhancing the knowledge and skills of the employee by providing effective
coaching and learning section which will help them to develop them professionally. Rewards and
compensation and training and development is considered as an important aspect of human
resource management because it helps in keeping the employees motivated and inspired for
increasing working efficiency and productivity. It helps in giving rewards to the employees on
the basis of their actions and performance and also enables them to work according to their full
potential. Organisations hire individual persons in order to achieve the desired goals and
objectives and people join organisations to earn money and to achieve higher growth in their
career (Ranucci and Berry, 2021). Recruiting the most talented and competent employees in the
company in order to retain them for a long period of time is the top priority for human resource
department in an organization. For attracting and retaining employees in an organisation, it is
necessary to offer them an effective compensation package that they find difficult to deny as well
as developing them within the organisation. Providing rewards and compensation and training to
employees help in impacting their performance and motivation level which results in increased
productivity and growth in the competitive market. It is therefore, significant for the human
resource department to ensure that the rewards and compensation offered by them are attractive
enough to keep their morale and satisfaction high. This will help the organisation in ensuring that
employees feel important and valued for the work they are performing and their work is
acknowledged (Jørgensen, Anker and Lassen, 2020). Employees generally feels happy and
motivated when they receive a effective coaching session from the company and also makes
them stay for a longer period of time. Happy and motivated employees tends to be more
productive and and efficient as they get attractive rewards and compensation from the company.
A right compensation method includes attractive rewards along with extra bonus for good work
and for increasing job satisfaction of employees. The right program of training and development
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helps in giving a strong sense of satisfaction among employees as they know that they will get
best rewards for their work and efforts. When employees know that will receive a incentive or
bonus, they will be more motivate and inspired to deliver best results or outcomes for achieving
the goals and objectives of the company.
What are the types of compensation and rewards and training and development offered to
workforce for retaining and developing employees within UK industry?
According to (Wendt, 2019), an organisation provides several compensation and rewards
and training and development to their employees so that they work more efficiently and
effectively for achieving the desired goals and objectives. Both of them play an important role
within UK retail industry because it helps in retaining and developing employee’s skills and
knowledge.
There are several types of compensation and rewards that the company offer to retain employees
are defined below:
 Life insurance – One of most important type of rewards that company provide is life
insurance which helps in keeping the life of employees safe and secured. This facility
helps the UK retail industry in employing employees for a long period of time as they
feel protected and safe while working. This helps in protecting he family of the employee
in case of any miss-happening.
 Medical insurance – Medical insurance helps in covering the cost of physician and fees
surgeon, hospital rooms and medicines prescription (Mangan, 2021). This benefit helps
the employees in getting support from the company as they provide financial aid in case
of any disease or accident. The UK retail industry pays a specific amount of money to
cover the expense of employee’s medical care which includes losses from disability,
dismemberment or accident.
 Performance Bonus – Every employees wants to feel appreciated and recognized for the
good work and efforts that they put in achieving the company's objectives in the market.
For improving the performance and productivity of employees, it is important for UK
retail industry to provide exciting rewards and gifts such as salary bonus, promotion, or
appraisal. Rewarding employees for their best performance helps in motivating and
encouraging them to increase productivity and working efficiency.
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