Impact of High Employment Turnover Rate on Productivity and Growth of a Retail Organization: A Study on Asda

This study aims to identify the impact of high employment turnover rate on the productivity and growth of a retail organization, with a focus on Asda. It examines the challenges faced by Asda due to high employment turnover rate and the concept of employee turnover in context to organization. The research methodology includes the use of positivism philosophy, deductive approach, survey and systematic literature review as research strategies, and primary and secondary data collection methods.

Research
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Contents
INTRODUCTION...........................................................................................................................3
Rationale for the research.......................................................................................................3
Research aim:.........................................................................................................................3
Research Objectives...............................................................................................................3
Research Questions:...............................................................................................................4
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................4
REFERENCES..............................................................................................................................10
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INTRODUCTION
Employee turnover is defined as the total number of staff members leave the organisation
within a certain time period. In addition to this, it is the loss of talent over time that has direct
impact on the performance of a company. It consists of layoffs, location transfers, resignations,
terminations and many more (Bartock, 2019). It is vital for a company to focus on analysing the
reason behind employee leaving the company so that it can be decline in an effective and proper
manner. For the present study, Asda is taken into consideration. It is a British supermarket chain
which was established in year 1949 and headquartered in England, United Kingdom. The
products as well as services offered by company is general merchandise, grocery, financial
services, Asda money and many more. The company has round 650 shops globally and 1,45,000
staff members which shows I has high market share and presence. The main objective of the
study is to identify the impact of high employment turnover rate on the productivity and growth
of a retail organization.
Rationale for the research
One of the main reason to conduct this study is to determine the impact of high
employment turnover rate on the productivity and growth of a retail organization. In addition to
this, it also helps researcher to gain insight about concept of employee turnover along with the
challenges faced by a company (Chowdhury, 2022). Moreover, it also helps various stakeholders
that is researcher, organisation and so on. In context to an organisation, it helps them to develop
effective strategies in order to deal with the challenges related to employee turnover which
further leads to improvement in performance, high productivity and so on. In relation to
researcher, it help to learn and improve skills such as communication, time management, data
analysis, data collection and so on. Furthermore, it will also allow researcher to conduct future
studies in more systematic and effective manner.
Research aim:
"To identify the impact of high employment turnover rate on the productivity and growth
of a retail organization” A study on Asda
Research Objectives
 To know about the concept of employee turnover in context to organization.
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 To determine the impact of high employment turnover rate on the productivity and
growth of Asda.
 To examine the challenges faced by Asda due to high employment turnover rate.
Research Questions:
 What is the concept of employee turnover in context to organization?
 What is the impact of high employment turnover rate on the productivity and growth of
Asda?
 What are the challenges faced by Asda due to high employment turnover rate?
LITERATURE REVIEW
Literature reviews is referred as the overview of previously articles developed on a
particular topic. In addition to this, it is basically the secondary data which is gathered through
books, articles, Journals and many more. One of the main objective of conducting literature
review is to analyse the research gap. In the previous studies, there is a discussion about
employee turnover along with the reason of increasing the rate but it lacks the data about the
impact of high employment turnover rate on the productivity and growth of a retail organization.
In order to fulfil this gap, some of the research questions were developed and is given below:
Concept of employee turnover in context to organization
As per the view point of Marc, (2021), Employee turnover is a concept which allow
organisation to measure amount of employees leaving company during a specified time period, it
can be measure according to individual department and demographic group. It usually represents
number of employees who are exiting voluntarily as well as employee who are fired or laid off.
Employee turnover impacts on company's objectives as turnover rates context of different
industries, to identify effectiveness of human resource management in organisation. It also
reflects internal and external factors of company; from which it allows a source of learning
improvements that should be done for improvements of organisation needs to be done (What Is
Employee Turnover & Why It Matters for Your Business, 2021). For an organisation it is
important to track the rate of employee turnover because if rate is high it can cause problem on
reputation of the company, which will have led to no new employee coming to organisation. A
company should benchmark its turnover rate across similar type of industry to get a sense of
retaining talent. When employee turnover occurs organisations may lose employee productivity
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and company should try and control to reduce the turnover rate of employee. Since there are
various reasons that cause turnover of employee that need to taken in consideration to reduce
turnover such as, lacking of opportunity for growth, workplace become toxic for employee,
people doing over work and not paying enough according to it, getting underpaid for their work
and lack of recognition from management. A company should take necessary measurement in
regarding the situation that cause high turnover rate and also low employee turnover is problem
for management as there will no opportunity for new people in organisation, hence company
should keep track on employee turnover rates.
Impact of high employment turnover rate on the productivity and growth of Asda
According to Keh, (2021), Asda face an issue of high employment turnover as in retail
industry the manpower costs are significantly high which effect the overall cost of the company.
