Impact of Rewards and Job Satisfaction on Employee Turnover at HSBC

This case study proposal focuses on the impact of job satisfaction and rewards on employee turnover at HSBC Bank. The study introduces the topic, provides an overview of HSBC, and outlines the rationale, aims, and objectives, including research questions. It explores the significance of the study, addresses the problem statement, and reviews relevant literature on the concepts of rewards and job satisfaction within an organizational context. The study examines the positive and negative impacts of rewards, their significance in relation to high turnover, and the relationship between rewards and job satisfaction. The proposal includes a detailed research methodology, timelines, potential issues, and a conclusion, along with references. The aim is to analyze the impact of job satisfaction and rewards on employee turnover ratio. The study investigates the concept of rewards and job satisfaction, measures positive and negative impacts of rewards, evaluates the significance of job satisfaction and rewards on high turnover, and establishes a relationship between rewards and job satisfaction. The project emphasizes the importance of rewards and job satisfaction to reduce employee turnover rate and improve business performance.

Case study proposal

Table of Contents
Section -1.........................................................................................................................................3
Topic.......................................................................................................................................3
Introduction............................................................................................................................3
Organisation overview............................................................................................................3
Rational of the study...............................................................................................................3
Aims and objectives...............................................................................................................4
Research questions.................................................................................................................4
Significance of the study........................................................................................................4
Problem statement..................................................................................................................5
Section -2.........................................................................................................................................5
Literature review....................................................................................................................5
Concept of rewards and job satisfaction within organisational context.................................5
Positive and negative impact of rewards and job satisfaction of employees.........................6
Significance of job satisfaction and rewards on high turnover ratio of employees................7
Relationship between rewards and job satisfaction................................................................7
Section -3.........................................................................................................................................8
Research methodology...........................................................................................................8
Section -4.......................................................................................................................................10
Realistic timelines and gantt chart........................................................................................10
Foreseen issues.....................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

Section -1
Topic
“To analysis the impact of job satisfaction and rewards on high turnover ratio of
employees: A case study of HSBC bank”.
Introduction
Job satisfaction and rewards helps to drive performances which also helps to reduce the
high turnover ration of employees. In this project, the impact of rewards and job satisfaction on
high turnover ratio of employees will be discussed. In addition, importance and significance of
rewards to employees in HSBC bank will be explained. Different types of methodology and
objectives used in this project associated with literature review in order to justify impact of
rewards will be discussed. There will be three objectives discussed in this report in the part of
literature review such as concept of rewards and job satisfaction, positive and negative impact of
rewards and job satisfaction and finally, significance of job satisfaction and rewards on high
turnover ratio of employees. In addition to this, these objectives will be explained in the form of
questions in order to assess the importance of job satisfaction and rewards.
Organisation overview
HSBC is one of the largest banking and financial service providers business in the world
located in London, UK. The bank provides banking and financial services such as internet
mobile banking accounts, money transfer, loans and NRI services online. There are total 228,687
employees in the business as per the data showed in 2017. CEO is Mr. John M. Flint and it is the
seventh largest bank in the world with total assets of $2521.77 Billion. The net income of
business is $11.879 billion (2017) which is a great earning in private banking sector. HSBC is an
international service provider bank that the network is very large and around 7,500 offices are
established in over 80 different countries in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa (Boon and Biron, 2016). The bank alone operates around 1800 sites in
the UK. It is the only bank to hold more deposits than loans. This will clarify that there is less
risk proposition than any other bank by customers and investors effectively.
Rational of the study
The project is focused on importance of rewards and job satisfaction towards high
turnover ratio of employees. This will help to determine value of rewards as well as importance
of job satisfaction between employees in order to reduce the high turnover rate. The main reason

