Impacts of Employee Turnover on Retailers' Profitability: A Study on Sainsbury

This report discusses the impacts of employee turnover on the profitability of retailers, with a focus on Sainsbury. It includes a literature review, two appropriate research methods, and a proposition of research instrument.

BUSINESS RESEARCH
METHODS

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
1.1 Research Problem.................................................................................................................1
1.2 Key readings.........................................................................................................................2
1.3 Two appropriate research methods.......................................................................................3
Research Type.............................................................................................................................3
SECTION 2......................................................................................................................................7
2.1 Instrument.............................................................................................................................7
2.2 Conclusions...........................................................................................................................8
SECTION 3......................................................................................................................................8
3.1 Relevance and audience........................................................................................................8
3.2 Communication of research..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................12
Questionnaire............................................................................................................................12
Mind Map..................................................................................................................................13

INTRODUCTION
Business research is a procedure in order to acquire detailed knowledge and information
regarding all the areas as well as utilizing information in order to maximize the sales and profit
margin of the business. In general there are certain types of business research such as surveys,
interviews, ethnographic, case study research as well as quantitative research methods. Their
primary purpose is to gain and collects information in order to help business related decision-
making (Gabriel and Bitsch, 2018). It is generally a systematic procedure of collected data and
set objectives of collecting, recording, interpreting and analysing data for the purpose of solving
managerial issues. This report will also based upon certain issue and hence, the discussion will
be done over the issues as well. Furthermore, the report will also describe literature review,
discussion over two research methods, proposition of research instrument along with final
conclusions.
TOPIC: To identify the impacts of employee turnover business problem over profitability of
retailers- A study on Sainsbury.
SECTION 1
1.1 Research Problem
A research problem is basically a statement about the area of concern, conditions to be
improved, difficulty to eliminate and troubling question that exists within the scholarly literature
that provides meaningful understanding along with deliberate investigation within the research.
Within this report, the research issue is related to the staff turnover which is a great issue and
challenge for the management of Sainsbury to get over it in order to sustain their brand image
within the market space. Staff turnover is a great issue in which the company are continuously
going to lose good employees and even sometimes to competitors. It might be because of any
problem whether it is based upon the company culture, beliefs, values training, managers and so
on (Zhang, Pauwels and Peng, 2019). High voluntary turn over greatly impacts the profitability
aspect of the company and thus the consumer satisfaction as well. Hence, this dissertation will
be based upon the question regarding the issues related to staff turnover and their impact over
the business profitability in Sainsbury.
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Aim
The aim behind conducting the research is related to discuss over the impacts of
employee turnover over profitability aspect of Sainsbury.
Objectives
 To develop an understanding about the concept of employee turnover.
 To identify practices of employee turnover by companies in retail sector.
 To evaluate association among employee turnover and profitability aspect in context of
Sainsbury.
 To recommend effective employee turnover strategies to get maximized profitability.
1.2 Key readings
As per the views of Ying and et.al., (2021) employee turnover states the total number of
employees or workers who leave a company over specific period. It involves those who wants to
voluntarily exit from the company function along with employees who are terminated by the
management. In general there are three major types of turnover within an establishment such as
voluntary turnover, involuntary turnover and total turnover. Goić, Levenier and Montoya, (2021)
states that there are various causes available within the market place due to which high voluntary
turnover takes place such as more amount of money, better benefits, promotion, prospect of
more supportive boss etc. In general, it has been evaluated that most of the turnover is
preventable if any company is willing and will spend on overall compensation, focuses towards
flexibility aspects, open career paths, lookout inefficient team members, etc. After this, they will
take decisive actions when they see higher than average erosion from one department.
On the other hand, it has been identified by the Omoregie and et.al., (2019) that
employee turnover directly affects and impacts the company revenue as well as overall
profitability. When employee turnover happens, companies might lose employees productivity
and also faced force in order to recruit new employees within the establishment. It also makes a
situation in which the management is facing low morale and miss out various sales
opportunities. They have to deal with certain additional expenses that could have been avoided if
they had just held onto the employees in the retail sector first place. The primary impact of high
staff turnover involves decreased level of productivity, enhanced recruitment costs, avoidable
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time spent over training of new recruiters, in retail sector as well as loss of sales of the company.
