University of Bedfordshire: Employee Retention and Engagement Analysis

This report analyzes the critical aspects of employee retention and engagement within an organization, focusing on the University of Bedfordshire's context. It examines the influence of leadership styles, operation management practices, and financial management strategies on employee satisfaction ...Read More

Running head: LEADING MANAGING ORGANIZATION
LEADING MANAGING ORGANIZATION
Name of Student
Name of University
Author’s Note

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EXECUTIVE SUMMARY
The main purpose of the report is to conduct a review on the importance of employee retention
and engagement programs which are followed in a business. The report also sheds light on the
importance of leadership on the employee engagement and employee retention. The employee
engagement and employee retention have considerable effect on the financial management and
overall performance of an entity. The role of operation management and human resource
department on the employee retention and employee engagement is immense and it is explained
in this report. The report also discussed about the zero contract hours and its effects over the
company’s financial performance and employee retention strategy. The report takes a dig about
the relationship between the zero contract hours and the employee engagement strategy. This
report also discusses about the best strategy that the company can implement for engaging their
employees and also retaining their employees.

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Table of Contents
INTRODUCTION:..............................................................................................................3
ANALYSIS:........................................................................................................................3
LEADERSHIP:....................................................................................................................4
OPERATION MANAGEMENT:........................................................................................6
FINANCIAL MANAGEMENT:.........................................................................................8
FINANCIAL PERFORMANCE:........................................................................................9
Increased Productivity:..................................................................................................10
Lower Employee Turnover:...........................................................................................10
Improved Customer Satisfaction:..................................................................................11
HUMAN RESOURCE:.....................................................................................................11
CONCLUSION:................................................................................................................11
RECOMENDATION:.......................................................................................................12
REFERENCES:.................................................................................................................13

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INTRODUCTION:
This report provides complete insight about the importance of the employee retention and
employee engagement. The report discusses about the impact of leadership, operation
management, financial management and financial performance over the employee retention and
employee engagement. The report mainly discusses about the impact of the employee retention
and employee engagement over the sustainability of the company in the industry. The report also
discusses about the zero hour contracts and its importance in the employee retention and
employee engagement program.
Zero contracts hours are the treaty the employer or the company management use to hire
the staff with no guarantee of work (Treen 2015). Zero contracts hour is also known as casual
hour. The disadvantages of zero contract hours are also being highlighted in this report. Zero
contract hours provides considerable amount of effects on the employee retention strategy and
employee engagement strategy. These effects are also being discussed in this report. Thus, to
explain the effects of financial management, operations, leadership, financial performance of the
company on the employee retention and employee engagement, different analysis has been
conducted.
ANALYSIS:
Zero contracts hour is also known as casual hour. As per this contract the employer hires
the employee for a short period of time. The payment of this employees depends on the hours
they work. The choosing of the shift timing is also depends on the zero hour worker. The perks
like sick leave and other amenities does not provided by the employer to their zero hour
employees. As per the recent statistics, more than 70,000 employees in United Kingdom are

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under the zero hour contracts. In United States of America, more than 3% employees are worked
under the contract of zero contracts (Adams, Freedland and Prassl 2015). Zero hour contracts
have specific advantages and disadvantages. The main disadvantage that the employees under
the zero hour contracts face is the instability in the financial performance. Zero hour contracts do
not have same employment rights as other employees of the company (Wood and Burchell
2014). Zero hour contract is considered as one of the safest and cost saving a strategy for the
employer. For example, according to the Guardian, U.K.’s biggest pub chain, JD Wherspoon
hires 80% of its work force on Zero-hour contracts (Ruddick 2016).
LEADERSHIP:
Leadership and the relationships of employees with the leaders play a major role in the
success of any organization. The relationship status between the employees and the leaders can
be determined through the behavior of the superior towards their subordinates (Cheema, Akram
and Javed 2015). The relations status between the employees and leaders determines the success
rate of the organization. The human approach and the company’s policies determine the retention
of the employees. As per Maslow, the retention of the employees not only depends on the
essential needs, but the behaviour that superior perform with the subordinates also determines the
employee’s retention. The behaviour of the superior towards their subordinates mostly depends
on the approach that the managers of the company adopts to govern the organizations. The
approach even determines the performance of the employees (Haider et al 2015). The practice of
Autocratic system or Bureaucratic system is on the verge of obsolete because the system affects
the performance of the enterprise. The performance of the entity is mainly influenced by the
employee’s performance and policies of the emtity. The performance of the company also
depends on the retention rate of the company. If the attrition rate of the company is pretty high

