Business Report: Intrinsic Motivation's Impact on Employee Turnover

This business report examines the critical issue of employee turnover within UK companies, focusing on the significant role of intrinsic motivation. The report begins by defining the problem, setting aims and objectives, and providing a rationale for the study. A comprehensive literature review explores intrinsic motivation, employee turnover, the reasons behind it (such as boredom, lack of recognition, and inappropriate salary), and the relationship between intrinsic motivation and turnover, considering factors like job autonomy and job satisfaction. The report then details the research methods, including the use of a triangulation method with primary and secondary data. The findings, discussions, and analysis are presented, followed by ethical considerations, conclusions, recommendations, and a reflection on the research process. The report suggests strategies for handling employee turnover, including motivational theories, training and development, reward management, and fostering positive employee relationships. References are also included. The report aims to provide a thorough understanding of the factors influencing employee turnover and to offer practical solutions for improving employee retention.

Business Report
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Table of Contents
INTRODUCTION ...............................................................................................................................4
1.1 Statement of the problem...........................................................................................................4
1.2 Aim and Objectives....................................................................................................................4
1.3 Rationale....................................................................................................................................4
Literature Review.................................................................................................................................5
2.1 Intrinsic motivation ...................................................................................................................5
2.2 Employee Turnover....................................................................................................................5
2.3 Reasons behind employee turnover...........................................................................................6
2.4 Relationship between intrinsic motivation and employee turnover...........................................6
2.5 Strategies for handling employee turnover................................................................................7
Research Methods ...............................................................................................................................8
3.1 Research Method: .....................................................................................................................8
3.2 Primary Data Collection: ..........................................................................................................8
3.3 Secondary data collection: ........................................................................................................9
Findings..............................................................................................................................................10
Discussions and Analysis...................................................................................................................14
Ethical Considerations........................................................................................................................15
Conclusions........................................................................................................................................15
Recommendations..............................................................................................................................15
Reflection...........................................................................................................................................15
References..........................................................................................................................................16
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INTRODUCTION
1.1 Statement of the problem
In the present era of strong competition each and every company wants to perform well for
achieving leading position and taking competitive advantages. It is not possible without the
complete contribution of the employees. In UK, companies are facing problem in enhancing the
employee retention. For the development of career and living a quality life workers are switching
from one organisation to another. It becomes difficult for the companies to maintain their staff
members along with their performance (Lepper and Greene, 2015).
1.2 Aim and Objectives
Aim: To determine whether intrinsic motivation plays a significant role in employee turnover
intention.
Objectives:
 To determine the concept of intrinsic motivation
 To evaluate the reason that leads to increased employee turnover
 To understand the relationship between intrinsic motivation and employee turnover
 To suggest ways by which intrinsic motivation can be used in handling employee turnover
1.3 Rationale What is the problem?: Nowadays, it becomes uncommon for workers to keep working for
an organisation for five or more years. They like to change the firms due to many reasons
such as boredom, career growth, increasing living standard, inappropriate salary and other
benefits, lack of recognition, improper management, etc. Companies are suffering from the
issue of increasing employee turnover (Logan, Medford and Hughes, 2011). Why it is a problem?: Organisations suffer from various problems due to employee
turnover. It is financially costly for the companies as they need to hire new workers for the
positions. Enterprises need to spend more time, money and resources for the recruitment of
new staff members. Along with this, they face problem of providing training to the new
employees (Rogstadius and et.al., 2011). Why it is a problem now?: Increasing employee turnover is decreasing the morale of other
workers which is not good for the growth and success of the companies. It is decreasing the
performance and working efficiency of the workers which is affecting position and brand
reputation of the firms in the market (Cerasoli and et.al., 2014).
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 Research will shed-light on?: The research will focus on the role of intrinsic motivation for
handling the problem of employee turnover. Along with this, various strategies will be
suggested by the researcher for handling employee turnover properly and effectively.
LITERATURE REVIEW
2.1 Intrinsic motivation
According to the Badami and et.al., 2011, “Motivation refers to a process used by the
managers for increasing the potential and confidence level of the employees. It leads to enhance the
performance and working efficiency of the workers which rise the productivity of the organisation”
(Badami and et.al., 2011). Similary Munk, 2011, has asserted that “There are two types of
motivation: intrinsic and extrinsic with the help of which companies can enhance the motivation
level of their staff members. In this intrinsic refers to the self development for getting successful
and quality life whereas extrinsic motivation is related to the work and related activities for getting
reward” (Munk, R. S., 2011)
With reference to the intrinsic motivation Hogh, Hoel and Carneiro, 2011, have said that
“Intrinsic motivation exists within the individual instead of outside pressures or desires which
makes him to perform well by developing himself. It helps in increasing the career opportunities of
the employees by developing their thinking and working process” (Hogh, Hoel and Carneiro,
2011).On the other hand Mowday, Porter and Steers, 2013, have argued that “The efforts of the
intrinsic motivation takes time in showing the results of an individual. In addition, different types of
motivational approaches can be required by the company for motivating different workers. For
selecting appropriate strategy organisation should have knowledge abut the interest area of
employee” (Mowday, Porter and Steers, 2013).
