Impact of increasing employee turnover on productivity of organisation in context of UK retail industry

This research aims to analyze the impact of increasing employee turnover on productivity of Tesco in the UK retail industry. It discusses the concept of employee turnover, its negative impact on the business operations, and effective strategies to reduce employee turnover. The study is conducted using a descriptive research design and survey research strategy.

Impact of increasing
employee turnover on
productivity of
organisation in context
of UK retail industry.

Table of Contents
.........................................................................................................................................................1
Chapter 1: Introduction ...................................................................................................................1
Organisational background ........................................................................................................1
Problem statement ......................................................................................................................1
Research Aim..............................................................................................................................1
Objectives of research.................................................................................................................1
Rational of the research ..............................................................................................................2
Research questions .....................................................................................................................2
Chapter 2: Literature Review ..........................................................................................................2
To analyse the concept of employee turnover.............................................................................2
To examine the impact of increasing employee turnover on productivity of Tesco...................3
Recommend some effective strategies to reduce employee turnover for Tesco.........................4
Chapter 3: Research methodology ..................................................................................................5
Research philosophy...................................................................................................................5
Research approach......................................................................................................................6
Research design...........................................................................................................................6
Research strategy........................................................................................................................6
Choice.........................................................................................................................................6
Time horizon...............................................................................................................................6
Data collection............................................................................................................................7
Sampling.....................................................................................................................................7
Limitation ...................................................................................................................................7
Ethical issues and consideration .................................................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

Chapter 1: Introduction
Organisational background
Tesco was incorporated by Jack Cohen during 1919. In present time, Tesco is a leading
brand globally. It has expanded it business within more than 12 nations. Respective company is
dealing in different services such as clothing, furniture, financial services, toys, food and other
etc. Tesco has been considered as a community- focused global business (Albuhisi and Abdallah,
2018). But nowadays, it has been identified that respective company is facing an issue of
employees turnover, therefore this research is going to cover the concept of employees turnover.
Along with this it will also discuss that how employees turnover is impacting productivity of
organisation. At last there will a discussion on certain effective strategies so that organisation can
overcome form the issue of employees turnover and become capable to retain more and more
employees within the organisations.
Problem statement
It has been analysed that, nowadays, workers are leaving the organisation because of lack
of different reason that impact the organisational productivity. There are various reason such as,
lack of transparency, insufficient recognition, heavy workload and many more. It has been
created issues for the companies where numerous employees decide to leave their organisations.
It is very significant for the companies to analyse cause of employees turnover & take effective
strategies in order to reduce the employees turnover that will help them in developing business
performance (Arici, 2018). This research will consider effect and strategies to overcome the
issue of employees turnover.
Research Aim
To analyse the phenomena of employee turnover along with it's impact on productivity of
an organisation - A study of Tesco.
Objectives of research
To analyse the concept of employee turnover
To examine the impact of increasing employee turnover on productivity of Tesco
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To recommend some effective strategies to reduce employee turnover for Tesco
Rational of the research
Significance of conducting this research is to understand effect of the employees turnover
and few retention strategies within organisations. Study of the employees turnover help the
organisation in understanding how employee turnover impact the organisational performance and
profitability. By this companies become enable to formulate effective strategies so that they can
overcome form the issue of employees turnover and increase the employee retention. In personal
context, this study will help the researcher about what is exactly the employee turnover and how
it influence business performance. Along with this, investigator become able to find such way
that help in reducing employees turnover. Thus, this research study is beneficial for the
organisation and investigator as well in term of increasing skills and abilities.
Research questions
 What is meant by employees turnover?
 What are impact of increasing employee turnover on productivity of Tesco?
 How organisation can reduce the employee turnover? Provide some effective strategies.
Chapter 2: Literature Review
To analyse the concept of employee turnover
In accordance to Holiday (2022), employee turnover is described as total separations from
the company under some specific circumstances. In case with Tesco, employee turnover
rate is very high as they have large number of employees in their business premises.
Turnover in Tesco is categorised in two types one is voluntary and another is involuntary.
Voluntary turnover is defined as separation of people from the organisation in context to
their own decisions. Whereas involuntary turnover refers to separation of people from the
business firm through termination, suspension and other performance issues. Employees
are the assets for every business as they contribute collectively to achieve organisational
objectives (Choi, 2020). Separation of employees may occur increase in expenditure of
business on filing the vacant job positions. Whereas, according to the Coatney and
Poliak, (2020). Employee turnover also have some negative impacts on the business
operations and activities relating to business environment.
