Business Consultancy Project: Strategies for Employee Retention

This business consultancy report addresses the critical issue of employee retention within organizations, focusing on David & Jonathan Limited as a case study. It explores the business problem of high employee turnover and presents three potential options: doing nothing, doing the minimum, or actively implementing strategies to improve retention. The report outlines the expected benefits of lower employee turnover and a healthier workplace, as well as the potential disbenefits of high costs and employee demotivation. It also assesses various risks, including financial, operational, and resource-related challenges. The report includes a cost analysis with investment appraisal, highlighting the resources required for market research, technology implementation, training, system upgrades, and expert consultation. Furthermore, it discusses technical solutions, such as updating systems and implementing advanced technologies, and evaluates the potential impact on operational productivity and overall business performance. References to relevant academic sources are provided to support the analysis and recommendations.

The Business
Consultancy Project

TABLE OF CONTENT
 INTRODUCTION
 MAIN BODY
 Business problem and option:
 Expected benefit:
 Expected disbenefit:
 Risk.
 Cost including investment appraisal.
 Technical solutions.
 Time scales
 Impact on operations.
 REFERENCES

INTRODUCTION
 Business consultancy is one of the most common term in the business world, this
simply means firm try to consult different strategies for better business environment.
 Consultancy related to adopting and bringing change in the organization, this change is
important to make company stable and get continuous success.
 It is very clear that consultancy allows firm to focus on strategic planing, every
business need right direction at right time allowing them to become stable and effective
in the market.
 This report will discuss business case that include some of the important point; these
are: business problem and option that are available with the company and key aspected
benefit.
 Later this report has discussed risk involved and cost planning that allow business case
to be effective.
 At last this report will discuss investment appraisal and other element which need to be
covered in the case allowing firm to solve problem faced by them in business.

Business problem and option:
 Every business organization focus on continuous improvement to
employee and their performance, the term 'Employee retention' have
become important in the business era.
 Employee retention simply means employee are satisfied with the culture
and environment of the workplace, if employee are not satisfied then
business can not grow and there will be high employee turn over.
 It is very clear that employee turnover is a major issue, business need to
focus on reducing employee turnover as this will impact their performance
in the market.
 Business who focus on betterment of employee have ability to reduce
turnover, this is major issue that is faced by every business.

Three main option:
 Do nothing: This is an option available to the business if they face any problem in
their operation, do noting means business should do nothing to manage issue.
 Do the minimum: This option is also important where business have to do minimum
to manage the problem, here business have to craft strategies to manage issue.
 However, at this stage, business need to decide whether they want to invest in the
problem to get solution.
 Do something: This is area where business have to do something, or they will face
losses, this option is most effective because business will focus on issue and manage it
properly.

Expected benefit:
 Lower employee turnover: This is one of the biggest benefit David & Jonathan Limited
will going to get if they implement plan to manage employee retention.
 This company is facing issue related to high turnover of employee due to their poor
workplace culture and many other reason, this problem need to be addressed.
 Healthy workplace: This is another important or expected benefit where business will get
healthy workplace due to lower employee turnover, it is very clear that most company face
high employee turnover because they fail to provide healthy culture to employee and fail to
maintain standard.
 David & Jonathan Limited will enjoy benefit of healthy workplace when they will manage
employee turnover, healthiness of workplace comes when David & Jonathan Limited will
address this issue.

Expected disbenefit:
 High cost: Employee retention is not an easy process, here company need to be ready
to face high cost that will arrive due to strategies implementation.
 For example; David & Jonathan Limited plan to add financial benefit to manage
employee turnover then they have to face high cost and even have to face losses.
 Demotivation: Sometimes demotivation become one of the biggest issue when
addressing employee turnover issue in the workplace, here when company try to bring
major changes or modification in the process then they might impact employee and
their expectation in the workplace, this is an issue where business need to rethink and
redevelop strategies to become effective.

Risk:
 While implementing any activity and conducting practice related to project, management
may face some critical challenges or risks that they are accountable to take into their
consideration.
 Financial risk is the biggest challenge that administration in the David& Jonathan
Limited may face during the procedure of employee retention related strategy
implementation.
 It likelihood of occurring this issue or risk is medium because of a financial plan and base
which organization may utilize to reach desire results in effective manner, which enable
firm to retain skilled and talented candidates.
 Another risk that affect current tactic form by the management is operational. The extent
of this challenge is high, because of glossing outcome from ineffective or inappropriate
internal procedures, systems and some external events that might be disrupted the flow of
venture operations.
 It may lead to decrease the effectiveness or efficiency of operational management, which
is not suitable for business success and growth in the overall industry, even better than the
rivals.

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 Resource risk is also included in category of challenges that firm may face while
developing and implementing plan or project to overcome the adverse impact of
employee retention issue that affect organizational success and progress.
 It is important for management to focus on each form of risk, because of developing
plan to mitigate the same in systematic manner.
 There are different types of approaches and techniques accessible in the world of
business that management can take into their consideration to reach desire outcome and
to especially solve each challenge that they may face.

Cost including investment appraisal:
Resources Cost
Market research 15000
Technology implementation 13500
Training and development 16000
System upgrade 350000
Expert suggestion and hiring 36000
Total 430500

Investment appraisal
 It is considered as an appropriate analysis that might be done to consider profits of an
investment that stakeholders put to reach desire outcomes.
 For purpose of conducting this analysis, management may take effective and appropriate
techniques into its consideration for example, internal rate of return and accounting rate of
return.
 According to these two approaches, they may analyse the return amount after investing
money on project and that is employee retention, which contribute to retain talented people
in the company.
 In order to implement the project, organization may require 430500 amounts of money,
which it may expect to obtain more than the investment, which make their tactic profitable
and successful.

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Months of investments Flow per year
1 month 50000
2 month 80000
3 month 100000
4 month 100000
5 month 100000
6 month 160000
Total 6 month investment 590000