Investigating Employee Turnover During Restructuring at TSL Jewellery

This research proposal investigates the high employee turnover rate at TSL Jewellery following a company restructure initiated in 2016. The study aims to identify factors contributing to this turnover, focusing on the impact of restructuring on office staff. The introduction provides background on TSL Jewellery, highlighting its shift in focus to the Chinese market and subsequent restructuring efforts involving headcount freezes and job redesign. The problem background outlines the significant increase in employee turnover rates from 2015 to 2017. The literature review explores existing research on employee turnover, examining factors such as job insecurity, management style, career prospects, salary satisfaction, and company culture, all within the context of organizational restructuring.

Running head: RESEARCH PROPOSAL
An investigation into high employee turnover rate during company restructure in TSL Jewellery
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Chapter 1: Introduction....................................................................................................................2
1.1 Company Background...........................................................................................................4
1.2 Problem Background.............................................................................................................5
1.3 Purpose of the Study..............................................................................................................5
1.4 Research Aim.........................................................................................................................6
1.5 Research Question.................................................................................................................6
Chapter 2: Literature Review...........................................................................................................7
2.1 Introduction............................................................................................................................7
2.2 Employee Turnover...............................................................................................................7
2.3 Factors leading to employee turnover due to the Restructuring Process...............................8
2.3.1 Job Insecurity..................................................................................................................8
2.3.2 Management Style..........................................................................................................8
2.3.3 Career Prospect...............................................................................................................9
2.3.4 Salary Dissatisfaction.....................................................................................................9
2.3.5 Company Culture..........................................................................................................10
2.4 Summary of the Literature...................................................................................................10
Reference List................................................................................................................................12

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Chapter 1: Introduction
In the current sustainable changing environment does not only have an impact on the
companies that are operational but even on the employees who working within the companies
(Huang et al., 2016). It is seen that human resource management has a significant role to play in
the management of the organizational resources and how the employees have treated within the
companies (Call et al., 2015). The employees are a vital asset to every company, enterprises and
it is seen that the success of each and every organization is reliant entirely on the efficiency of
their employees.
There are numerous ways with the help of which the businesses or the organizations may
enhance the efficiency of their employees. This can be attained with the help of frequent training
events and sustainable motivation in the working environment, empowerment of the employees,
bonus and promotional programs etc (Fu, & Deshpande 2014). These activities and the strategies
generally ask an organization to spend significant amount of resources in order to make sure that
their employees are satisfied with their job and work effectively in order to attain the pre-
constructed organizational goals and objectives (Holtom, & Burch 2016). However, with the
efforts that have explained earlier, the businesses and the organizations even face the challenge
of higher degree of employee turnover and therefore low rate of employee retention. These are
the factors that significantly affect the success of the businesses and the organizations as they are
robbed from their most valuable assets which have been their employees (Ahammad et al.,
2016).
Selden, & Sowa (2015) explains turnover to the ratio of the employees of a company who
resigned at a specific time period with the aggregate number of employees in that company

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during the same time frame. Anitha, (2014) explained that an organization who is successful
generally has a high rate of employee retention.
1.1 Company Background
Tse Sui Luen Jewellery (TSL Jewellery) International Limited is known to be one of the
largest jewellers in Asia that is significantly associated in the designing of the jewellery,
producing them thereafter trading, wholesaling and retailing the same. TSL is a family business
and run by Tse’s family and the aim of the company has been to concentrate on the Chinese
market as the performance in China has been pleasing in the recent times (2015-2018).
The company even looks to move the headquarter from Hong Kong to Guangzhou due to the
effective level of business performance. It is even seen that the decision making process of the
company would even be transferred to the management team in China rather than the
management team of Hong Kong.
It is due to this factor that the Chairman of the company declared about undertaking a
restructuring process in the overall framework in the year 2016 and this change would take place
for the coming 3 year till the year 2019. The changes that would take place within the company
would constitute of the freezing of the headcount like controlling of costs, redesigning of the job
by increasing the work load of the employees (ir.tslj.com 2018).). The changes have led to the
fall in the morale of the employees and therefore 75% of the senior management resigned from
the organization. The overall outcome of the changes that have taken place in the company has
led to the rise in the employee turnover and the rate has increased from the year 2015 to the year
2017. The restructuring process would continue in the company till the year 2019 (ir.tslj.com
2018).

