Employee Motivation Study: Job Insecurity in the Retail Sector, Savola

This research report investigates the effects of job insecurity and layoffs on employee motivation within the retail sector, with a specific focus on the Savola Group. The study explores the concepts of job insecurity and layoffs, identifying their causes and the resulting demotivation among employees. The research includes a literature review, research methodology, and analysis of primary data gathered through interviews with the Human Resource Manager and employees of Savola Group. The findings highlight the impact of these factors on employee morale and performance, as well as methods for enhancing employee motivation, such as reward and recognition programs and training and development initiatives. The report concludes with recommendations for mitigating the negative effects of job insecurity and layoffs to improve organizational outcomes. The report also includes ethical considerations, research limitations, and the validity and reliability of the study.

To understand the impact on the level of
employee motivation due to the increasing trend
of job insecurity and layoffs in the retail sector.
Study
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Contents
ABSTRACT.....................................................................................................................................3
TITLE – “To understand the impact on the level of employee motivation due to the increasing
trend of job insecurity and lay-offs in the retail sector.”.................................................................3
INTRODUCTION...........................................................................................................................3
Background of study...............................................................................................................3
Aim of research......................................................................................................................5
Objectives of research............................................................................................................5
Research questions.................................................................................................................5
Rationale of research..............................................................................................................5
LITERATURE REVIEW................................................................................................................6
Methods by which Savola group will raise its employee's motivation................................10
RESEARCH METHODOLOGY...................................................................................................12
Research philosophy.............................................................................................................13
Research approach................................................................................................................13
Research design....................................................................................................................13
Research strategy..................................................................................................................14
Data collection method.........................................................................................................14
Research type........................................................................................................................15
Data analysis.........................................................................................................................15
Sampling...............................................................................................................................15
Ethical considerations...........................................................................................................16
Research limitation...............................................................................................................16
Validity and reliability of study............................................................................................16
ANALYIS AND FINDINGS.........................................................................................................16
Data analysis.........................................................................................................................16
Discussion and Findings.......................................................................................................18
Responses from interview with Human Resource Manager of Savola Group.............18
Responses from interview with employees of Savola Group..........................................21
Discussion of secondary data...............................................................................................23
CONCLUSION AND RECOMMENDATIONS..........................................................................26
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Conclusion............................................................................................................................26
Recommendations................................................................................................................26
REFERENCES..............................................................................................................................29
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ABSTRACT
This is a research report which is based on the title “To understand the impact on the level of
employee motivation due to the increasing trend of job insecurity and lay-offs in the retail
sector.” Job insecurity and lay off are the major concerns in today’s competitive market
environment. Employers are more focused towards bringing new talent in the organisation which
may results into layoff of existing employees form the employment. The main objective of this
study is to understand the concept of job insecurity and layoffs and its main causes along with
the reason of demotivation among employees. However, there are different methods by which an
organisation can motivate its employees. By providing employees with reward and recognition,
proper training and development programmes etc. employee motivation can be enhancing.
Moreover, different research methods assist in performing the study systematically and
accomplish the main aim of study.
TITLE – “To understand the impact on the level of employee motivation due to
the increasing trend of job insecurity and lay-offs in the retail sector.”
INTRODUCTION
Background of study
Job insecurity is defined as the threat to stability and continuity of employment as it is
currently experienced. It is a growing phenomenon, in an employment context characterized
through high unemployment and temporary work rates. On the other hand, lay off is referred as a
temporary or permanent discharge of employees from the employment. An organisation may
suspend one employee or group of employees at similar time (Ikeler, 2019). The main reasons of
lay off includes cost reduction, relocation, staffing redundancies and merger or buyout. Job
insecurity and lay off are the common issue facing by organisations. Job insecurity has been
emphasis by the scholars as well as popular attention in light of political, economic and social
changes over last few decades which have left many insecure regarding their job's future. Lay off
is the action initiated through employer which make the former employee no longer able to
perform the services related to work or get wages. In some cases, lay off is a temporary
suspension of job and sometimes, it is permanent suspension of employment (Nica, Manole, and
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Briscariu, 2016). These are usually the outcome of economic downturn where the employer may
choose to decline the size of its staff members in order to reduce cost until the situation gets
improved. It is very important for an organisation to control job insecurity and layoffs and
emphasize on motivating employees and keep them satisfied in order to improve the
performance of organisation and accomplish business objectives.
Savola Group is a public organisation which was established in year 1979 and its
headquarters is located in Jeddah, Saudi Arabia. The major holdings of the group supply Saudi
Arabia, middle North and East Africa and Turkey with fresh dairy products, edible oils,
restaurants serving fast foods and sugar. It also owns grocery retailing chain in middle East. As
of year 2016, the group has around 32000 employees and its revenue as per year 2018 was
21.815 billion (Otterbach, and Sousa-Poza, 2016). By revenue, Savola is the biggest food
organisation of the kingdom. Among the top hundred organisations in Saudi Arabian market,
Savola group is ranked number 9 and among industrial sector, it is ranked number 2. Initially, the
business of the company was importing as well as refining the edible oil. As the organisation
perform its operations at large scale, it is very important for it to keep its employees motivated
and satisfied and ensure that they are not facing issues associated with job insecurity and layoffs.
