BRH606 Business Research: Strategies to Reduce Turnover at Nara Lounge

This business research report delves into the issue of employee turnover at Nara Lounge, a full-service bar and hookah lounge with a banquet hall and restaurant. The report identifies that increased employee turnover is impacting the quality of services and productivity. It highlights factors such as inadequate compensation, lack of employee benefits, and ineffective training programs as potential causes of employee dissatisfaction. The research aims to analyze the management structure, compensation structure, and training programs at Nara Lounge, with the objective of understanding the reasons behind employee dissatisfaction and turnover and suggesting strategies to enhance employee performance and reduce turnover rates. The report includes a literature review that examines existing research on employee turnover in the hospitality industry, covering topics such as organizational work environment, compensation, employee benefits, and training programs. The research methodology section outlines the approach to data collection and analysis, including surveys and interviews, to gather insights from current and former employees.

Running head: BUSINESS RESEARCH
Business research
Name of the student
Name of the university
Author note

1BUSINESS RESEARCH
Table of Contents
Section 1: The Business Problem and Objectives...............................................................3
1.0. Business Problem..........................................................................................................3
1.1. Business Decision.........................................................................................................3
1.2. Needed Information......................................................................................................4
1.2.1. Investigate the management or the general work environment.............................4
1.2.2. Understanding the salary of the employees which matches with their experience
and their standard on competitive market....................................................................................4
1.2.3. Investigate the employees benefit program to make them happy..........................4
1.2.4. Understanding the major factors of employee dissatisfaction which leads them to
quite the job.................................................................................................................................5
1.2.5. Understanding the training program to implements on new staff to make them
perform well.................................................................................................................................5
1.2.6. Reason behind staff turnover.................................................................................6
1.3. Research Objectives......................................................................................................6
Literature Review................................................................................................................7
2.0. Investigate the management or the Organizational work environment....................7
2.1. Understanding the salary of the employees which matches with their experience
and their standard on competitive market....................................................................................8
2.2. Investigate the employees benefit program to make them happy.............................9

2BUSINESS RESEARCH
2.3. Understanding the major factors of employee dissatisfaction which leads them to
quit the job...................................................................................................................................9
2.4. Understanding the training program to implements on new staff to make them
perform well...............................................................................................................................10
2.5. Reason behind staff turnover..................................................................................10
2.6. Quality Assessment of Literature...........................................................................11
Section 2: Research Methodology.....................................................................................12
2.1. Research Objectives....................................................................................................12
2.2. Research Approach.....................................................................................................12
2.3. Research Design and Methodology............................................................................13
2.3.1. Research Technique.............................................................................................13
2.3.2. The Population.....................................................................................................13
2.3.3. The Sample Design..............................................................................................14
2.3.4. The Implementation Plan.....................................................................................14
2.3.5. Suggested Questions............................................................................................15
3. Project Schedule............................................................................................................15
References..........................................................................................................................17

3BUSINESS RESEARCH
Section 1: The Business Problem and Objectives
1.0. Business Problem
Nara Lounge is positioned as a full-service bar and hookah lounge with banquet hall and
restaurant on the second floor. The lounge is focused to operate as a unique ambiance along with
experience each day. It is observed these days that the manpower turnover is the biggest concern
in the hotel industry that is drastically affecting the performance and productivity of these hotels
(Lounge2018). Nara Lounge is observed to deal with issues related with increased employee
turnover for the reason that the salary of the employees is not as per their matching experience
along with their standard within the competitive market. There are several factors within the
company that is resulting in consumer dissatisfaction within the company for which
implementation of training program is deemed necessary for motivating the staff to perform well
(Li et al. 2016).
1.1. Business Decision
Focused on theresearch problem explained under, employee turnover is a drastic issue
faced by Nara Lounge which is observed to impact the quality of services in the restaurant along
with its productivity. An increased rate in employee turnover in the company has drastically
impacted employee morale along with increasing stress among the staff. The increased intensity
of turnover in the company has affected its restaurant service by 10% in the current year that has
resulted in decreased sales (Dubey et al. 2016). Moreover, it has also been observed that the
company’s subjective and objective performance has been affected because of inadequate wage
levels resulting in employees moving to competitors, poor morale along with low motivation

