Factors Affecting High Staff Turnover: The Case of Ausnew Company

Factors Affecting High Staff Turnover: The Case of
Ausnew Company

Executive Summary
In this era of globalization and rapidly changing market needs, every firm, be it big or small,
aims to attain long term sustainably and increased organizational performance. Today several
organizations across the globe are investing millions and billions of dollars every year in
hiring and training their human resources. A number of previous studies and researches have
revealed that a strong employee base acts as an intangible resource which is difficult to be
replicated or imitated by the competing firms. In today’s business environment, the most
important assets of a business are its human resource. An organization’s human resource can
be a large contributing factor to its health. If an organisation has to maximize profits in the
long run, it needs to take its human power seriously and to train it in the most efficient
manner; financially and otherwise (Sparrow,et al., 2004). Likewise, the chief aim of research
project is to examine the factors resulting in high staff turnover at Ausnew Company. The
research employed both primary and secondary data for collecting good amount of
resourceful information. Firstly, primary data was collected by conducting interviews and
surveys among the chosen sample of 35 individuals including employees and managers at
Ausnew Company. The research findings brought to light the fact that there are several
factors responsible for high staff turnover rate at the company. As a result, the company
needs to have in place effective strategies and practices to deal with the situation on priority
basis.
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Contents
Introduction...........................................................................................................................................5
Structure of the Report.....................................................................................................................6
Aim, Objectives and Research Questions..........................................................................................7
Research Objectives....................................................................................................................7
Research Questions......................................................................................................................8
Literature Review..................................................................................................................................8
Continuous Professional Development.............................................................................................8
Role of Human Resource Department in Decreasing Staff Turnover Rate.......................................10
Theoretical Framework for Lowering Down Staff Turnover Rate....................................................11
Research Methodology........................................................................................................................12
Research Approach..........................................................................................................................13
Research Design..............................................................................................................................14
Data Collection and Analysis............................................................................................................15
Ethical Issues...................................................................................................................................16
Findings...............................................................................................................................................16
Discussion............................................................................................................................................21
Recommendations...............................................................................................................................22
Limitations and Conclusion..................................................................................................................23
References:..........................................................................................................................................25
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Introduction
In this era of globalization and rapidly changing market needs, every firm, be it big or small,
aims to attain long term sustainably and increased organizational performance. Today,
several organizations across the globe are investing millions and billions of dollars every year
in hiring and training their human resources. A number of previous studies and researches
have revealed that a strong employee base acts as an intangible resource which is difficult to
be replicated or imitated by the competing firms. In today’s business environment, the most
important assets of a business are its human resource. An organization’s human resource can
be a large contributing factor to its health. If an organisation has to maximize profits in the
long run, it needs to take its human power seriously and to train it in the most efficient
manner; financially and otherwise (Sparrow,et al., 2004). An example can be cited to explain
this better. In a perfectly competitive market, let us say a commodity is being sold for £10.
For a company aiming to increase its profits, the one most common way possible is by
reducing costs. Now in doing so, the price of raw materials can in no way be reduced, so the
only way possible is by making the man power efficient and thus enabling better and
increased output.
Human resource is the only factor of production which can be made efficient with some
supervision. With some adjustment human resource could implement strategies which can
reduce employee turnover. To reduce employee turnover, Human resource department even
use compensation policies. Compensation policies ensure that every employee get paid for
his/her extra efforts and dedication. Thus by implementing precise strategies human resource
can turn company’s production in upward direction. As Sparrow et al., 2004 this strategies in
turn help companies financially. Thus, it can also be regarded that human resource helps
companies grow financially. This research also seeks to understand the effect of human
resource have on financial performance of company. Further, Sparrow et al., 2004) mentions
that employees in organisations play a critical party and can either make or break any
solution. They are considered as the most valuable assets, and the success of any company is
directly associated to the competencies of the employees, not just the front line customer
facing staff but the whole organisational structure. Knowledge and skill empowerment and
invariably job satisfaction is an important prerequisite for the success of an organisation
which would ensure staff retention and satisfaction (Kumar, 2002).In the corporate world, the
rate of change is phenomenal, since the rate of change is happening continuously due to the
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rapid advancements and developments in science and technology. Innovations in technology
can also change the way business activities are performed.
The application of new technology generally tends to reduce costs, helps gain efficiency in
operations, maximizes customer service and also helps improvement in communications
between the different channels in an organisation (Peslak, 2005). However, the criticality in
shifting to advanced technologies involves keeping the human resource equipped and updated
at all the time. For example, the rate at which new products and services are launched and
developed in high technology companies such as telecommunications is very fast, more so in
recent years (1995 – 2010), which witnessed the launching of innovative and new products
and services that has resulted remarkable growth in the sector of telecommunications in
recent years. In order to give 100% customer service to the users of their service and also
improve customer experience in using telecommunications products and services, there is the
need to have strategic approach in training and education patterns and personnel policies in
these types of organisations.
The success or failure of new products and services with new technologies is totally
dependent not just on factors such as marketing, research and development, product
specification but also the application of efficient strategic management approach to the areas
of human resources. Recent research conducted by Soliman & Spooner (2000) suggests that
intellectual property and other assets can be deployed in organizations; more so, high
technology companies much more efficiently and effectively if organizations apply
knowledge management techniques in respect of capacity building of their employee and
human resources and enhancing their personnel management. Given the phenomenal
developments of new technologies and services, there needs to be a robust and adequate
strategies and practices to ensure that staff members are always satisfied with the company
else they might look for other job prospects. Further, taking the above discussion into
consideration this particular paper attempts to examine several factors responsible for high
staff turnover, eventually resulting in lower productivity and profits.
Structure of the Report
The thesis has four main chapters: Literature Review, Methodology, Findings and
Conclusion. In literature review, initially the focus is laid on the key terms related to this
piece of study. Then we will come the methodology chapter, where the research paradigm,
approach and methodology selected to answer the research questions are detailed. Since, this
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piece of study involves analysing the human interpretations and understanding their meanings
(Darke et al., 1998), interpretive paradigm along with interviewing and surveying
methodology has been adopted. The methodology chapter also highlights the ethical issues
considered like confidentiality and honesty, challenges encountered with the selected
research methodology.
After that, will follow the Findings chapter, where the research questions are addressed using
the data gathered from interviews, surveys and literature review. It presents the findings and
discussions which is a summary of the results of the study. Finally, in the conclusion chapter,
the key findings of the research are summarised along with brief listing of research limitation.
The conclusion chapter also illustrates the options which have opened for future research.
Moving ahead, every project in this world, be it big or small has its own set or pre-set goals
and objectives. The section below will now highlight the specific goals and objectives of this
piece of study.
Aim, Objectives and Research Questions
The aim of this dissertation study is to investigate what the most attracting reasons for
employees to lengthen their working time by taking the case of Ausnew Corporation.
Moreover, the specific objectives of this dissertation study are listed below:
Research Objectives
The objectives of this study are:
 To obtain an understanding of the reasons behind high staff turnover rate at Ausnew
Company.
 To obtain an understanding of the role of senior management, leadership and the human
resource policies in retaining employees.
 To analyse the various measures and strategies that can be adopted by Ausnew to trim
down high staff turnover rate.
Research Questions
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