behind this project is to reduce employees turnover rate to improve and develop performance of
business effectively. This will help to increase organisation production and profitability by
managing different customers in the market. The need of employees job satisfaction and reward
system is there which will help to determine weather it will increase or decrease performance
level of workers at workplace (Elnaga and Imran, 2014). It can be said that for the completion of
any project or building, it is necessary for the management to construct a valuable and effective
structure in order to get maximum profits from workers which will help to complete project
effectively and efficiently.
Aims and objectives
“The aim is to analysis the impact of job satisfaction and rewards on high turnover ratio
of employees”.
Objectives are managed in a mixed up form that it will help to understand the importance
of rewards and job satisfaction to employees.
 To determine the concept of rewards and job within organisational context.
 To measure positive and negative impact of rewards and job satisfaction of employees on
their performance level.
 To evaluate significance of job satisfaction and rewards on high turnover ratio of
employees in framework of HSBC bank.
 To establish whether there is a relationship between rewards and job satisfaction
Research questions
 What is the concept of rewards and job satisfaction within organisational context.?
 What are the positive and negative impact of rewards and job satisfaction of employees
on their performance level.
 Why significance of job satisfaction and rewards on high turnover ratio of employees is
required.?
 Is there any relationship between rewards and job satisfaction.?
Significance of the study
The study is crucial that it will help to understand different factors which lead towards
high employees turnover ratio. This will help management of HSBC to determine elements
which are helpful to reduce the impact from which the turnover ratio can be reduced effectively.
In addition to this, two main factors rewards and job satisfaction are important for business that it

will help to encourage and motivate employees working in the firm. Thus, the study of
importance of rewards and job satisfaction will help to determine from which ways management
is able to reduce their employees turnover ratio effectively. In addition to this, stress, frustration
and lack of attention are some decreasing factors which unable workers to understand and
determine their roles and responsibilities which also affect their performance (Kang, Gatling and
Kim, 2015). Thus, there is a great importance of reward and job satisfaction between employees
in order to motivate and encourage them towards individual work which helps to enhance
production and profitability effectively.
Problem statement
HSBC is one of the largest banking and financial service provider business facing some
issues such as competition from other rivalry banking sectors. The global competition is
increasing day by day in today's world. This will have a significant impact on productivity,
market share as well as on profitability. In this case, the banking services should be re-innovated
in order to make new strategies and plans that helps to provide better services to customers
effectively. The rewards and job satisfaction factors are not performing well due to which the
employees turnover rate is getting higher. The problem arises because there is no effective
management of rewards has been seen in the firm which is decreasing job satisfaction of workers
effectively.
Section -2
Literature review
Concept of rewards and job satisfaction within organisational context.
According to McGinnis Johnson and Ng, 2016 rewards and job satisfaction are the two
factors which helps to drive performance and confidence level of employees working in the firm.
This will help to improve and develop their individual performance level which helps to
accomplish desired goals and objectives effectively. In addition to this, job satisfaction level of
employees is affected by compensation practices within business. There are some key factors
which are directly connected to the job satisfaction level of employees such as promotion
opportunities, compensation, work itself, supervision and relationship with co-workers. Another
study proposed that there is a certain positive connection between pay and job satisfaction. The
lower level of compensation is the cause of employee turnover. Lee, 2016 analysed that job
satisfaction increase with better payment and benefits to employees which helps to reduce the

turnover ratio of employees effectively. Leadership behaviour and promotion also has a
connection with relationship of job satisfaction. The promotional opportunities also affect the
satisfaction level of workers. In addition, training and development programs are necessary as
well as important for workers working in HSBC bank in order to improve and develop their
performance level which also increase skills and knowledge and lead towards organisational
success efficiently. Working conditions are also interlinked with job satisfaction. A positive
behaviour of an employee will help to deliver the best performance which lead him or her
towards rewards.
Positive and negative impact of rewards and job satisfaction of employees
According to Bashshur and Oc, 2015 there are both positive and negative impact of job
satisfaction and rewards system for businesses and employees. In a business, workers are the key
source from which all the objectives and goals are achieved. It is necessary to improve their
satisfaction level in order to remain sustain in the firm. This will help to make clear
understandings of roles and responsibilities which produce positive outcomes. An individual is
able to take advantage of rewards by performing well in his or her tasks. This is beneficial for
both business and employee. Raina and Roebuck, 2016 says that rewards drives performances
and it is crucial for the management to provide rewards to the best employees in order to
motivate others. Apart from this, there are some negative impact of rewards and job satisfaction
such as employees thinking changes towards co-workers and becomes competitive. It can create
fractions and conflicts between them easily and effectively. In addition to this, compensation
plays a vital role in motivating, attracting and retaining talented employees within firm for longer
period. Instead of getting motivated some employees feels demotivated because they are not able
to take advantage of rewards system which reduce their job satisfaction level. This will change
their thinking and attitude which is not good for the overall development of business. An
effective working environment is also crucial for the improvement in job satisfaction level.
Compensation is the key element influence employees behaviour at workplace and which has a
great impact on their performance as well. The rewards involve positive job satisfaction of
workers and increase overall business performance.
Significance of job satisfaction and rewards on high turnover ratio of employees
Pfeffer, 2014 described that the high performance culture also produces excellent and
effective results to motivate, attract and retain quality and skilled employees and adapt readily to

