The Impact of Rewards and Incentives on Motivation and Retention of Employees in the UK Retail Industry

Research
Project 2

Table of Contents
SECTION 1: INTRODUCTION.....................................................................................................4
RESEARCH TILE: The impact of rewards and incentives in the motivation and retention of
employees in the UK retail industry................................................................................................4
INTRODUCTION...........................................................................................................................4
Research Question..................................................................................................................4
Research Aim.........................................................................................................................4
Rationale of the study......................................................................................................................4
Significance of the study..................................................................................................................5
Resource implication.......................................................................................................................5
SECTION 2: LITERATURE REVIEW..........................................................................................6
SECTION 3: RESEARCH METHODOLOGY...............................................................................8
Time Scale.....................................................................................................................................11
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION.....................................................13
Primary Data collection and Data analysis...................................................................................13
Secondary Data collection and Analysis........................................................................................30
Theme 1: John Lewis is catching up with Marks and Spencer to becoming the UK's biggest
cloth and food retailer...........................................................................................................30
Theme 2: John Lewis partnership revenues.........................................................................32
Theme 3: Impact of motivation and employee’s participation at the John Lewis................33
Theme 4: Comparison of the John Lewis employee’s participation with Marks and Spencer34
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................36
REFERENCES..............................................................................................................................39

SECTION 1: INTRODUCTION
RESEARCH TILE: The impact of rewards and incentives in the motivation and retention
of employees in the UK retail industry
INTRODUCTION
Workers assume an exceptionally urgent part in the organization by which firm can ready to
accomplish it objective in decided day and age. Without the HR, firm can't accomplish its
prosperity and goals. In the present examination, the exploration venture expects to look into the
adequacy of various methodologies, prizes and impetuses utilized by administration at John
Lewis and Marks and Spencer to propel and hold their workers.
Research Question
Analyse the impact of rewards and incentives in the motivation and retention of employees at
John Lewis compared to Mark & Spencer?
Research Aim
This research project have purpose is to analyse the impact of rewards and incentives in the
motivation and retention of employees at John Lewis compared to Mark & Spencer?
Research Objectives
 To analyse the significance of motivation and retention of employees at John Lewis and
Marks and Spencer .
 To identify the different approaches, rewards and incentives employed by management at
John Lewis and Marks and Spencer in order to motivate and retain their employees
 To compare and contrast the effectiveness of different approaches, rewards and
incentives employed by management at John Lewis and Marks and Spencer to motivate
and retain their employees.
Rationale of the study
In this present study, one reason to select this topic as employees’ participation in the John
Lewis and Marks and Spencer Company. At the time of selecting the topic of research study,
researcher have affected by his interest and knowledge about this subject so as investigator
wanted to explore deep understanding about this aspect (Denzin and Lincoln, 2005). In addition
to this, researcher have sufficient information and data about this subject so that this subject have
been selected as research study topic. Due to the huge competition in the retail sector, scholar

wanted to explore their understanding about the performance of business enterprise so that
researcher have used this topic as dissertation subject.
Significance of the study
Employee’s participation in the organisation is very important by which employers and
employee’s relation can make improved. In the present study, the major objective of the scholar
is to analyse the impact of employees’ participation in the success of business organisation
(Mathis and Jackson, 2011). With help of this study, researcher can easily understand that how
the employees and employer relation can make the organisation successful and how it can easily
attain its determined objective. Thus, it can be said that this is very essential study which provide
the detail knowledge and understanding about the impact of employees’ participation on the
business success and growth. This study can also apply on another business organisation for
investigate the impact of employee’s participation in the business performance and success.In the
primary data collection, researcher will collect the primary and fresh information from the
employees of the John Lewis so it can be said that survey is effective method by which scholar
can easily collect fresh information about the subject. On the other hand, secondary data
collection can provide the secondary information about the employee's participation which is
published in the online articles, company websites, journal, books, magazines etc. In the entire
research study, researcher have focused on the qualitative research technique under which
information can represent with help of graphs, tables , charts etc.
Resource implication
In the entire investigation time and finance is most significant factor which impact to the
research. In the absence of these two resources researcher cannot attain its target. Due to the
insufficient fund and lack of time, researcher will face the issue in the investigation. In order to
overcome the impact of time, investigator will use Gantt chart method and in order to overcome
the impact of lack of fund, scholar will apply activity based costing method.

