Impact of Employee Turnover on Rockpool Restaurant's Performance

This report analyzes the impact of high employee turnover on the performance and success of the Rockpool restaurant. The study begins with an introduction outlining the background, aims, objectives, research questions, rationale, and significance of the research. A comprehensive literature review explores factors contributing to employee turnover, such as organizational culture, career growth opportunities, work-life imbalance, job satisfaction, salary and benefits, and leadership effectiveness. The review also examines the effects of turnover on organizational effectiveness, including its impact on productivity, profitability, and the costs associated with recruitment and training. The research design employs an exploratory design with a qualitative approach, utilizing an inductive research approach and interpretivism philosophy. Data collection methods are discussed, along with sampling techniques, data analysis, and considerations for reliability, validity, and ethical concerns. The report concludes with a timeline, budget formulation, and a comprehensive list of references.

Managerial Research

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of the study..............................................................................................................1
Research aims and objectives......................................................................................................1
Research question........................................................................................................................1
Rationale of the study..................................................................................................................2
Significance of the study.............................................................................................................2
LITERATURE REVIEW................................................................................................................2
Theme 1: Factors that may cause of high employee turnover....................................................2
Theme 2: Impact of employee turnover on the effectiveness and performance of an
organization.................................................................................................................................4
RESEARCH DESIGN AND METHODS.......................................................................................4
Research design or type...............................................................................................................4
Research approach.......................................................................................................................5
Research philosophy....................................................................................................................5
Data collection.............................................................................................................................5
Sampling......................................................................................................................................6
Data analysis................................................................................................................................6
Reliability and validity................................................................................................................7
Ethical considerations..................................................................................................................7
Research limitations.....................................................................................................................8
Timeline.......................................................................................................................................8
Budget formulation....................................................................................................................10
REFERENCES..............................................................................................................................11

Topic: To analyze the impact of high employee turnover on organizational performance
and success: A study on Rockpool restaurant
INTRODUCTION
Background of the study
In the strategic business environment, firm can attain success only when it has highly
skilled and talented workforce. Further, in the service industry such as restaurant satisfaction
level of customers are highly influenced from the type and quality of services offered by
personnel. Thus, it is highly required for the business organizations to retain skilled and talented
personnel for long time frame. Australian Bureau of Statistics show that in restaurant, cafe and
catering industry turnover has increased by 9% which is not a good indicator of firm. Further,
due to high turnover sales revenue of restaurant also declines by 8.6% respectively. It shows that
employee turnover situation has high level of impact on the productivity and profitability aspect
of firm (Turnover in the restaurant, cafe and catering industry rises amid growing cost
pressures, 2017). Thus, for getting the desired level of outcome or success it is highly required
for the firm to undertake effectual measure for making control on the situation of high employee
turnover. This proposal is based in Rockpool which is one of the leading restaurant chains of
Australia (Rockpool dinning group, 2017). In this, proposal will shed light on the effect that
employee turnover has on the effectiveness, growth as well as performance of Rockpool’s.
Research aims and objectives
Aim of the present study is to analyze the reasons due to which employee turnover
increases and thereby affects the performance of Rockpool restaurant. By taking into account
such aim following objectives have been drafted which in turn helps in conducting study in the
right direction.
 To determine the effects of employee turnover on organizational effectiveness
 To identify the factors influencing employee turnover in the organization
 To find out the measures that would help retain the employees in the organization.
Research question
 Does employee turnover affect the performance of the organization?
1

Rationale of the study
The rationale behind the conducting such investigation is to assess the influence
employee turnover on firms performance. It is considered as major issue because it directly
affects cost, productivity and profitability of firm. In addition to this, employee turnover
becomes the major issue now because now large number of personnel in Australia is leaving
organization operated in restaurant sector including Rockpool. In this regard, such research study
will clearly present the causes due to which employee turnover increases. Besides this, it will
also depict the extent to which organizational effectiveness is affected from the aspect of
employee turnover. Thus, such study will helps in assessing the ways through which situation of
employee turnover can be controlled to the large extent.
Significance of the study
The present study and its outcome will offer benefit top several authorities such as such
as scholars, firms that are operated in retail sector etc. Moreover, now high employee turnover in
restaurant sector is the major issue that affects profit margin of firm and thereby growth of
economy. Due to this, scholars show their interest toward such topic to a great extent and lay
emphasis on conducting study on same. Thus, study on employee turnover and its related impact
on firm’s performance will help other scholars in understanding research topic or area. Further,
study will also helps Rockpool and other restaurants of Australia in taking suitable action for
reducing employee turnover.
LITERATURE REVIEW
Literature review may be defined as a process in which researcher makes evaluation of
books and journals for getting deeper understanding about topic. By doing this, scholar prepares
brief thesis which in turn helps in developing better understanding about research topic or area.
Theme 1: Factors that may cause of high employee turnover
According to the views of Huang and et.al., (2016) employee turnover implies for the
number of workers who are leaving organization. In the business unit, it is highly required for the
employer to assess the reasons due to which situation of employee turnover arises. Moreover,
without having information about such aspect it is not possible for the firm or manager to
undertake strategic action for improvement. Wong and et.al., (2016) stated that culture of
2

