Analysis of Employee Turnover at Coffee Bean and Leaf in Sydney, AU

This report investigates the problem of employee turnover at Coffee Bean and Leaf, a coffee shop in Sydney, Australia. It identifies the business problem, research questions, and theoretical frameworks related to employee turnover. The literature review explores the impact and causes of employee turnover, including inadequate pay, unsuitable work conditions, and inflexible leave policies. The research methodology involves in-depth personal interviews and focus group discussions to gather data. The analysis of the data reveals key findings, supported by the literature review, regarding the reasons for employee turnover and potential strategies for employee retention, such as improving work conditions and offering better opportunities. The report concludes by summarizing the findings and suggesting ways to motivate employees to stay with the company long-term. Desklib provides access to this and other solved assignments for students.

Running head: RESEARCH
Business problem: Causes of employee turnover in coffee bean and leaf

RESEARCH 2
Abstract
The main aim of this report is to identify the problem of employee turnover at the workplace.
This report will contain different chapters such as introduction, literature review, research
methodology, data analysis, and results. Introduction considers the problem statement and
research questions related to research issues. A literature review is the second chapter that aids in
conceptual understanding regarding problem and consequences of employee turnover at the
workplace. Research methodology is the third chapter that contains the research design, and data
collection methods. In this research, an in-depth personal interview and focus group discussion is
used in this investigation. Data analysis is beneficial for assessing the pooled information
regarding research issues. The result shows the findings of data gathering and these findings are
supported by the literature review. In conclusion chapter, findings are summarised that aids to
comprehend the research concern.

RESEARCH 3
Table of Contents
Abstract.......................................................................................................................................................2
Table of Contents........................................................................................................................................3
Introduction.................................................................................................................................................4
Business Problem....................................................................................................................................4
Statement.................................................................................................................................................4
Research questions..................................................................................................................................5
Theoretical frameworks...............................................................................................................................6
Literature review.........................................................................................................................................7
Introduction.............................................................................................................................................7
Impact of employee turnover...................................................................................................................7
Negative impact of employee turnover on existing employees................................................................8
Negative Impact of employee turnover on Customer Behaviour.............................................................8
Causes of High Employee Turnover in a Business..................................................................................9
Strategy to avoid the high employees turnover from Coffee Bean and Leaf..........................................10
Better opportunities to employees in and around Sydney organization.................................................14
Summary...............................................................................................................................................15
Methods.....................................................................................................................................................15
Analysis.....................................................................................................................................................19
Results.......................................................................................................................................................32
Limitation..................................................................................................................................................34
Execution...................................................................................................................................................35
Conclusion.................................................................................................................................................35
References.................................................................................................................................................37

RESEARCH 4
Introduction
Business Problem
In current business times, companies may face complexity during the operation at small or large
scale. One of the key issues that a company faces in the current scenario is the high rate of
employee turnover. Employees can be easily dissatisfied by the circumstances of their
employment and after dissatisfaction; they can make decision of resign or leave to company.
This report focuses on the issue of high employee turnover as faced by Coffee bean and leaf i.e.
renowned coffee shop dealing in the Australian nation of Sydney (Brown, Thomas, &
Bosselman, 2015). It defines the issue, assesses it in depth and facilitates an outline of research
design that could be practiced for uncovering the solutions to issue. In conclusion, this report
considers different research questions that are a basis of conducting further investigation such as
what an employee wants to leave the coffee shop after being recruited. Another alternative is
employment and business opportunities that appear to them to be more appealing. It also
demonstrates the ways for motivating the employees to remain in the workplace at long-term
(Kim, 2014).
Statement
Turnover is a key issue for the hospitality industry. Substantial subjective evidence recommends
that turnover rates can arrive as high as 200 or 300 percent in rank and file positions, as well as
management turnover, can approach 100 percent at an operational level in certain companies. It
is assessed that the significance of turnover as an issue for the hospitality industry due to
recession in early and mid of the 1990s. It has moved to the forefront with the arrival of
extraordinary full employment (Lu, Lu, Gursoy, & Neale, 2016).

RESEARCH 5
A low extent of unemployment rate demonstrates higher complexity for the industry. Initially,
the amount of employees in the traditional target market for the hospitality sector is declining.
This is possible to practice this strategy at the longer time. Moreover, unless the hospitality
industry demonstrates the opportunities for significant advancement in compensation and
responsibility, coffee beans and leaf should continue to influence at a larger extent. As a result,
workforces will view working in the industry to get something better achievements (Han, Bonn,
& Cho, 2016).
In addition to this, “something better” can easily attract talented people who are not satisfied
with their work in the hospitality industry. As a final point, despite extraordinary efforts to
transform its image, the industry focuses on the publicity of resort rather than recruiting new
employees. It acts as an existing labor shortage in the hospitality industry hence there is a need to
increase the employment.
For service industries specifically hospitality, turnover is a major issue (Qiu, Haobin Ye, Hung,
& York, 2015). It creates an existing workforce shortage worse and in certain cases, it argues
that turnover is a symptom of a subtle organizational disease. There is a strong relationship
between employee’s satisfaction and overall productivity. In this report, the concept of turnover
is examined as well as, it discusses the causes of employees turnover. It also illustrates the
emerging areas of the issue regarding the real costs of employee turnover. It also suggested
strategies to overcome the employee turnover at the workplace (Youn, Kim, & Song, 2017).
Research questions
The quantitative and qualitative research techniques, as well as investigation variables, are
discussed to answer the given below questions:

