Employee Retention and Productivity: A Study on Marks and Spencer Company

This research study focuses on the issue of employee retention and its impact on productivity in Marks and Spencer Company. It explores the reasons behind low employee retention, the impact on organization productivity, and possible solutions to address the issue. The study also highlights the significance of employee retention in boosting the growth of the company.

PROJECT REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
Literature review.........................................................................................................................4
Research methods........................................................................................................................6
Findings............................................................................................................................................7
Employee retention is issue for company...................................................................................7
Employee retention boost organisation growth.........................................................................11
CONCLUSION, EVALUATION AND RECOMMENDATIONS..............................................12
REFERENCES..............................................................................................................................14
Appendix........................................................................................................................................16

INTRODUCTION
Background
Employee retention is denoted as sustain work force in organisation for long time. This
means that employees in company are not leaving the organisation for long time. The issue of
employee retention demonstrate that company is addressing high employee turnover rate. This
means that employees are not satisfied with the working culture and environment of the
organisation (Hassan and et.al., 2019). Marks and Spencer Company is associated with the retail
sector. Company was establsihed in the year 1884 by Michael Marks and Thomas Spencer. The
organisation is facing an issue of employee retention which further restrict the organisation to
reach the best level of work efficiency.
Aim:
To analysis about the employee retention issue at work place and also on productivity. A study
on Marks and Spencer Company.
Objectives:
To understand the concept of employee retention at work place.
To evaluate different methods to overcome employee retention issue at Marks and Spencer
Company.

To identify employee retention as an issue in respect to productivity at Marks and Spencer
Company.
To recommend against the possible challenge associated with the employee retention issue at
work place.
Research Question
Q.1) What is the meaning of employee retention at work place?
Q.2) What are the different methods used to overcome employee retention issue at work place?
Q.3) How employee retention issues impact over organisation productivity?
Rationale
This project will be useful for Marks and Spencer Company management. Other
companies will also be a key stakeholder in context to this study.
Significance
This research or study is conducted due to the company is addressing an issue related to
employee retention. This is the issue arises when employees are not capable enough to sustain in
the organisation for long time (Olagbaye, 2020). Employee retention directly impact over
company's productivity and restrict the profitability of business entity.
Literature review
As illustrated by Aguenza and Som (2018),retention of employees is a major concern for
HR professionals and business executives. Employees have expectations at the time of joining
the organisation and during working at the same. At the time of induction, employees generally
have an expectation that they would be made comfortable by introduction with team members,
the managers and other staff. This sets a familiarity tone for them. The employee expectations
are regarding the salary, incentive structure, roles and responsibility assigned. As spoken by Ma,
Mayfield and Mayfield (2018),these are some of the primary needs of employee to be addressed
by HR function. The employees also have expectations regarding hygiene factors present at the
organisation. If the company keeps hygiene factors in place with regular housekeeping measures,
the employee would be motivated to come to the work place. The company being organised in its
sitting arrangement offering facility of flexible seating positions is another factor which helps
keep morale of employees high and thus the productivity. The Kundu and Lata (2017) ays that
as time progresses change comes in employee expectations like performance appraisal,