4BUSINESS RESEARCH
level. In dealing with such issue Nara Lounge is focusing on improving the compensation
structure along with introducing employee motivation training to decrease the issue of increasing
turnover rate (Hom et al. 2017).
1.2. Needed Information
1.2.1. Investigate the management or the general work environment
Nara Lounge is observed to have a creative and constant innovation workplace
environment and the employees those work in thecompany are of diverse cultural backgrounds
and nationalities (Pohler and Schmidt 2016). The employee development is influenced by the
policies and procedures developed by the HR department (Taylor 2016). Nera Lounge’s
company values are focused on maintaining team effectiveness that serves as a major financial
determinant of the company.
1.2.2. Understanding the salary of the employees which matches with their experience and
their standard on competitive market
Attaining understanding on the salary of the employees can facilitate in obtaining an
understanding whether the compensation structure followed by Nera Lounge is aligned with the
experience of the workforce and as per the standard on the competitive market (Pohler and
Schmidt 2016). To attain understanding of such factor it will be simpler to analyze the
satisfaction level of the employees working in Nera Lounge along with the factors that they find
demotivating regarding the salary paid to them which is making them leave their jobs. Such data
can be gathered through surveying the former employees of Nera Lounge.

5BUSINESS RESEARCH
1.2.3. Investigate the employees benefit program to make them happy
In investigating the employees benefit program in Nera Lounge it will be simpler to
understand the ways in which the benefit program implemented by the company is motivating
the employees to perform efficiently in the company. Employee surveys will be carried out in
gathering their viewpoints on the effectiveness of the employee benefit program present in the
company (Dubey et al. 2016). Moreover, analyzing these factors will facilitate the company in
determining the training program and compensation structure gap that is present in the company
son that they can make necessary improvements in its organizational processes as an approach to
decrease the turnover rate in the company.
1.2.4. Understanding the major factors of employee dissatisfaction which leads them to
quite the job
This aspect will analyze the major factors those resulted in employee dissatisfaction in
Nara Lounge which lead to increased turnover rate within the company. Moreover, poor
management in the company along with lack of encouraging financial rewards are deemed to
affect employees’ views regarding the payment scale as well as the compensation structure
received by them as per their experience and job position (Dubey et al. 2016).
1.2.5. Understanding the training program to implements on new staff to make them
perform well
This section would shed light on understanding the training program for implementing on
new staffs in order to ensure effective performance. In order to achieve the same, program goals
will be developed, which will assist in gaining an overview of the needs of the employees.
Secondly, right employee training software needs to be implemented for offering increased
personalized experiences (Pohler and Schmidt 2016).

6BUSINESS RESEARCH
1.2.6. Reason behind staff turnover
Fromanalyzing the reasons behind staff turnover,it will be raveled the ways in which
weak compensation structure, inefficient hiring process of employees and poor training programs
developed by Nara Lounge resulted in drastic employee turnover within the company
(Lounge2018). Moreover, it will also be evaluated that the employees in the company get
motivated through earning special incentives along with extra paid time and employee training
programs on new job responsibilities to attain increased employee motivation within the
workplace.
1.3. Research Objectives
The research objectives those are to be addressed through completion of the current
research are explained under:
 To analyze the management structure or organizational work environment of Nara
Lounge
 To analyze the compensation structure of the employees matching with the employees
experience and standard in the competitive market
 To attain an understanding on major factors those result in employees dissatisfaction and
turnover
 To analyze the training program that can be implemented on new employees for
enhancing their performance in the workplace

7BUSINESS RESEARCH
Literature Review
2.0. Investigate the management or the Organizational work environment
Lee et al. (2017) indicated that Nara Lounge is observed to have a creative and constant
innovation workplace environment and the employees those work in the company are of diverse
cultural backgrounds and nationalities.
Figure 1: Management Structure of Nara Lounge
(Source: Harris, Lavelleand McMahan 2018)
Huffman, Casper and Payne (2014) stated that the management structure of Nara Lounge
includes functional hierarchy, geographic divisions, and service-based divisions along with

