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Dissertation - High Employee Turnover In Singapore

   

Added on  2020-02-24

40 Pages11358 Words347 Views
RUNNING HEAD: DissertationA Study on the Factors affecting Employee retentionwithin the Singapore freight forwarder industry

Dissertation 1Table of ContentsChapter 1 Introduction..........................................................................................................................2Background........................................................................................................................................2Aim of the study................................................................................................................................4Objectives of the study......................................................................................................................4Chapter 2: Literature Review.................................................................................................................5Employee Retention..........................................................................................................................5Freight Forwarder Industry................................................................................................................6Management practices......................................................................................................................7Personality for the job...................................................................................................................8Lack of training and opportunities.....................................................................................................8Lack of supervisory figure..................................................................................................................9Appraisal........................................................................................................................................9Quality of Work environment..........................................................................................................10Atmosphere.................................................................................................................................10Lack of career progression and remuneration.................................................................................11References...........................................................................................................................................29

Dissertation 2Chapter 1 IntroductionBackgroundThe focus of the study is on the freight forwarders in Singapore and how this industry is facing the problem of high employee turnover. The factors which create problem in retaining the employees will be discussed in detail by going through the primary as well as secondary sources. The aims and objectives of the study will be achieved by the end of the study. Freight forwarders are also known as the agents which organises the shipments for theindividuals or the companies for transferring it to the markets or final distribution point. The forwarders have contracts with the multiple carriers which move goods from place to another.It acts as an expert in the network of logistics. They carry goods through different modes of shipping like railways, roadways, airways or any other. Freight forwarding is done for providing efficient and cost effective transfer of goods in a good condition for the individualsor the companies. They handle the negotiations, regulations of customs and use latest advances in the technology to make the processes better (Marder, 2016).Asia is rising as the new economic powerhouse in the world and the organisations from across the world are expanding their businesses in Singapore. Singapore is in the heart of Southeast Asia and it is with the connection to the major shipping lanes which makes it an important logistics hub for the world trade. It is the prime location for major logistics firms. The freight forwarders in Singapore are secure and trusted and are developing because Singapore is developing a trusted supply chain. Singapore is friendly with the import/ export requirements and procedures. The companies have efficiencies in obtaining the permit for thegoods. The country provides a platform to the freight forwarders which simplifies the documentation, saves time and improves the efficiency of the freight forwarders. The freight forwarders receive the trade permits easily and it is a growing industry. Despite having such facilities and qualities, there is a huge problem of employee retention which the industry is facing in Singapore. There may be many reasons behind it. These factors will be discussed in the study to know the real reasons behind the high employee turnover in the freight forwarderindustry of Singapore (Banker, 2015).Employee turnover can be referred to the percentage of workers who leave one organisation and then they are replaced by the other employees. It is very important measure

Dissertation 3to control the budgets of the organisation or industry and to identify the reasons of low talent in the industry. It can also be referred to the rate at which the employers lose its employees. As per the report of Logistics (2014), Singapore is a mature market and here, the businesses need to manage their cost of employment. People are facing the work Visa challenges which is also creating frustration for the employers. The labour requirements in Singapore are strict which have an impact on the cost of labour because the cost of wages for the domestic and local employees increases. The employees get choosy about the requirements and needs like distances of travel, payments, job roles, facilities and more. To gain better salaries and wages,the employees often leave the employers and join another one which has now become a trend in the country (Aguenza & Som, 2012).There are several studies conducted on the employee satisfaction and retention in the industry and it is found that 95% of the human resource leaders admit that when the employees are exhausted physically or mentally, they tend to leave their jobs which are increasing the employee turnover rate. The prolonged stress and frustration in the job contribute a lot to the burnout of employees. As per Garton (2017), employee burnout is a reason why the companies are bearing so much of costs. Not only costs but low productivity, loss of talent and high turnover of employees are some of the evils which affect the overall performance of the organisations and the industry.Some of the challenges which the freight forwarder industry of today is facing includecompetition, volatility of the rates and the most important high turnover of employees. According to Marder (2016), the industry is moving with fast pace and they are facing competition because of which they need to manage their internal costs and management so that they can fight the external challenges in the industry and global market. All the logistics companies are facing the problem of attracting and retaining the right talent. In Singapore, it is becoming the greatest challenge nowadays. The unemployment rate of Singapore is as low as 2.2% but still acquiring n retaining the developed candidates is becoming tough. It is because the labour market of Singapore is tight. 67% of the employees in Singapore are looking to change their roles in coming years. It is obviously because of their dissatisfaction with the current roles and many other reasons like salary hikes, cost of living, promotion, recognition, etc. The logistics or the freight forwarder industry requires certain skills and talents which is not available with everyone. The companies working in this industry are needed to adopt some programs and methods which nurture the employees and help them in creating their interests in their jobs. It will help in keeping the turnover rates to minimum.