This research report intent to evaluate the impact on the level of employee's motivation due to
the increasing trend of job insecurity and lay-offs in the retail sector (Barrech, Seubert, Glaser,
and Gündel, 2018).
This report covers an introduction part in which a brief background of study d is provided
along with some information about the company, the aim, objectives and questions of research as
well as the rationale of performing this study. Apart from this, it includes literature review part in
which different literatures are reviewed and viewpoint of different authors are compared in
context of the study topic or the different themes included in this part. In addition to this,
research methodology part is included which involves various methods of research that help the
investigator in performing the investigation systematically and accomplish the aim of study.
After that, findings of study are provided based on the literature review and the primary data
collected. Moreover, discussion is provided based on the overall primary and secondary findings
so that valid outcomes of study can be drawn. At last, conclusion is provided in which summary
based on the overall research project is included in the study.
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Aim of research
The aim in relation to this study is “To evaluate the impact on the level of employee's
motivation due to the increasing trend of job insecurity and lay-offs in the retail sector: A case
study on Savola group.”
Objectives of research
The key objectives associated with this particular study are provided below:
1. To understand the concept of job insecurity and layoffs and its main causes.
2. To evaluate the reasons of demotivation among employees in retailing sector.
3. To discuss the methods by which Savola group will raise its employee's motivation.
Research questions
The key questions in relation to this specific study are as follows:
 What is the concept of job insecurity and layoffs and why it causes within the
organisation?
 What are the reasons of demotivation among employees?
 What are the methods to motivate employees?
Rationale of research
This is a research study which is based on the aim “to evaluate the impact on the level of
employee's motivation due to the increasing trend of job insecurity and lay-offs in the retail
sector”. The main reason of performing this study by the researcher is to acquire knowledge
about the research topic as well as its related areas also. Apart from this, from the help of the
study, researcher gets able to understand the job insecurity and layoffs concept along with their
main causes. The researcher can also able to evaluate the reasons of demotivation among
workforce in retailing sector by the assistance of this study. In addition to this, the investigator
will also be able to get to know about different methods through which the organisation can
increased motivation of its employees and keep them satisfied within the company (Nätti,
Happonen, Kinnunen, and Mauno, 2017). This study will be beneficial from various
perspectives. It enables organisation to assess the impact of employee motivation level because
of increasing trend of job insecurity and lay off and also help it by determining various ways to
increase the motivation of employees. On the other hand, this study is advantageous for
researchers as well as other scholars to carry out further study on this topic.
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LITERATURE REVIEW
Literature review refers to scholarly articles that are available to provide information and
data on specific subject area or particular selected topic. While conducting this research it is
essential to conduct literature review so that researcher get reliable and authentic knowledge on
research aim that helps in fulfilling research objectives wisely and appropriately. In this,
different viewpoints of authors are reviewed and compared based on the different themes
associated with study (Isaksson, Hellgren, and Pettersson, 2017). In relation to this particular
study, it aims to evaluate the impact on the level of employee's motivation due to the increasing
trend of job insecurity and lay-offs in the retail sector. In order to gather information associated
with the topic, literature review is performed. The different themes associated with this study and
their review is provided below:
To understand the concept of job insecurity and layoffs and its main causes
As per the viewpoint of “De Cuyper and et. al., (2020)” Job insecurity refers to a
subjectively perceived and undesired possibilities to lose the current job in future time period. It
represents as a social phenomenon that reflected as a subjective perception related to
employment and unemployment. It is regarded as overall concern which is based on constant
existence of job within future. There are several causes of job insecurity within an organisation
among employees that are mainly stress, depression, and paranoia among employees. Job
insecurity is also causes the worker safety. In present scenario workers are working in the
business firm to work hard and focus on getting full job security by getting participation in
taking decisions etc. But due to high competition in market place companies is focus on hiring
new talent that represents the unique and innovative ideas to solve the issues that was occurred
within the organisation. This will create job insecurity in the mind of employees and this causes
stress, dissatisfaction at workplace etc. it will majorly affects the profitability and revenues of
business enterprise. Another major that is caused by job insecurity is poor employee health.
Workers are facing poor health if they cannot get the proper recognition for their good work.
Due to not getting an effective recognition in terms if transfer and promotion employees feel
insecure as it creates irritation in worker behaviour due to this overall organisation profitability
and revenues are to be affected (Rajesh, 2016). Job insecurity is also occurred when company
selects employees by preferring males on priority basis. This will creates insecurity among
employees. It creates stress, depression among workers.
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According to the “Anna Windermere, (2021)” viewpoint, A layoff is a type of
termination that is faced by employees within the particular job position within an organisation.
This action is mainly initiated by employer where particular employees cannot collect salary or
perform their work related services in business. It is a type of temporary suspension of
employment and sometimes it is permanent. The term Layoff is done due to economic downturns
when business organisation focus on reducing the size of workforce until situation improves.