8BUSINESS RESEARCH
teams. In the functional hierarchy it has a HR, marketing and finance department. The employee
development is influenced by the policies and procedures developed by the HR department. This
hierarchy is deemed to control and monitor the work performance of the employees in a top-
down approach. Vardaman et al. (2015) also added that NaraLounge’s company values are
focused on maintaining team effectiveness that serves as a major financial determinant of the
company. Moreover, it has also been gathered that the corporate culture of Nara Lounge is
focused on encouraging team effectiveness. Kangas et al. (2016) revealed that despite such well-
structured management system the company is dealing with issues of increased employee
turnover, as the compensation structure and the training programs for the new joiners are
observed to be ineffective to motivate the newly joined employees to sustain within the company
for a long duration.
2.1. Understanding the salary of the employees which matches with their experience and
their standard on competitive market
As stated by Huanget al. (2016), the compensation in the hospitality industry is lower
than the other industries even though the stress level of work is higher in other sectors. The
benefit package for the employees in the hospitality industry should be developed and designed
based on the best practices in the industry. It is crucial to keep a compensation that meets the
benchmark of the industry. According to Mathieuet al.(2016), the majority of the employees
leave their job due to pay issues or for better compensation package in the hospitality industry.
As stated in the Maslow’s Hierarchy of needs, compensation has been considered as one of the
most significant motivating factors for the employees working in hotels or any other industry.
Compensation is one of the key components of employee retention in majority of the
organizations as monetary rewards act as a motivator for employees.

9BUSINESS RESEARCH
2.2. Investigate the employees benefit program to make them happy
As stated by Muguongo, Muguna and Muriithi(2015), benefit programs can be of
different types, both monetary and non-monetary benefits. The employee benefit programs
belong to the category of fringe compensation which again reflects that compensation is essential
for job satisfaction. The major benefit programs consist of life insurance plans, retirement plans,
health insurance, educational assistance, holiday pay and vacations. Harris, Lavelleand
McMahan (2018) states that all types of benefit programs provide motivation to the employees as
fulfills their needs and wants. Fringe benefit is one of the most desirable attributes of any job and
comprises of at least 30% of the total compensation. McPhailet al.(2015) states that fringe
benefits are one of the most important ways of making the employees feel secure and provide
satisfaction to them.
2.3. Understanding the major factors of employee dissatisfaction which leads them to quit
the job
Even though, it has been discussed that lack of appropriate compensation and employee
benefits are major reasons for dissatisfaction among different employees, there are certain other
factors that are responsible for causing dissatisfaction. Work life balance is another key factor for
lack of satisfaction among the employees which is a key issue in the hospitality sector where the
work load is quite heavy. Compensation package is also a valid reason as employees can get
better paying jobs with less stressful environment (Coetzee and Stoltz 2015). The majority of the
employees working the hospitality industry do not like their superiors and their coworkers which
is one of the reasons that theydo not have a healthy organizational culture. The next factor is the
lack of growth within the organizations. However, lack of management and proper leaders will

10BUSINESS RESEARCH
cause the employees to lose their focus as they are receiving any valuable feedback from their
managers.
2.4. Understanding the training program to implements on new staff to make them
perform well
Sundstromet al. (2016) states that training programs are not only required to improve the
skill level of the employees but also to provide them with different job roles and help them grow
within the organization. There is shortage of labor in the global hospitality industry due to the
fact that majority of the employees are moving to different sectors due to better work life balance
and more compensation package at lesser stressful environment. As stated by Luet al. (2016),
career growth has gained its prominence and have become of the one of the most crucial
elements for increasing the level of satisfaction among employees. The next factor is the lack of
growth within the organizations. Hanaysha and Tahir (2016) states that the use of training and
development programs are more crucial to the new employees as they are provided with
opportunity of growing up the ladder in the organizational hierarchy.
2.5. Reason behind staff turnover
Porter, Woo and Campion (2016) argues that lack of work life balance and stress level of
the employees are key aspects that increases the level of motivation among the employees. Work
life balance is another key factor for lack of satisfaction among the employees which is a key
issue in the hospitality sector where the work load is quite heavy. Compensation package is also
a valid reason as employees can get better paying jobs with less stressful environment. Huffman,
Casperand Payne (2014)states that even though there are various factors responsible for
employee turnover in the hospitality industry, the compensation is still at the top as the salary
package in other industries are quite higher.

11BUSINESS RESEARCH
2.6. Quality Assessment of Literature
Research Questions Assessment Gaps in knowledge
What is the
management structure or
organizational work
environment of Nara Lounge?
2/3 The given data is quite up
to date and provides sufficient
knowledge but consists some
missing elements.
What is the
compensation structure of the
employees matching with the
employees’ experience and
standard in the competitive
market?
2/3 The major gap is the fact
that the literature only considers
the traditional motivational
theories and there is lack of
mention of the modern
motivational theories such as self-
determination theory
What are the major
factors those result in
employee’s dissatisfaction and
turnover?
2/3 The major factors
responsible for turnover have
been identified but they are
generalized and more focused
result is required.