Impact of Employee Turnover on Company Productivity: A Study on Tesco

This research study aims to analyze the impact of employee turnover on the productivity of Tesco. It identifies the issues of employee turnover on the performance of the company in a competitive environment and recommends strategies to reduce its impact. The study uses qualitative research methodology with an interpretivism philosophy.

Research Proposal

Table of Contents
TITLE..............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Aims.............................................................................................................................................3
Objectives....................................................................................................................................3
Research questions.......................................................................................................................3
Rationale......................................................................................................................................4
Significance.................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................8
REFERENCES................................................................................................................................1

TITLE
To analyze the impact of employee turnover as business issue on the productivity of the
company. A study on Tesco.
INTRODUCTION
Background
Tesco PLC is one of the biggest multinational groceries and general merchandise retailer
headquartered in England. It is started by 1919 by Jack Cohen who opened grocery stores in
1931 in London (Aiello, Schifanella and Del Prete, 2020). There are more than 8000 in the
world and UK's largest supermarket chain with large numbers of product chains that focus
mores on quality over quantity. There are large numbers of product sale by Tesco in order to
provide them in stores as well as online.
It deals with furniture, clothing, accessories, footwear, electronics, fruits and vegetables
etc. Competition of the company are ASDA, Aldi, Walmart and Sainsbury. The unique selling
point of Tesco is to provide wide variety of products with high quality as well as it hold the
strong USP every little helps. Further, company suing the best strategy which help for providing
the aggressive expansion into overseas grocery markets (Budiman and Alajmi, 2020).
Aims
To identify issues of employee turnover on the performance of company in competitive
environment.
Objectives
 To understand the concept of employee turnover as business issues.
 To analyze the relation of employee turnover and company productivity.
 To identify various strategies used by Tesco in order to deal with business challenges.
 To recommend the best solution to company in order to reduce the impact of issues faced
by them.
Research questions
 What do you understand by the concept of employee turnover as business issues?
 What is the relation of employee turnover and company productivity?
 What are the various strategies used by Tesco in order to deal with business challenges?

Rationale
The rationale behind choosing this topic in order to analyse the concept of employee
turnover as business issues also it helps to deep understanding in better way. Also, with the help
of study it will help other scholars in order to find out the relation of employee turnover and
productivity of organization. Further, with the help of research it helps to find out the different
strategies used by Tesco in order to deal with business challenges. All the strategies can bes used
by company in regard to solve business issues also it will help to improve productivity of
organisation (Guo and Wang, 2019).
Significance
The significance of the present research is to promote scientific and inductive thinking
which are help for development of knowledge ion order to promote logical habits of the
company. Also, in the role of different types of field this study will help on the basis of modern
times. This is open up to different opinion and new ideas in order to build discerning and
analytical skills. Further, with the help of study scholar will increase their knowledge and
understanding related to topic in order to more focus on committed with learning. Also, research
will help other scholar or professor who are in the same field for enhance their knowledge.
LITERATURE REVIEW
Theme 1: To understand the concept of employee turnover as business issues.
According to De Winne and et.al., (2019) employee turnover refers to number of workers
who have left the organization in certain period of time. Along with this, it includes people who
leave the company voluntary as well as employees who left involuntary. Moreover, turnover is
defining as separation of workers from the company and it is for longer duration. Author has
also stated that it can be of two type such as voluntary and non-voluntary in nature where
workers are terminated. It impacts the validity of the company to achieve the set objectives and
reduce the brand name in the competitive market area. As per the view of Chiat and Panatik,
(2019) it has explained that turnover rate defines the ability of the business to keep their
employees satisfied. Although high rate of employees is leaving industries like accounting due
to pressure of working. However, it is an issue for the company because training cost is
increased, moral of the worker are poor and all this leads to reduction in the profit.
According to society of human resource HR managers should lead emphasizes on
turnover rate because replacing worker can be very expensive for the company. The cost of

