Emirates Aviation University: Employee Turnover in Aviation Sector

This project, conducted by Maryam Fereidoun Far for a HND Business (Management) course at Emirates Aviation University, investigates the issue of employee turnover within the aviation industry. The research employs a mixed-methods approach, combining qualitative data from interviews ...Read More

BUSINESS SCHOOL
EMPLOYEE TURNOVER IN AVIATION INDUSTRY
By
(Maryam Fereidoun Far)
Student ID: EAU1115677
Unit 8: HND Business (Management) Business Research Project
February – May 2018
Supervisor: Carl Bellwood
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
Declaration of Originality
This project is all my own work and has not been copied in part or in whole from any other
source except where duly acknowledged. As such, all use of previously published work (from
books, journals, magazines, internet, etc) has been acknowledged within the main report to an
item in the References or Bibliography lists.
I also agree that an electronic copy of this project may be stored and used for the purposes of
plagiarism prevention and detection.
Copyright Acknowledgement
I acknowledge that the copyright of this project and report belongs to Emirates Aviation University
Signed: Date:
Office Stamp
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
Abstract / Executive Summary
The report is addresses the possible causes behind the high turnover rate among
employees of the aviation industry. It is a study on the reasons behind an employee may
choose to leave his or her job in his organization. Secondary and primary sources of data was
used to scrutinize the primary objective. Additionally, in relation to the primary research
question, the study delves into the perspective of the employees themselves and the opinion of
the managerial staff. Mixed research design was employed for primary data analysis. The data
consisted of transcripts from interviews of the managers which was analysed using qualitative
methods and survey data collected through online questionnaires which was analysed using
statistical methods. Combining insights from secondary and primary sources, it was revealed
that lack of proper training, inadequate handling on part of the managers, low wages
contributed to an employee wanting to leave which is further facilitated by a high competitive
market.
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
Table of Contents
Abstract / Executive Summary.......................................................................................3
Table of Contents...........................................................................................................4
1. Introduction...........................................................................................................5
1.1 Background to the Project.....................................................................................5
1.2 Project Objectives...................................................................................................5
2. Methodology.........................................................................................................6
3. Analysis.................................................................................................................7
4. Conclusions........................................................................................................10
4.1 Achievements.......................................................................................................11
5. Recommendations..............................................................................................11
6. Implementation Plan...........................................................................................11
7. Evaluation............................................................................................................12
7.1 Project Evaluation.................................................................................................12
7.2 Future Work...........................................................................................................13
Appendix A – Research Proposal/Secondary Literature Review Documents................14
References....................................................................................................................18
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
1. Introduction
1.1 Background to the Project
High employee turnover rate is one of the major challenge aviation industry is
currently facing in the competitive business environment. This can be considered as one of the
major incapability of the human resource management in an organisation operating within the
aviation industry to retain their employees for a longer period (Karatepe and Vatankhah
2014). Constantly increasing competitive pressure in the market makes it difficult for the
organisations to retain their employees. A number of factors along with the competitive nature
of the market facilitates in determining the employee turnover rate. This research will focus
on identification of the factors involved in employee turnover.
This particular topic is selected for the research due to its importance and the growing
challenges faced by the organisations on the same. This will help identifying the major factors
supplementing in the increased rate of employee turnover in the aviation sector, which will
further facilitate in addressing the issues, as the HR departments will then have knowledge on
the source of the issue.
1.2 Project Objectives
 To understand the issues causing into high turnover in the aviation sector
This will communicate the challenges faced by the HR management that limits their ability to
retain their staffs.
 To identify the employees’ understanding of the turnover rate and the reasons
affecting it
This will help identifying the need of the employees that is causing into dissatisfaction, which
ultimately facilitating into rising the turnover rate of the employees.
 To identify the management’s Opinion of the high turnover rate within the industry
This will help recognising the management’s perception of the issue concerned. Identification
of both the perception will help concluding the gap between the management and employee
supplementing in the factor. This will help recommending the modification required in the HR
management of the organisation that will help reducing employee turnover rate.