In general in order to reduce the employee turnover and retain their employees, companies must
follow certain strategies such as adoption of mentorship programs, perks, employee
compensation schemes, effectual communication, proper training and development sessions, etc.
Moreover, with the help of adopting five major practices, the company can retain their
employees such as benchmarking the benefits on regular basis, providing clarity over company
goals, implementing constant performance feedback, investment into the employee learning and
development and give employees the ownership over the personal growth.
Moreover, Dankeieva and et.al., (2021) highlight that staff turnover is highly crucial for
the companies nowadays so that it has been considered that it has an indispensable impact over
the profitability and performance aspect of the company. High turnover rates are the major
reason of decreased level of profitability and impact existing employees as well with additional
workload over them. This impacts their performances as well and thus the effectiveness of the
overall establishment. When one can discuss the success of the establishment, it has been
evaluated that in general there are two main pillars of the company over which they can rely on
completely. The two pillars are retention and employee satisfaction. On the other side, it has also
been identified that solution of the turnover is the enhanced benefits which has been bought by
the company. The key in reducing the turnover intention from the staff are the creation of strong
intra-organizational network.
1.3 Two appropriate research methods
Research Type
Research is the detailed consideration of the overall study which is based upon the
particular topic that has been chosen by the scholar. The topic has been illustrated with the help
of utilizing scientific methods in the most effectual manner. Basically it is a systematic
interrogation which explains, analyse, explain, anticipate and control the observations of the
scholar. Research that has been utilized within the above literature is being used which has been
discussed as Qualitative and Quantitative.
Qualitative research is the method which highly focused towards the collection of data
with the help of open-ended as well as informal ways of communication. It includes the
collection and analysis of non-numerical data in order to understand the thoughts, experiences
and perception regarding the research. It has been highly beneficial in order to collect deep
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understanding and knowledge about the topic and generate new and innovative ideas after
complete and detail analysation of problems regarding the research. It is the type of method
which provides a good start point at the very beginning of the project (James and et.al., 2019). It
is highly significant in order to provide detailed insight which are based upon the observations
of the employees of Sainsbury. Moreover, it also assists in management meetings under which
they are highly able to raise the issues and understand stress free policies to get desired outcome.
In addition to that, the research also add-ons the special focus towards specific group. In order to
complete this task, they have to generate a structure through which one can interact with the
other group members by asking a set of questions with an intention to get final outcome. In
context of gaps which are considered the missing piece or pieces within the literature is the area
that has not been yet explored or is under explored. This is the population of the sample utilized
at the time of doing the research. Sample size limitation is considered as one of the major
limitation of the qualitative research methodology. Moreover, it also includes the biases in the
answers along with self-selection biases as well because the respondents has been selected by
the scholar itself thus have complete possibility that it might occur along with potentially poor
questions also might have originated by the researcher which not fulfil the overall purpose of the
study. In order to analyse the benefits if the qualitative method, it has been identified that it
allows the scholar to develop an understanding of the emotional connection driving buyers'
behaviour. On the other hand, there are few drawbacks as well according which qualitative
method is that it is not statistically representative form of data collection and relies on over the
experience of the scholars.
There are different ways through which qualitative data can be gathered which includes semi-
structured interview, observation etc. The important characteristic of the qualitative approach is
small participant; semi-structure interview questions are raised that helps to meet the defined
aim of the research. With regard to the questions framed, only themes that designed under
research questions has to be asked that helps to determine the main motive and answer the
research questions. For example, as per the set question, it has been identified that managers of
the company are asked regarding employee turnover and ways to manage the same. This in turn
shows that researcher only use theoretical aspect in which non-numeric term has not been used
that helps to create a better outcome (Ali and Anwar, 2021). Thus, once the interview has been
conducted then scholars proceed to the evaluation or analysis of data where themes has designed
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that helps to interpret the key findings so that meaningful information can be derived. This
shows that qualitative data provide a valid outcome and it also generated a better outcome which
in turn helps to improve the results. Through this method type, it has been identified that
researcher determines the views of the selected respondents whereas in other format it is not
possible. Hence, opting qualitative data is time saving and provide actual data by analysing the
views, opinion of the respondents so that effective outcome can be generated which in turn helps
to conduct the study in an authentic manner and effectually.