To reduce the turnover rate the company has to minimise its overall costs or try to optimise the
costs. The high employment rates leads to increase the employment cost, increase employee
wastage and also increase the recruitment costs which gradually leads to increase the overall
expense of the company. To understand the impact of employee turnover Asda distinguished the
positive affects with the negative affects of increasing it.
Asda noticed that replacing of candidates costs time as well money which are valuable for
the organisation for continuing the operations. The employ turnover increase the workload on
existing employees which reduces their efficiency and if it kept on going then they sometimes
leave the organisation which creates more hurdles for the organisation in achievement of goal
(High Employee Turnover in the Retail Industry, 2021). High employment turnover rate have
negative and direct impact on the working of the company such as it reduces productivity, more
time consumption on training and development programs, lost sales and increased recruitment
cost, so its the duty of the company to recruit right candidate for the right post with right
qualifications. Apart from that, the company need to communicate properly with the candidates,
use proper motivational tool may it be in monetary form or non monitory form, by providing
proper training and development to the newly selected employees and by redesigning the job
description can be effective in reducing employment turnover rate.
The impact of employee turnover can be reduced by taking proper exit interview in which
company can know the reason of exit from the company and can also work on the reason
provided by this they can fill the gap between the actual condition of the company and the
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expected condition which will gradually reduce the employee turnover. Asda also frame a
separate category for the exit reasons to know that which reason is affecting more to the
employees and work to retain them. In past years many UK firm came to notice having anti-
employee policies because of providing quality of products at cheaper cost but Asda always have
a standard working environment working for employee satisfaction also.
Challenges faced by Asda due to high employment turnover rate
It is analysed that there are various challenges faced by an organisation because of high
employee turnover rate. One of the main issue is decline in performance and productivity that
has direct and negative influence on the performance of an organisation. In addition to this, it
also develop negative working environment at workplace because of which employees did not
take interest in performing activities of company that leads towards non-attainment of objectives
as per the time period (Three Problems Caused by Employee Turnover and Implications of an
Inefficient Hiring Process, 2014). Moreover, an organisation also face issue that is increase in
cost of hiring as if the employees leave the company then the company require to hire new
employees and training them. This arise cost to the company and also decline the level of
revenue and profitability. Apart from this, there are also other issues that is faced by an
organisation because of employee turnover and these are limited profits, decline in morale of
employees, inconsistent production, high training cost and so on. All this impact directly on the
growth and success if company in a negative manner.
RESEARCH METHODOLOGY
It is the chapter that assists in giving information about the research methods for the
accumulation and evaluation of data in a precise and systematic way. It is one of the essential
parts of the investigation because through this only researcher collects and analyses relevant and
accurate data (Basias and Pollalis, 2018). Saunders research onion framework will be followed
by researcher to accumulate and analyse apt information according to the chosen research topic.
This framework gives certain layers that help in appropriate recording and interpreting of data.
Research Philosophy: It is the research method that makes researcher familiar with the
principles and beliefs for the evaluation and examination of appropriate information. While
conducting an investigation, research philosophy holds great significance because it evaluates
data so that pre-defined objectives of the study could be easily met. It has commonly two forms
which include: positivism and interpretivism philosophy (Solihatin and et. al., 2020). Researcher
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will show great dependence over positivism philosophy so that recorded numerical information
can be analysed and examined. It is the scientific approach which facilitates in the timely
evaluation of assembled numerical figures and facts. The major advantage of positivism
philosophy is that it only concentrates on evaluation of numerable data.
Research Approach: It is another layer of research method which also focuses over
analysis and evaluation of information. In simpler words, it is a procedure and plan that includes
steps of broad assumptions for to detailed methods of data analysis, collection and interpretation.
This helps in addressing nature of the research problem that needs to be addressed effectively
and efficiently. Mainly, this is of two significant forms which are: inductive and deductive
approach. Researcher will choose deductive approach so that assembled quantitative data can be
easily evaluated, analysed and interpreted (Rutberg and Bouikidis, 2018). The main benefit that
will be gained by researcher is that this considers existing theories and models to evaluate
numerical data which save the time of researcher. The other advantage is that it gives insights
that are very particular to the selected industry or organisation.
Research Strategy: It is another research method that provides step-by-step plan of action
that provides right direction to efforts and thoughts of the researcher. This also facilitates in
conducting investigation systematically and on schedule for producing quality outcome and
detailed collection of data. There are different kinds of research strategies which include: action
research, case study, survey, grounded theory, archival research, interview, case study,
observation, focus group, systematic literature review and many more. Investigator will choose
survey as the research strategy to collect numerical piece of information about the selected
research topic. With the help of survey, researcher will approach human participants and collect
their views and opinions in a systematic manner. The main advantage of survey is that it helps in
creating pool of participants and survey questions are directly asked from these selected
participants (Niknejad, Hussin and Amiri, 2019). Survey is less expensive in comparison of other
strategies of research. Thus, this will assist researcher to record numerical and raw piece of
information in short period of time. Investigator will also choose systematic literature review as
another strategy of research because this facilitates in the accumulation of data to address the
pre-defined research questions. This strategy uses secondary sources like journals, articles etc.