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
2. Methodology
The approach elected for the research was deductive as it focused on identification of
the issues causing employee turnover in aviation industry. The source of data was of two
types that were primary and secondary. The data that was utilised for this research was of both
primary and secondary types. Moreover, the data collection method that was implemented in
this case was the quantitative data collection method that according to Flick (2015) deals with
the statistical data. The primary data analysis used a mixed research design employing both
quantitative analysis using data collected online via questionnaires from employees working
on ground level and thematic analysis of interview transcripts of managers in the aviation
industry, which address there take on the matter. The process was explained in the research
proposal which can be referred to in the Appendix section.
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Maryam Fereidoun Far Employee Turnover in Aviation Industry
3. Analysis
Thematic analysis using transcripts from interviews of three managers of the aviation
industry was done to gain contextual insights about what are the factors that drive an
employee to leave his or her organization in the aviation industry and the role that the
management has to play in this (Smith 2015). Three managers from three reputed
organizations were approached independently for interviews to get their perspective on the
matter of employee satisfaction, performance, retention and their own challenges in managing
the work force. The transcripts were studied keeping in mind the role of HRM in ensuring
employee retention and the effect they can have on employee turnover. The identity of the
organizations and the managers are kept anonymous for the sake of privacy of the participants
as per ethical considerations (Zhang and Wildemuth 2016).
The themes emerging from their interview were the difficulty in supervising
so many workers, lack of training among recruits and competitive market facilitating
employee turnover. It seems that the main difficulty managers expressed that they faced were
handling and keeping track of so many employees while having to maintain certain decorum
so as to not deter smooth functioning of daily service. It was intimated that employees,
especially the new recruits are often unprepared to deal with the demanding and competitive
nature of the job and that add added responsibility on part of the management to supervise and
train them. This, in addition to the already mounting work is noted as a challenge by most of
the respondents. The number of employees under them also makes it more complicated. Thus,
they identified lack of training infrastructure as a major deterrent and it seems that perhaps
this may give rise to a certain communication gap which might explain the dearth of
information regarding the kinds of grievances their employees could have. This is assumed
since the managers seemed to be not much forthcoming in their response about the kind of
steps the organizations take to address grievances of the employees with their answers being
short and not as descriptive when asked about it (Vaismoradi 2016). This makes one ponder
whether there exists a lack in connection between the management level and the operations
level. However the lack of response might also be a result of the managers wanting to not
reveal organizational policies and weaknesses. Adding to that, they listed high competition in
the industry as a key factor which affects high turnover stating that promise of higher
monetary compensation or inability to handle pressure as reasons for which an employee may
leave. This gives a sense of there being unwillingness on part of the managers and thus the
management to take responsibility for the turnover although it is suggested that the stress
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faced in the workplace does play role of instigator. The managers highlighted stress and
competition giving rise to the employees wanting to seek out better opportunities elsewhere
and competitor companies looking for skilled personnel providing said opportunities as
factors which contribute to turnover. The managers however had highlighted training the
employees and stress in dealing with the large number of employees as challenges and this
betrays a gap in the communication between employee and supervisor that may exist and
aggravate the situation of the employee making him or her want to seek out other
opportunities. Nonetheless, the focus of the study being the general attitude of the managers
towards employees that may affect employee turnover, it seems that although management
can’t be solely held responsible, but a management which places more focus on the
development of its employees and engages in regular communication could have a significant
impact as per the interviewees.
The perspective of the employees was addressed using the data obtained
through the online survey. Data from 30 employees was collected using the questionnaire
(attached in Appendix). The survey questionnaire had defined internal environment,
managerial credibility, monetary benefits, internal environment, external environment and
working conditions as tentative factors which may drive an employee to choose a better job
opportunity. The survey revealed monetary benefits as the most popular with 41.94% votes.
Management, organization profile and internal environment were also identified as relevant
aspects.