replacement include training and lost production as well as salary. Along with this, there is
pressure on old employees because it has to fulfill the responsibility of vacant position, train new
workers and deal with the depressed work culture. Thus, company with low retention rate are
less competitive due to that organization is not able to produce less stable workforce.
Furthermore, turnover is difficult for company to control as main reason for employee
leaving the organization is workplace culture or their relation with their other peers. A company
with high turnover rate face challenges like poor brand image which is hard to manage as
employees leave the organization at tough position to compete. However, it decreases the
productivity of the company as the rates go down and due to that company is not able to achieve
the short goal if there are issues faced by employees. Although workers are the key source of the
business and one of the greatest reason that contributes in growth of firm.
Moreover, Stamolampros and et.al., (2019) has stated that if employee turnover is high firm
has to spend more money on recruitment process instead of focusing on efforts and increase in
employee productivity. Thus, it can be concluded that employer turnover is one of the biggest
issue for the business as it damages the performance of the company. Some of the reason that
promotes employee turnover is toxic workplace culture as most of the workers wants job
satisfaction and feel comfortable in the current workplace culture. Another reason is overworked
at low salary so most of the employees feel burnout and due to that worker leave organization.
So it is important for HR team to allow worker some time to enjoy and appreciate their work as it
will motivate them to stay in company.
Theme 2: To analyze the relation of employee turnover and company productivity.
According to Rasheed and et.al., (2020) employee turnover is closely related to company
productivity as workers are the key resource of business. Along with this, turnover can increase
recruitment cost which will lead in enhancing the expenses of business. Such for employee there
is need of training program so that new employees can learn the work, paying them high salaries
in order to attract them. Thus, employer turnover cost is huge so it should be avoided for saving
the extra expenses. In addition to this, it reduces the moral of the company as it is one of the
biggest issues face by business. When employee leave the organization it is necessary to keep the
rest of the workers motivated so that it cannot be spread and lead to additional employee
turnover. Thus, in order to keep them motivated company has to give them monetary and non-
monetary benefits. Another reason is business will lose the sales if employee turnover rate is

high it will be hard for the organization to achieve their goals. It can be seen that productivity
will be decrease and company will lose the revenue that could have been gain if workers are
efficient. Moreover, employees leave organization because of their personal reason that may
lead to the employee finding job somewhere. It becomes problem within a business as it cannot
force to stay with the company.
In addition to this, lack of growth and progression is one of the main factors affecting
turnover as nowadays workers want more opportunity for development and they are the most
important factors for career satisfaction. Thus, small and big firms have to give their workers
career development opportunities like conferences, mentorship programs as well as cross training
program. One of the best way to support employee learning is for manger to discuss the growth
plan.
Similarly, Oruh and et.al., (2020) has said that turnover negatively affects performance of
the company because of loss of company memory as well as knowledge, abilities and skills that
workers has developed due to training. It also creates negative environment in the workplace as
trust of the employees get reduce from the company. As stable job tenure and high quality
professional networks create positive impact on their performance. Moreover, it is one of the
most common problem that human resources department has to deal with it as they spend a large
amount of resource trying to mitigate the issues as it has negative impact on the productivity of
company.
Nguyen and Springer, (2021) has argued that there is some of the benefits organization
can achieve is by replacing of low performing workers acts as source of motivation so that
workers can improve their output. Another way is by recruiting new work as source of
innovation in order to enhance the performance level of company. It has argued that low to
moderate level of employee turnover are beneficial for the organization as it can create new
ideas, innovation and creativity.
Theme 3: To identify various strategies used by Tesco in order to deal with business
challenges.
According to Lin and Huang, (2020) organization in order to deal with the challenges have
to build and retain an efficient resource pool. Although the success of the resource is decided
on the basis of use of usage of resources. It can have been seen that employee’s expectation goes
beyond salary and it prefer good working environment which provides them opportunity to grow

their career. Thus, company has to make ensure that they facilitate an employee centric culture
so that long term objective can be achieved. Zhao and et.al., (2018) has define some of the
tactics to deal with the challenges such as hire the right resources a hiring right employee will
contribute in the success of company. Identifying the skill gap will help HR manager to recruit
talented workers that improve the performance of company. However, efficient capacity
planning is one of the best solution as it provides foresight of skill gap and enable company to
take the right steps in order to mitigate shortages and efficient resources. Thus, last minute hiring
should be not used and quality resources pool to be maintained in order to avoid future project
issues. Moreover, if managers allocate task to resource which do not align with skill of
employees then it will feel disengage and the productivity will be reduces. If the resources are
not designed properly then employees may feel more frustrated and delay in delivery. Thus, in
case of high turnover allocating the right resources according to right job will lead to client
satisfaction. However, for successful resource allocation across the company will make the
worker feel more motivated to work. Another strategy that can be used by company is to
minimize bench time so that it can work more freely and enjoy their task. Increase in bench time
will create issue like lesser ROI as the resources are not generating any profit for the company.
Thus, effective bench management and reduce unplanned attrition and managers can employ
appropriate resource management tool that will contribute in predicting resource. It also
contributes in identifying resource vacancy before it ended up on bench as well as advance
planning will contribute in allocating the work and achieving the aim.
Yingjie, Deng and Pan, (2019) has stated that organizing effective team building
activities will create strong bonds among the employees so that it can improve the efficiency of
worker and enhance employee engagement. However, organization that lay emphasize on
flexible work schedules it will help employees in maintaining their work life balance and it will
result in higher efficiency and enhance their wellbeing. In the time of pandemic many company
has come up with flexi work hours by adjusting the resources. Furthermore, manager need to
consider skills and interest while assigning work to increase their engagement and performance.
In addition to this, planning training and development program will showcase commitment by
the organization towards individual development plan.

