Analyzing Employee Retention Strategies and Impact on Firm Performance

This report provides an analysis of employee retention strategies and their impact on overall firm performance, with a focus on Marks & Spencer. It defines employee retention as an organization's ability to prevent employee turnover and highlights its importance in modern human capital management. The report reviews literature on recruitment processes, feedback mechanisms, employee creativity, engagement, and succession planning. It emphasizes the role of competitive salaries, benefits, and training in retaining employees. The report also discusses data sourced from the Office for National Statistics (ONS) regarding employee retention and employment rates, along with visualizations of employee turnover. Ultimately, the report concludes that employee retention is a crucial managerial function for individuals and the workforce in business management.

Employee Retention

Executive Summary
The following report present the criteria of Employee retention that is the plan of action that are
created by the business to justify the candidates employee turnover risk. It is a crucial aspect of the
contemporary human capital organisation plan.
Contents
Executive Summary...........................................................................................................................2
Contents.............................................................................................................................................3
INTRODUCTION.............................................................................................................................4
Literature review................................................................................................................................4
Identification of a dataset sourced...............................................................................................8
CONCLUSION................................................................................................................................10
RECOMMENDATIONS.................................................................................................................11

REFERENCES................................................................................................................................12
Visualisations of data drawn from your quantitative analysis..................................................13

INTRODUCTION
Employee retention is the ability of an organisation to prevent their employees turnover
and the number of the employees who want to leave their company. A business need to keep best
employees around to the thrive. Employee retention is the strategies which is developed by the
organisation to mitigate the employees turnover risk (Degbey and et.al., 2021). It is a critical
aspect of the modern human capital management program. Losing the performing workers can
impact the team’s productivity and the employee morale. So it requires the adjusting to daily
functioning and department workflows. The following research has following aim and objectives–
Research aim – To analyse the Impact of employee retention strategy on the overall
performance of a firm. A research work on Marks and Spencer
Literature review
As per the views of Ekhsan, Parashakti and Sudiro (2020), To succeed, businesses must keep
their finest people on board. Employee retention aims to achieve this. Employee retention refers to
an organization's strategy for reducing employee turnover and the processes it implements to keep
its most valuable employees. Today's enterprises and HR departments face a major challenge:
employee retention. People leave their occupations for a variety of reasons. Some are voluntarily
undertaken, such as changing jobs, while others are not, such as being laid off. Employee retention
methods are generally focused on preventing harmful voluntary departure, rather than the loss of a
bad performer. It also emphasizes the need of turning. There are a few things to keep in mind
when it comes to recruiting:
Identification of selection processes: determining the skills and competences required is critical.
According to Marks & Spencer's experience, the most effective strategy for recruiting new staff is
to use an assessment process that includes interviews and selection activities.
Outsource/in-house recruiting: MSSSL hired an established recruitment agency with large-
campaign management experience as an extension of the company. For the initial recruitment of
the 80 positions offered, this proved to be an extraordinarily successful strategy. MSSSL
maintained ties with a small number of recruitment companies in the beginning, but since the
Manchester centre opened, there has been a shift toward in-house recruitment. As a result, Marks

& Spencer has created a recruitment brand that is consistent with the company's image and tries to
attract potential employees to the types of jobs available at MSSSL.
On the other hand, as per the view point of Sam Molony, providing a positive feedback
to the employees based on their actual performance is one of the most important strategies that an
organization should adopt or implement in order to make sure that the employees are aware of
their strengths as well as areas of improvement (Employee Retention Strategies for 2021, 2021).
Provide feedback- Employees need the feedback to improve their work, because it motivates
them to work hard. The company should also accept feedback from the employees. Because when
the workers realise that their ideas are being ignored then they assume that the company has not
any interest in the improving their ideas (Gajendra, and et.al., 2021). The mark and Spencer
provide a proper feedback to their employees on their performance and apprise them for their
good productivity and performance.
Encourage employee creativity- The company should value employee’s creativity. It motivates
the employees for doing the creative work performance and increased the skills, which is an
investment for the future. The mark and Spencer encourage their employee's creativity and reward
them for their contribution in the organisation. They also set up an innovation teams which they
are tasked with the coming up with new ideas and creativity.
provide opportunities- Many organisations promote the employees from the outside of the
organisation. It also should provide opportunity within the organisation to grow. It can create a
powerful incentive for the employees to stay over long haul. Mark and Spencer provide
opportunities to their employees by providing them training program and make enable them to
take advantages of the available opportunities.
Employee engagement- employees are the prat of the organisation. So the company should
involve the employees in decision making process (Kehr, 2020). Because they want a reason to
work in the organisation. Mark and Spencer engage their employees in their decision making
process, which motivate the employees to share their ideas and thought within the organisation.