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1.2 Problem Background
This research has been undertaken in order to discover the factors that have led to the rise
in the employee turnover in TSL Jewellery. The company started facing issues in accordance to
the rise in the employee turnover simply due to the discontent of the employees due to the
process of restructuring. The rise in the employee turnover had significant impact on the
operational activities of the company and therefore various measures and strategies have been
taken by the company in order to understand the issues and discover ways of recovering from the
same. The outcome has indicated that the headcount of the turnover of the office employees
explains the fact that the in the year 2015, 297 employees were there in the company and the
turnover rate has been 9.60%. In the next year the employee count fell to 250 and the percentage
of employee turnover has been 18.70% and in 2017 the headcount has been 218 and the rise in
the percentage has been 23% (ir.tslj.com 2018). This has been the main problem for the company
as the rise in the employee turnover percentage had an impact on the performance of the
company.
1.3 Purpose of the Study
The main intention of this paper has been to assess the significant factors in TSL
Jewellery that had an impact on their operational performance. One of the key factors has been
the rise in the employee turnover rate and this would be based on the employees of the company
in their office and thereafter looking for insights in the rates of employee retention within the
industry. The main reason for the employee turnover has been the job insecurity, style of the
management, prospect of the career of the employees, satisfaction level in accordance to the
salary given and the culture of the firm (Madden et al., 2015). The results have indicated the fact
that 40% of the top management and 75% of the senior management has resigned from the

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company. Therefore, the purpose has been to understand the factors that led to this issue in the
firm.
1.4 Research Aim
The aim of the paper has been to understand the factors that have led to the rise in the
percentage of employee turnover in TSL Jewellery after the undertaking of the restructuring
process
1.5 Research Question
Q1. What are the factors that have led to the rise in the percentage of employee turnover in TSL
Jewellery after the undertaking of the restructuring process?

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Chapter 2: Literature Review
2.1 Introduction
The literature review has been constructed in order to provide an understanding about
what other researchers have provided in accordance to the topic by assessing the similar
researches that have been undertaken in the past in order to have an idea about the factors that
have led to the rise in the percentage of the employee turnover. The background of TSL
Jewellery has indicated the fact that there are several factors related to restructuring process that
have led to the rise in the percentage of the employee turnover and therefore analysis with the
researchers would even be taken into consideration.
2.2 Employee Turnover
Newman et al., (2015) cited that employee turnover is the rate of individuals who
resigning from their jobs and turnover is expensive as well disruptive for a company. Sikora et
al., (2015) employee turnover is inevitable because of the fact that certain employees retire from
a company and in certain instances move to other companies as well. Employees even leave a
company due to sickness and other personal factors and therefore a low rate of turnover will be
existent even after the companies have been taking measures in order to satisfy their employees
(Zhong et al., 2016). Employee turnover can be damaging for a company as this increase their
costs and wastage of time as the new employees who would be recruited need to be provided
with extensive training and knowledge in accordance to the work they have to perform and the
goals and the objectives of the company as well. It is role of the human resource department to
take care of their employees and construct plans and strategies in order to satisfy and motivate
them so that the rate of employee turnover would be reduced.

