Investigating the Impact of Training on Employee Turnover in Zara

This report investigates the impact of training on employee turnover within Zara, a UK-based retail company. The study explores the role of training in business organizations, identifies various training techniques employed by Zara, and evaluates the significance of trained employees for the company's success and growth. The research incorporates a literature review, research methodology, data analysis, discussion, and conclusions with recommendations. Key findings highlight the importance of training in improving employee knowledge, working efficiency, and motivation, ultimately contributing to employee retention and business objectives. The report analyzes different training methods and their impact on employee turnover, emphasizing the need for continuous development and adaptation to industry changes. The study concludes with recommendations for improving training programs, such as incorporating on-the-job training and soft skill development, to further enhance employee retention and overall business performance. Data analysis and discussion reveal that training is crucial for companies to employ and the report provides valuable insights for Zara and other businesses looking to reduce employee turnover and enhance their workforce.

BUSINESS AND
MANAGEMENT
DISSERTATION

ABSTRACT
From the study below it is identified that providing training to employees is the major
responsibility of company in order to get successful. The major reason underlying this fact is that
training improves the knowledge and working efficiency of employees to a great extent. This is
pertaining to the fact that when employees are given training relating to latest changes then this
motivates employees that company is taking care of development of employees. Hence, the
employees in turn try to work in proper and effective manner and assist them in attaining aim of
business.
From the literature review section, it was found that there are several methods of training
which are helpful in providing training. These methods were instructor led learning, e- learning,
mentoring and many others. Further it was identified that if company employs trained staff then
this assist business in attaining its objectives in proper and effective manner and improve its
business. With the help of research methodology section, it was seen that use of quantitative
research type was useful in getting the views of various respondent relating to training and
development. Further with help of data analysis and discussion it was clear that training is very
important for company to use. In the end some recommendation for improvement were provided
like use of on the job training method, including soft skill training and many others.

TABLE OF CONTENTS
CHAPTER 1.0 - INTRODUCTION................................................................................................4
Background.................................................................................................................................4
Aim and objectives......................................................................................................................5
Significance.................................................................................................................................5
Rationale.....................................................................................................................................5
Structure of dissertation..............................................................................................................6
CHAPTER 2.0 - LITERATURE REVIEW.....................................................................................7
CHAPTER 3.0- RESEARCH METHODOLOGY........................................................................13
CHAPTER 4.0 - DATA ANALYSIS............................................................................................16
CHAPTER 5.0- DISCUSSION.....................................................................................................29
CHAPTER 6.0 - CONCLUSION AND RECOMMENDAITON.................................................32
6.1 Conclusion..........................................................................................................................32
6.2 Recommendation................................................................................................................33
REFERENCES..............................................................................................................................34
APPENDIX....................................................................................................................................37
Questionnaire............................................................................................................................37
List of tables
Table 1: Concept of training and development..............................................................................18
Table 2: latest training methods is used.........................................................................................19
Table 3: Positive role of training...................................................................................................20
Table 4: benefit of using training methods....................................................................................21
Table 5: methods employed by company......................................................................................22
Table 6: best method to train employees.......................................................................................23
Table 7: trained employees are helpful in managing employee tunrover......................................25
Table 8: many benefits are present by using employing and recruiting trained employees..........26
Table 9: major significance of employee engagemnt....................................................................27

Topic- An investigation into the impact of training on employee turnover in the UK retail sector-
a case of Zara”
CHAPTER 1.0 - INTRODUCTION
Background
Training and development is very essential to be used in the corporate business world and
this is essential because of the reason in global business there are many different types of
advancement and continuous changes (Rodriguez and Walters, 2017). Thus, training and
development for employees of organization is very essential to provide them with opportunities
of growth and development. The training is defined as providing of information and knowledge
relating to things in which people are lacking. If company will provide for proper training and
development for the employees, then this will motivate employees to work in company in happy
and satisfied manner.
On the other side retaining of employees is defined as influencing the employees to not
leave company and go to some other company or competitors. The major reason behind this is
that if large number of employees leaves company then this decreases goodwill of company
(Holland and Collins, 2020). The major reason underlying this is the fact that if employee
turnover is high then it implies that company is not providing better services and good working
environment to employees and due to that reason they are leaving company (Employee turnover:
definition, types, causes of employee turnover, 2017).
The current research is based over company Zara which is a large Spanish retailer dealing
in apparel. This company mainly specializes in fashion products like shoes, clothes, different
accessories, beauty products and other related goods and services to consumer. The company
was founded by Rosalia Mera and Amancio Ortega and was founded in year 1974 and was
headquartered in Municipality of Arteixo which is placed in Spain. The current study will outline
importance of training and development in retention of employees within company for a longer
period of time. This retention is essential for company to manage as there are many different
types of advancement taking place in working environment which may affect the working of
company (Abba, 2018). Thus, for this training and development is very essential for company to