RESEARCH METHODOLOGY
Research methodology is refers to the technique and procedures which are use for
identifying and selecting information related to topic. In addition to this, it is allowed reader in
order to build critical thinking related to validity and reality with the help of guiding path for
study.
Research type- This is related to the crucial step in order to focus more on select the
proper method of research type as whole. There are two types of research such as quantitative
and qualitative in order to collect the information effectively. Quantitative research is based on
facts and figures which are help for collecting the numerical data in order to identify tactical
value and facts. On the other side qualitative research is based on theoretical framework which
are related to gathering authentic data in order to find the opinion of different authors (Ngozwana
2018Snyder, 2019). For the present research qualitative research will be use in order to collect
more informations related to employees turnover on the basis of TESCO. However, quantitative
method not been selected because present research is not based on numerical data.
Research approach- This is systematic procedures and plan which are help for analysing
the data, there are mainly two types of research approach that are related to deductive and
inductive. On the basis of inductive approach it is depended on the qualitative data as well as it is
help for observe the information in order to derive the general principle. However, deductive
research is based on quantitative type of research, for the present study inductive approach will
be use in order to collection or analysing the qualitative research by understanding the topic
impacts of employees turnover on productivity of Tesco.
Research Philosophy- It is the process of belief by understanding the different types of
method that can be collect and analysed properly. Also, this is help for predicting and predicting
the data in context to uses effectively. There are two types of research philosophy such as
intrepretisvism and positivism. Along with this intrepretivism philosophy are use in qualitative
research as well as it can be collected through sample on the other side positivism use in
quantitative study. For the present study intrepretivism philosophy will be use in order to
understand the accurate information on the basis of objectives as well as it will help for
identifying the employee turnover rate and how it impacts on business.
Research Design- This is the most important area of the research design in order to gain
data for the study by selecting the function which is based on investigators and knowledge.

Along with this, there are three types of research design which are related to exploratory, casual
and descriptive research. For the present research casual method will be use in the study in order
to collect relevant and authentic data on the basis of different types of strategies related to
employee turnover and its impacts on business. In this method it helps for involving thinking on
the basis of theoretical information in order to opt the tactic which are help for describing the
situation and group that are related to answer the question (Aiello Schifanella and Del Prete,
2020). In addition to this research design help for determining the variable for study which are
help for dealing in both qualitative and quantitative. Further, on the basis of analytical data it is
necessary for analysing the various aspect by considering impact of employee turnover on
business and how it can be improved the productivity of the organization.
Data collection- this is the process of collecting information from different type of
sources in order to make the study more reliable. There are two types of data collection method
in which one is primary method another one is secondary for analysing the data. Primary method
of data collect directly to candidate and it is known as the first-hand data and the reliability of
data is high in order to focus on other sources. Also, secondary data can be collected on the basis
of previous research or information which is collected by others. This is second hand data which
can be collect on the basis of journal, books and articles that are already published by authors.
For the present study primary and secondary both method will be use in order to use large
number of sources.
Data analysis- This is the method of evaluate and perform by collecting information for
errors and main point of the study. There are primary and secondary both the data are necessary
for analysis the information effectively. On the basis of primary data it is necessary to analysis
the data on the basis of SPSS which are also including Gantt chart and other tools. In the
secondary data collection method it is necessary for collecting data and analysing on the basis of
thematic processes which are including themes in order to analyse the information. For the
present research it is necessary for using thematic process in order to more focus on using the
qualitative information which are related to theories on employee turnover (Newman and Gough,
2020).
Reliability and validity- This research wills based on primary and secondary both the
research in order to use the authentic sources and websites in order to collect secondary data
which is already publish with copyright and use in the study. For the primary data it will analyse

the response of employees working on TESCO. Also, those consent will use that are published
after 2017s in order to provide real sources for collection.
Sampling- Random sampling method will be use for the present study in order to select
30 employees of Tesco and they all will provide their views on the basis of questionnaire.
Ethical consideration- Ins the present research there are consent form will be fill by all
the candidate in order to consider not to force them. Also, from all the authentic sources data will
collect in order to attach the reference list at the end for the data is not being copied

REFERENCES
Books and journals
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grocery purchases in London. Scientific data, 7(1), pp.1-11.
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motivation-hygiene theory: A systematic literature review. Journal of Research in
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productivity: a flexible non-linear approach. The International Journal of Human
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presenteeism: the mediating role of perceived organizational support. Leadership &
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and job satisfaction on employee turnover intention. Management science letters.
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reflections. International Journal of Educational Methodology. 4(1). pp.19-28.
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