business unit is one of the main aspects due to which situation of employee turnover occurs.
Moreover, there is high and significant correlation-ship takes place between organizational
culture and employee happiness. Thus, employee becomes more productive when culture of
business unit is highly supportive. However, on the critical note, Li, Kim and Zhao (2017)
depicted that in the recent times individuals prefer to stay in the organization which offers
opportunity to them in relation to career growth and advancement. Thus, now employees prefer
to work with the organization for longer duration that conducts training and development
session. Moreover, training aspect offers opportunity to the personnel to build their potential and
enhance competency level to a great extent. Thus, employee turnover increases when firm does
not provide growth opportunities to personnel.
In accordance with the views of Miller Jr (2017) work-life imbalance is another main
cause due to which absenteeism and turnover of employees increases. Sometimes, due to having
excessive work load and timing aspect it is highly difficult for the personnel to manage their
personal and professional life. Thus, such aspect compels personnel to a great extent in relation
to leaving the organization. On the other side, Thomas, Brown and Thomas (2017) argued that
employees take decision in relation to leaving organization when job does not meet their
expectation level. Moreover, some individuals give more preference to job that is highly
challenging. The rationale behind this, employees can build distinct image in the mind of others
only when they do something different. Thus, it can be said that when personnel are not satisfied
with their current job then it may result into high level of employee turnover within the firm.
By doing investigation, Cho and et.al., (2017) found that low salary and lack of other
benefits are other main aspects which in turn may result into high employee turnover. Moreover,
now living standard of people increased to a great extent as compared to before times. In this,
employees prefer to work and join the organization which offers high salary as well as monetary
and non-monetary benefits. Further, Boswell, Gardner and Wang (2017) argued that ineffectual
leadership is one of the causes due to which employees leave business unit. Moreover, without
having sound leader personnel face difficulty in assessing the manner in which they need to
perform activities. Thus, effectual leadership is highly required to retain personnel for long term.
In the study, Herman, Huang and Lam (2013) presented that workplace conflict is considered as
main aspects that have greater impact on employee satisfaction and retention. Now, business
units lay high level of emphasis on teamwork with the motive to maximize employee
3

productivity and profitability. Hence, conflicts are usual when individuals work in a team
because different individuals have varied views. Thus, it can be stated that conflicting situation at
workplace closely influences the satisfaction level of personnel. Moreover, with the high level
of mental stress individuals are not in position to work in the best possible way. Hence, all such
are the main reasons due to which employee turnover increased significantly.
Theme 2: Impact of employee turnover on the effectiveness and performance of an organization
Katsikea, Theodosiou and Morgan (2015) said that employee turnover negatively affects
the organizational growth and performance. Moreover, when employee turnover is high within
the firm then it does not have enough human resources for delivering high quality services to the
customers. The reason behind this, existing personnel have better idea regarding the offering of
services to customers as compared to the new one. For instance: In the restaurant sector,
customers prefer to dine at the place that ensures quick delivery of services. Thus, if business
unit failed to maintain proper human resources then restaurant would not able to offer
satisfactorily services to the customers. This aspect shows that productivity and profitability
aspect of firm is highly based on the availability of skilled personnel.
In contrast to this, Huang and et.al., (2016) mentioned that in the situation of high
employee turnover manages have to devote their valuable time in the recruitment of new
personnel. Besides this, managers also have to conduct training session when new personnel are
recruited within the firm. Along with this, experienced employees are highly productive over
others. Thus, it can be said that employee turnover have significant influence on the growth and
performance of an organization. Besides this, Wong and et.al., (2016) employee turnover
situation imposes high level of cost in front of business organization. Moreover, in the case of
appointing new personnel business entity has to invest money in training and development
activity. By taking into account such aspect it can be depicted that situation of employee turnover
affects organizational effectiveness in terms of both financial and non-financial aspect.
RESEARCH DESIGN AND METHODS
Research design or type
In the present study, researcher will undertake exploratory research design and qualitative
research type for evaluating the research issue in an appropriate manner. Hence, by diagnosing
4