use as in fashion industry there are frequently many changes and upgradation which company
need to adapt.
Aim and objectives
Research aim:
“To investigate the importance of training in reducing employee turnover of business
organisation". A case on Zara
Research objectives:
 To identify the role of training in business organization.
 To determine the techniques of training used by company to train their employees.
 To evaluate the significance of trained employees for success and growth of Zara.
Research questions:
 What is the role of training in business organization?
 What are the techniques of training used by company to train their employees?
 What is the significance of trained employees for success and growth of Zara?
Significance
The major significance of this research study is for Zara as this will assist the company in
understanding major reason for providing effective training to employees. In addition to this it
will also assist company in gaining knowledge relating to various techniques of providing
training to employees. Along with this the study is also of significance to other researcher who
are conducting similar research and for competitors of Zara as well. This is due to the fact that
techniques used by Zara can also be applied to other competitors as well.
Rationale
In this highly competitive world there are many different types of changes which are
frequently taking place in external environment of business. The major reason for selection of
topic of importance of training for retention of employees within company I that training is
current issue. This is necessary because of reason that when employees will be acquainted with
different types of training related to latest changes taking place in external environment then they
will be motivated. In addition to this another major reason for selection of topic is that this will
assist the company in improving working capacity of company. In addition to this another major

reason for this topic selection is personal and academic interest of researcher in gaining
knowledge relating to importance of training.
Structure of dissertation Introduction- this is the first chapter of dissertation which deals with introducing topic of
research and aim and objective relating to topic of research. This also includes the reason
for selection of research topic. Literature review- this is the section of dissertation in which various types of articles and
different published articles and other journal and published data relating to research topic
is selected. Research methodology- under this section of dissertation various methods relating to
research are selected with reason for selection as well. This is a section which will list out
all methods used for completion of selection. Data analysis- the data analysis section is the one which deals with analysis of collected
data relating to research topic. Here complete set of data is analysed and evaluated to
draw some meaning from it.
 Conclusion and recommendation- this is the last section of dissertation which includes
drawing conclusion from data evaluated in data analysis section. Here conclusion is
drawn and the recommendation is provided for improvement of work.

CHAPTER 2.0 - LITERATURE REVIEW
2.1 Introduction
This is the chapter which includes the analysis of the secondary sources of information
with the help of the articles, journals and other published data sources relating to the research
topic that is importance of training in retaining the employees within the company. This is the
chapter which will gather the secondary data from the already published source like different
types of books, journals, articles and other published data. In this different view of different
authors and publishers and it is critically reviewed (Noe and Kodwani, 2018). In simple words
the views of various authors relating to the importance of training in the retention of employees
will be criticized and evaluated. This is done in order to gain some detailed information and
knowledge relating to the topic of research.
2.1.1 Role of training in business organization
Memon, Salleh and Baharom (2016) stated that, training is one of the key significant
procedure which is highly significant in better development of key skills of human within
organization. Training is one of the key prominent measure which helps in increasing the skills
and key relevant knowledge of employees in order to carry out specific job. Training is of utmost
priority for organization because it leads to high degree of success and development to company.
It is highly beneficial and fruitful for employees and employers of organization. Highly trained
employees must effectively focus on becoming highly productive and efficient. Training has key
relevant role of improving the one's own capability, capacity, performance and productivity of
the company. Training is useful in acquiring and applying the skills, attitude, ability and
knowledge which is highly required to perform specific job within organization (Nica, 2016).
Memon and et.al. (2020) investigated that, training is useful because it effectively allows
the employees to sharpen the skill set, acquiring of key relevant new skill and knowledge,
increasing productivity, performing better and be effective leaders. The major reason underlying
this statement is that when the employees of the company are provided with the various methods
of training. Thus, with the help of the different types of training methods it will be helpful for the
employees in understanding their weakness and work upon it (The importance of training and
development in the workplace, 2020). This is majorly pertaining to the fact that when the when
the employees will undergo the different types of the training methods then they will realize the
areas in which they are lacking. Thus, this is the major role and importance of training and