SECTION 2: LITERATURE REVIEW
Introduction
Secondary data collection is another one of the significant method in the research study
by which scholar can collect information about the subject with help of books, journals, online
articles, magazines etc (DeSpain, 2008). In the present study, scholar has collected secondary
information in order to analyse the employee's participation in the business decision making
process of the John Lewis. In addition to this, Researcher can also able to compare the
employee's participation of John Lewis with Mark and Spencer by use of this secondary data
collection. This method can help the scholar in finding out the alternative solution of the research
problem.
According to the view of Pilbeam and Corbridge, (2010) employees plays a very crucial role
in an organisation by which company can get an effective success and attain the objective. In the
absence of human resource, no business unit can attain its determined objective. It is very
important for the management of the organisation to manage and motivate employees so as they
can effectively carry out their roles and responsibility and attain the organisational objective
within a limited time period. In the opinion of Jiang, Lepak, Hu and Baer, (2012) employees’
participation is one of the best practices to improve employee’s motivation within the company
by which company can easily attain its success and carry out business activities in an effective
manner. With help of effective and sound employer and employee’s relationship, company can
easily gain its success and outcome.
In the opinion of Jiang, Lepak, Hu and Baer, (2013) employees is significant part of the
business enterprise by which firm can attain its success so management should always
understand the requirement of employees and make efforts to fulfil it in an effective manner.
Management should deliver effective working environment to employees so as they can freely
share their views and opinion related to business activities. While management takes the

participation of employees in the business decision making then they can be more motivated to
provide effective working outcome to the business. Company should always motivate its
employees so as they can effective. With help of employee’s participation in the business
decision making, company can identify employee’s views, opinion, thoughts, issues and conflicts
related to working condition and policies. Thus, it can be said that with employee’s participation
in the business decision making, company can easily acknowledge the opinion, views, and
problem of the workforce related to their working. By acknowledging and identifying the issue
of the workforce related to their working, company can develop more effective practices and
deliver more effective working environment. Thus, it can be said that employee's participation
can help to the company in identifying issue of the personnel
According to the view of Kehoe and Wright, (2013) there are several kinds of the motivator
factor which influence the employees for effective performance. While employees effectively
satisfy then they can easily carry out theory working and attain their target of business in the
given time period. One of the most effective factor of motivation is financial satisfaction. All
employees want an effective financial position in their life. While company keep their financial
need satisfy by deliver effective incentive, salary packages, compensation, bonus, then they can
positively be influence and performance their duty in excellent manner. Promotion and growth
opportunity is another factor which affect employee’s motivate and encourage in an effective
manner. Company should always provide growth opportunity and promotion to its employees
through which they can motivate employees to perform better. While company provide effective
opportunities of growth then employee’s professionalism can automatically improve. Another
significant factor of employee’s motivation is employee’s participation in the business decision
making process. With this company can easily acknowledge employee’s views, opinion,
suggestion related to business activities. While management motivate and take participation in
business decision then they can motivate and encourage for higher performance. With help of
employee’s participation in the decision-making process of the company employer and
employee’s relationship can also improve and which impact on the business success and
performance in positive manner. In the group discussion, meeting, team outing, management can
easily invite employees through which they can positively influence toward the business growth
and success. In addition to this, employee’s participation is the best practice to provide free
environment to them where they can share their knowledge, idea, suggestions, opinions etc

related to business activities and decision. In addition to this, another major benefit of the
employee's participation in the business unit is that they can easily share their issues, problems
and conflict related to working in the company. While management invites them in the business
decision process then they can easily share their issues relates to working policies and practices
in the company. According to the view of Mercieca and Mercieca, (2013) monetary and non-
monetary reward to its workforce. This is one of the most effective manner to motivate and
encourage its personnel. In the context of Monetary rewards, company should deliver financial
rewards to its employees such as incentives, compensation, fringe benefits, perquisites etc. On
the other hand, in the context of non-monetary reward, company should deliver non-monetary
reward such as growth opportunity, effective working conditions and policies, training and
development, increment, higher status etc. With help of monetary and non-monetary reward
system, John Lewis can easily improve the motivation level of employees.
According to the view of Mercieca and Mercieca, (2013) employees’ motivation is very
important in the company by which employees can perform their roles and responsibility in an
effective manner and attain the target of organisation. While company encourage employee’s
motivation then it is true that employee's performance can automatically increase. With help of
employees’ participation and motivation, firm can gain its competitive advantage and also attain
the highest outcome in the market. Thus, it can be said that employee’s participation can
positively influence the performance and success of the organisation through which company can
attain its objective in excellent manner. the training and development program for its employees
through which they can gain effective knowledge, skill, ability and capability about the working
(Flick, 2015). With help of training and development program, company can easily encourage
and motivate its workforce because by organising such programs, company can provide an
opportunity to its workforce to improve their skill, ability and knowledge. In addition to this, this
program can help in improving personality and professionalism of the workforce in the John
Lewis company. Employees participation and motivation is one effective strategy to improve its
growth and performance of business. Marks and Spencer have organised such effective and
impressive employee’s welfare program for its employees so as they can encourage and
motivate. According to the secondary research it has founded that Jon Lewis employee’s
participation in the business decision making is quite low as compare to the Marks and Spencer.
As compare to the employee's participation of John Lewis with Marks and Spencer, it has found