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then the company’s performance gets affected by considerable means. Thus, retention of the
employees plays a major role in the performance of the company in a single financial year.
The leadership quality of the company assists the organization to retain efficient
employees, which in future will assists the company to gain more revenue. As per Robert
Tannebaum, leadership is considered as the interpersonal influence that are used and focused
mainly on the situation through the communication process for attainment of particular goal or
goals. Thus, the managers need to provide utmost importance on the human values and emotions
of the employees. The main agenda of the managers should not bound to implementation of the
policies rather create an environment for the employees that will satisfy the employees. JD
Weatherspoon also believes in creating such environment which will satisfy the needs its
employees and will keep them contented at work. In this way the managers of the JD
Weatherspoon can retain considerable amount of the employees, which in future will assist the
company to have high profit margin.
In many instances it is seen that the management of the company created a great strategy,
but it ultimately failed to achieve the expected result. The main problem lies in the engagement
program of the company. The management of the company failed to engage their employees in
their strategy. As per the recent data the Home and health care industry around U.K. failed to
engage their employees in the business or new implemented strategy, which ultimately affects
the performance of the company. Thus, the importance of the employee engagement is immense
and the management of the company needs to formulate their strategy after considering the
employee engaging plan. If the company succeeds to engage the employees emotionally into
their workplace, then the performance of the company is bound to increase. It is the
management’s job to light up the interests about the workplace in the employee’s head. The

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employee should be proud of the company’s goals, purpose and the mission of the company.
Thus, the management’s credibility in the task of lighting up the interests in the head of
employees is immense. There are several number of strategies that the management of the
company adopts for the purpose of improving the interests. The main strategy are as follows:
 The senior executives should explain about the values of the entity to the employees.
 Always be attentive to the views that the employees of the company have to share.
 Recognizing the extra effort of the employees.
 Conveying the possibilities of the future to the employees.
 Showing the shared dream of the future.
OPERATION MANAGEMENT:
Operation management is the ones who are responsible for developing the policies for the
company. The operation process of the entity should always reflect the acceptability of the
policies from the employees. While preparing the policies of the company, the operation
management of the company should consider the factors. The factors that ensure the employees
of the company are satisfied are as follows:
 The managers of the company should respect all the levels of employees.
 The management of the company should accept the extra efforts of the employees by
paying accordingly.
 The management of the company should also focus on improving the relationship
between the employees and the operational team of the entity.
 The manager can efficiently use the skills and abilities of the employees for the
betterment of the company.

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 The senior executives should ensure the job security for the employees, so that they
can feel safe.
The employee job satisfaction and employee engagement factors are the key ingredients
that assist the company to successfully retain employees in their organization. The employee
retention benefits the company from various aspects like increased performance increased
employee morale and increased productivity of the employees. The low quality of work provides
a considerable reduction in turnover and employee related problems, which ultimately impacts
the performance in financial terms for the business. The reasons behind the employee
dissatisfaction and employee retention need to be researched and identified by the managers. The
reasons will provide a clear strategy that will enable the company to retain the employees. To
counter the employee dissatisfaction the senior officials needs to supervise the workplace on
continuous basis. This will enable the company to experience more turnovers. The operation
management of the company needs to ensure that the organization should produce competitive
environment in the organization, so that interests of the employees should increase by
considerable means. The operation management of the company needs to take care about any
work related issues that may drive the employees to leave. The operation management of the
company can increase their engagement by providing mentors. The company also needs to
strategies and create the team based projects, so the employees of the company gets interested in
conduction the job. The competitive environment in the company will increase the productivity
of the company.
Supervision over the well-being of the employees and the activities of the employees are
the primary job for the effective management of the enterprise. The supervision over the
employees assists the management to resolve considerable amount of problems. Resolving of the