promotional aspects being considered for employees, rewards given for achieving the targets etc.
The employee now starts craving for recognition among the team mates and for the work
accomplished. An impartial performance appraisal is the key motivator for employees to
continue further. Employees will be motivated for continuing if these factors are fulfilled.
The Papa and et.al(2018) states that different methods to overcome employee retention
can be that the employee from the start of joining the company should be given a proper
induction revealing all the company's policies, leave policies and other regulations. Secondly, if
the employee is introduced to each person of the team it will help to set a rapport which can help
influence morale at work place. As said by Aguenza and Som (2018), the second method has to
be solving of any issues of employees be it regarding sitting arrangement, system, salary or any
other issue being faced in the team. The employees have to be motivated to meet HR whenever
they feel like and discuss and sort out their issues. As illustrated by Ma, Mayfield and Mayfield
(2018), a timely performance appraisal is another motivator for employee. The employee can be
given a choice of recommending a manager's name whom the employee thinks can do appraisal
impartially. This can solve the employee retention issue to a lot of extent as this is directly linked
with future promotion of the employee. Every employee looks for growth considering the work
put in by him in the organisation. The Kundu and Lata (2017) has also suggested that providing
training and development programs in between can not only help employee rewind but also help
in solving problems which arise in work. This can help sharpen employee skills which in turn
will help raise productivity and retention.
As said by Papa and et.al(2018), employee retention affects the productivity of the
company in a prominent manner. If a company has employees who are experienced and have
been working for quite some time, then it would be profitable for the company to retain these
employees for a longer time. These employees can work in tough situations of meeting
deadlines, can motivate and train the new joiners. This will also help company save training
costs. The Lee and et.al.(2018) emphasises that the productivity from the old employees who
have learnt the tactics of managing their work and know the rules of the game can definitely help
the company survive through crucial periods. A novice would not be aware of how to deal in
such situations. They will need time to develop and hone their skills which can be done under the
guidance of old employees. Therefore, the Lee and et.al.(2018) recommends that old employees
are necessary to retain so that the productivity graph of the company stays up. Company will also

save on extra costs by taking less risks in critical solutions and also on training and development
needs of novices. New employees will be taking time to settle down in a new job and a new
social environment.
Considering the employee turnover, the Aguenza and Som (2018) states that low morale
could be the reason for the same. The company productivity can raise only by decrease in
employee turnover by motivation of employees either through financial means or appreciation.
The company has to identify measures which depends on employee to employee how to increase
their morale. As illustrated by Kundu and Lata (2017), the productivity of the employee would
directly correspond to the overall productivity of the employee. Thus a motivated employee
would lead to lower employee retention and thus profitability of the company will not get
affected without involving costs of replacing old employee by new and thus a higher
productivity.
Research methods
Research type: The research are done in two ways: qualitative and quantitative. Qualitative
research involves collecting and analysing non-numerical data to understand concepts, opinions
and experiences. Quantitative data is used to quantify the problem by way of generating
numerical data that can be transformed in statistics. Here in the study, qualitative research has
been used (Chu and Ke,2017).
Data Collection: The data collection is done in two types- primary and secondary. Primary data
has been collected in the form of questionnaire of 30 employees of M&S about employee
retention. Secondary data has been sourced through literature review regarding the issue in
company.
Research Sampling: Sample in research means conducting a survey on a group of people out of
a population group. The sampling methods are of five types out of which the method used here
has been random sampling. It signifies that people are randomly questioned about the issue
concerned and this is not done on a pre-prepared basis.

Data analysis: The data analysis has been done by the process of cleaning, transforming and
modeling data to make useful information for decision-making. The qualitative data has been
assessed got from primary and secondary sources. Research sampling has been analysed to put
across interpretations about how the issue has been answered by sample.
Ethical consideration: The research has been done taking in account the principles of validity,
voluntary participation, confidentiality. Validity design has addressed specific research
questions. No individual has been coerced to answer questionnaire. Confidentiality has been
respected of individuals on anonymity basis (Chu and Ke,2017).
Findings
Employee retention is issue for company
Q.1) Do you feel employee retention is an issue is Marks and Spencer Company?
Yes 22
No 8

Interpretation
The above mentioned graph interpret that employee retention is an issue in the Marks and
Spencer Company. 73% employees participated in the interview round felt that this is a key issue
part of the business entity. 27% peoples are also there in the organisation that feel that this is not
an issue in the organisation.
Q.2) What according to you is the major impact low employee retention at organisation create?
Reduce organisation productivity 12
Demolish organisation culture 8
Create negative brand value 3
Decrease profitability and growth rate 7
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8 73%
27%
Employee retention issue in company
Column C