Connect with the team- When the employees feel connected then it gives them a purpose.
Because it has a dramatic impact on the company's effectiveness. Mark and Spencer connect with
their team, because when the workforce feel connected, then it builds a strong bond between the
company and employees.
Succession Planning: A framework has been designed that allows for a clear career growth path,
despite the fact that it is quite flat. Whether an employee decides to specialize on one business
sector or move between areas, the five tiers of employment provide a structured career path (i.e.
from HR Senior Administrator to Recruitment Team Leader). In addition, a systematic
development program is created for each employee in order to foster the development of the
abilities needed to advance to a more senior position (Keller, Ralston, and LeMay, 2020). There's
also the potential, especially in a complicated facility like MSSSL, to create plenty of variety in an
individual's professional path by encouraging cross-team collaboration.
Offer good salary- The organisation should offer a competitive salary to their employees.
Because the workers want to feel that their efforts into the work is worth their time. When there is
a situation of employee retention, then the money is not everything, but a fair wages encourage
them to stay in the organisation. Marks and Spencer offer their employees a competitive wage that
help the employees to feel that their work is valued and it make them satisfy.
But Robert Half argues that offering various perks and benefits is one of the other
strategies that a company can implement in order to retain the employees for a longer period of
time. He also argues that special importance should be given to analyzing if the employees are
committed to and satisfied with their jobs (14 Effective Employee Retention Strategies. 2021).
This ensures that there is an increase in the overall performance as well as efficiency of the firm
to a great extent.
Teams hold regular awareness events where major business concerns and performance
results are highlighted, with the goal of assisting employees in identifying how their personal
contribution fits into the larger corporate context. Regular attachments to the main retail industry
are encouraged, and all workers must work in stores for at least one day during the busy holiday
season. Cross-employment between MSSSL, other corporate divisions, and the retail element of
the business is aggressively encouraged. Internal turnover accounts for about 5% of MSSSL's staff
turnover, with candidates either migrating into the MSSSL from another part of the company or
going out to either a retail or corporate function (Kurdi, and Alshurideh, 2020). Many other

service support companies suffer the same issues as MSSSL. Traditional certificates, such as CPP
and CIPD, are costly and may not be appropriate for the jobs that MSSSL employees perform.
MSSSL concluded that in order to ensure that adequate training was provided, a new strategy was
required. MSSSL began working with MIDAS (Manchester Investment Agency) and other
partners to develop a specialized degree that was both relevant and cost-effective, and that could
be used related to various certificates or as a pre-qualification if more study was necessary. The
importance of training and development in retaining and attracting people to MSSSL cannot be
overstated. Graduates make up a large component of the shared services workforce, and their
reason for joining MSSSL is frequently centered on the opportunity to learn more. Employees
who are not graduates have likewise made a strong commitment to training and development.
Because of the nature of the shared services industry, operations must continue to grow at a rapid
rate in order to stay one step ahead of competitors. It is critical to continue to train staff to the
greatest skill levels feasible in order to fulfill technological, administrative, and consumer
demands. Manchester is fortunate to have an outstanding support network in the form of the
Proceeding shared services community in the area (Matthews, 2021). The tri-annual North West
Technical Assistance Forum for leaders of SSCs, as well as quarterly networking events for HR
Managers, have been established by MIDAS to provide a range of structured assistance and
relationship building. Between the SSCs in the region, there is also an active networking and best-
practice sharing process that takes place on a more casual basis. It created new job options for
store Section Managers, HR, and marketing teams throughout the year. Everyone who works in
the stores goes through a full induction as well as up to 26 weeks of on-the-job training, which is
the longest on the high street. Over 7,500 employees work as coaches in M&S shops, training and
supporting their less experienced colleagues.
Identification of a dataset sourced
The office for the national statistics (ONS) is dealing with the committed section with
transparency that maintained the orientation. The excel spreadsheet involves the personal term of
the data that will refers as the protection of the legislation Employee retention and employment
rate (2020). Marks and Spencer might be collected from external section that maintains the
manner to satisfy and fulfil the operations to create statistics for the welfare. It will not present the
manner of the data that has come from the suitable purpose with main sections. As in context to

the Marks and Spencer the spreadsheet will not include datasets with no personal information or
those that the ONS has produced them.
Illustration 1: Bar graph for rate of employee turnover, 2020

Illustration 2: Employee turnover report with multiple charts,2020

The retention rate in the age groups do not vary much and the workforce of UK, public or private
follow similar pattern for the same. The workers who are aged between 35-49 has high rate of

retention, followed by the employees who are aged between 50-60 years and then the workers who
are aged among 18-34 years. The retention rate also varies on the basis of occupation such as the
medical occupation has high rate of retention for employees who are aged between 18-34. As
social workers, the employees who are aged between 35-49 has high retention rate.
Moreover, the employees who are employed on temporary contracts have high retention rate for
one year in public sector as compared to private sector. The minority of employees are employed
as temporary and the retention rate of the workers on the temporary contract is lower than the one
who are on the permanent contracts. The management of Marks and Spencer, varies on the basis
of occupation also. This can be seen from the given below graph. Every year, the company hires
between 150 and 200 graduates and business placement students for employment in retail,
agriculture, design, HR, buying, IT, and other specialized areas. M&S won four major graduate
categories, including 'Graduate Employer of Choice' for retail from the Times in 2008. The
company needs to provide comprehensive training to employees in order to perform their tasks,
but it also wants to retain their talents and experience by providing them with meaningful
possibilities to plan and create a career with Marks & Spencer. Many of M&S's employees,
including Customer Assistants and store managers, have established career pathways (Srinivas,
2021).

CONCLUSION
From the above mentioned report, it has been concluded that, the employee retention is termed as
the managerial section that are working for the individuals and workforce in the business of
management. It will support the business while managing the dealing to consider effectiveness and