RESEARCH 6
1) Why do employees at the Coffee Bean and Leaf want to resign after a few months of
joining?
2) Are there better opportunities in and around Sydney that lure them away, consistently?
3) What are the ways by which employees can be motivated to continue working at the
Coffee Bean and Leaf?
Theoretical frameworks
(Sources: AlBattat, Som, & Helalat, 2014).
There are three different factors that are a key cause of employee turnover at Coffee Bean and
Leaf such as external factors, work-related factors, and personal factors. The company can use
Herzberg theory of motivation to retain the employees at the workplace.
Herzberg's Two-Factor Theory
Frederick Irving Herzberg has built a motivational theory for an organization that includes two
separate classifications. The first focuses on the list of hygiene factors that may generate high

RESEARCH 7
extent of dissatisfaction if they are negative and lacking. There are some factors such as benefits,
status or title, working condition, job stability, and organizational culture. When these factors are
adequate or positive then they generate a state of impartiality (Wahyuningtyas, Sule, Kusman, &
Soemaryani, 2015). Herzberg’s motivational factor involves personal growth, recognition,
achievement as well as personal investment. As per this theory, these factors can stimulate
workforces for performing at a higher extent. Herzberg stated that corporations should practice
both motivational and hygiene factors (Hwang, Lee, Park, Chang, & Kim, 2014). For instance, to
make sure motivation, a manager should pay their employees at market wages and praise their
job performance legally and informally.
Literature review
Introduction
This chapter is significant for investigation as it helps an investigator for building the conceptual
knowledge regarding the research concern in an effective and efficient manner. It supports an
investigator for assessing the data via different secondary sources such as journal articles,
textbooks, and academic publication and online sources. This literature review will focus on
causes of employee turnover within coffee bean and leaf. The concern of employee turnover is
the reason behind the declining performance of business enterprise (Mohsin, Lengler, &
Aguzzoli, 2015).
Impact of employee turnover
According to Guilding Lamminmaki & McManus (2014), higher employee turnover creates
difficulty to effectively perform within an organisation. It is required for top executives to
become familiar with individuals who are working under them to perform business tasks and

RESEARCH 8
operations implemented in an effective and efficient manner. A high rate of employee turnover
indicates that the management of the company does not get the chances to understand the
individual who is recruited for running the business. For rapidly arriving at each employee, the
company should focus on radical changes at business setup. Employees can face complexities to
perform the tasks due to organizational structure, proficiency, and discipline that is required to
keep the work of a company.
On the other side, Tews Stafford & Michel (2014) evaluated that a high employee turnover may
decline the confidence of stakeholders and investors. It is assessed that those investing in a
specific company will always focus on allocating the resources to run the company when the
employee turnover rate is high. A company requires skilled, reliable, as well as stable employees
when it is to grow and expand over long time duration. It is assessed that workforces are leaving
the company due to getting better jobs and it may affect the business operation. It also creates
adverse impact in the mind of investors that this business is not with the intention of investing in
long-term.
Negative impact of employee turnover on existing employees
According to Kim Im & Hwang (2015), a high employee turnover rate will adversely impact the
attitudes and behaviour of workforces performing within an organization. After joining the
company, there is less probability that employees will leave the company because they highly
motivated through the employees who is having higher experience at the workplace. It would
provide a positive impression in the mind of employees.
Negative Impact of employee turnover on Customer Behaviour
In contrast to this, Kalidass & Bahron (2015) stated that high employee turnover is something
that could absolutely have an adverse effect on customer behaviour. When a customer has been

RESEARCH 9
visiting a coffee shop and employees delay in attending them then it may have adverse effects on
the behaviour of customers. It is also evaluated that there are some of the employees who leave
the coffee shop after a few months of joining. As a result, it may adversely impact on the quality
of services that should be offered by the coffee shop. A coffee shop should consider more
consistency in services as it would be beneficial for influencing consumer behaviour.
Causes of High Employee Turnover in a Business
According to Gatling Kang & Kim (2016), there are different causes of high employee turnover
in a company that may highly impact on the business. Hence, the company should address the
problem of employee turnover to control and manage it. Inadequate pay is one of key cause of
employee turnover. When employees are not satisfied with the amount of compensation that they
are getting for their work then they will be likely to leave that company immediately and focuses
on better jobs to another place.
On the other side, Lee Back & Chan (2015) evaluated that unsuitable work conditions are
another cause of high employee turnover for a company. The environment within an organization
is one that requires gaining productivity. When the working culture is unhealthy then, there is the
high extent of hostility and employees are fighting with each other in most of the cases as well as
fighting with those who manage them. Hence, in such case, the working atmosphere of the coffee
shop should be healthy and harmonious as well as friendly that employees get preference to stay
on with this business enterprise.
In the view of Liu (2017), a bad leave policy could be a key cause of high employee turnover for
a business enterprise. When a company does not permit its employees to take a high amount of
leaves in a year and even in a month as well as compel them for working strictly without a break
for several months at a stretch then there would be a high possibility that employees would give