2.2 Employee Turnover
According to the De Gieter, Hofmans and Pepermans, 2011, “The percentage of the
employees leaving the company in a certain period of time due to any reason is called as employee
turnover. The posts of these workers are replaced by the new candidates” (De Gieter, Hofmans and
Pepermans, 2011). In favour to this Edmans, 2012, has concluded that “Separation between the
organisation and staff member includes termination, retirement, death, inter-agency transfers and
resignations” (Edmans, 2012). On the other hand Branham, 2012 , has said that “There are four
types of turnover which includes voluntary, involuntary, functional and dysfunctional turnover.
Voluntary is when an employee himself selects to leave the company whereas involuntary is when
employer decides to discharge a worker. In addition, functional turnover refers to the leaving of
company by low performing employee whereas dysfunctional refers to resigning of high performer
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worker from the organisation” (Branham, 2012).
2.3 Reasons behind employee turnover
There are many reasons behind the employee turnover. Different researchers have different
perspective towards these reasons which are explained below: Boredom: As per the view of Zikmund and et.al., 2012, “In present time, workers want to
develop their skills, abilities and experiences for getting best out of them. Those employees
who feel restricted or get bored by doing same job and work for a long time starts searching
new work for the fulfilment of their development needs” (Zikmund and et.al., 2012). On the
other hand Herzberg, Mausner and Snyderman, 2011, have argued that “The main reason
behind the boredom is inappropriate recruitment and selection process which results to poor
job fit” (Herzberg, Mausner and Snyderman, 2011). Lack of Recognition: Gorey, 2015, have stated that “25% of the workers leave their
organisations due to lack of recognition. They not only need reward or incentives for
effective performance, they also like to recognised by the company for their work
efficiency” (Gorey, 2015).
 Inappropriate salary: Swider, Boswell and Zimmerman, 2011, have identified that “15% of
the workers like to leave their job due to inadequate salary. Employees want to be paid
according to the market rate and whenever they feel that they are getting low salary as
compare to the other industries than they start searching new jobs” (Swider, Boswell and
Zimmerman, 2011).
2.4 Relationship between intrinsic motivation and employee turnover Job autonomy, Motivation and turnover: According to the Goodwin, Groth and Frenkel,
2011, “Companies need to promote the job autonomy of the workers for developing their
positive and independent working behaviour. With the help of this, organisations can
increase the self esteem, confidence, motivation and satisfaction level of their staff
members” (Goodwin, Groth and Frenkel, 2011). In context to it Laschinger, 2012, has
asserted that “Job autonomy is connected to the essential working results which includes
effective performance, high job satisfaction level, intrinsic motivation, organisational
commitment and proper employee retention” (Laschinger, 2012). Pay, motivation and turnover: According to the Moen, Kelly and Hill, 2011, “The primary
attraction of the employee is salary which makes him to stay or leave the organisation. No
other method of motivation can compare with the influential value of the money” (Moen,
Kelly and Hill, 2011). On the other hand Wells and Welty Peachey, 2011, have argued that
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“Pay is one of the poor employee motivator which minimises innovation and creativity and
it is difficult to enhance intrinsic motivation with the help of money” (Wells and Welty
Peachey, 2011).
 Job satisfaction, motivation and turnover: As per the view of Shuck, Reio Jr and Rocco,
2011, “Job satisfaction level makes worker to feel both extrinsic and intrinsic aspects of
his/her job. Low job satisfaction works as strong reason behind the job leaving of employees
” (Shuck, Reio Jr and Rocco, 2011). Similarly, Hancock and et.al., 2013, have said that
“With the help of Herzberg's two factor theory companies can rise the motivation level and
job satisfaction of the workers which can handle their problem of employee turnover”
(Hancock and et.al., 2013).
2.5 Strategies for handling employee turnover
Companies need to follow the following strategies for handling their employee turnover: Motivational Theories: According to the Lepper and Greene, 2015, “Organisations can
apply motivational theories into their working environment for increasing the motivational
level of their employees. There are different types of theories which includes Maslow's need
for hierarchy, Herzberg's two factor. Vroom theory, etc” (Lepper and Greene, 2015).