change. In addition to this, job satisfaction is inversely related to the intention of turnover and
low turnover shows that the business is increasing its productivity and profitability which will
help to achieve desired goals and objectives effectively. The significance of job satisfaction and
rewards is important that increasing trend of turnover will increase cost for the business in terms
of operational activities and will reduce production and profits effectively. According to Han,
Trinkoff and Gurses, 2015 there are many factors exists in a firm which affect the employee's
performance and their job satisfaction level which should be addressed by management in order
to manage and control turnover ratio. It is analysed that there are some key factors such as
inappropriate management, inequality, discrimination and harassment which affect the individual
behaviour and attitude of behaviours from which they get dissatisfied and leave business. In
addition to this, stress, frustration and lack of attention unable them to understand and determine
their roles and responsibilities which affect their performance. In this case, proper attention
towards workers is required to reduce the employee turnover ratio. Te job satisfaction survey
will also help to determine level of satisfaction within employees which helps to manage the
turnover ratio.
Relationship between rewards and job satisfaction
Chughtai, Byrne and Flood, 2015 described that there is a positive relation between
employees job satisfaction and rewards that the more workers in the firm rewarded, the more
likely they are to remain same and effective. Rewards can be described as a bonus or incentive
for business that helps to drive performances. Employee reward system are the programs
managed and controlled by businesses to provide reward performance that helps to motivate
workers on group or individual level. These are normally considered separate from their salaries
but it is a cost for business. Even organisation requires strategic reward system for workers that
helps to address four areas such as benefits, compensation, appreciation and recognition
effectively. There are so many other options available for businesses to provide rewards to their
employees at workplace without giving them cash prizes. It is analysed that workers appreciate
reward system and try to work harder which is a benefit for firm in order to enhance its
production and profitability. In addition to this, job satisfaction can be described as a feeling or
enjoyment that an individual derives from his or her job. In this, employees working in the
business enjoy their individual work and provide their best efforts to enhance productivity.
Rewards and job satisfaction are directly connected with each other that an individual work

better and efficiently if he loves his job and this will help to deliver quality and effective
performance which lead him towards rewards effectively. The Best performances are rewarded
by management as well as company to appreciate their work which also help to motivate others.
Section -3
Research methodology
Research philosophy: In order to explore research objectives, methodological approach is used
by researcher. In addition to this, qualitative research method is undertaken as there is a link
between rewards and job satisfaction to employees high turnover rate. This will help to
determine impact of reward and job satisfaction to workers high turnover rate, weather it is
useful or not. It can be said that research philosophy is a way from which the researchers are able
to gather and analyse information as a belief about a phenomenon (Gupta, Kumar and Singh,
2014). This will also help to encompass different philosophies related to the research approach
and topic which is to analyse the impact of job satisfaction and rewards on high turnover ratio of
employees within HSBC bank effectively. The topic will be analysed in details so that the
research findings and conclusion can be made accordingly.
Research approach: Inductive approach has been used by researchers in order to evaluate actual
impact of job satisfaction and rewards on high turnover ratio of employees. A group of workers
working in HSBC bank will help to observe a pattern for the improvement and development. The
approach will help to generate a meaningful data as a set of collection to determine the impact of
job satisfaction and reward on high turnover rate of employees effectively and efficiently. In
addition to this, research approach can be described as a plan or procedure in which steps of
broad consumption, data collection methods and analysis as well as interpretation is conducted.
Qualitative research approach can be also used to study the topic that it involves observations
and contribution to the emergence of new and latest theories with their generalisation.
Research design: In order to explore research question, exploratory research is used for the case
study of HSBC bank. It can be said that the design does not extent to provide final or conclusive
results for any issue. This will provide data from which the researcher is able to determine issues
which are not assessed or cleared yet. This will also help to provide a clear understanding of
issues to explore the topic. For an example, improvement ways, assessment, investigation and
effective strategies towards customer and employees behaviour (Sankar, 2015). This will help to

