Impact of High Employee Turnover on Business Performance

Project Plan Assessment one
An overview of project idea.
This project is based on the impact of high employee turnover on business performance
and productivity of company (Mohammed and et. al., 2016). Turnover rate introduces to
the percentage of employees within a workforce that leave in a certain period of time.
For this project, McDonald is a chosen multinational fast food organisation because they
faced issue of high employee turnover at workplace.
Project aims and objectives
Research Aim:
“To identify the impact of high employee turnover over business performance and
growth of an organisation”. A secondary research on McDonalds.
Research Objectives
 To identify the main reason behind increasing high employee turnover at
workplace of McDonalds.
 To determine the negative effects of high employee turnover on growth and
productivity of McDonalds.
 To determine the ways used by McDonalds for overcoming the impact of high
employee turnover at workplace.
Problem Statement
A high employee turnover is a biggest issue for an organisation because it reduces the
employee morale towards job. This may stem from overworked workers who have had
increased responsibilities and workloads due to a lack of an active as well as trained
workforce. Along with this, High employee turnover is a major issue at workplace of
McDonalds that resulted in low productivity and performance ( Al Mamun and Hasan,
2017).

Related literature and secondary data
Literature review
What are the main reasons behind increasing high employee turnover at workplace of
McDonalds?
According to the Boon and Biron, (2016), There are many reasons that resulted into
occurrence of high employee turnover within McDonald which are defined below:
Lack of training: The presence of on the job training facilities is less at McDonald.
This resulted into no skill and personality development. Also, employees have the
perception that without personality development not able to get efficient growth in
profession. In last, this increases employee turnover.
Lack of freedom: The employees do not have the freedom to provide their views about
improving creativity in business processes. This demotivates where they only have to
follow directions of higher authorities.
What are the negative effects of high employee turnover on growth and productivity of
McDonalds?
As per the view point of Sun and Wang, (2017), There is huge negative effect of
employee turnover on growth and productivity. This will be understood from the points
mentioned below:
Growth: High employee turnover does not allow the expansion of business with rapid
rate because not able to implement the strategies without the support of talented
employees.
Productivity: High employee turnover not allows the optimum utilization of available
resources because new one is not able to get the effective results from the current level
of knowledge.
What are the effective ways used by McDonalds for overcoming impact of high
employee turnover at workplace?
According to the Oosthuizen, Coetzee and Munro, (2016), McDonalds gives high levels
of training to their employees working in different positions at the restaurants. This will
supports company in decreasing staff turnover as well as lowers the turnover costs.
Company also provided medical insurance and many other offers related to the health
care.
Secondary data:
For collecting secondary about the existing topic, different number of sources will be
used such as books, journals, publication study, McDonald’s websites etc. All these are