Interpretation: Low employee retention indicate that employees are leaving the organisation
over a continuous basis. 40% people participated in interview round favoured that reduced
organisation productivity is the possible cause of low employee retention. 23% employees
favoured decreased profitability and growth of company is the possible impact low employee
retention create in organisation. 27% people are also there who felt that demolishing organisation
culture is the major affected element of low employee retention at work place. Negative brand
value also voted by 10% of the employees took part in interview round as a key influenced area
of low employee retention. It can be stated that low productivity of business entity is the most
affected areas from low employee retention at work place (Robinson, 2019).
Q.3) What are the possible reason behind low employee retention at Marks and Spencer
Company?
Ineffective organisation culture 7
Low or inappropriate incentives 8
Employee issues are not getting solved 15
40%
27%
10%
23%
Major impacts of low employee retention
Reduce organisation
productivity
Demolish organisation culture
Create negative brand value
Decrease profitability and
growth rate

Interpretation: 50% employees took part in interview round favoured employees issues are not
getting solved as a key reason of low employee retention at Marks and Spencer Company. 27%
employees believe that low or inappropriate incentives are the key barrier behind employee
retention at work place. 23% employees voted in favour of ineffective organisation culture as the
key reason behind people leaving the company. Based on the majority opinion it can be clarified
that comp[any is not capable enough to deal with the issues employees are facing at work place
(Yeswa and Ombui, 2019).
Q.4) What can be the possible steps taken to minimise the issue of employee retention by Marks
and Spencer Company?
Timely resolve employee issues 12
Half yearly basis increments 8
Segregate powers to employees 6
Improve work culture 4
23%
27%
50%
Posible reason of low employee retention
Ineffective organisation
culture
Low or inappropriate
incentives
Employee issues are not
getting solved

Interpretation: On the basis of the opinion stated by the majority of people took part in
interview round that timely resolved employee issues are the possible solution to deal with
employee retention issues. 27% employees felt that half-yearly incentives is the possible
solution. 20% favoured the segregation of power and 13% voted to improve the work culture.
Based on the opinion it can state that solving issues is the key to achieve sustainable employees.
Employee retention boost organisation growth
Q.5) Do you feel employee retention can boost growth of company in respective market?
Highly agree 12
Agree 8
Neutral 3
Disagree 4
Highly disagree 3
Timely resolve employee issues
Half yearly basis increments
Segregate powers to employees
Improve work culture
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
40%
27%
20%
13%
Solution towards employee retention issues
Column C

Interpretation: 40% employees highly agreed to the fact that employee retention strengthen
growth of company. 27% also agreed to the statement. 13% disagreed to the statement and also
the 10% highly disagree to the statement. 10% employees were neutral to that statement. Based
on the views given by majority of people it can be stated that it boost the growth of company
(Tandir and Redzic, 2020).
CONCLUSION, EVALUATION AND RECOMMENDATIONS
It can be concluded that the research has been able to detect the issue of employee retention in
the company. The research being qualitative in nature reflects the opinions of the people
expressed and the research has been an unbiased one. Employee retention literature review has
also been done which describes the issue like need of improvisation in salary and incentive
structure, training and development needs etc. and identifies the need for addressal of it to
increase employee productivity. The file later on comprises of findings on the issue and
interpretation of the same.
The evaluation of the issue has been aptly done by using research methods like simple
random sampling, qualitative data analysis and data modeling function to hep make use of data
in form of statistics to address the issue.
40%
27%
10%
13%
10%
Employee retention boost organsiation growth
Highly agree
Agree
Neutral
Disagree
Highly disagree

The recommendations which can be provided to address employee retention can be
motivation of the employees from the time they join the company.
 A sound induction at the time of joining the company will make the employee familiar
with the team mates.
 A good rapport from the beginning will set the tone for the employee in the company.
Secondly, the expectations of the employee from the company which can be classified
into two parts according to time line of service period of the employee.
 The first period where the employees expect certain hygiene factors like a clean and
supportive environment in the company, flexibility of doing work, good salary structure
etc. The addresal of employee issues and the accessibility of managers and HR function
will also help in the same.
 As time progresses for the employee, the expectations come in the form of promotion,
appreciation, a higher role in organisation etc. These needs if addressed can majorly help
the employee retention issue and also will reflect on productivity increase of the company
as the company will be able to retain old employees who can steer the company through
tough times and also provide their expertise in training of the new employee batch.

