Employee Retention in Retail: Reward and Recognition Benefits at Tesco

This report investigates the benefits of reward and recognition programs in retaining employees within the UK retail industry, with a specific focus on Tesco. The research explores the concept of employee retention and the role of rewards and recognition in the retail sector. It identifies the types of reward and recognition offered by Tesco to motivate its employees, including points systems, bonuses, and public acknowledgement. The study also determines the benefits Tesco gains from these programs, such as increased employee motivation, appreciation, and improved productivity, leading to higher employee retention rates. Furthermore, the report addresses potential challenges Tesco might face due to inappropriate reward and recognition practices. The initial literature review provides a comprehensive overview of employee retention strategies, the importance of rewards and recognition, and their impact on employee engagement and overall business performance. The methodology section outlines the research approach, while the feasibility section assesses the practicality of the study. The report concludes by emphasizing the importance of tailored reward and recognition programs in fostering a positive work environment and retaining skilled employees in the competitive retail market.

Business Research
(The benefits of reward and recognition
in retaining employees within retail
sector)

Contents
INTRODUCTION...........................................................................................................................1
Research Aim...............................................................................................................................1
Research Objectives.....................................................................................................................1
Background of the research.........................................................................................................1
Research Questions......................................................................................................................2
Rationale of the research..............................................................................................................2
INITIAL LITERATURE REVIEW.................................................................................................3
The concept of employee retention and reward and recognition in context of the UK retail
sector............................................................................................................................................3
Types of reward and recognition provided by the Tesco for motivating their employees..........4
Benefits gain by Tesco by providing reward and recognition for retaining their employees......4
The challenges that may faced by the Tesco due to inappropriate rewards and recognition at
workplace.....................................................................................................................................5
METHODOLOGY..........................................................................................................................7
FEASIBILITY.................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX ...................................................................................................................................12
Research Ethics Checklist – Undergraduate Students.....................................................................1

INTRODUCTION
Research Aim
To determine the benefits of reward and recognition in retaining employees within the
UK retail industry. “A study on Tesco”.
Research Objectives
 To understand the concept of employee retention and reward and recognition in context
of the UK retail sector.
 To identify the types of reward and recognition provided by the Tesco for motivating
their employees.
 To determine the benefits gain by Tesco by providing reward and recognition for
retaining their employees.
 To identify the challenges that may faced by the Tesco due to inappropriate rewards and
recognition at workplace.
Background of the research
Employee retention is described the one of the primary goal of the company in order to
keep their talented employees as well as reduce turnover by providing a positive working
environment, competitive salary and other benefits, healthy work-life balance as well as showing
appreciation to employees for promoting engagement within their workplace (Antony, 2018).
Rewards and Recognition is described the system where the people are acknowledged or
recognised for their effective performance within the intrinsic or extrinsic ways. There are many
types of rewards and recognition that an organisation provide to their workers for making them
feel motivated to work efficiently and effectively in the company. Rewards and recognition plays
a very important role in an organisation as it create greater employee engagement that increases
retention as well as help in creating more positive working environment in the organisation. It is
important for every organisation to provide effective rewards and recognition to their employees
so, they feel motivated and encouraged in order to give their best efforts in their performance
(Pandita and Ray, 2018). It also help them to retain their highly skilled employees for achieving
their organisational goals and objectives in better manner. Thus, the following research proposal
is conducted for determining the benefits that the company gain by offering effective rewards
and recognition for retaining their skilled employees. In the current research proposal, chosen
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company is Tesco, an international merchandise organisation of United Kingdom. The stores of
the company consist wide range of products in order to fulfil the daily needs and wants of their
potential customers. The research proposal covers research aim and objectives, literature review,
methodology as well as feasibility use in this research.
Research Questions
 What is the concept of employee retention and reward and recognition in context of the
UK retail sector?
 What types of reward and recognition provided by the Tesco for motivating their
employees?
 What are the benefits gain by Tesco by providing reward and recognition for retaining
their employees?
 What are the challenges that may faced by the Tesco due to inappropriate rewards and
recognition at workplace?