development as this will assist the employees in addressing the issues they are facing and to
improve it with help of the various methods of training.
On the contradictory side Hoffman and Burks (2017) argues that the major role of
training within the company is to increase the goodwill or the reputation of the company. The
major motive behind this is that when the company is using all the latest methods and techniques
of providing training to the employees then this will create a good image of the company. In
addition to this it will also create a good image of the company among the consumers as they
will like the fact that the company is taking care of the employees by providing them
acquaintance with the latest trends going on in the business environment. Moreover, this will
build and increase the trust and loyalty of the employees towards the company. The major reason
underlying this fact was that when company will take care of the employee and their personal
and professional development then this will increase the morale of the employees.
Furthermore, in addition to this Ismail (2016) criticized that major role or importance of
training and development within company is increase in innovation and creativity level of
employees. The reason stating this is that when employees will be having more knowledge of
latest techniques and trends going on in the external environment then this will help them in
thinking innovatively. Thus, this will result into better working and increase in their efficiency of
the employees. With the assistance of the latest technology and the latest trend the employees
will be able to think in more innovative and better manner and this will enhance the working
capacity of the employees and will develop more new and innovative ideas and will assist in
more improved working.
On the other side Islam and et.al. (2018) defends that the major role of the effective
training and development is the reduction in the employee turnover. The employee turnover is
the situation wherein the employees of the company leaves the organization and goes in other
companies or the competitors. This situation arises when the employees of the company are not
satisfied with the working and the operations of the company (Tulangow, Saerang, and
Rumokoy, 2018). Thus, if the training and development within the company will be good and
effective then the employees will be more attracted towards working in the company. Hence, as a
result of this the trust and interest of the employees increases towards the company.
2.1.2 Various techniques of training to be used by company in order to provide information to
employees and retain them.

As per the views of Tam and Le (2018) providing of training is very essential for
companies in order to manage and retain employees. This is essential because of the reason that
if company will not make use of good techniques of training then this will have a great impact
over productivity and retention of employees. In addition to this when training is provided to
employees then this makes them happy and satisfied with company and this result in high
retention of employees within company and less labour turnover. There are many different types
of techniques and methods which are helpful for company in providing for training to
employees.
In the opinion of Yang and et.al. (2018) most common method of providing training to
employees within company is instructor led training. This is a method of training under which
company hires a person who is expert in field in which training is to be given to the employees.
This is a very common and easier way of providing training to employees as here person
instructs and train employees directly. If employees have any of the doubt, then it is solved at
same time. For instance, if Zara wants to provide training to employees relating to latest use of
artificial intelligence in marketing of product and services. Then in that case company can make
use of instructor led training method. Under this a trainer who is having in- depth knowledge of
artificial intelligence in marketing and they can share their knowledge and experience relating to
topic with employees. Thus, this method will increase working efficiency of employees within
company and will boost up their morale and interest of working in company (Top 10 types of
employees training methods, 2020).
Meissner and Lyles (2019) states that along with this there are many different types of
methods which can be used by company in order to provide training to employees. Another
major important training method is mentoring. The mentoring is a type of method in which a
mentor is provided to employees who guide employees how they have to work and time to time
checks and monitors working to a great extent (Sothy, 2019). The mentoring is a great tool which
assist Zara in providing better training to employees of company. Further, in addition to this
mentor also assist employees in solving all their issues and problems related to the work.
In contrast to this Rodriguez and Walters (2017) claims that role playing can also be a
good method of providing training to employees within company. This is due to the reason that
role playing is a method under which same situation is created in which employees has to deal.
This is an approach which can also be referred to as experiment method under which whole