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If voluntary employee turnover becomes high, then it may have direct impact on profitability and
growth of Tesco. The management have to frame strategies and provides more benefits to
employees for stopping this voluntary turnover in their business premises. Tesco is large
multinational Plc operating in various economies, so it requires number of employees to operate.
Involuntary employee turnover may help Tesco to separate the people having bad behaviour and
attitudes in organisation. The human resource management of Tesco can encourage all leavers
for being the part of exit interviews. There are so many causes of employee turnover that can
only be control by management of Tesco.
To examine the impact of increasing employee turnover on productivity of Tesco
In accordance to Alex (2022), increasing employee turnover can impact the productivity
of business negatively. In context to Tesco, there are many employees leaving organisation with
their own wish and different purposes. This increment in rate of voluntary turnover can impact
the business negatively. Increase in employee turnover in Tesco is a negative factor for the
company's operations that impacts the profitability of organisation. Some employees are leaving
due to lack of opportunities for growth in the business premises. As Tesco is leading
multinational corporation that have versatile business and large number of employees so it is not
possible to provide same opportunities to every employee. Some premises of Tesco also have
toxic working culture due to backward geographical areas. So it also leads to increase in
voluntary turnover rate in the company. This cause the company for losing their employee
productivity. Tesco may also have to suffer from decline in sales opportunities in comparison to
previous year. The business also requires to appoint new employees which increase their cost of
recruitment. This additional expenses could have been avoided if management of the company
abled to fulfil the requirements of existing employees. Being overworked and getting underpaid
is also a cause for increase in rate of voluntary turnover of employees in Tesco. The management
have to frame strategical plans to set the compensation and targets of employees to be completed
within a specific time period.
According to the Coetzee and van Dyk, (2018), there are many more causes that
influence voluntary employee turnover in the company like conflicts between superior and
subordinate and lack of credit from management. These all can impact the organisational
structure of Tesco negatively in various ways. The main impact of voluntary employee turnover
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is decreasing productivity of business organisation as the company got lower sales figures and
decreased profitability in the competitive market of United Kingdom. The company can also add
on different department into their business structure to control and manage the turnover of
employees that helps them to diminish the impacts of their causes. The human resource
management of Tesco also frame various strategies to stop this turnover in different
circumstances but there are some uncontrollable factors which care not in their hands. There is a
factor as employee retention that also cause voluntary turnover in the organisation as it describes
that leaving of employees for the reason which have nothing to do with workplace at all. The
management of Tesco have to adopt some strategies that can provides them innovative and better
solution for removing these impacts in their business organisation. Somewhere this can also
impact on brand image of the business as leaving of many employees together may create a
negative thought in the minds of community. Tesco also have reputed brand image in retail
industry, if their employees left collectively then it can create negative impact on their image in
the UK market (Gjerløv-Juel and Guenther, 2019).
Recommend some effective strategies to reduce employee turnover for Tesco
According to Mike Kappel, 2017, Employee turnover has ben considered something which
every business organisation with their employees experiences. When workers leave, then it’s
very costly for the business as it takes time & money when finding and give training any
replacement. That’s why, every business organisation should take some effective strategies in
order to reduce the employee turnover. In context of Tesco, few of these strategies are discussed
below:
 Hire right candidates- organisation should hire such candidates who have strong skills
or ability that can match the organisational open position. Companies should ensure that
employees fit in organisational culture well. For this, companies like Tesco should ensure
that their hired employees are capable to deal with critical employees so that whenever
they face any pressure then they can deal efficiently.
 Offer flexible work schedule- as during pandemic, work from home aha become very
normal. A healthy and flexible work life balance is very significant aspect of the job
satisfaction. Therefore, manager at Tesco should consider its employee's interests and
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skills when assigning work as it will increase the employee’s involvement &
productivity. It motivates employees to stay in organisation.
 Share feedback- when organisation gives feedback to employees then it grow the
workforce. Employee feedbacks in term of surveys & one on one sessions is instrumental
ins haring their expectation, experience and make them feel respected or valued.
Therefore, in order to reduce the employees’ turnover, organisation should express a
gratitude to acknowledge employees' efforts and work as it will increase the employees
retention.
According to the David Luther, 2021, employee’s turnover is biggest issue for the
organisations. Employees turnover also impact the organisational profitability. Therefore, there
are few strategies through which Tesco can reduce the employees’ turnover.