RESEARCH 10
resignation out of tiredness as well as exhaustion. They will simply not have the physical stamina
and energy to perform their job.
In contrast to this, Ariza-Montes Arjona-Fuentes Law & Han (2017) opined that lack of
flexibility in working hours is another cause of high employee turnover. When working
condition and working hours in the company are not flexible then this could adversely motivate
the employees to leave the organization. Furthermore, when workforces are not allowed for
taking sufficient breaks in between the work that they do and when they do not have few minutes
of the day to get better and to relax then they would be less energetic. As a result, it would less
prone to perform the job that they are performing. Employees would certainly not feel motivated
to come to work every day and will wish to quit the job in its place.
On the other side, Chen Friedman & Simons (2014) stated that dangerous work environment is a
key cause of high employee turnover. A working atmosphere that is physically hazardous for
employees can create the chances of high employee turnover. When workforces do not feel safe
as well as secure within an organization where they serve then they would not want to continue
the jobs theirs over longer time duration. Hence, when a company does not provide sufficient to
theory employees then they may handle and combating fire hazards as well as other kinds of
hazards within an organization. When it does not undertake the measure required for maintaining
its employees safe from physically harmful conditions of labour then this would result in higher
migration of workforces from that company.
Strategy to avoid the high employees turnover from Coffee Bean and Leaf
Vujičić Jovičić Lalić Gagić & Cvejanov (2015) recommends that company should encourage
generosity and gratitude. This may lead to motivate the pro-social behaviour of employees.
When employees are given the chance to connect with one another through acts of the expression

RESEARCH 11
related to of appreciation and generosity, then employees would be happier, healthier and less
expected to fly the cooperative. By encouraging the behavior of employees, the company can
provide a sense of ownership to their employees.
On the other side, Jung & Yoon (2015) suggested that the company should recognize and reward
employees. It should also appreciate and value to their employees by providing them real-time
recognition that celebrates their efforts and success. The company should make this appreciation
strategy more social, specific and should be supported by tangible rewards as it would be
beneficial for increasing loyalty.
In the view of Chen Chen Tsui & Chiang (2016), a company should pay attention to engagement
as it may be beneficial for increasing the productivity of the company. But, there are too many
leaders who demonstrate their less interest in engaging the employees at the workplace. The
company should put energy for taking action based on condition and develops a culture for
engagement at a longer period.
In contrast to this, Madera Dawson & Neal (2014) suggested that the company should prioritize
the employee happiness. It is assessed that happiness may aid to provide the high satisfaction and
declines the employee turnover at the workplace. Moreover, employee happiness is a key
indicator of absenteeism, job satisfaction and coalition with values. It is also stated that focusing
on the happiness of employees will support in paying dividends in productivity, retention as well
as engagement.
In the view of Tongchaiprasit & Ariyabuddhiphongs (2016), a company should keep the
compensation and benefits current. It should sure that company is paying fair wages to
employees for their work and provides them with competitive benefits. This could be beneficial

RESEARCH 12
for overcoming the high employee turnover at the workplace and retaining them at a longer
period.
According to Kao Cheng Kuo & Huang (2014), work-life balance is a key strategy to retain the
employee turnover. When absenteeism and burnout are regular occurrences then the company
should focus on the strategies for achieving the work-life balance. The company can also explore
flexible work schedules in order to accommodate the employee’s personal and family
obligations. Moreover, telecommunicating helps employees to save stress and expenses of long
committees. It is complex for making advantageous in the workplace. However, when a
company initiates the exploration procedure then it may get employee input at the workplace.
On the other side, McPhail Patiar Herington Creed & Davidson (2015) evaluated that the
company should engage employees at the workplace as it would be beneficial for the decline the
turnover rate. Disengaged workforces are not enthusiastic regarding their jobs due to the inability
of supervisors and managers to motivate the employees. Recognizing workforces is a key
motivation tool as per the theory of motivation-hygiene theory and Frederick Herzberg's two-
factor. This theory states that employees can be encouraged by recognition. According to
Herzberg's theory, the company should provide additional accountabilities to their employees,
possibility for advancement, and ways for building professionally. It may lead to job satisfaction.
Engaged workforces may generally experience high job satisfaction and depict lower turnover
rates.
In the view of Williams & Owusu-Acheampong (2016), a training program can be beneficial for
setting new employees and obtains the growth. A workforce who feels that they understand the
job responsibilities and workplace procedures could be more comfortable to remain within an
organization at a longer period. In addition, the company should offer additional training