scene is created in workplace itself. For example, company in retail industry can create different
situation for providing knowledge and training to employees that how they have to deal with
working within that situation.
Along with this Seppenwoolde and et.al, (2019) for instance, manager of retail company
can give sales employee situation in which a consumer is very agitated and furious with slow
service of company. Thus, now manager asks sales representative to tell ways in which they will
deal with situation. Even in role play manager can ask sales person to enact in a way in which
they will cool down consumers and how they will try to please them and make them buy the
product and services of retail company.
In addition to this Memon, Salleh and Baharom (2016) argues that major type of training
method which can be used by companies is E- learning. This is the latest method which can be
used by company in order to provide training and development for employees. This is a method
of training which is very easy and employees have to rely on online videos, test, tutorials and
many others. This is a very simple and easy method as this just requires only internet connection
and computers. Hence, with help of this training method company can easily provide training to
employees even off the job training can also be provided with help of E- learning.
On the flip side Abba, (2018) articulates that major benefit of using E- learning as a
training method is that this is very cost effective. The major reason underlying this fact is that
this method is very easy and simple. Another major benefit of using the E- learning mode of
training is that this also saves time and money as the online mode is easily accessible. Further,
this also increases the retention of employees within the company. The major reason underlying
this is that when employees will be provided with easy training then they will like this and will
work with more efficiency and effectiveness. Thus, this will increase the retention of employees
within the company and this will go in direction of growth and development (Raza, Khan, and
Mujtaba, 2018).
2.1.3 Significance of trained employees within company and its impact upon success of
company.
As per the views of Frost (2016) employing and recruiting trained employees is very
essential for company and its success. The major reason underlying this fact is that if employee’s
base of company will be much good and knowledgeable then this will be beneficial for company.
In addition to this trained employee are very important for company as this will make sure that

they are having proper knowledge relating to their work profile and are able to meet all
requirement essential in meeting objectives of business. Thus, providing of training is very
essential for company in motivating employees and increasing knowledge base of employees.
On the other side Wheeler, Clark and Grisham (2017) illustrates that if company will not
provide a good working environment to employees then they will not work in required manner.
This will assist employees in knowing in advance that how they have to work and up to what
standards. If employees of company are trained, then they will be having more knowledge as
how they have to work. This ability will also assist people in case if manager will not provide
direction to employees then also they will be able to manage their work in required manner. In
addition to this Mader, Banks and Farid (2017) states that if staff and employees will be trained
within company then this will result in high employee engagement within business. Thus, more
trained and skilled employees will be more active in doing work and their presence of mind will
be high. All this will assist company in managing working of whole organization in proper and
effective manner.
Furthermore, in accordance with the views of Palka (2017) if Zara is having good
employees who are already trained and have proper knowledge then this will improve efficiency
of company. The major reason underlying this is that when employees of company will already
have knowledge what they have to then this will assist company in managing work on time.
Further when employee will already be having all knowledge then manager does not have to
brief the employee and this will save time of company in providing instruction to employees
pertaining to thing which they have to do (Enander, and Cardoso, 2020). Further with the
assistance of trained employees it was seen that company was able to meet all requirements of
business and its objectives without much efforts. For instance in the retail industry, the company
majorly focuses on the employing best staff as this will assist the company in increasing their
working efficiency resulting in better working of overall company.
Moreover, Tapilouw and et.al. (2017) states that trained employees are of importance to
company as they already have knowledge relating to latest changes taking place in working
environment. Thus, this will be beneficial for company and its success as employees will work in
more effective and better manner. Hence, this will save time of company and its management.
This is due to the reason that when already the employees are having knowledge so now
company does not have to arrange for training activity for employees. Thus, this will result in

saving of cost which company would have incurred if they would have to provide the training to
employees. For example, if companies in the retail sector like Zara majorly focus on providing
knowledge to the employees then this will increase interest of employees in working in much
greater manner.
Further in contrast to this Piotrowski and et.al, (2016) argues that if company will have
trained employees within company then this will build good relation among employees and
employer. Thus, this good relation will result in the better working of employees and in direction
of attainment of aim and objectives. Further if employees within company will be trained then
this will increase commitment and loyalty of employees towards company. Thus, this loyalty and
trust of employees will result in increase in goodwill of company (Searle, 2020). The major
reason underlying this fact is that when employees within company will be satisfied with
working of company then this will result in less employee turnover. Thus, this will result in
increase in goodwill of company and profitability of company will increase as well.
In the end it can be concluded from the above literature review that providing of training
is very crucial and important for company to be successful. The major reason found was that if
company will not take care of employees then employees will not effectively work. Further
changes taking place in business environment are very important to be acknowledged with
employees (Saraswati, 2019). It is so because if company will not provide for training to
employees then employees will not respect company goals and will not work accordingly. It was
also found that there are many different methods through which company can train employees
like instructor led learning, mentoring and many others. Further it was also witnessed that trained
employees are of significance for company.