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16.13%
16.13%
41.94%
16.13%
9.68%
Factors rated to have most significance
while selecting better opportunities
Internal environment
Managerial
Monetary benefits
Organization profile
Working condition
Figure 1
The questionnaire also had categorically identified delay in salary, domestic
problems, low career growth, negative behaviour of supervisor, poor management and
unfavourable working condition as factors which may influence an employee to leave his or
her current job. Out of these, low career growth was found to be highest rated at 32.26% of
the respondents listing it as the leading reason followed by unfavourable working conditions,
poor management and negative behaviour of supervisor.
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3.23% 3.23%
32.26%
16.13%
19.35%
25.81%
Factors influencing decision to leave a
job
Delay in salary
Domestic problem
Low career growth
Negative behavior of the
supervisor
Poor management
Unfavorable working
condition
Figure 2
Low career growth opportunities could be related to the lack of intent on part of
management to provide better opportunities for growth within the organization and
communication gap with supervisors as indicated by the managers in their interview could
also have had a role to play (Anderson et al. 2016). Acknowledgement from supervisors,
promotional opportunities, amount of work that one has to put in to get recognition, level of
support in form of counselling that the HR provides and overall firm culture which all could
amount to low career growth are therefore taken into account as factors affecting turnover.
Job Satisfaction is considered as an indicator of employee retention and turnover (Wang et al.
2014).
The relationship between job satisfactions, an early indicator of turnover with these
factors is therefore analysed using the regression model tool. The categorical variables were
converted to ratio scale based on their ordinal natures and regression analysis was done (Peck,
Olsen and Devore 2015). The number of times an employee has been rewarded and
recognized for his performance, the amount of work that he or she has to put in to receive
acknowledgement from his or her supervisor and the firm culture were found to be
statistically significant as explanatory variables of the job satisfaction level that was reported
by the employees, that is it had significant effect in explaining variation in the response that is
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job satisfaction (Salkind 2016). It was seen that more the amount of work that the employee
had to put in to gain some sort of recognition lesser was job satisfaction and the other two
explanatory variables were on the other hand positively related to the job satisfaction score.
The final model based on these variables was also found to be statistically significant at 5%
level of significance and the adjusted R squared reported a value of 0.55, which is quite a
good fit for the model (Draper and Smith 2014).
Thus aside from monetary compensation, career growth opportunities, internal work
culture and thus management was identified as key drivers of employee retention. It is clear
from the contextual analysis of the interviews that there exists a discrepancy in
communication and challenges in training and supervision from the manager’s end. Adding to
that, the way job satisfaction is impacted by lack of recognition and rewards and heavy work
effort without acknowledgement, which could be explained by the challenges faced by the
management, it is concluded that steps to meet and resolve these challenges faced by the
management is expected to affect turnover rates positively.
4. Conclusions
The secondary data analysis and subsequent primary data analysis indicates that the
aviation industry is subject to a situation where there is an acute lack of trained individuals.
Adding to that it was perceived that incapacity in managerial levels of the organization arising
out of either negligence or corruption or both act to put pressure on employee, inciting them
to leave the organization. The primary data analysis suggested that participant managers
lacked the willingness to take responsibility for the turnover and failed to provide adequate
insight regarding what their organizations were doing to keep track and mitigate concerns of
the employees. A key finding from the secondary analysis highlights that the workers in
aviation primarily happen to come from low income backgrounds and hence are liable to
exploitation by the manager who take advantage of their elevated position over the desperate
employees and shun their own responsibilities. Therefore, there is an unequal distribution of
workload putting too much pressure and eventually burnout on some while none at all on a
privileged few. Additionally, low pay is also recognized as a cause for turnover as suggested
by both secondary and primary analysis. All this contributes to dissatisfaction among the
employees and that coupled with the high competition in the market leads to employees
tending to leave the job whenever other opportunities arise, which are plenty.