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2.3 Factors leading to employee turnover due to the Restructuring Process
Mulki et al., (2015) cited that there are several factors that lead to the rise in the
percentage of employee turnover in case restructuring has taken place in a company and it is the
responsibility of the organizations to assess their internal environment in order to have an idea
about the factors that would lead to the development of a better working environment.
2.3.1 Job Insecurity
Job insecurity is one of the key factors that plays in the mind of the employees if they
discover that the job they are performing is not secured. Lu et al., (2016) explained that job
insecurity in an employee develops when they are not satisfied with the management of the
company and they feel that their employment may not be permanent. Job insecurity generally
occurs when the management decides to undertake restructuring process and therefore changes in
the management policies and providing extra burden on the employees by putting in additional
task to the employees takes place. Job insecurity is one that employees take into consideration as
if the employees are not satisfied with the work they are performing, then they become unwilling
to work for the organization.
2.3.2 Management Style
The style and the approach that is undertaken by the management of an organization in
order to operate their businesses has an impact on the employees as well. The employees are a
part of the organization and they get motivated if the management are considering their issues
and concerns as well. Fabi et al., (2015) explained that there are several kinds of management
style that can be made use of by the companies and it is the discretion of the management to
choose the ideal strategy in accordance to the aims and the goals of the company. It is seen that

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the employees feel satisfied if the management incorporates plans and strategies where they
would consider the feedback of the employees, consider their ideas and plans as well and
motivate them to perform in a better way. The rate of employee turnover increases in
circumstances when the management enforces their decisions over the employees and thereby
the employees lose their motivation. Paillé et al., (2014) cited that management style that
incorporates the decisions of the employees reduces the rate of employee turnover within an
organization. The change in the management style is even a consequence of a restructuring
process that is undertaking in a company and therefore this has significant amount of impact on
the percentage of employee turnover in an organization.
2.3.3 Career Prospect
The employees join an organization in order to secure a safe and developing career for
themselves. The prospect of developing career influences the employees to perform effectively
so that their development would be possible and thereby the employee can get promotion and
thereby develop their career. The rate of employee turnover would reduce if the employees
discover that the career prospect would be higher and this would lead to efficient performance
from the employees as well (Singhapakdi et al., 2015). The companies need to make the
employees aware of the future prospect within the organization and this in return would be
helpful for the employees in understanding their development within the company and thereby
they would perform accordingly in order to excel in their career. These aspects need to be
addressed when the restructuring process is taking place so that the employee becomes aware
and the employee turnover rate remains low.

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2.3.4 Salary Dissatisfaction
The dissatisfaction among the employees with respect to their salaries is another factor
that leads to employee turnover. The changes in the salary generally take place when
restructuring takes place in a company. In this scenario dissatisfaction among the employees take
place in accordance to their salary and this leads to the rise in the extent of employee turnover.
The employees work in a company in order to earn income with the help of which the employees
would be able to meet their daily expenses and maintain their standard of living. Hom et al.,
(2017) addressed that one of the essential factor leading to the rise in the employee turnover has
been the employees receiving job offers from other companies with better salaries look to change
their job in order to improve their level of income and even enhance their career prospect. It is
the responsibility of the management of the companies to assess whether the salary paid to the
employees are equivalent to the task performed by them as employees would be satisfied once
they find that they are receiving equal salary in accordance to the effort that is given from their
part (Javed et al., 2014).
2.3.5 Company Culture
The culture of an organization is a pivotal part in the development of a company and the
culture changes when the companies are planning to restructure. The culture of an organization
motivates the employees to perform in a better way and the culture determines the work
environment of the company. The changes in the company culture can have an impact on the
mind-set of the employees as their performance depends on the culture that is existent within an
organization (Nica et al., 2016). The development of a company would be dependent on the
performance of the employees and therefore changes in the culture should be undertaken after
consulting with the employees.

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2.4 Summary of the Literature
The literature in relation to this topic has looked to explain employee turnover and how it
has an impact on the performance of TSL Jewellery. The literature has therefore evaluated the
aspects that leads to employee turnover and each of the aspects have been explained in an
explicit manner so that an idea can be attained in accordance to the relationship these factors
have with the actual scenario of TSL Jewellery in the current time period after the management
of the company decided to undertake the process of restructuring.

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