On the other hand, the quantitative method provides detailed emphasis over objective
methods, measurement and numerical analysis of data that is being collected through polls,
questionnaire as well as surveys. It also involves the manipulation of data utilizing procedural
techniques. Quantitative methods are useful in order to generate an evaluation that it takes less
amount of time to administer than qualitative methodologies. Generally, it has been identified
that collection of data from pre-existing records basically take the form of statistics that were
previously collected for other purposes as well (De Winne and et.al., 2019). Generally, the gaps
within the literature are considered as the missing pieces of the information or knowledge which
resist the scholar to get appropriate and accurate statistics or it can be said that it is the form of
insufficient information which limits down the ability to reach towards a specific conclusion for
any question. In context of identification of advantages among the quantitative research method
it has been evaluated that the data re highly reliable, credible and (useful) than qualitative data.
The study cannot be replicated or repeated because it is unique in each and every manner. Data
within this in the form of numbers and analysed on the basis of statistics. The data also has been
collected in quick and rapid manner. It offers reliable and repeatable information. On the other
hand, there are few disadvantages as well which includes the false focus towards the numbers.
This method provides limited pursuit of making statistical relationships which can lead to
researchers overlooking for broader themes and relationships. With the help of this research
method, it has also been identified that the quantitative methodology provides less detailed
picture as the results are based upon the numerical responses and hence as a result slightly get
less insight into the motivations, thoughts and drivers of the whole group of respondents.
Qualitative data help for the numerical value which is different from one another also it
is including the statistical analysis that is help for mathematical calculations and real life
decision that can be made for mathematical calculations also the chosen method is survey in
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qualitative data with the help of survey because it helps to complete the aim, of the project
which is related to identifying the impact of employee turnover over profitability aspect of
Sainsbury (Verčič, 2021). Survey is important method which is based on different methods by
close ended question in order to use effective method of collecting the quantitative data. In this
process audience are responsible for collecting feedback from audience that is larger than
conventional size. On the other hand the critically side is related to responses can collected in
such manner where data is generalized in regard to entire populations without significant
discrepancies. Also, it can be stated that questionnaire is inexpensive so that scholar can be
affording it without any problem. There are different methods can be adopted by researcher
while surveys such as providing online questionnaire that can be easy to collecting relevant
information without any long period. This is a practical way of gathering the data by targeting to
group such as managers who can provide the information regarding employees turnover in
Sainsbury. Further, it is easy to visualize the data of Sainsbury that including growth of
company as well as other aspect that is necessary for research. With the help of website of the
company scholar can get the relevant information that is necessary for understanding the
qualitative data (Hoe and Mansori, 2018). The journey of Sainsbury is quit good but due to
covid it can be affected and that is why it impacted on employee profitability. Beside this it can
be analysed that is affected in such manner where the size and scope is limited and not possible
to generalize the information.
It has been analysed that both the quantitative and qualitative research method played
important role in order to collect the relevant information. This is depended on the scholar which
method wills be used by them in order to collect the information. Also, it is depended on
situation and aims of the project and it can be possible that scholar has different preference of
choosing the research method but both the method are appropriate according the research of
scholar. Further, quantitative research is based on survey in which questionnaire are made by
scholar to collection of data that is easy method which is used by scholar. It is depended on the
close ended question that is help for time-consuming. The another method can be interview
which is depended on the open-ended question that help for collecting the data on the basis of
small number of candidate. Both the method are played important role for the scholars ins order
to collection of informations and enhancing the knowledge. This is also helps ins future for deep
understanding the topic.