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employee issue would ultimately impact the retention policies in a favorable manner. The
efficiency of the employees also increases due to the regular checkup made by the company.
The management also needs to conduct regular survey about the wellbeing of the
employees and the problems that they are facing. This gesture will not only reduce the attrition
rate, but it will also help the management of the company to gain complete picture about the
problems that are associated with the company.
The senior officials of the business also needs to engage the employees while creating or
implementing any kind of policies or strategies. The strategy of the company should only be
formulated after considering the wellbeing of the employees and even the feasibility of the
employees (Cheema, Akram and Javed 2015). The consent of all the employees is also one of
the major factors that encourage the employees to increase their performance. The operation
manager of the company should also consider the external factors before creating or formulating
any kind of policies or strategies. Thus, it can be stated that there is a direct relationships
between the operations management of the company and the employee retention program and
employee engagement program of the company.
FINANCIAL MANAGEMENT:
Financial Management of the company is one of the most important department of any
organization. The financial process of the enterprise assists the organization to regulate the
finance of the company. The regulation of the cost and finance is one of the primary objectives
of the finance management department. The finance department also responsible for allocating
the designated salaries to the employees. The finance department of the company also provides
extra perks to the employees who showcase extra talent and complete the given job in very short

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period of time. The finance department not only allocate the salaries and perks they also assess
the performance of the employees (Bode, Singh and Rogan 2015).
The employee retention strategy is directly related with the company’s finance
department. The finance department of the company are responsible for assessing the skills set of
the employee and based on which the finance manager provides salaries (Aruna and Anitha
2015).
In certain cases, it is seen that the company hires part-time employees based on their
projects. The finance manager is the prime department that enlists the number of part-time
employees that the company can afford.
The finance manager department of the company also takes care about the employee
engagement or staff engagement program. The human resource department of the company
formulates a strategy for engaging employees in the operations of the business. The finance
manager of the company are the ones who actually provides the fund for the activities. The
managing of funds also ascertains the company’s financial performance, which ultimately assists
the company to expand more. The finance management department also takes care about the
well being of the employees. Thus, it can be understood that the effects of the financial
management department have the considerable effect over the employee retention and employee
engagement. It is the finance management department of the company that provides concrete
support to the organization’s financial activities in a financial year.
FINANCIAL PERFORMANCE:
As per many institutions and experts the main priority for the company is the human
resource. To retain and engage employees the management of the company tries to engage,

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involves and satisfy each individual employee. When the employees of the company are directly
engages with the company’s operation then the management of the company sees an increase in
the productivity of the company. The financial performance of the entity also enhances by
immense means. Thus, the profit margin of the company also increases in the similar proportion.
There are numerous indicators that indicates that the employee engagement impacts the overall
performance of the business. The impact of increased employee engagement in the company are
as follows:
Increased Productivity:
When the employees of the organizations are completely involved in the task then the
outcome of the task is pretty impressive. The results from the engaged employees are the most
desirable. As per the survey made by Hay Group, a global management consultant firm, states
that if the management of the company able to engage the employee then the productivity of the
company increases by 40% at a stretch. The increase in their productivity will also assists the
company to increase their financial performance that will ultimately improves the sustainability
of the company (Anitha 2014). Though the financial performance of the company is not directly
related with the employee engagement, but to certain extent the employee engagement does
impact the financial performance of the company.
Lower Employee Turnover:
The employee engagement increases the relationship between the company and the
employee. It is seen that when the employee is engaged with the company’s operation then the
company’s development gets aligned with employees’ career development. The employee
engagement also decreases the level of attrition rate and thus, the company can save considerable

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amount of cost that are related with the training of the new employees. The employee retention
does not hamper the pace of the business operations.
Improved Customer Satisfaction:
The employee engagement in the operations of the business will assists the company to
increase their performance. It is often seen that the engaged employees of the company go extra
miles to convince the customers (Ahammad et al 2016). This effort not only earns the employees
the respect in the company but it also assists the company to gain considerable amount of
goodwill i)n the industry. Thus, it can be determined there is a link between the employee
engagement and customer satisfaction.
HUMAN RESOURCE:
Human resource department plays the most important role in employee retention and
employee engagement. This department of the company oversee the employee’s behavior and
decides the strategy to retain the employee.
CONCLUSION:
After analyzing the above mentioned data it can be determined that the leadership,
operation management, financial management and performance of the business determines the
employee retention strategy and employee engagement. The employee retention and employee
engagement only enhances the performance of the business, but it also increases the
sustainability of the company. The employee retention and employee engagement also determine
the level of customer satisfaction. Thus, the management of the company should consider and
create the strategy that must assists the company to reduce the attrition rate and increase the
employee engagement in the operation of the company.

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RECOMENDATION:
The company must oversee every individual’s ability and behavior. This will assist the
management of the company to gain knowledge about the need of the employees. Thus,
company can easily identify the potential of the employees and thereby make plans to involve
them in the decision making process and keep them motivated thereby reducing the labor
turnover.

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