Rationale of the research
The primary reason for the chosen of this research topic is to gain knowledge regarding
the rewards and recognition as well as employee retention in the organisation. This research
provides the knowledge regarding the benefits that an organisation gain while providing the
effective rewards and recognition to their employees (Younies and Na, 2020). There are two
main purpose of the investigator for selecting this research topic and that are defined as personal
and professional. The personal objective of the investigator is to acquire broad knowledge
regarding the research topic. On the other side, the professional purpose of the investigator is to
use this knowledge in their professional career in order to conduct their job in better manner.
Employees are most valuable assets for the company that helps in achieving the organisational
goals and objectives. Employees expect effective rewards and recognition from their employers
so, they perform their job in better manner. The following research provide knowledge about the
different types of rewards and recognition that a company can provide their employees so, they
perform their in better manner. The following research helps company to retain their skilled
employees in the organisation by providing effective rewards and recognition to them.
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INITIAL LITERATURE REVIEW
The concept of employee retention and reward and recognition in context of the UK retail sector
According to the view of Holliday (2021), in a highly competitive as well as rapidly
moving labour market, it is important for every organisation to understand why some of their
employees leave and other stat at their workplace. It is not only useful for improving their
bottom line but it is also important for retaining top talent. Employee turnover is described the
loss of talented employees of the organisation over a period of time. It makes the significant
issue for the companies in order to operate their business in better manner. Retaining employee is
described the quality of an organisation in order to get prevented from the employee turnover or
the number of the employees who resign the organisation in a certain period of time either
involuntarily or voluntarily. Increasing employee retention provides the direct impact on the
overall performance an growth of the business (Mukherjee, Chandra and Singh, 2019). Every
organisation need to focus on developing effective employee retention strategies that help in
reducing overall turnover as well as keep high performing employees at their workplace. A
comprehensive and thoughtful strategy of the company help them to reduce the high costs that
associated with the replacement of lost employees. There are many benefits that an organisation
gain by retaining their skilled employees it involves reduction in cost, efficient recruitment and
training, enhanced productivity, reinforced employee morale, better customer experience,
experienced employees, improved employee satisfaction and experience as well as stronger
corporate culture.
As per the view of Issa and Qusef (2019), rewards and recognition is described the
acknowledgement of the good work of an employee. Many companies use rewards and
recognition programs in order to show appreciation to their employees as well as motivate them
in order to continue their good performance. Rewards and recognition helps company to make
their employees feel that their good performance has been appreciated and recognised by their
employer. It also help in motivating them in order to give their best efforts for increasing the
growth and well-beings of their organisation. Rewards and recognition allows company in order
to improve their employee motivation, satisfaction and engagement. By providing effective
rewards and recognition helps company in order to create a more positive working environment
and boost employee retention (Irabor and Okolie, 2019). Rewards and recognition programs are
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described the structured method that help company in order to recognise the contribution of their
employees towards the success of their business.
Types of reward and recognition provided by the Tesco for motivating their employees
In the opinion of Spiegel (2020), it is not denying that employees respond in order to
rewarded and recognised in their organisation. The company need to pay their more attention for
analysing that their rewards and recognition programs are effective for their employees as it
change the culture of their workplace and dynamic nature of their employees. There are many
types of rewards and recognition that an organisation provide to their employees for their good
performance. It involves points systems, contests and gamification, public recognition, rewarding
top drivers of success, peer-to-peer recognition as well as gifts and bonuses. These types of
rewards and recognition are effective as it assist in motivating the workers in order to give their
more efforts in their job (Tsarenko, Leo and Herman, 2018). Every teams and company are
different as well as their priorities and goals are also different. The company need to implement
the those rewards and recognition programs that help in inspiring and engaging the workers as
well as aligning the values and vision of the business.
