Analysis of Employee Retention and Turnover: HR Practice Review Report

This report presents an analysis of employee retention and turnover, focusing on HR practices within an organization. The introduction highlights the importance of HR in managing human resources and adapting to organizational changes, especially in a competitive business environment. The report examines employee turnover and retention rates, emphasizing the costs and challenges associated with losing key talent. It includes a critical review of three secondary sources: an article on onboarding processes, a book on work-life balance, and a report on turnover trends. The methodology section outlines the research philosophy (positivism), approach (deductive), design (analytical), and sampling method (survey). Key stakeholders, including HR directors, senior managers, and employees, are identified, along with their interests. The report concludes by discussing data collection methods and emphasizing the importance of stakeholder concerns in developing effective strategies. The report aims to provide recommendations for improving HR practices related to employee retention and turnover.

RUNNING HEAD: HR PRACTICE REVIEW
Analysis of Employee retention and Turnover
Name of Student:
Name of University:

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Introduction:
HR practices are the crucial area of management in any organisation the practices are
designed for managing the human resource of the company, that is considered to be the most
important source of production (Aruna and Anitha 2015). In case of any change in the
organisation, the most affected will be the human resource of the organisation. However, change
in the organisation is a necessary happening that will help the company to remain dynamic and
strategic for meeting the needs of the market and developing the employees so that their
individual goal align with the organisational goal.
In the present business scenario where competition has been accelerated to a large extent,
the issue of employee turnover has increased considerably owing to the exposure to different
industries, job pressure to meet the target or job dissatisfaction. The problems in retaining the
key talent have been a glaring one for the HR management.
In order to analyse the condition of any HR practice in the organisation and recommend
means for improvements, it is necessary to review the credible sources for gaining an overview
of the situations. The present report will aim at the HR issue of retention of the key talents in the
present scenario of increased turnovers in the organisation. The report will aim at the analysis of
the issue in general as well as in company specific context. In preparing the report, it will
consider the credible secondary sources regarding retention and turnovers. It will further set out
the research methodology that will be best to undertake in the current scenario. Based on the
findings from the research, it will draw the conclusions.

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Turnover and Retention:
One of the basic similarities among the companies is present days is the issue of
employee retention and turnover rates. The employment retention is referred to the strategy of
the organisation in retaining the best employees and maintaining a lower turnover. Since the
organisations in recent time have to face major revolutionary trends, the constant demand of new
and advanced products and a global competition, the mission of the organisations have been to
retain their best employees who are instrumental for the company for the implementation of the
changes (Duffield, Roche, Homer, Buchan and Dimitrelis 2014). The organisations must have
successful motivational strategies so that they can retain the talents to survive any kind of
consolidation and restructuring.
In recent times, there has been an acceleration of the companies’ dependency on the
employees. The organisations in the hospitality industries mainly depend on the performance of
the human resource. In production oriented industry as well, the necessity of the key talents is
there since the physical labour and brain storming are still essential areas of requirements. The
formulation of strategies that will be beneficial in retaining the employees is thus the ultimate
goal o maximum companies. Thus, the issue is important to maintain the demand of the
employees and adapt to certain strategies with the local market. In the company, it has been
observed recently that turnover rate has been increased upto 16 percent higher than 10 percent
which is considered to be normal. Turnover of the key talents is not only a regretted affair by
terms of losing a capable employee, but also is a costly affair since the leaving formalities.
Moreover, it is difficult for the company to find for another suitable candidate with same or more
capabilities. It incurs both time and cost (Christiano, Nagaraj, Fröhlich and Walther, 2014.).
Another important issue of consideration is the huge workload upon the employees that tends to

