Employee Motivation Impact on Retention: Honeywell Fire Systems Report

This report investigates the crucial impact of employee motivation on employee retention, with a specific focus on Honeywell Fire Systems. The research explores the significance of employee motivation, analyzing factors affecting both motivation and retention within the organization. The study employs a descriptive design, deductive approach, and random sampling of 151 employees to gather and analyze data, using SPSS for statistical analysis. The report reviews literature, discusses relevant theories and models (such as the 4-drive model and job embeddedness theory), and identifies gaps in existing research. The findings emphasize the importance of understanding individual employee needs to create effective motivational strategies. Recommendations are provided for Honeywell Fire Systems to improve employee motivation techniques, ultimately leading to increased employee retention and improved organizational performance. The report also includes an abstract, acknowledgement, table of contents, list of tables, and figures, and concludes with recommendations based on the research findings, linking the objectives with the conclusion.

Running head: IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Impact of Employee Motivation on Employee Retention: A Case Study of Honey Well Fire
Systems
Name of the Student:
Name of the University:
Author’s Note:

1IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Abstract
The aim of the research is to understand and investigate the impact of employee motivation for
retaining the employees for the business organizations successfully. Therefore, it is essential for
the human resources management of the business organizations to motivate the employees
appropriately so that they can be retained. Increased employee turnover rate results in losing
highly qualified, experiences and skilful employees for the business organizations thereby,
hampering the overall organizational performance. Therefore, the research is significant as this
helps in understanding the importance of employee motivation for employee retention, factors
affecting employee motivation and retention and suitable recommendations that Honeywell Fire
Systems can undertake for improving their employee motivation techniques thereby, increasing
employee retention. In the literature review chapter, the researcher has analysed various
secondary resources that compares and contrasts the opinions and viewpoints of different
authors. In this chapter, the researcher has also used relevant theories and models along with
discussing the successful application of them for the business organizations. Additionally, the
researcher has also highlighted the probable literature gaps that were identified while conducting
the research that somewhat compromised with the quality of the research work. The researcher
has used positivism philosophy, descriptive design and deductive approach for gathering data for
this researcher. The researcher has used random sampling technique for surveying 151
employees of Honeywell Fire Systems and has analysed the collected survey results using SPSS.
From the above research and data analysis, it can be concluded that employee motivation is
extremely crucial for retaining the employees. The human resource management needs to
consider the distinctive nature and individuality of the employees. Thus, the human resource
management needs to consider the individual needs to the employees and aim towards fulfilling

2IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
them. For instance, the motivating factors differ from individual to individual. As a result, the
human resource management cannot use similar motivating factors for all the employees. It is
essential for the business organizations to identify the individual needs of the employees and
develop strategies for fulfilling them. Thus, it can be concluded that the human resource
management needs to identify the individual motivational factors of the employees and aim
towards fulfilling them.

3IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

4IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Background of the Research................................................................................................10
1.2 Rationale of the Research....................................................................................................11
1.3 Background of the Organization..........................................................................................11
1.4 Research Aim.......................................................................................................................12
1.5 Research Objectives.............................................................................................................12
1.6 Research Questions..............................................................................................................12
1.7 Significance of the Research...............................................................................................13
1.8 Structure of the Dissertation................................................................................................13
1.9 Summary..............................................................................................................................14
Chapter 2: Literature Review.........................................................................................................15
2.0 Overview.........................................................................................................................15
2.1 Conceptual Framework........................................................................................................16
2.2 Concept of employee motivation.........................................................................................16
2.3 Factors affecting employee motivation...............................................................................17
2.4 Concept of employee retention............................................................................................19
2.5 Factors affecting employee retention...................................................................................20

5IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
2.6 Theory of employee motivation...............................................................................................21
2.7 Model of employee motivation................................................................................................22
2.7.1 4-drive model of employee motivation.............................................................................22
2.8 Theory of employee retention..................................................................................................24
2.8.1 Job embeddedness theory of employee retention.............................................................24
2.9 Model of employee retention...................................................................................................26
2.9.1 Ohio employee retention model........................................................................................26
2.10 Role of HRM on employee motivation and retention.......................................................27
2.11 Impact of motivation on employee retention.....................................................................28
2.12 Gaps in the literature..........................................................................................................29
2.13 Summary............................................................................................................................29
Chapter 3: Research Methodology................................................................................................30
3.0 Introduction.....................................................................................................................30
3.1 Research Outline..................................................................................................................30
3.2 Research Philosophy............................................................................................................30
3.2.1 Justifying the selection of positivism philosophy.............................................................31
3.3 Research Approach..............................................................................................................31
3.3.1 Justifying the selection of deductive approach.................................................................32
3.4 Research Design..................................................................................................................32
3.4.1 Justifying the selection of descriptive design...................................................................32

6IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
3.5 Research Strategy................................................................................................................33
3.5.1 Justifying the selection of survey research strategy.........................................................33
3.6 Sampling Technique and Sampling Size.............................................................................33
3.6.1 Justifying the selection of probability sampling technique..............................................34
3.7 Data Collection Technique..................................................................................................34
3.7.1 Justifying the selection of primary data collection technique..........................................34
3.8 Data Analysis Technique.....................................................................................................35
3.8.1 Justifying the selection of SPSS.......................................................................................35
3.9 Ethical Considerations.........................................................................................................35
3.10 Summary............................................................................................................................36
Chapter 4: Data Analysis...............................................................................................................37
Chapter 5: Conclusion and Recommendations..............................................................................58
5.0 Conclusion...........................................................................................................................58
5.1 Linking with objectives.......................................................................................................59
5.2 Recommendations................................................................................................................62
References......................................................................................................................................64
Appendix 1.....................................................................................................................................72
Survey Questionnaire.................................................................................................................72

7IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
List of Tables
Table 1: Hertzberg’s two-factor motivational theory....................................................................21
Table 2: Research Outline.............................................................................................................29

8IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
List of Figures
Figure 1: Conceptual Framework..................................................................................................15
Figure 2: 4-Drive Employee Motivational Model.........................................................................23
Figure 3: Job embeddedness theory for retaining employees........................................................25
Figure 4: Ohio model for employee retention...............................................................................26

9IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
Chapter 1: Introduction
1.0 Overview
Employees are the backbone of the business organizations, as their dedication, contribution
and effort determine the overall success by maximizing the revenue and productivity of the
company. Therefore, motivating the employees continuously and appropriately is essential for
enhancing retaining them. It is evident that the employees are easily demotivated due to the
monotonous and stagnant nature of the working culture (Lazaroiu 2015). Thus, the employees
tend to change their job at regular interval in search of work motivation. As a result, the business
organizations need to implement appropriate approaches and methods for motivating the
employees in order to retain them (Skudiene and Auruskeviciene 2012).
1.1 Background of the Research
The impact of motivation of employees on retaining the employees has been researched
on a wider manner, as this investigates how significant employee motivation is for retaining their
employees for the business organizations. However, some studies have presented contradictory
views on the significance of employee motivation for retaining the employees. As commented by
Dobre (2013), employee retention ensures how the business organizations perpetuate their
skilful, experienced and qualified employees for the betterment of the organization by
considering their needs and expectations. However, as criticized by Graves, Sarkis and Zhu
(2013), employees leave their jobs due to personal reasons sometimes and not due to lack of
motivation. Nevertheless, the business organizations need to motivate their employees by
considering and fulfilling their demands and needs thereby, ensuring that the employees are
retained.

10IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
1.2 Rationale of the Research
According to the current situation of Honeywell Fire Systems, the company is gaining
profits from the various manufacturing departments. As the company is a manufacturing
organization, at certain instances, the employees need to work for extensive hours to maintain the
level of production. However, the hard works of the employees are not significantly considered
but the company in terms of the monthly wage. Additionally, the employees are also devoid of
additional facilities such as rewards, appraisal and promotion that are essential for motivating
them (Boswell, Colvin and Darnold 2012). As a result, the employees are leaving the
organization due to lack of job satisfaction due to which the firm is incurring huge losses.
Therefore, the current situation of the company is crucial and challenging as the rate of employee
turnover has increased thereby, imposing additional financial expenses for the company.
Moreover, the company is also losing competitive advantage that is questioning their position in
the competitive market, as the company is unable to retain highly qualified, skilful and
experienced workers due to inappropriate employee motivational techniques (Rajhans 2012).
1.3 Background of the Organization
Honeywell Fire Systems is an American conglomerate business organization that deals
with manufacturing electronic security systems, residential fire alarms and burglar alarms.
Additionally, the company also manufactures commercial fire alarms, emergency
communication systems along with dire detection and notification devices. Honeywell Fire
System ranks within the top 75 Fortune companies with has an international workforce of
120,000 out of which an estimated 57,000 employees belong to the US. The company has it’s
headquarter in New Jersey and has several successful international business expansions
(Honeywell, 2017).

11IMPACT OF EMPLOYEE MOTIVATION ON EMPLOYEE RETENTION
1.4 Research Aim
The research aim is to analyse the impact that motivation of employees have on retaining
them in Honeywell Fire Systems.
1.5 Research Objectives
The objectives of the current research include:
 To understand the significance of employee motivation for employee retention
 To analyse the different factors of employee motivation and employee retention for
Honeywell Fire Systems
 To critically evaluate the impact of employee motivation on employee retention in
Honeywell Fire Systems
 To present recommendations for maximizing employee retention by improving employee
motivation techniques by Honeywell Fire Systems
1.6 Research Questions
The questions for the current research include:
 What is the significance of employee motivation for retaining employees?
 What are the factors of employee motivation and employee retention in Honeywell Fire
Systems?
 What is the impact of employee motivation on employee retention?
 What are the suitable recommendations for maximizing employee retention by improving
employee motivation techniques by Honeywell Fire Systems?