The main benefit of systematic literature review is that it helps in determining research gap and
this holds great importance because it makes study relevant and reliable.
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Data Collection: It the significant research method which helps in accumulating right
kind of information about the selected proposed research topic. In simpler language, it is the
procedure to gather and measure data on variables of interest, in an accomplished systematic way
that enables researcher to simply answer questions of the research and analyse outcomes. It is
mainly divided into two forms which include: primary data collection method and secondary data
collection method (Mohajan, 2018). Investigator will be using both the methods of data
collection with the purpose of attaining research aim, objectives and questions.
Primary data collection method will help investigator to record raw and primary
information for attaining research objectives. The major benefit of primary method is that it
collects data by directly approaching source of information in a systematic manner.
Questionnaire will be made by investigator to collect information in raw and numerical form. On
the other hand, secondary data collection method will also be used to collect second-hand data
about the proposed research topic (Bauer and Scheim, 2019). The secondary sources are: books,
journals, articles, publications, newspapers, magazines, already conducted surveys and many
more. The secondary method will help investigator to save time because this information is
already available on different platforms.
Data Instrument: For the completion of current investigation, researcher will use
questionnaire as one of the instruments. Questionnaire is one of the best instruments for
collecting data directly from the selected number of representatives (Abutabenjeh and Jaradat,
2018). This instrument is very economical and also helps in collecting large data in short time
period.
Sampling: This is the research method in Saunders research onion framework that
facilitates in the selection of right type and number of human respondents. This is one of the
essential methods when research is based upon primary method of data collection. This allows
researcher to approach human representatives who have great knowledge and information about
the proposed research topic. It has two forms which are: probability and non-probability
sampling. Investigator will be choosing probability sampling with the purpose of selecting large
number of respondents (Dźwigoł and Dźwigoł-Barosz, 2018). This also allows investigator to
choose random sampling strategy through which there is no requirement of selecting any
particular criteria for choosing representatives. Researcher will select 30 managers from ASDA
so that they can give information about the causes of employee turnover in the company.
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Data Analysis: Analysis of information is quite necessary and essential. In this study
frequency distribution analysis technique will be followed by investigator. This will help in
evaluating and analysing numerical information so that relevancy and accuracy of the study
could be maintained (Sileyew, 2019). The major benefit of frequency distribution analysis is that
it attains objectives in a systematic and precise way.
Research Choice: It is method of investigation that helps in identifying right kind of
information to meet pre-defined objectives of the study. It has two forms which are: qualitative
and quantitative research choice. Researcher will select quantitative research choice that helps in
the collection of information which is in numerical form (Park and et. al., 2020). The major
advantages of quantitative research choice is that it assists in collecting numerable information in
a quick way, generalises findings in a systematic way, shows statistical relationship etc.
Therefore, it is being analysed that quantitative choice assists in getting comparable and
statistical outcomes.
Ethical Consideration: In this study ethics are significant because it makes study more
relevant and accurate. Some of the ethical principles which will be followed by investigator are:
obtaining informed consent from chosen research respondents, minimising the risk of harm to
selected representatives, giving each representative right to withdraw from the investigation,
avoiding any type of deceptive practice, protecting each respondent's confidentiality and
anonymity and so on (Islam, 2018). Researcher will make sure that each respondents is kept
away from any type of physical or mental harm, every participant understand why investigation
is conducted, every private information of each respondent is kept confidential, research is made
feasible, also provide right of withdrawal to each respondent etc. Hence, this makes investigation
appropriate and relevant.
Reliability and validity: In the current study, reliability and validity is maintained by
forming and developing questionnaire as an instrument. Questionnaire helps in collecting data
from the respondents by making them understand the purpose of study so that they can give their
unbiased opinions and views (Firdaus, Zulfadilla and Caniago, 2021). When they understand the
purpose of the study, they give right information and make investigation reliable. On the other
hand, validity is the other concept in the study and it is maintained by taking out measurable
results and outcomes.
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Limitations of the research: Conducting a study or an investigation is not an easy task
because there are many challenges that are faced by researcher (Lai, 2018). Some of the common
limitations that can be faced by investigator while doing an investigation are: limited amount of
budget, selecting right source from different available alternatives, bias nature of selected
representatives, availability of limited time period, lack of up-to-date information and many
more. When all these limitations are faced by researcher, it becomes barrier in attaining defined
research aim and objectives.
Research Plan: Time is one of the elements that assist in completing the whole
investigation in a timely manner. Gantt chart is one of the time scheduling tools used by
researcher to schedule each activity and task in a systematic manner (Basias and Pollalis, 2018).
This tool divides activities in smaller tasks so that proper time could be given to each activity.
This chart is divided into two sections: one section includes all the activities that need to be
completed and the other section includes the proper time assigned for each activity. Therefore,
this tool makes the work of researcher quite easy and convenient.
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