assess importance and existence of job satisfaction and rewards in order to manage and control
high turnover rate of employees within the business.
Research method: There are various types of methods used to evaluate the impact of rewards
and job satisfaction on employees high turnover within HSBC bank. Mainly there are two
methods such as qualitative and quantitative where the findings are not concluded from the
statistical data. In this method, data and information is collected through different articles,
journals and a group of people or workers working in the firm. This will help to assess
importance of job satisfaction and rewards between employees weather it is useful or not for the
firm in terms of managing profitability and production to remain effective in the market.
Data sources
Qualitative and quantitative data sources are used in this project in order to research on
the topic of analysing impact of rewards and job satisfaction on employees high turnover rate
effectively.
Qualitative: Qualitative research can be described as primary research in which the research is
conducted which provides insight to the issues and problems. This will also help to provide
solutions for issues effectively (Blasi, Freeman and Kruse, 2016). The research provides answers
for problem occurrence and existence. In this case study the problem is determined which is
employees high turnover and solution is also provided on how it can be resolved.
Quantitative: Qualitative research collects data and information systematically with the help of
different tools and techniques. This will help researcher to investigate the topic more effectively
and in a proper way. The data and information is collected and measured with numerical,
statistical and mathematical tools. The data is collected for the case study of HSBC bank in order
to analysed the impact of job satisfaction and rewards on high turnover ratio of employees.
Sample size: Sample size determination is the act of choosing the number of observations or
replicates to include in a statistical sample. It is important that it will help to study impact of job
satisfaction and rewards on employees turnover to make inferences. In this, 5 members will be
taken to undertake reviews from them effectively.
Reliability: The data and information collected for the case study of impact of job satisfaction
and rewards on employees turnover is reliable and trustworthy as it is collected from various
journals, articles and books published by authorised authors effectively. In addition to this, the
measurement and specific information is also collected through trustworthy websites.

Validity: The information and data collected for the case study of impact of job satisfaction and
rewards on employees turnover is valid as well as approved. The data is not face that it is
measured from trusty websites and also with date and citations efficiently.
Ethical issues: There are some ethical issues faced by research while conducting research on
how to assess impact of job satisfaction and rewards on employees turnover ration HSBC bank
effectively. One of the most important ethical issues was that religion, caste, origin and other
factors were included which is considered properly and with many difficulties.
Limitations: There are some limitations also involved such as some websites and article
published online was secure by password. In order to collect information from employees a
permission is required every time to their superiors. There are some irritating moments between
researchers and supervisors regarding employees participation in activities.
Section -4
Realistic timelines and gantt chart
There are some certain activities which should be developed in order to conduct the
research. A timescale must be settled so the research can be conducted in proper manner by
researcher effectively. This will help to delegate time according to the each activity. The
timescale for the case study and project of HSBC as follows:

Foreseen issues
It is expected that there are some issues that can be faced by HSBC. Innovation is one of
the main issue that implementing innovation strategies can make process more complex and
difficult for the employees. This will reduce effectiveness of business as well as workers. In
addition to this, a lot of capital is also required to manage such operational activities and
innovations at workplace (Kiruja and Mukuru, 2018). Moreover, there is a risk of implementing
innovation strategies in terms of complex working system which may produce decrease in
market share of bank. This will also affect the strategies and plans managed by business which
affect profitability and production. This will decrease growth and development.
CONCLUSION
It can be concluded from the above report that HSBC is one of the largest banking and
financial service providers business in the world located in London, UK. The aim is to analysis

impact of job satisfaction and rewards on high turnover ratio of employees within firm. In
addition to this, there are some key factors which are directly connected to the job satisfaction
level of employees such as promotion, opportunities and compensation. Along with that, there
are some negative impact of rewards and job satisfaction such as employees thinking changes
towards co-workers and becomes competitive. It is analysed that workers appreciate reward
system and try to work harder which is a benefit for firm in order to enhance its production and
profitability. The firm should make strategies and plans in order to manage performance of
workers to reduce workers high turnover rates.

REFERENCES
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