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create a sense of dissatisfaction among employees because of stress. It is thus needed in the
context to analyse the various factors that will affect the retention policy and the turnover rates in
the organisation.
Critical Review of the information sources:
Norma Davila and Wanda Pina Ramirez in their article “Providing the value of
induction” (Davila and Piña-Ramírez 2014. ) have critically analysed the importance of the
process of on boarding and the effectiveness of the process on the employees’ perception about
the company. The article takes up an example from the banking sector and tries to track a
correlation among the on boarding process and the turnover rate among the newly employed
employees. The research however, lacks the approach of a conducted and deduced method
inferring from a definite statistics. The research has been done on some primary basis without
graphing any particular raw data and measuring the statistics. The study seemed valuable also
from the point of view that the authors have measured the tool of on boarding twice so that they
have sufficient and reliable base for comparison and to be executed also for moving positions.
The article, however, made a positivism approach towards the process of on boarding and shed
light on the fact that the process accelerates the growth of the company. However, there are
traces where one ca find that the employees are taking the aspect negatively as it seemed futile
and tiresome to them. In order to improve the quality of research, the researchers could have
taken the process along with other one and establish a cause and effect relation of the process in
the context of turnover and retention. In doing the second hand research, the renowned book by J
Kodz and H Harper named as “work life balance: beyond the rhetoric will be considered (Kodz,
Harper and Dench 2002). The research book contains a lot of reliable sources of information

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regarding the research area of turnover and retention and a multiplicity of areas based on the
research conducted in six companies. The publisher, the institute for employment studies is a
reputed name in the field of human resource that has added values and guidelines for the
expertise of the researchers as well as the referees. The book is a strong source of information as
it exposes the positive way of recommendations but has also incorporated a plethora of
stumbling point of views. However the book poses certain limitations as it talks really less about
the problem related to the employee well-being or considering any ways of measurement for that
purpose. The research also does not establish any SMART goals that will motivate the employee
as well as the management. Other weakness that the book has is the fact that the total research
deals with the specified companies’ well developed work life policies . Since the policies are
already as par the expectation of the employees, no negative correlation could be proven. It
would have been better to be compared with the companies that do not have a well built policy in
order to build a comparison between the linkage with employee turnover, stress level or
absenteeism. The third secondary research that was considered within the frame of main research
area, the trends in the turnover rates within a year was tracked, the name of the report that was
considered was ”Mega trends: Has job turnover slowed down?”. Though the research was not
recent, this was chosen to make a prediction for the present days which factually are not as the
estimated ones. Since it has been assumed that by 2020 the rate of turnover will be lowered down
owing to the ageing population the report however shows the opposite. The present time has
been speculated as a time of uncertainty, risk, recession and changeability, the opposite result
was probably assumed. The workplace employment relation study provides the analysis by this
time.

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Summary of the stages Involved:
For the proper conducting of the research, a well built methodology must be approached
in order to make the research systematic and full-proofed. The research shall follow the
following methodology.
Research Philosophy: The three common research philosophies used as proper methodology are
positivism, realism and interpretivism. While positivism is an approach that focuses on the
creation of a hypothesis based in the data gathered, realism relates to the scientific enquiry of a
particular topic. Interpretivism correlates two hypothesis and aims at interpreting the possible
relations. For this research we used positivism research philosophy as the topic was required to
be investigated in a detail and critical manner.
Research Approach: The two common research approaches used in studies are inductive and
deductive. For this research deductive study was used as we took help of existing theories as well
as models for the proper carrying out of the research. According to Mackay and Gas 2015
inductive approach is not sufficient for providing the necessary information as it is used for
providing for new theories (.Bennett 2012)
Research Design: The three research designs used in general studies are explanatory,
exploratory and analytical. While explanatory research design aims at learning a relation
between two approaches, exploratory design makes a deep understanding of the variables used in
the initial stage of research (Schoonderbeek 2018). Analytical design creates a balance between
the above to approaches. In this project the analytical design has been used in order to evaluate
the theories in details and understanding the relations between them.

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Sampling Method: The research took help of the survey method for taking into consideration of
the point of view of the employees of the organisation. The employees will be given a set of
questionnaire that they will answer.
The quality data is illustrated below helps in understanding the rate of high turnover that
the organisation has been facing lately since the last quarter of 2019 (Browning, Dold, Jack and
Worthy 2014). This statistics helped in providing a macro view for the study and provides a
depth for the research. The numerical data is illustrated can be considered to be continuous since
they are taking a value within a particular range and are differing in voluntary versus non
voluntary leavers. The statistics also show the frequency of occurrence of the rejected offers.
A survey has been put to use after referring the book by Armstrong to confirm as well as to
enrich the development areas. A few areas based on the observation were highlighted as it has