Dissertation 4The overall attrition rates in Singapore are growing and this could lead to the overall increasing hiring costs and talent gaps will be created among employees (Hay Group, 2017). The highest turnover in employees is recorded in Food and Beverage industry and then in Freight forwarding industry in Singapore i.e. 19% and 14.7% respectively. As per the survey conducted by Wills Towers Watson 2016 Global Talent Management and rewards, more than65 per cent of the employees of Singapore are struggling to attract and retain right talent. 45% of Asia Pacific employers admitted that hiring has increased over the last few years which show that people are leaving the organisations and joining other ones. The top drivers of attraction are salaries, security in jobs, work environment, and challenging work. It is found that only 4 out of 10 employees in Asia Pacific reason are highly engaged with the employers. This clearly shows that how Freight forwarding industry is facing the problems inretaining the employees. There is a room for improvement which should be adopted by the industry. They could adopt certain measures which could help in retaining the best talents for the organisation. The reasons and factors of the high turnover of employees is discussed in the further study and the recommendations are given through which the industry could sort out the problem and improve its productivity and performance to compete in the global market (Farrow, 2017). Aim of the studyThe main aim of the study is to find out the factors which are leading to the high employee turnover in the freight forwarder industry of Singapore. This will be achieved by conducting questionnaires with employees working in freight forwarder. The aim is also to make recommendations for employee retention for freight forwarder.Objectives of the studyThe objectives of the study are:To review the literature for the purpose of identifying the factors affecting the employee retention in the Singapore Freight forwarder industry.To analyse the factors which contribute to the decision of employees leaving the organisation

Dissertation 5To make recommendations to the freight forwarders for improving the employee retention

Dissertation 6 Chapter 2: Literature ReviewThis chapter will provide a detailed information and data about the factors which are affecting the employee retention in the freight forwarder industry of Singapore. It discuss about various factors like lack of supervisory figure, quality of work salary and benefits, etc. which forces the labour to leave their present job and join the better available opportunity. This literature review has been developed to accomplish the aims and objectives of the paper and to find out the real factors behind the problem.Employee RetentionEmployee Retention can be understood as the ability of the business or the organisation to hold the talent or employees in the organisation and stop them from leaving their jobs. The retention of employees has been a major issue in the recent years in the organisations. There are many reasons behind it (Liang, et al., 2015). The organisations have to put many efforts to encourage employees so that they can be loyal to the organisation and work dedicatedly. Hiring of new employees every now and then involves a lots of cost for the company and is also one of the biggest issue for the sustainability of the company but on the other hand, if the organisation retains the best and valuable employees it is cost effective for the company and also increases its performance because with the experience of the employees, the performance of the company increases. The industries are going through the war of talent in which they have to manage the burnout of employees, their competency and their interest in the organisation to work (Anis, et al., 2011).To this Rono & Kiptum (2017), further adds that the retention of employees is very significant for the development of employees. It helps in achieving the goals and objectives of the organisation and also builds competitive advantage over others in the industry. The employees in the organisation or industry create a culture. If the employees keep on leaving the organisations consistently, the culture will get affected. Also, if the employee turnover is very high it will increase the costs of the business which could ultimately reduce the profits of the organisation.

Dissertation 7Freight Forwarder IndustryIn 2012, the freight forwarder industry of Singapore was ranked as No. 1 amongst the 155 countries across the world as per the Logistics Performance Index 2012. This is because Singapore is at the heart of South East Asia and it is a hub of trade at the global level. It also has good expertise and knowledge in international shipping and transportation. There are more than 7000 companies working in this industry in Singapore which provides employmentto around 180000 people. This number constitute to around 9% of the total workforce in the country. The major companies ruling over the market includes DHL, FedEx, UPS, Nippon Express and Toll Logistics. The industry is the pillar to the economy of Singapore and it accounts a good percentage of GDP of the country which makes it important. As already discussed, the industry is ranked among the top logistics industries of the world, the reasons behind this is World class infrastructure, global connectivity and centre of the shipping lanes (Parvin & Kabir, 2011).Figure 1: Rankings of countries in Logistics Performance IndexSource: Yuling (2014)As per Banker (2015), the freight forwarder industry is changing with the time. The industry operates on the basis of demand and negotiations. Despite enjoying such a good position across the world, the industry is facing the challenge of employee retention. Modern freight forwarding in Singapore is facing a tough challenge of keeping their talent engaged in the business. According to Brown (2014), the employee turnover in Singapore has increased in 2015 than 2014. The economic growth is good but the turnover of employees is increasing

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