the problem and making assessment of qualitative aspects regarding employee turnover scholar
will present solution.
Research approach
In research, inductive and deductive are the main two approaches that can be undertaken
by scholar for evaluating issue. There is a significant difference takes place between the aspects
of inductive and deductive approach of research. Moreover, deductive approach of research starts
with hypothesis framing and ends with the testing of same through the means of existing
theoretical framework. In addition to this, such approach of research is highly associated with
quantitative investigation (Fabozzi, Huang and Zhou, 2010). Unlike deductive, inductive
approach of research offers suitable outcome or result when qualitative investigation is
conducted. Thus, selection of research approach is getting highly influenced from the type or
nature of study.
In this, researcher lays high level of emphasis on developing effectual framework or
theory by investigating issue. In order to evaluate the impact of employee turnover on the
performance of Rockpool restaurant scholar will employ inductive approach of research. On the
basis of such aspect, by making assessment of problem or data set researcher will generate new
theory.
Research philosophy
Similarly to the approaches, philosophies of research can be distinguished into two types
such as interpretivism and positivism. Both such philosophies of research are also highly
associated with the type of investigation such as qualitative and quantitative. In the case of
interpretivism philosophy, scholar interprets qualitative data set by referring the specific theories
related to subject area (Eriksson and Kovalainen, 2015). On the other side, under positivism
philosophy scholar presents solution by analyzing and evaluating the numeric facts as well as
realistic figures. Such philosophy of research provides suitable solution when quantitative
investigation is conducted. Hence, for making assessment of employee turnover and its impact
on performance aspect researcher will undertake interpretivism philosophy. On the basis of such
aspect, by evaluating qualitative data regarding employee turnover and its impact on Rockpool’s
performance researcher will present solution.
5

Data collection
Data is one of the essential elements of research study which in turn closely influences
the appropriateness and effectiveness of outcome. Thus, care must be taken by the researcher
while selecting the sources of data collection. Basically, data collection sources can be
distinguished into two types such as primary and secondary. Hence, primary sources include
survey, interview, observation and focus group (Bergold and Thomas, 2012). Thus, by
undertaking such sources scholar can collect highly appropriate and fresh data for the study. On
the other side, already published articles, books and journals fall in the category of secondary
data. Through the means of internet surfing and library secondary data can easily be gathered by
researcher.
In the current study, to identify the causes of employee turnover and its meanwhile
impact on the performance of Rockpool restaurant data will be gathered from both primary as
well a secondary sources. Hence, to gather primary data scholar will conduct survey on 10
employees of Rockpool restaurant through the means of questionnaire. Such questionnaire will
contain questions regarding issues about productivity, profitability, training and development etc.
Thus, by sending questionnaire on the mail-id of managers primary data will be collected by
researcher. Besides this, scholar will also make assessment of books, journals and scholarly
articles that are related to employee turnover and organizational effectiveness. This in turn
enables scholar to prepare brief thesis and thereby develops better understanding about issue.
Sampling
Sample selection is required when scholar takes decision in relation to conducting survey.
Moreover, there are several factors or aspects due to which it is not possible for the researcher to
target whole population (Schmidt and Hunter, 2014). In this, by taking into account suitable
sampling technique either probabilistic or non-probabilistic scholar can select suitable sample.
With the motive to select suitable sample by reducing the level of biasness to a great extent
scholar will undertake simple random sampling technique. Hence, by considering such technique
scholar will select 10 managers from Rockpool restaurant. Thus, by sending questionnaire to
such personnel researcher would become able to get appropriate information.
Data analysis
Data analysis technique is highly significant because it has direct impact on the outcome
of results of issue. Hence, technique and the manner in which data is evaluated closely influence
6