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4.1 Achievements
The analysis narrowed down key issues that impede employee retention. It identified,
lack of growth opportunities and high stress at work due to uneven workload and managerial
negligence, as reasons fuelling dissatisfaction among employees. It addressed the opinions of
the managers who identified competitive market and lack of trained workers as reason why
organizations fail to retain employees. Consequentially, it identified that a culmination of
managerial oversight, negligence, lack of training, lack of growth and low pay amount to
employees seeking opportunities elsewhere and the high competition in the market facilitate
the process. Thus the analysis was successful in meeting its objectives and in light of this was
able to come up with strategies to counter the situation.
5. Recommendations
It is felt that perhaps focusing on the effectiveness of the managerial and putting up
checks which even the playing field for the managerial and ground level employees could
serve to strengthen the operational efficiency and thus ease the workload of the employees by
making sure that there is even distribution of work and more open lines of communication
allowing for equal scopes for recognition of those who are performing well or may be
showing the potential to do better if given the chance to do so. Additionally, lack of proper
training being yet another issue, the organization could organize some contingency on job
training plan, which could act to provide real time training to the employees, in handling the
high pressure, high workload environment in a balanced and efficient way.
6. Implementation Plan
Keeping in mind the two recommendations, the organization could plan and conduct
periodic joint workshop sessions for its managerial and ground level employees. Engaging the
old and new staff for both managerial and ground level staff could act to boost
communication and healthy competition within the organization, strengthening bonds while
providing learning opportunities for all. Furthermore they could conduct annual assessments
and take into account employee feedback to regulate the performance of all its levels. This
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could work to mitigate the communication issues and issues that newcomers face due to
inadequate training.
7. Evaluation
7.1 Project Evaluation
There were enough secondary sources of information available on the topic at hand. It
provided guideline for planning the interview for managers and understanding the
implications of their responses. The secondary literature had highlighted the possibility of
there being corruption among the managerial levels and bias and ignorance towards the staff
and it was reflected in the response of the managers. Depression among the staff was also
highlighted owing to toxic work conditions. These played a part in how the interview of the
managers was approached. Primary data collection for the survey was easily achieved via
online survey. Again, the anonymity of the internet made the respondents more forthcoming
in giving out information. Reaching out to managers and getting affirmative response to
participate in the study was a challenge. Additionally, the managers seemed to not be much
forthcoming with what their organizations were doing to meet the needs of the employees.
Although survey data was conducted via online survey, not enough response could be
gathered over the given span of time for the project. The authenticity and generalizability of
the data, which is, whether it serves to be an appropriate representative of the population of
aviation employees in or is it just limited to the organizations that the employees are from
could not be verified. Thus it would have been better had more time being spent behind
collecting even more data through the survey. The interview of the managers provided
valuable contextual insight which could have been supplemented by conducting an interview
of the employees as well, as to how they feel the management is operating. Hence, perhaps
including a qualitative analysis by approaching the ground level staff for their views on role
and performance of the management could also have served to add more value to the research.
Again, since the data collected was limited in volume, there was not enough scope to cross
validate the regression model that was fitted to the data in the analysis. This also played a part
in my reasoning to claim that more survey data would have broadened the scope of the
results.
7.2 Future Work
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Future scopes for further research on this topic would be to devise a way to separate
trained employees from untrained ones and see whether and why and what kind of differences
exist with respect to turnover, if differences exist at all. Another trajectory worth pursuing is
to conduct an analysis using observational longitudinal design to observe the causes that may
lead up to turnover of employees from recruitment to resignation or till 10 years into the
organization. Employees could be followed up on every year to assess their feedback for the
management and work environment, their work satisfaction and performance to track their
work trajectory. This could then be used to identify what factors may contribute to them
wanting to leave or stay in the organization. This would also allow for a comparison between
individual employees and thus comparison between different categories of employees.
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Appendix A – Research Proposal/Secondary Literature Review
Documents
Literature review:
Introduction:
Employee turnover is one of the biggest problems faced by the aviation industry all over the
world and the reason behind this is mismanagement, lack of job satisfaction, lack of proper
recruitment and many more. In order to mitigate the turnover, proper management is needed. In this
literature review evaluation of the issues behind the employee turnover will be discussed properly.