 Rewards & recognise the employees- It is an easy employee turnover reduction strategy
to tackle. Organisation should thanks its employees and noted of the appreciation- either
written or spoken- for the work that employees put regularly can go a long way.
 Develop career paths & other developing opportunities- Major reason due to which,
employee leaves the organisation is lack of the career growth. Therefore companies like
Tesco should encourage the cross functional projects, to identify abilities or skills of eh
existing workers & then connect up skilling to the internal opportunities in internal
recruiting. It will provide opportunities employees to growth themselves and convince the
employees to tick around.
 Be transparent- Organisations should recognize that a better communication with the
workers is key to increase retention. Workers are more invested in an organisation, when
they feel like that they have a voice & a real understanding about what is going on with
their business (Ivana, 2020).
Chapter 3: Research methodology
Research philosophy
It refers to set of the beliefs that are mainly focusing nature of the reality being examined.
In research philosophy, there are primarily two position are considered- positivism. It underpins
the quantitative vs, quantitative debate. In relation to this research, investigator has prefer to use
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positivism research philosophies as it enables control& precision & return verifiable data, which
is black & white in nature.
Research approach
It is referring to approach which the investigator takes, that can largely be represented
either or deductive or inductive. Deductive approach starts with the small & then gets bigger.
Whereas inductive approach is opposite as it start with the broad theory & after it, it focus on
small, more particular details. For this research project, deductive approach has been considered
as most effective because it is associated with the quantitative research.
Research design
It is being prepared by researcher for the motive of developing an understanding &
knowledge effectively. It is very crucial for the individual to examine the environment & comes
to know that how all function could be performing in effective manner (Javed and et. al., 2020).
Design of the research are experiment & descriptive. The investigator has been exploited
descriptive study in order to collect the data & develop the abilities & skills and to work.
Research strategy
In research onion strategy layer refer to how investigator indented to carry out the work
such as what method of the data collection will be exploited. In relation to this research, survey
research strategy has been founded as most effective as it help the research in collecting he
information related to needs, opinions, and behaviour of individuals. Apart from this, it also
enables the investigator to figure out reaction & attitudes, to measure client's satisfaction, for
gauging opinion regarding different issues & to add the credibility in research.
Choice
It includes mainly three methods- mono, mixed & multi mixed. It has been identified that
mono method include using only one research approach when conduct a research. Whereas,
mixed method require use of two and more methods of the research. At last multi-mixed method
involve a wider selection of the methods is exploited. Researcher has conducted this research by
using the mono method as it is only one kind of the methods- quantitative.
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Time horizon
This framework is used by researchers with the purpose to complete their study within
limited time period as it supported for growing the activities (Kang and Busser, 2018). Horizon
of the time schedule mainly include cross sectional & longitudinal that can be exploited in order
to complete the research study. In context of those research, investigator has undertake the cross
section horizon as it is a short time duration research that could be easily complete within less
time. It will aid in developing the skills & abilities of the individual by managing all activities
and functions.
Data collection
It is mainly focus over number of the information that are used when developing an
understanding & managing all the activities & functions effectively. It is an important method in
which investigator decided to gather the data about specific topic & supports to develop an
understanding & skills in effective manner. It has been analysed that there are two types of the
data collection primary & secondary. Primary methods is used when data are collected from the
first handed sources & collection of the data from other already collected sources has been
considered as secondary sources that can be utilised in developing business skills &conduct the
research properly. In current research, investigator have been used the secondary research in
order to conduct the analysis & bring various information which can help in managing all data
clearly & systematically.
Sampling
It is an effective technique or method to receive responds from the other people in relation
to the specific topic that is utilized by researcher for the motive of developing skills & abilities to
work (Perreira, Berta and Herbert, 2018). Sampling methods include the probability & non-
probability techniques that are utilized for the different purpose. In context of current research,
the probability method is used in which researcher will select the sample randomly so that bias-
ness can be avoided and research can be conducted fairly.
Limitation
In this research, there are few limitations, observed by the researchers. Firstly when
conducting respective research, then it consume much time as it is very difficult for the
investigator to select right people for the research and gather accurate information or data from
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them. Along with this, it was very complex for the researcher work to identify most appropriate
sources journal or article to collect reliable secondary sources. Apart from this, to conduct this
research properly, it require a big amount of the money due to which researcher have to face few
difficulties. This all these limitation has created hurdle when conducting a research on “impact of
employee's turnover on retail industry”
Ethical issues and consideration
 Confidentiality- As there is an issue with the privacy of participant's personal
information, therefore, when conducting this research, then investigator has considered
that the output or personal information of respondent is mentioned in such a manner or
way that no one can identify it.
