The Impact of Employee Turnover on Organisational Performance: A Case Study on Tesco

This research proposal aims to analyse the impact of employee turnover on organisational performance with the special reference to Tesco. The study examines the reasons for employee turnover, its impact on organisational performance, and proposes a quantitative research methodology.

Personal and
Professional
Development Plan
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Table of Contents
TITLE: “The impact of employee turnover on organisational performance”. A case study on
Tesco................................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Aims and objectives...............................................................................................................3
Literature review....................................................................................................................4
Proposed methodology...........................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES:...............................................................................................................................7
Online:....................................................................................................................................7
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TITLE: “The impact of employee turnover on organisational performance”.
A case study on Tesco
INTRODUCTION
In the current business environment, it is identified that employees' turnover ratio is
increasing in companies (Rubens and et.al., 2018). This is not a good sign for organisational
success and growth. Employees' turnover ratio is refers to a rate in which organisation is
measuring the number of employees who leave the organisation in specified time period. It is
crucial for companies to identify the reason behind increasing of employees' turnover ratio so
that they are able to take correct actions for combating the problem of employees' turnover ratio.
This is necessary to understand that employee turnover ratio is providing a great impact on
organisational performance. When employee is seeing the other employees leave the workplaces
then it provides a great impact on their work as they get influence and it may be results in
leaving the workplaces (Ragan, 2018). This is the reason that this research proposal aims to
analyse the impact of employee turnover on organisational performance with the special
reference to Tesco. Tesco is found to be the British multinational organisation that runs their
business in all over the world. Tesco is found to be one of the most valuable brands in UK and
also the fifteenth most valuable brands in retail brand worldwide (Tesco PLC - Statistics and
Facts, 2021). They have a consistent 25% market share and that’s why it classed in one of the
four big supermarkets along with Morrisons, Sainsbury’s, and Asda. They are operating in
supermarket groceries and also other many consumer products and services. They have a wide
range of products and services for offering to customers.
Aims and objectives
Aims: “To analyse the impact of employee turnover on organisational performance.”
Objectives:
 To understand the concept of employee turnover.
 To examine the reasons of employee turnover in organisation.
 To analyse the impact of employee turnover on organisational performance.
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Literature review
To understand the concept of employee turnover
According to NISHONOVA, 2020, employee turnover is refers to a process in which
company is measuring the number of employees who are leaving the organisation. In today's
business environment, it is found that employee turnover ratio is found to be the business
challenges or issues as it is not good for the image of an organisation. There are two types of
employees’ turnover found in the organisation that is considered as voluntary turnover and
involuntary turnover. Voluntary turnover is referring to the state where employees are choosing
to leave the organisation by retiring or resigning. Involuntary turnover is the one in which
employer chooses to terminate an employee permanently because of many reasons such as poor
performance, toxic behaviour, and other reasons.
To examine the reasons of employee turnover in organisation
According to Drude, Maheu and Hilty, 2019, it is important to note that organisation
should focus on identifying and analysing the reasons of employees' turnover so that they can
take right or corrective course of actions. It is identified that increasing in employees' turnover
ratio is not a good sign for the company's image. This is the reason that company needs to
understand the reason that why their employees are leaving their workplaces. There are some
important reasons found by organisations are lack of progression and growth, being overworked,
invest in employees, reward and compensation of employees, lack of recognition and feedback,
excess of politics, bade managers, etc. These are the main causes that become the reason of
employees' turnover. It is very important for an organisation to take right actions as it is not only
impact on organisation's reputation and image but also provided a negative impact on
organisational performance. For that purpose, company needs to analyse the situation first and
then they find the reasons of why their employees are leaving organisation. In order to overcome
with this issues or challenge, company should provide the best experiences to their employees'
by satisfying the needs and wants of employees. In addition to this, they also need to take
employees' feedback on a daily, weekly basis, etc. so that they are able to know the requirements
of employees.
To analyse the impact of employee turnover on organisational performance
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According to Quinn, 2019, it is found by companies that there is a direct or indirect
impact of employees' turnover on organisational performance. It is identified that employees'
turnover provide an impact on both organisations' and employees' performance. Employee's
turnover influences the productivity as well as performances of employees. The performances of
employees may be get decline due to the impact of employee turnover as they are involving in
the thought that why other people are leaving their organisation. They may be creating wrong
assumptions about organisations. Due to this, it is identified that employees' productivity and
performances are declining. So if employees' are not satisfied with the organisation then their
performances are affected which results in declining of organisational performance. Organisation
is run by people so that's why if the employees' performance decreases then it will ultimately
provide an impact on the performances of organisation.
According to Employee Turnover and Firm Performance: Large-Sample Archival
Evidence, 2021, employee turnover is found to be the significance cost for organisation and also
for human capital metric but it is identified that forms are generally not disclose this measure. It
is identified that employees turnover is informative for the future form performance. This type of
information is extracted from employees’ online profiles. It is also found that turnover is
provided a negative impact on the future financial performance which includes assets and sales
growth. For small firms, it is identified that there is a negative association between future
performance and employee turnover. It also provided a negative impact for young firms and also
for those forms which have a low labour intensity.
Proposed methodology
In order to do this research, the researcher will be used quantitative research
methodology. It is found that there are generally two types are used for conducting research that
is qualitative and quantitative. It is very important for the researcher to use the methodology
which is not only interpreting the research in an effective way but also the readers are able to
evaluate the reliability and validity of the research study (Earley, 2020). This is the reason that a
researcher will be use quantitative methodology. For the purpose of collection of data related to
the employees’ turnover, the researcher will be use online profiles of employees. The data
goining to be in quantitative terms as anybody can understand the data easily.
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CONCLUSION
It can be concluded from the above research report that employee turnover is an
important concept as well as it becomes a challenge for the organisation. It is analysed that
employees' turnover is increasing in organisation and that's why company needs to understand
the reason of employees' turnover ratio. In addition to this, with the help of literature review, it is
found that employees' turnover has two categories that are voluntary and involuntary turnover. It
is also analysed the impact on organisational performance.
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REFERENCES:
Books and Journals
Drude, K. P., Maheu, M. and Hilty, D. M., 2019. Continuing professional development:
Reflections on a lifelong learning process. Psychiatric Clinics, 42(3), pp.447-461.
Earley, P., 2020. Surviving, thriving and reviving in leadership: The personal and professional
development needs of educational leaders. Management in Education, 34(3), pp.117-
121.
NISHONOVA, K., 2020. Importance of personal and professional development. YOUNG
SCIENTISTS, p.15.
Quinn, E., 2019. STEPS: Building a Personal and Professional Development Program for On-
Campus College Student Employees.
Ragan, D. D., 2018. A Structured Course for Personal and Professional Development. Honors in
Practice, 14, pp.43-57.
Rubens, A., and et.al., 2018. Self-awareness and leadership: Developing an individual strategic
professional development plan in an MBA leadership course. The International Journal
of Management Education, 16(1), pp.1-13.
Online:
Tesco PLC - Statistics and Facts, 2021. [Online] Available through:
<https://www.statista.com/topics/3807/tesco-plc/>
Employee Turnover and Firm Performance: Large-Sample Archival Evidence, 2021. [Online]
Available through: <https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2021.4199>
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