Similarly, Logan, Medford and Hughes, 2011, have concluded that “With the help of
appropriate theory, companies can enhance the self esteem and self confidence of their
workers which can lead to improve their performance and decreases the chances of leaving
their job” (Logan, Medford and Hughes, 2011). Training and Development: As per the view of Rogstadius and et.al., 2011, “Training and
development programs provide high level of job satisfaction to the workers. There are two
types of trainings: On-the-job and off-the-job with the help of which organisations can
provide various growth opportunities to their employees” (Rogstadius and et.al., 2011). On
the other hand Cerasoli and et.al., 2014, have concluded that “Training activities in regular
period of time make staff members feel that company is thinking about them and their
career. This makes them to stay and give their best for achieving the objectives” (Cerasoli
and et.al., 2014). Reward Management: Badami and et.al., 2011, have declared that “With the help of
different reward management techniques enterprises can handle their employee turnover.
Some workers leave the firm due to lack of recognition, with the help of intrinsic reward
companies can solve this issue” (Badami and et.al., 2011). Along with this Gillet, Vallerand
and Lafrenière, 2012, have identified that “Seniors need to provide time to time feedbacks to
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their subordinates for increasing their confidence level. This make workers feel that
managers are noticing their work and performance which leads them to develop more”
(Gillet, Vallerand and Lafrenière, 2012).
 Employee Relationships: Jõesaar, Hein and Hagger, 2011, have found that “Effective
relations with the workers helps employees in staying in the organisation and giving the best
efforts for attending its objectives” (Jõesaar, Hein and Hagger, 2011). With respect to this
Galletta, Portoghese and Battistelli, 2011, have declared that “Companies need to give focus
on the employee engagement. Effective relations among the workers lead to create open,
friendly and cooperative working environment which helps in increasing the employee
retention” (Galletta, Portoghese and Battistelli, 2011).
RESEARCH METHODS
Research methodology refers to the systematic analysis of the different methods used by the
researcher for accomplishing the objectives of the study. It is a process of gathering relevant
information and data as per the requirement of study (Branham, 2012).
3.1 Research Method:
For the present research, triangulation method is used by the researcher. In this, author is
facilitating the validation of obtained data by cross verification with the help of two or more
sources. The two sources used by the researcher for this study are primary and secondary data
collection methods The reason behind using this method is to prevent investigation from
measurement, sampling and procedural biasses. In addition, this approach reduced the chances of
inadequacies which generally occurs during single source research. By using this method,
investigator is more confident of the obtained results (Jõesaar, Hein and Hagger, 2011).
3.2 Primary Data Collection:
It refers to the gathering of original or real data by the investigator for achieving the
objectives of the study. Researcher can use different methods for collecting real data on the basis of
study. These instruments include questionnaire, telephonic or face to face interview, surveys and
observations. For the present study, author has taken questionnaire as primary data collection
method. It consists of a list of questions which is formed by the investigator for the purpose of
collecting relevant information from the participants. Generally respondents become familiar with
the format of the questionnaire which makes easy in gathering appropriate information. Along with
this, the data obtained by the author is in standardised manner (Galletta, Portoghese and Battistelli,
2011).
The questionnaire is filled by the employees of the different companies and sample size
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selected by the investigator for filling the forms is 20. Along with this, the sampling method used by
the author is random number sampling (Tabernero and Hernández, 2011).
3.3 Secondary data collection:
It refers to the collection of secondary information with the help of past researchers, articles,
websites, journals, etc. For the current study, researcher is using relevant websites, articles, books,
journals and many more sources for gathering the information regarding the role of intrinsic
motivation in handling employee turnover. It is one of the cheaper and effective way of collecting
relevant information in fast manner (Hom and et.al., 2012).
At the end, the data obtained from both the sources is analysed by the investigator with the help of
triangulation method for getting appropriate results.
Questionnaire
Name:
Gender:
a) Male b) Female
Age
a) 18-24 b) 25-40 c) 41-50 d)Over 50
Q1. Do you think there is sufficient autonomy within the workplace?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q2. Do you able to take appropriate decisions for your work?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q3. Do you receive feedbacks or recognition on regular basis?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q4. Do you feel part of team within your workplace?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q5. Do you feel stimulated by the activities taken place at your work?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q6. Does all the employees treat each other with respect?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
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Disagree
Q7. Are you satisfied with the job security provided by your company?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q8. Does your organisation provide you workplace flexibility?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q9. Do you have safe working environment within your organisation?
a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly
Disagree
Q10. Which of the following factors would make you consider leaving your current job?
Poor relationship with workers b) Higher wages elsewhere c) Self determination to be
successful d) Lack of job recognition
FINDINGS
Gender:
From the analysis, it is clear that 56% of female employees fill the questionnaire form
whereas 44% of male workers fill the form.
Age:
From the workers who fill the form, 45% are between the age 18 to 24, 44% are between the
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age group 25-40 and 11% are of age 40-50. No employee over the age 50 fill the questionnaire.
Q1. Do you think there is sufficient autonomy within the workplace?