Motivational theory:
According to the Healy (2016), management issue is the biggest problems in the aviation
sector because no proper structure is followed and employee motivation is also not done
systematically. Maslow’s hierarchy is the theory, which reveals the basic need of the employees
that management must need to concern. According to this theory, Maslow defines the five
fundamental need of an employee, and this is physiological, safety, esteem, love and self-
actualisation. When all these needs are fulfilled by the organization, proper workplace and job
satisfaction can be achieved.
Maslow’s hierarchy
(Source: Healy 2016)
This is the best model, which is needed to be implemented in the aviation sector because
most of the time workplace environment is not adjustable and job security is another issue that
remains a concern for the employees. A report reveals that proper job security can motivate
employees and long-term relationship with the company can also be made. Employee turnover can
be reduced by this but according to the author in aviation sector most of the employees have low
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educational qualification and have rose up the ladder from the lower ground level. In competitive
market, changing company for some extra bucks has occurred frequently and also authority
sometimes terminated many lower level employees due to their inefficiency. Job satisfaction and
job security are highly associated with the intensity of the effectiveness in the workplace. This
source is also relevant because the theoretical implication is showing the importance of the
motivation and job security to retain the turnover. This source has the academic viewpoint and has
the subjective nature to find out the research outcome.
Lack of training and leadership:
Increasing the turnover rate in the aviation industry is one of the major problems in recent
scenario. The reason behind this as stated by the Demirtas and Akdogan (2017), is basically lack of
the management. Employee retention is one of the big factors for every organization, and human
resource management is involved with this. According to the author, lack of proper training is one
of the major issues facing by the aviation industry. Most of the work done in the aviation industry is
technical and sensitive. In order to facilitate the successful work, proper training is much needed,
however recently a report reveals that employees are not getting the proper training according to
their job description. Lack of training obviously lowers the capabilities of the employees, and this
causes the frustration among the employees, which leads to the rejection of the job (Demirtas &
Akdogan 2015). In an interview with an employee, who resigned his job, revealed that lack of
proper training lead him in to a tough situation where every time supervisor misbehaves due to bad
performance. Without training, it is quite tough to handle the industry like aviation. This source is
relevant with the research project and reveals the issue in management, which will help to meet the
research objective with the practical viewpoint.
Nahar, Islam and Ullah (2017) narrated that, behind this lack of training, a huge conspiracy
rotating every time. Corruption in the management is one of the reasons for this situation, and
generally, it happens from the root level in the aviation industry. In past year 23% employees
resigned from the aviation industry globally, which reveals that the problems in the management are
very true and author reveals the lack of proper orientation of the job is the reason. Employees often
get confused how to interact with their job and how to co-operate properly. Facilitating training can
be the good option to retain the employees, but corruption is intermingled with the management.
The author revealed that in last year many higher authority staffs were caught due to corruption.
This source is relevant and addresses the research objectives properly with a practical view.
Another managerial issue is the abundance of free time in the management. Basically,
managers or supervisors get lots of free time, and lack of proper guidance from the higher authority
drives them to take their job casually. Wong and Brooks (2015) stated that, in aviation industry 40%
workers come from substandard background to get some money and supervisors or managers take
these advantages by using this low-level workforce in everywhere. The objective of the research of
finding management issue in the turnover of employees in the aviation industry is fully justified by
this source and address the objective of research of finding the management issues like lack of
proper training and corruption from ground level. The source is fully relevant and recent and is all
about the lack of management in the aviation industry. It is basically written on practical viewpoint,
and practical consequences are important to find out the issue in order to meet the research
objective.
Obviously, proper training is also needed, and proper recruitment structure is also needed to
incorporate, but inefficiency is one of the most effective factors that must need to reduce by
facilitating the proper training, by establishing just environment in the workplace, proper salary and
many more (Sparrow, Brewster & Chung 2016). This source is also relevant and helps to meet the
research outcome with a practical viewpoint.