 Risk to the respondent- In this, researchers should be aware that their study does not
harm any individual mentally or physically (Zhang and et. al., 2019). In context of this
research, investigator had taken into account that no one get suffered by this study. In
case any participant gets influenced by the research, then researcher will suspend this
respective research.
 Sampling of participant- It is significant task for the researcher before conducting a
research, in this, investigators is required to justify that why they have chosen a specific
group of respondent to the research purpose & why they have not involve the certain
individuals. . In context of this research, investigator has provide all the information
clearly the participant and inform them that why they are suitable sample for respective
study.
 Accessibility to the relevant information- According to this ethical consider, researcher
should ask only relevant question and avoid the personal question. Therefore when
conducting this research, then investigators has ensured that the entire questions are very
relevant and useful.
Thus, in this research, investigator has strictly followed all the above mentioned consideration so
that research can be completed very fairly and effectively.
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CONCLUSION
From the above report, it has been concluded that there is a relationship between
employees turnover & organisations productivity. This research has identified that in
organisation, situation of the employees turnover arise when, companies may lose the employee
productivity, suffer from lower morale, be forced to recruit the new employees, missed out the
sales opportunities & have to deal with the additional expense which could have been avoided if
they had just held onto the workers in first place. Along with this, respective research has implies
that companies should not aim to fulling eliminate the turnover as it crease high cost, they also
should take step to increase the employees retention. Therefore this report has discussed few
effective strategies that help the organisation to win over the issue of employees turnover
efficiency within retail industry.
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References:
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Albuhisi, A.M. and Abdallah, A.B., 2018. The impact of soft TQM on financial performance:
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Arici, H.E., 2018. Perceived supervisor support and turnover intention: moderating effect of
authentic leadership. Leadership & Organization Development Journal.
Choi, S., 2020. Flexible work arrangements and employee retention: A longitudinal analysis of
the federal workforces. Public Personnel Management, 49(3), pp.470-495.
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Smart Devices, and Sustainable Organizational Performance in Industry 4.0-based
Manufacturing Systems. Journal of Self-Governance & Management Economics, 8(4).
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engagement as a potential mediator. Psychological reports, 121(2), pp.375-392.
Gjerløv-Juel, P. and Guenther, C., 2019. Early employment expansion and long-run survival:
examining employee turnover as a context factor. Journal of Business Venturing, 34(1),
pp.80-102.
Ivana, D., 2020. HumAN rEssOurCE prACTiCEs iN imprOviNg EmplOyEE
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Javed, M. and et. al., 2020. The effects of corporate social responsibility on corporate reputation
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Social Responsibility and Environmental Management, 27(3), pp.1395-1409.
Kang, H.J.A. and Busser, J.A., 2018. Impact of service climate and psychological capital on
employee engagement: The role of organizational hierarchy. International Journal of
Hospitality Management, 75, pp.1-9.
Perreira, T.A., Berta, W. and Herbert, M., 2018. The employee retention triad in health care:
Exploring relationships amongst organisational justice, affective commitment and
turnover intention. Journal of clinical nursing, 27(7-8), pp.e1451-e1461.
Zhang, X. and et. al., 2019. How social media usage affects employees’ job satisfaction and
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Online
Alex. 2022. Causes and Effects of Employee Turnover. [Online]. Available through: <
https://matterapp.com/blog/causes-and-effects-employee-turnover#:~:text=When
%20employee%20turnover%20happens%2C%20companies,employee%20in%20the
%20first%20place.>
Holiday. M. 2022. Causes of Employee Turnover & How to Prevent/Reduce Them. [Online].
Available through: https://www.netsuite.com/portal/resource/articles/human-
resources/employee-turnover-causes.shtml
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Mike. K, 2017, way to reduce employees turnover [Online]. Available through:
<https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/?
sh=2243dc955001>
Luther. D, 2021 Tips to Reduce Employee Turnover and Improve Hiring and Retention [Online].
Available through:
<https://www.netsuite.com/portal/resource/articles/human-resources/reduce-employee-
turnover.shtml>
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