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SECTION 2
2.1 Instrument
Reflection
Within this research in which the topic has been selected i.e. impacts of employee
turnover issue over the profitability aspect of the Sainsbury company requires the collection of
data through primary as well as secondary both mediums. In order to collect the data through
primary method, a questionnaire had been prepared which consist of five general questions
which assist in order to evaluate the view points of the employees of Sainsbury over the
employee turnover and profitability aspect. The respondents were selected through random
selection of sampling method according to which the selected candidates need to answer the
research questions. According to my perspective, I found it as the most appropriate and
convenient way to of gathering information from a huge number of period within a specific
period of time. Thus, the design in which the questionnaire had been prepared plays a significant
role to ensure the accurate collection of data so that the appropriate results are interpretable as
well as generalizable. A bad questionnaire always harms the research along with renders the
whole study in highly drastic manner and hence lead towards the erroneous conclusions.
Basically the survey comes into varied contexts but here I choose internet surveys as it is highly
suitable for my study. I had also created a detailed and illustrative specification of information as
well as instructions in order to adopt the questionnaire.
The questions which have been prepared by me are highly simple and easy to understand
as it will assist the respondents to follow logical order and avoid complex filtering of the
information as well as knowledge. The respondents are more likely to answer truthfully without
taking suggestions from me. As per my opinion, the questionnaire that has been prepared by me
is highly able to construct a conceptual structure as it whole depend upon the employee turnover.
Moreover, I have prepared it on the basis of identification of research aim and objectives along
with fulfilment of overall goal of the research. The question type which had been selected by me
is close ended as each question is given with certain options among which the respondents need
to select any one and do share their view points in unbiased manner. At the time of designing the
questionnaire, there are certain aspects that has been appropriately considered by me are
determination of survey objectives, writing clear questions, design the question flow in a manner
which creates a base which help the members to answer over the specific topic. Thus, in order to
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complete the research survey, I have collected data from 20 respondents that had been selected
through random selection technique. Thus, even at the time of generating questionnaire, the
target respondents have been considered within the mind along with taking into account their
education as well as understanding level towards this specified knowledge over this specific
topic. Moreover, a consent form had been filled by all the respondents which provides a detailed
analysis over their willing participation within the study.
2.2 Conclusions
From the above identification, it has been identified that questionnaire plays a major role
in order to create a value of the research which is based upon the specific topic i.e. employee
turnover and their impacts over the profitability of the Sainsbury. The research problem has been
highly identified within the whole study as the complete task is based upon the identification of
the problem along with getting appropriate solutions in order to get desired outcome so that the
employees of the Sainsbury do not have to face such kind of issues in further terms. Apart from
this, the comparison among two methodologies also assist highly fruitfully in order to get
detailed evaluation of the study.
SECTION 3
3.1 Relevance and audience
In order select the audience for my study, the people which I have selected are the people
who will read my paper. Some of the academic writing such as term paper as well as thesis is
written for an instructor or a committee of professors. Most importantly, the paper is written for
my colleagues within my field along with the other people who study some things that is quite
similar with other studies. The methods that is being used by me are qualitative, primary
secondary, questionnaire, etc.
3.2 Communication of research
In order to get the desired outcome into most effectual manner, the questionnaire has
been prepared which highly able to provide the data through which I can able to evaluate the
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final outcome of the overall study. It is the most popular research method because they offer fast
inexpensive as well as efficient means of collection of large amount of information from ample
sized sample volumes. It highly assists me in effectual enough to measuring subject behaviour,
intentions, preferences, attitudes and opinions (Zhang and et.al., 2020). In order to reduce the
employee turnover, the Sainsbury can get services from specialized consultancy in order to
reduce the employee turnover and thus enhances the profitability as well as performance of the
employees.
CONCLUSION
From the above report, it has been concluded that with the help of evaluating causes and
impacts of the employee turnover over the Sainsbury, the above represented research plays a
major and vital role in order to collect the exact amount of information. The report had been
appropriately able to analyse and fulfil the aim and objectives of the overall study which assist
the study to find appropriate outcome in order to get desired solutions and avoid the problems
faced by the employees. Moreover, the significance of questionnaire method also had been
discussed along with solution i.e. getting professional consultancy services from specialists
enable the firm in future to deal with certain issues appropriately and tries to reduce them
positively.