According to the Wiegmann and Shappell (2017), most of the time abundant free time of
the supervisor let them take their responsibility casually. Proper training is needed to reduce the
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certain accident in the aviation sector. In last year, the rate of accident in the aviation sector
increased 3.3%, and this is due to the lack of proper expertise in every field and lack of adequate
training for the employees. The supervisor needs to facilitate the healthy leadership attitude towards
the employees which will also help them to connect with the management and miscommunication
can be reduced which will help to reduce the turnover rate in the aviation sector. This source is also
helped to meet the research objective and relevant to the research project with an academic
viewpoint.
Job satisfaction:
Unstable salary structure is another issue in the aviation sector, which causes the employee
turnover. According to the Yilmaz and Flouris (2017), salary structure in the aviation sector is very
unstable and proper promotion structure of the employees is also not justified. The promotional
structure needs to renovate to retain the employees because if one employee found that his post is
the last position for him in the office then obviously motivation will decrease automatically and
ultimately resigning occurred. The author stated that better opportunity and proper career prospectus
is needed to reduce the employee turnover. Inequality in the salary scheme discouraged the
employees and management must need to evaluate the employees about their cause of
dissatisfaction. This source is also useful to understand the main issue in the management and
employee turnover is highly related to the bad salary structure. This is also the practical viewpoint,
and recent consequences are placed in it.
According to the Analoui (2017), turnover rate in the aviation sector has increased 3.67% in
response to the last year. The reason behind this obviously the mismanagement of the authority but
employee’s inefficiency is another factor. Aviation sector using advanced technology to provide
their services and when employees are not able to meet the situation they got frustrated and leave
the job. This source is also relevant to the case study because it reveals the issue in management for
which employees are resigning.
Another issue that is also hampering the management in the aviation sector is the lack of
proper service rule. According to the Bratton and Gold (2017), every employee needs to be
rewarded as per his work, and this reward system is very important to retain the employees because
reward system enhances the workplace environment and also enhances the efficiency of the
employees. According to the author, lack of proper designation can lead the employee towards the
resignation and also toxic workplace environment created without proper service rule. This source
is also relevant and reflects the practical view.
A number of interviews reveal that the huge pressure in the aviation sector and the huge
amount of the sensible work affected the mind of the employees and soon they get the
discouragement. Wensveen (2016) also stated that, basically aviation sector is one such sector that
needs constant attention and conscious efforts to provide service this leads the employees towards
the depression. Near about 11.3% employees reveal this reason that work pressure in this sector is
just intolerable and mental and physical deterioration occurred regularly. This source addresses the
research outcome and justifies the issues in the aviation sector with a practical viewpoint.
Proper recruitment:
According to the aviation international news (2018), there are many steps need to be
followed by the management to reduce the turnover rate in the aviation industry. Globally 23%
turnover occurred last year and most of the time lack management is the main reason behind this.
Proper training and supervising are essential to make the workplace favorable for the
employees; organized salary structure and job security is also needed to retain the employees.
Authority needs to be more specific at the time of recruitment to reduce the number of inefficient
workers (Belobaba, Odoni & Barnhart 2015). Flexible and good reward system needs to be
facilitated in order to enhance the performance of the employees. The objective of the research is
also meet by this source with the practical view.
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Conclusion:
To conclude, it is evident that the aviation industry has been facing huge turnout rates and
this can be majorly credited to the problems of improper HRM practices. The employees are
unsatisfied from the kind of duties they are being assigned and they show displeasure in the salary
that they receive. The modification of the salary structure remains a recommendation that has to be
incorporated in the aviation department. The employees have been facing higher rates of burnout in
the industry and hence the HRM team must formulate policies of better training and employee
satisfaction should be maintained. The organizations should focus on treating employees in a
humane way rather than treating them just as workers. The employees are needed to be retained in
as it will also benefit the organization in creating a workforce that is loyal and efficient with the
working style.
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