According to the perspectives of Ezzine-de-Blas, Corbera and Lapeyre (2019),
recognition and rewards will change from companies to companies. An organisation appreciate
their employees on the basis of their unique needs of their business. Many of types of rewards
and recognition are available which is used by the many companies in order to acknowledge
their employees hard work. The types of recognition and rewards are bonuses, written praise and
verbal praise. The company can also appreciate them by celebrating employee's birthdays, first
day, work anniversaries, employee appreciation day and so on. These types of rewards and
recognition help company in order to make their employees motivated to work in the
organisation (Vaishnavi and Suresh, 2020). It helps helps in increasing the employee engagement
as well as leading to many advantages for the company such as increased productivity and
retention of employees. These types of rewards and recognition helps company to make positive
working environment where employees feel good to work in the organisation as well as give
their best efforts on their performance in order to achieve the success of their business.
Benefits gain by Tesco by providing reward and recognition for retaining their employees
As per the view of Antony, Gupta and Gijo (2018), employee rewards and recognition is
important for every organisation in order to motivate their employees so, they get engaged as
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well as give their best performance. In Today's competitive world, many companies are offering
effective rewards and recognition for employees that helps them to hire highly skilled employees
in the organisation. This is the main reason where company faces high employee turnover rate at
their workplace. Due to which the growth and success of the business is also get affected. This
makes important for the company to provide effective rewards and recognition for retaining their
highly skilled employees in the organisation. It provide many other benefits to the company that
helps them to achieve their organisational goals and objectives in better manner. Some of the
benefits are described below:
Increase employee motivation- When the company offer rewards and recognition to the
employees for their best performance that help company to boost their motivation. It makes
employees to stay on the track as well as maintain a positive attitude while working in the
organisation (Bangwal and Tiwari, 2018). Rewards and recognition programs help company in
order to encourage collaboration as well as motivate their employees to give their bets efforts for
achieving them. When the employee receive a rewards for doing something good so, they feel
motivated in order to do it again and again.
Show appreciation- When the company appreciate their employees for their hard work,
it increases the employee satisfaction. Rewards and recognition programs helps company in
order to show appreciation for the hard works of their employees (Tsarenko, Leo and Herman,
2018). It helps in making employees happy in order to work hard for the growth and success of
the company.
Improve productivity- Employees engagement increases at the workplace when their
best performance are recognised either in form of rewards or verbally (Ali and Mehreen, 2018).
Employees who are giving their best efforts for reaching the goals are more productive for the
company. Rewards and recognition programs provides reason for the employees to perform
effectively for achieving the success and growth of the business.
The challenges that may faced by the Tesco due to inappropriate rewards and recognition at
workplace
As per the view of Holzer (2022), appropriate rewards are recognition for the good
performance of the employees makes them to give their best efforts in their performance. On the
other hand, if the company is fail to provide appropriate rewards and recognition to their
employees many creates many challenges for them to operate their business in effective manner.
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Some of the challenge that may faced by the company due to inappropriate rewards and
recognition at their workplace are described below:
High employee turnover- The company who fail to provide effective rewards and
recognition for the best performance of their employees will face high employee turnover at their
workplace (Bitter and Gardner, 2018). Every employee wants that their good performance are
need to be appreciate by their employers to feel good for working in the organisation.
Inappropriate rewards and recognition enforce employees to take decision to leave their current
organisation and search for new one where their good performance is rewarded and recognised.
Increase demotivation- Rewards and recognition programs help company in order to
increase the motivation level of their employees so, they work effectively in the organisation.
When the company is lack to provide better rewards and recognition to their employee they get
demotivated and does not give their best in their performance ((Dunn, Troisi and Baker, 2020).
The employees does not have reason that makes them to give best efforts again and again to
achieve effective rewards and recognition.
Negative working environment- Inappropriate rewards and recognition creates negative
working environment at the workplace as the employees good performance are not appreciated
by the employers. Employees are also feel demotivated to give their best on their performance
for achieving the success and growth of the company. It leads negative working environment
where the employees not feel good to work in the organisation.
Decrease business growth- When the employees not give their best efforts for achieving
the organisational goals and objectives, it decreases their business growth and success. Rewards
and recognition programs are important for every organisation to get the success as it motivate
employees to give their best efforts in their performance. The company need to provide
appropriate rewards and recognition to their employees for getting success in the market.