the effectiveness of investigation (Bryman and Bell, 2015). Moreover, data analysis is the
process that is highly concerned with determining suitable solution of issue by analyzing the
gathered data set. Techniques of data analysis highly vary according to the type of investigation
conducted (Bernard and Bernard, 2012). Thematic analysis is usually conducted by the
researcher in the case of qualitative investigation. On the other side, SPSS tools and techniques
are used by the researcher to get suitable solution from quantitative data set.
Thus, for analyzing the causes related to increasing situation of employee turnover and its
associated impact on Rockpool’s effectiveness thematic technique will be used. Hence, by
preparing several themes on the basis of questionnaire and responses given by respondents data
will be analyzed by the researcher. Besides this, scholar will support all the findings of data set
through brief thesis prepared in literature review section. In addition to this, scholar will also
develop graphs and charts for presenting data set in an effectual way. This in turn develops better
understanding about results or findings.
Reliability and validity
For the maintenance of reliability and validity aspect in research scholar will comply with
the below mentioned aspects:
 Use of updated details: To ensure high level of validity scholar will evaluate the books
and scholarly articles published after the period of 2009. The rationale behind this,
recently published data present clear and reliable view of study. Thus, by taking into
account such aspect scholar has decided in relation to considering update data sources
while doing investigation.
 Undertaking relevant sources: Suitable brief thesis can be prepared only when highly
relevant data sources are undertaken by the researcher. Thus, researcher will consider the
articles that are related to employee turnover and organizational effectiveness. Hence, by
using such related sources will conduct literature review and thereby would become able
to evaluate primary data findings more effectually.
 Use of protected sources in data collection: In order to present the reliable view of study
scholar will access to highly protected sites such as copyright. Moreover, sources that are
protected through the means of copyright serve highly reliable and authentic information
about topic.
7

Ethical considerations
Researcher can enhance the effectiveness and quality of work by following the ethical
aspects or considerations are as follows:
 Taking permission before survey: Ethics entail that before initiating survey researcher
should inform the concerned organization and respondents. Thus, researcher will
approach to Rockpool and managers who are being selected as respondents for taking
permission. On the basis of such aspect, after making assessment of respondent’s
willingness in relation to participating in survey scholar will send questionnaire to the
selected respondents. This in turn shows that researcher has ethically conducted study
with the aim to present the suitable view of study.
 Inclusion of reference list and doing citation: Scholar will also include reference list in
the project and thereby presents sources from where data is taken. In addition to this,
scholar will do citation in report for giving credit to author.
Research limitations
High level of care has been taken by the researcher while selecting research tools and
techniques. However, there are some limitations that closely influence the outcomes of study
such as:
 Time: In research, time is one of the main factors that researcher need to keep in mind
while doing research or investigation. Moreover, if suitable results are not presented with
the specified time period then research and its findings do not have high level of
importance. Thus, to overcome such weakness researcher will lay high level of emphasis
on preparing timeline. Hence, by performing activities according to predetermined
timeline scholar would become able to complete study on time.
 Monetary resources: Enough availability of monetary resources is highly required to
conduct investigation more effectively and efficiently. Due to the lack of having enough
resources researcher will not apply SPSS tools and techniques. Hence, to reduce such
limitation researcher will undertake thematic perception test technique. On the basis of
such aspect, by preparing themes data will be analyzed by the researcher.
 Respondents selected for survey: In the research study, only 10 managers will be
considered for survey purpose. Thus, such number of respondents is highly lower which
in turn places impact on the outcome of evaluation. However, buy taking into account
8

simple random sampling such respondents will be selected. This in turn reduces the
significance of overall evaluation to a great extent.
Timeline
Activities / Weeks 1 2 3 4 5 6 7 8 9 10 11 12
Research topic selection
Conducting literature review for getting deeper
insight about research topic
Development of research aims and objectives
according to topic
Framing proposal that outlines background,
rationale and problem aspect
Assessment and selection of research tools and
techniques
Framing questionnaire on employee turnover
and its effect on Rockpool’s performance
Collection of primary data by sending
questionnaire to respondents
Collation of data and preparation of graphs
Analysis of data by preparing several themes
and considering secondary findings
Drawing conclusion
Giving recommendation for improvement
Arranging report in a highly structured manner
with proper formatting
Taking feedback and making proper changes
9

Final submission of report
Budget formulation
Scholar will spend AUD $ 10000 for conducting research on the aspect of employee
turnover and its influence on firm’s performance.
10