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scope for enrichment. External researches highlight the fact that one third of the employees who
are joining as new comers are quitting the job within first six months. The research process will
thus follow the analysis of the primary and secondary sources of research and will then take a
positivism approach in analysing the factors in detail. (X’avia, Black, Lin ,Ping and Lau 2015)
Stakeholders Involved:
The key stakeholders who matter in the research and whose are of concern are to be
explored are the Director of Human Resource of the organisation, the business service director,
the HR business partner. The indirect stakeholders include the employees and the government. In

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addition to this, the investors who may be required in the process and the respondents are also
the stakeholders involved.
Stakeholders Level of Interests Reasons for having the interest
1. Internal departments
that includes the HR
High Costing will be low if turnover is
cut down
2. customers Medium Good services will be provided
3. Senior managers High The brand value and the
employer brand will enhance
4. The other groups medium Better HR performances
5. Owners high Happy customers will lead to
more profit
6. Employees high Scope of growth in the career
7. Competitors low Business strategies
In the analysis of the topic and in researching on it, the concerns about the stakeholders is
required to be focused on since it is the responsibility of any organisation to have certain
responsibilities towards the stakeholders. In the development of the strategies, it is also a matter
of concern to what extent the stakeholders are being affected by the strategies and what could be
the possible outcomes of the effects (Poeplau, Don, Six, Kaiser et al. 2018.).
Comparison of the Different data Collection Method:
1. Survey: Survey acts as an effective data collection method as it makes a sense of privacy
for the employees and they mark the questionnaire without any inhibition. Moreover, the

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questions asked to the employees in the total process of data collection are many in
numbers which cannot be possible to take in oral form. The employees will take their due
time and mark the questionaries without any influence or manipulation. Moreover, the
survaey uses the same questionnaire and follows a marking pattern that will make the
researchers easily make a graph out of the responses (Visscher, Henau, Wildschut and
Dhondt 2016) deducing hypothesis and conclusion are easier in the process. The clear
and the well structured questions along with the ranking order of answer are beneficial
qualitative first hand data. However, surveys are often not a full proof solution measure
as it lacks the option judging whether the answers have been marked honestly and
without any influence working in the mind of the employees. Surveys also do not capture
often the real emotions of the employees. Fatigue of the employees can also read to bias
responses. Also there is a tendency that the respondents may quit the survey in the middle
or skip some of the questions.
2. Interviews: Interviewing the chief operational executive and managers of the organisation
can be another alternative while learning about their perspectives on turn over and
retention and how they are making policies in dealing with such issues. Interview is a
flexible process for the interviewers as well and is gene really to have more rate of
success and response rate than mailed questions. Also the non verbal behaviours can be
judged by the interviewers (Reilly, Nyberg Maltarich and Weller 2014.). Moreover, the
interviewer has the control over the questions and he can change the order according to
convenience. However, there are also some negative issues that interview can bring.
Primarily it is a very costly approach. Moreover, it may not happen always that the
person in the other end will accept to have the verbal interview process. Moreover, since

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there are less scopes of anonymity in the interview process the respondents can get more
serious about their responses.
Conclusion:
As it is seen that both the primary and secondary sources of information and the various
modes of data collection process have both advantages as well as disadvantages, it is desired that
a good research will be able to conduct all the processes so that in a way they become
complementary to each other. The literature research or reviewing the literature available about
the topic of research will give an ample amount of scopes to find some best practices as well as
some other relevant studies on the subject matter. Textbook helps in giving important
explanation o some critical problem and terms. The used method in the particular study
represents the analysed data in the context of turnover and retention. The major common
findings are pointed out through surveys and exit interviews. The secondary source of data used
provides example of the highlighted problems within the organisation discussed.
Recommendation:
Recommendation Responsibility Review
1. Conducting research
on the expectation of
employees regarding
salary and benefits
Human Resource
Director
The employees will have the feeling that they
are payed according to the market price and
their hard works are recognised duly.
(Cloutier, Felusiak, Hill. and Pemberton-
Jones 2015)
2. Implementation of a
new post called the
People service The new comers can be tested on the basis of

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training lead manager knowledge validation
3. Conduction of the
open regular meetings
People service
manager, commercial
manager, general
manager
The result that the operations will have from
the satisfaction survey will make them in
analysing the impact. (Kampkötter and
Marggraf 2015.)