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METHODOLOGY
Research philosophy- It described the set of belief related to research phenomenon that
help in determining the social words. It is classified in two parts that are defined as
interpretivism and positivism ((Li, 2019). For the following research, the researcher selects
positivism research philosophy as it help in understanding the current trend as well as
community by collecting numerical information related to the topic of research.
Research approach- It refers to a planned stage that help researcher in order to address
the research problem through test of theories and hypothesis. There are mainly two kinds of
research approach which includes inductive and deductive research approach (Norouzian, 2020).
In context of current research, the researcher selects deductive approach as it helps in addressing
the research problem by collecting and analysing numerical data.
Research Choice- It describe the method through which specific kind of information and
data is gather, analyse and evaluate. The research choice is divided in two parts that are defined
as quantitative and qualitative research choice (Haig, 2018). The investigator selects quantitative
research choice because it allows them to gather numerical data for the research. It helps
researcher to conduct the research in valid and reliable way.
Research strategy- It refers to as step-by-step plan that help researcher to collect right
kind of information for the research. Different kinds of research strategy exists such as survey,
observation, case study, interview, etc. In the following research, the researcher selects survey
strategy as it allows them to collect information from the large population (Marks, Kelley and
Galbraith, 2022). This strategy is cost effective that allows researcher to collect information from
the larger population in minimum cost.
Data Collection- It describe the procedure through which research can collect and
analyse the information related to the research topic. Primary and secondary are tow types of
data collection methods that helps in collecting the information for the research. The researcher
selects both the data collection methods for the research (He and Weng, 2020). Primary data
collection methods allows researcher to collect information by directly asking from respondents
through questionnaire. On the other hand, secondary data collection methods allows researcher to
gather data from various sources such as journals, books and scholarly articles.
Data analysis- It describe the technique which is used by the researcher for inspecting as
well as evaluating the collected raw data for the research. Different types of data analysis
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techniques are available in research methodology that are defined as thematic, frequency
distribution and so on. In the following research, the researcher selects frequency distribution
methods in order to examine and measure the numerical data and information collected for the
research (Kınalı, Yıldırım and Toygar, 2022). It helps researcher to display the raw data in well
structured format which can easily understand by the reader.
Sampling- It described the method in order to select the same size from the large
population for the research. There are mainly two kinds of data sampling techniques are
available in the methodology that are defined as non-probability and probability (Kintigh, 2022).
The investigator chooses probability sampling for the current research as it allows them to select
respondents from the large population through random sampling.
Ethical consideration- It described the set of certain principle that helps in guiding the
research practices and designs (Munsky, Hlavacek and Tsimring, 2018). The ethical principles
that are follows in the current research are voluntary participations, informed consent, potential
for harm, confidentiality as well as results communication.
Reliability and validity- The current research is reliable because the researcher collects
information from the respondents through closed ended questions (Han, 2021). The current is
also valid as the researcher collects authentic information from the secondary sources.
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FEASIBILITY
The feasibility study describes that the research undertaken before the complete the
whole research in order to determine if the research can be done successfully or not. It guides
researcher for selecting method that helps in designing the main study is an acceptable manner. It
assess the willingness of the possible respondents in order to take part as well as stay until the
research complete as well as at that time that is required to collect and analyse data related to the
research topic (Cook, 2021). The current research is feasible because the researcher already
decide that it uses quantitative research methodology in order to conduct the whole research in
well manner. Through this methods, researcher collects accurate and reliable information from
the respondents which also make the whole research feasible. The current research collects
trending and up-to date information that helps in making whole research more reliable and
valuable. It is also help in making the whole research successful while conducting through
quantitative research methodology.
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REFERENCES
Books and Journals:
Antony, M.R., 2018. Paradigm shift in employee engagement–A critical analysis on the drivers
of employee engagement. International Journal of Information, Business and
Management, 10(2), pp.32-46.