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REFERENCES
Books and Journals
Ali, B.J. and Anwar, G., 2021. Intellectual capital: A modern model to measure the value
creation in a business. Ali, BJ, & Anwar, G.(2021). Intellectual capital: A modern
model to measure the value creation in a business. International journal of Engineering,
Business and Management, 5(2), pp.31-43.
Dankeieva, O. and et.al., 2021. Application of cognitive modelling for operation improvement of
retail chain management system.
De Winne, S. and et.al., 2019. The impact of employee turnover and turnover volatility on labor
productivity: a flexible non-linear approach. The International Journal of Human
Resource Management, 30(21), pp.3049-3079.
Gabriel, A. and Bitsch, V., 2018. Impacts of succession in family business: A systemic approach
for understanding dynamic effects in horticultural retail companies in
Germany. Journal of Small Business and Enterprise Development.
Goić, M., Levenier, C. and Montoya, R., 2021. Drivers of customer satisfaction in the grocery
retail industry: A longitudinal analysis across store formats. Journal of Retailing and
Consumer Services, 60, p.102505.
Hoe, L.C. and Mansori, S., 2018. The effects of product quality on customer satisfaction and
loyalty: Evidence from Malaysian engineering industry. International Journal of
Industrial Marketing, 3(1), p.20.
James, H. and et.al., 2019. Is customer satisfaction really a catch-all? The discrepancy between
financial performance and survey results. Journal of Managerial Issues, 31(2), pp.137-
116.
Omoregie, O.K. and et.al., 2019. Factors influencing consumer loyalty: evidence from the
Ghanaian retail banking industry. International Journal of Bank Marketing.
Verčič, A.T., 2021. The impact of employee engagement, organisational support and employer
branding on internal communication satisfaction. Public Relations Review, 47(1),
p.102009.
Ying, S. and et.al., 2021. Managing big data in the retail industry of Singapore: Examining the
impact on customer satisfaction and organizational performance. European
Management Journal, 39(3), pp.390-400.
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Zhang, Q. and et.al., 2020. Effects of corporate social responsibility on customer satisfaction and
organizational attractiveness: A signaling perspective. Business ethics: A European
review, 29(1), pp.20-34.
Zhang, S., Pauwels, K. and Peng, C., 2019. The impact of adding online-to-offline service
platform channels on firms' offline and total sales and profits. Journal of Interactive
Marketing, 47, pp.115-128.
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APPENDICES
Questionnaire
1. Do you understand the concept of employee turnover?
 Yes
 No
2. What according to you are the type of employee turnover?
 Functional turnover
 Unavoidable turnover
 Avoidable turnover
 Dysfunctional turnover
3. What according to you a little rate of employee turnover may result into?
 More staffing flexibility
 Bringing new and innovative ideas
 Facilitate change
 Better job matches
4. Does employee turnover affect the profitability of the company?
 Yes
 No
5. How you calculate the turnover costs of the company?
 Very high
 High
 Low
 Very low
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Mind Map
Factors
13
Employee turnover
impacts
over company
profitability
Impacts
1. Loss of valuable information and
knowledge.
2. Loss of morale.
3. Loss of belief into team
competence.
4. Ability to perform better.
Causes
1. Overwhelmed with the amount
of work.
2. lack of recognition.
3. Company culture.
4. Poor relationship with superiors.
5. Lack of flexibility.
6. Remuneration and benefits.
Factors that affects
employee turnover
 Working environment
 Managerial factors
 Pay scale
 Career promotion
 Fringe benefits
 Job expectations
 Influence of colleagues.
Drivers of employee turnover
 Work satisfaction
 External environment
 Co-workers
 Leadership
 Job satisfaction
 Compensation
 Stress level
Strategies to reduce employee
turnover
 Assignment of duties based
over skills.
 Provide clear job expectations.
 Build a sense of community.
 Reward constant growth
 Create two-way
communication
 Prioritize active listening