From the analysis of the obtained results, it is found that 50% of the employees think that
there is sufficient autonomy within their workplace. Whereas, 33% of the workers are completely
neutral and only 11% thinks that there is lack of sufficient autonomy in the workplace.
Q2. Do you able to take appropriate decisions for your work?
From the collected information, 45% of workers are strongly agree towards the decision
making process. Whereas 33% are disagree, means they are not able to take appropriate decisions
for their work. On the other hand 11% are neutral and 11% are agree with the asked question.
Q3. Do you receive feedbacks or recognition on regular basis?
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From the data analysis, it is found that 67% workers are disagree and 11% are strongly
disagree with the question whereas 22% are agree, they get feedbacks on regular basis.
Q4. Do you feel part of team within your workplace?
From the analysis, it is clear that 56% of workers are strongly agree with the asked question
whereas the % of strongly disagreee and agree are similar i.e. 11% and 22% employees are disagree
with the question.
Q5. Do you feel stimulated by the activities taken place at your work?
From the above graph, it is found that 45% of employees are disagree with the question and
44% feel neutral towards it. Whereas, only 11% are agree with the asked question.
Q6. Does all the employees treat each other with respect?
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From the analysis, it is found that 56% of the employees are strongly agree and 33% are
agree with the question. On the other hand only 11% are disagree with the question.
Q7. Are you satisfied with the job security provided by your company?
It is clear from the graph that, 45% of employees are agree with the qestion and 33% are
disagree. Whereas the percentage of Strongly disagree and neutral is same i.e. 11%.
Q8. Does your organisation provide you workplace flexibility?
It is obtained from the data analysis that, 45% of the employees are strongly agree with the
workplace flexibility and 33% are neutral towards it. On the other hand, 11% of the workers are
strongly disagree and disagree with the asked question.
Q9. Do you have safe working environment within your organisation?
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From the analysis, it is clear that 56% employees think that environment of their company is
safe and secure. 33% are strongly agree with this whereas 11% are not agree, I.i they think that their
working environment is not safe.
Q10. Which of the following factors would make you consider leaving your current job?
From the analysis, it is found that 67% of the workers will like to leave their job for higher
wages. On the other hand the percentage of self determination to be successful, lack of recognition
and poor relationship with the co-workers is similar i.e. 11%.
DISCUSSIONS AND ANALYSIS
From the above analysis, it is found that employees of the company are satisfied with the
autonomy of the workplace. Along with this, workers are satisfied with the team work and
employee relations. In addition, workers are highly satisfied with the job security and environment
safety of the enterprise. On the other hand, the decision making skills of the employee are not
appropriate and due to this they are unable to take appropriate decisions for their work. Along with
this, improper feedbacks are provided by the seniors of the company which is dissatisfying the
workers. In addition, organisation needs to improve its activities for developing and stimulating the
staff members. In the end, the most relevant factor chosen by the workers for leaving their job is
money. So company needs to give focus on this for making appropriate changes
ETHICAL CONSIDERATIONS
While conducting the research, some ethical limitations are taken into the consideration by
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the researcher. Information of the participants is kept private and anonymous by the author. Along
with this, proper citations and references are used by the investigator for avoiding the issue of
plagiarism. In addition, author has taken the permission of accessing the restricted sites for
collecting important and relevant information (Hancock and et.al., 2013).
CONCLUSIONS
From the above research, it is concluded that intrinsic motivation plays important role in
handling the employee turnover. The major factor playing role in leaving the jobs is salary which
companies need to pay as per the industry scenario. Along with this, other factors are poor
relationship with the peers, self determination of being successful and lack of recognition.
Organisation need to improve its training and development program, intrinsic reward system such
as recognition, feedbacks, etc for increasing employee retention.
RECOMMENDATIONS
From the above analysis, appropriate recommendations' organisation needs to implement for
handling employee retention are as follows:
 Company should implement appropriate motivational theory into its working environment
for increasing the motivation of its employees (Peterson and et.al., 2011).
 Organisation need to conduct training and development programmes for the development
and career growth of its workers for increasing job satisfaction (Wellings, 2013).
 Intrinsic reward system should be implemented by the firm for enhancing self esteem, self
confidence and self motivation of the individuals.
 Salary needs to be appropriate as per the qualification, skills, work and performance of the
staff members. So that, they cannot leave the job due to salary reason (Peterson and et.al.,
2011).
REFLECTION
While conducting the research on the present study, I learnt many things. It helps me in
enhancing my knowledge in the area of motivation, employee turnover, reasons behind it,
appropriate strategies for solving it, etc. Along with it, I develop research, exploring and surfing
skills while achieving the objectives of this research. Use of internet and computer leads to enhance
my technical skills. It helps me in developing my time management and work management skills. In
addition to all, I can use the obtained knowledge and skills in my future for further studies.
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