Pandita, D. and Ray, S., 2018. Talent management and employee engagement–a meta-analysis of
their impact on talent retention. Industrial and Commercial Training.
Younies, H. and Na, T., 2020. Hospitality workers’ reward and recognition. International
Journal of Law and Management.
Mukherjee, B., Chandra, B. and Singh, S., 2019. Talent retention in Indian public sector units
(PSUs): an empirical investigation. Kybernetes.
Issa, L. and Qusef, A., 2019, June. Employee Retention in Agile Project Management. In 2019
10th International Conference on Information and Communication Systems (ICICS) (pp.
160-165). IEEE.
Irabor, I.E. and Okolie, U.C., 2019. A review of employees’ job satisfaction and its affect on
their retention. Annals of Spiru Haret University. Economic Series, 19(2), pp.93-114.
Tsarenko, Y., Leo, C. and Herman, H.M., 2018. When and why do social resources influence
employee advocacy? The role of personal investment and perceived
recognition. Journal of Business Research, 82, pp.260-268.
Ezzine-de-Blas, D., Corbera, E. and Lapeyre, R., 2019. Payments for environmental services and
motivation crowding: towards a conceptual framework. Ecological economics, 156,
pp.434-443.
Vaishnavi, V. and Suresh, M., 2020. Modelling of readiness factors for the implementation of
Lean Six Sigma in healthcare organizations. International Journal of Lean Six Sigma.
Antony, J., Gupta, S. and Gijo, E.V., 2018. Ten commandments of Lean Six Sigma: A
practitioners’ perspective. International Journal of Productivity and Performance
Management.
Bangwal, D. and Tiwari, P., 2018. Workplace environment, employee satisfaction and intent to
stay. International Journal of Contemporary Hospitality Management.
Tsarenko, Y., Leo, C. and Herman, H.M., 2018. When and why do social resources influence
employee advocacy? The role of personal investment and perceived
recognition. Journal of Business Research, 82, pp.260-268.
Ali, Z. and Mehreen, A., 2018. Understanding succession planning as a combating strategy for
turnover intentions. Journal of Advances in Management Research.
Holzer, M., 2022. Public administration at a crossroad: Five enduring challenges. Chinese Public
Administration Review, p.15396754221110591.
Bitter, M.E. and Gardner, W.L., 2018. A mid-range theory of the leader/member attribution
process in professional service organizations: The role of the organizational
environment and impression management. In Attribution Theory (pp. 171-192).
Routledge.
Dunn, D.S., Troisi, J.D. and Baker, S.C., 2020. Faculty receptivity to assessment: Changing the
climate for evaluating teaching and learning in psychology. Scholarship of Teaching
and Learning in Psychology, 6(3).
Cook, R.M., 2021. Addressing missing data in quantitative counseling research. Counseling
Outcome Research and Evaluation, 12(1), pp.43-53.
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Han, X., 2021, December. How Does AI Engage in Education? A Quantitative Research on AI
Curriculum and Instruction in Public Primary Schools. In 2021 4th International
Conference on Education Technology Management (pp. 15-19).
Munsky, B., Hlavacek, W.S. and Tsimring, L.S. eds., 2018. Quantitative biology: theory,
computational methods, and models. MIT Press.
Kintigh, K.W., 2022. Strategies for Quantitative Research: Archaeology by the Numbers.
GRANT S. MCCALL. 2018. Routledge, London and New York. xx+ 224 pp. $44.95 (e-
book), ISBN 978-1-315-20820-6. American Antiquity, 87(3), pp.640-641.
Kınalı, H., Yıldırım, U. and Toygar, A., 2022. A quantitative study on the mental health of
Turkish seafarers. International journal of occupational safety and ergonomics, pp.1-11.
He, Z. and Weng, W., 2020. A dynamic and simulation-based method for quantitative risk
assessment of the domino accident in chemical industry. Process Safety and
Environmental Protection, 144, pp.79-92.
Marks, L.D., Kelley, H.H. and Galbraith, Q., 2022. Explosion or much ado about little?: a
quantitative examination of qualitative publications from 1995-2017. Qualitative
Research in Psychology, 19(3), pp.853-871.