REFERENCES
Books and Journals
Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and
engagement in organizations. International Journal of Advances in Agriculture
Sciences.
Hassan, M. M. and et.al., 2019. REDESIGNING THE RETENTION STRATEGY AGAINST
THE EMERGING TURNOVER OF GENERATION Y: REVISITING THE LONG-
STANDING PROBLEMS FROM 20 TH TO 21 ST CENTURY. International Journal
of Entrepreneurship. 23(2). pp.1-16.
Kundu, S.C. and Lata, K., 2017. Effects of supportive work environment on employee
retention. International Journal of Organizational Analysis.
Lee, T.W., Hom, P., Eberly, M. and Li, J., 2018. Managing employee retention and turnover with
21st century ideas. Organizational dynamics, 47(2), pp.88-98.
Ma, Q.K., Mayfield, M. and Mayfield, J., 2018. Keep them on-board! How organizations can
develop employee embeddedness to increase employee retention. Development and
Learning in Organizations: An International Journal.
Olagbaye, A. A. O., 2020. Impact of Financial Motivation on Job Satisfaction in Ireland's Retail
Sector (Doctoral dissertation, Dublin, National College of Ireland).
Papa, A., Dezi, L., Gregori, G.L., Mueller, J. and Miglietta, N., 2018. Improving innovation
performance through knowledge acquisition: the moderating role of employee retention
and human resource management practices. Journal of Knowledge Management.
Robinson, B. M., 2019. A Perspective on Employee Motivation and Retention in the High-End
Retail Industry: A Case Study(Doctoral dissertation, University of Phoenix).
Tandir, N. and Redzic, S., 2020. CONNECTING CORPORATE SOCIAL RESPONSIBILITY
AND COMPETITIVE ADVANTAGE ON THE RETAIL SECTOR OF BOSNIA AND
HERZEGOVINA. Ecoforum Journal. 9(2).
Yeswa, L. S. and Ombui, K., 2019. Influence of talent management strategies on employee
retention in hotel industry in Kenya. International Academic Journal of Human
Resource and Business Administration. 3(7). pp.83-103.

Chu, H. and Ke, Q., 2017. Research methods: What's in the name?. Library & Information
Science Research, 39(4), pp.284-294.
Liamputtong, P. ed., 2019. Handbook of research methods in health social sciences. Singapore:
Springer Nature.
Queirós, A., Faria, D. and Almeida, F., 2017. Strengths and limitations of qualitative and
quantitative research methods. European Journal of Education Studies.

Appendix
Q.1) Do you feel employee retention is an issue is Marks and Spencer Company?
 Yes
 No
Q.2) What according to you is the major impact low employee retention at organisation create?
 Reduce organisation productivity
 Decrease profitability and growth rate
 Demolish organisation culture
 Create negative brand value
Q.3) What are the possible reason behind low employee retention at Marks and Spencer
Company?
 Ineffective organisation culture
 Low or inappropriate incentives
 Employee issues are not getting solved
Q.4) What can be the possible steps taken to minimise the issue of employee retention by Marks
and Spencer Company?
 Timely resolve employee issues
 Half yearly basis increments
 Segregate powers to employees
 Improve work culture
Q.5) Do you feel employee retention can boost growth of company in respective market?
 Highly agree
 Agree
 Neutral
 Disagree
 Highly disagree
Q.6) What recommendations you give to address different challenges associated with employee
retention in context to business entity?