Haig, B.D., 2018. The philosophy of quantitative methods. In Method Matters in Psychology (pp.
159-186). Springer, Cham.
Norouzian, R., 2020. Sample size planning in quantitative L2 research: A pragmatic
approach. Studies in Second Language Acquisition, 42(4), pp.849-870.
Li, Q., 2019. The second great debate revisited: exploring the impact of the qualitative-
quantitative divide in international relations. International Studies Review, 21(3),
pp.447-476.
Online:
Holliday, M, 2021 [Online]. Available through:
<https://www.netsuite.com/portal/resource/articles/human-resources/employee-
retention.shtml?mc24943=v0>
Speigel, S., 2020 [Online]. Available through: <https://www.crewhu.com/blog/6-types-of-
employee-recognition-and-rewards-programs-that-really-work>
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APPENDIX
12

Research Ethics Checklist – Undergraduate Students
A checklist should be completed for every research project; this is used to identify whether a full
application for ethics approval needs to be submitted to your Faculty Ethics Committee.
1 Applicant details
Name of Researcher
(Student):
Module name and number:
Name of Module Leader:
Course:
2 Project details
Project title: Benefits of rewards and recognition in retaining employees within retail
industry.
Please provide a brief description of the project:
Aim of the research:
Benefits of rewards and recognition in retaining employees within the UK retail industry.
Methods employed to collect data and the participants:
Primary data collection method is used so that first-hand information can be gathered and
analysed. Quantitative and qualitative both data is accumulated in the investigation.
3 Research checklist (select “YES” if the risk is more than minimal)
Please answer each question by ticking the appropriate box:
YES NO
1. Does the study involve students within the University? NO
2. Does the study involve employees of the University? NO
3. Does the study involve participants who are particularly vulnerable or
unable to give informed consent (e.g. children, those with cognitive
NO
1

impairment)?
4. Will the study require the co-operation of a gatekeeper for initial access
to the groups or individuals to be recruited (e.g. students at school,
members of self-help group, residents of nursing home)?
NO
5. Will it be necessary for participants to take part in the study without their
knowledge and consent at the time (e.g. covert observation of people in
non-public places)?
NO
6. Will the study involve discussion of sensitive topics or illegal activity
(e.g. sexual activity, drug use)?
NO
7. Will the research involve administrative or secure data that requires
permission from the appropriate authorities before use?
NO
8. Is there a possibility that the safety of the researcher may be in question
(e.g. in international research: research at airports)?
NO
9. Does the research involve members of the public in a research capacity
(participant research)?
NO
10. Will any of the research take place outside the UK? NO
11. Will the research involve respondents to the internet or other visual/vocal
methods where respondents may be identified?
NO
12. Will research involve the sharing of data or confidential information
beyond the initial consent given?
NO
13. Will financial inducements (other than reasonable expenses and
compensation for time) be offered to participants?
NO
If any item is ticked then an application to your Faculty Research Ethics Committee is required.
Instructions for students
 You must complete this form BEFORE you commence your primary data collection
 The form must be submitted together with your research proposal
2

 Your approved ethics form must be included in your final submission as part of your
appendices. This is a University requirement and if the ethics form is not included your
work will not be marked
The student has been made aware of the University’s Code of Good Research
Practice and relevant professional codes of conduct
The participant information sheet or leaflet is appropriate (where applicable)
The procedures for recruitment and obtaining informed consent are appropriate
(where applicable)
Comments from supervisor (please complete
this section if you have any reservations about
the proposed research):
Please leave blank Supervisor Use
I confirm that work as described will be carried out in full conformity to all ethical
standards and any additional professional requirements.
Name (please print):
Signed:
Date:
3

ETHICS SUB-
COMMITTEE
APPROVAL
Name Remark Sign Date
*Please leave blank (Instructions for supervisors)
Please check the appropriate boxes. Even if the student has answered ‘no’ to all questions in
Section 3, the study should not begin until all boxes have been checked and the form has been
approved by you.
4