Layoffs is highly differentiate from outright firing that result from inefficient on job performance
or the basic reason that is unacceptable workplace behaviour. In this situation an employee have
eligible to rehire within same organisation and got positive work experience during the time of
performing job role (Garruccio, 2019). There are several causes of lay off within an organisation
that are presented below:
1. Cost reduction- It is one of the major cause of lay-offs within an organisation. Due to
cost reduction company decides to cut back its cost in same manner. This situation occurs
within an organisation when they cannot make enough profits to overcome with the
expenses. It is so because it requires more substantial cash to pay the debts. In terms of
Savola, if manager conduct the employee layoff than manager ensures that it should be
conducted on right manner otherwise it creates a more financial problem that are arise
from lawsuits cost.
2. Relocation- It is a type of layoff it represents that relocating the organisation whole
facility causes a layoff of workers of company. Closing of the original location creates a
huge impact on surrounding community’s morale and economy. If within the
organisation, layoff is to be done due to relocation that company must show their concern
towards the employees who lost their job by offering resources to helps them and
overcome the risk that they faced in the society (PUTTICK, 2020). It cannot affects the
company reputation.
3. Merger or Buyout- This is the main cause of layoff within an organisation. Mergers
continue to rise within organisation at this time various roles are being redundant. At the
time of merger if acquiring organisation can find the role for every employees then layoff
is eliminated and this situation occur in rare time. Therefore, because of mergers
companies find new goals and plans that needs to create a situation of employee layoffs.
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4. Staffing redundancies or Outsourcing- It is one of the major causes of employee lay-
offs. It is occur when business enterprise decides to exploit independent contractors to
tackle assignments of businesses that are taken care by employees, reflected the end
results of employee layoff. It is done because outsourcing of employees are being cheaper
than hiring employees because the contractors under outsourcing are independently
responsible for their own expenses like taxes that are highly beneficial for maintaining
company financial resources (Diaz-Valdes Iriarte, 2019).
To evaluate the reasons of demotivation among employees in retailing sector
As per the viewpoint of “Budur and Poturak, (2021)” It is very essential to recognise the
true involvement of employees that means different things to different people to recognise what
really drives a motivation of individual person. It is very significant to listen and respond
employee’s needs to ensure the high level of employee involvement within an organisation.
There are several reasons of demotivating among employees within retailing sector:
1. Lack of flexibility- It is the foremost reason of demotivation among employees within an
organisation. It is very essential that all employees have legal rights to flexible working
whether it is a place of work, type of contract and work from home. In present scenario,
lack of flexibility is the major issue of employee demotivation that is mainly linked to the
working hours and times. This will affects the employees control at this time it is
essential to identify and work with staff to reach compromise in working home
arrangements (Mäki-Fränti, and Vanhala, 2020).
2. Miscommunication- It is another factor of employee demotivation within retail sector. It
is very essential in retail sector to free flow of information between employees and
employers so that dissatisfaction among employees is to be eliminated. It is a major
demotivating factor that represents boss or manager does not properly trust their
employees to share all information on projects. This also affects the company
profitability and success in the marketplace.
3. Lack of security- This is another factor of employee demotivation if the employees are
not satisfied at their workplace so that they cannot perform current role. This will highly
create job insecurity and layoff within an organisation. It is very essential for business
manager to set regular coaching in order to boost the sense of security so that it attracts
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the employees towards work and also motivated them to attain targets (Waschik,
Friedman, Taylor, and Boatner, 2021).
4. Appreciated or Feeling under-valued- It is another cause that was faced by an
organisation in relation to employee demotivation. In a retail organisation it is very
essential to attracts and motivates employees for their long survival. Therefore, of
employees feel under values and does not appreciate for their good work then they are
highly demotivated towards completing the assignments. Due to employee demotivation
they cannot attracts customers towards the company products and it overall affects the
profitability of business that creates job layoffs ad insecurity in employees.
5. Short term objectives with no clear vision- It is another major cause of employee
demotivation. Therefore, due to no clear vision employees of business enterprise does not
have any idea where the career of individual employees is going to drift. That business
organisation that has long term goals to reach short term targets helps in focus on
employee career (Kouzis, 2018).
6. Lack of development opportunities- It is very significant to boost the morale of
employees that proves to workers’ motivation in positive manner. Within an organisation
if the worker feels stagnant they cannot inspire workers to work with motivation. It is
very essential to provide regular opportunities for improving professional and certainly.
To overcome with the issue of employee face demotivation it is very essential to engage
customers for development opportunities and offering training so that they feel values
and satisfied. Therefore, in retail sector if manager cannot offer development
opportunities to their workers than they are highly demotivated towards it.
7. Conflicts stress- This is one of the major issue of demotivation among employee. Within
an organisation if there is a high conflict occurs due to which bullying and ragging is to
be occurred within the firm. It is very essential for business enterprise to focus on
managing conflicts so that issues like demotivation among employees are to be resolved.
8. Poor leadership- It is a type of one factor that creates a demotivation in employees
within retailing sector. The major cause of demotivation in company is
micromanagement where being zealous is to be considered that affects employee morale
to work effectively for the success of business enterprise (Logan, 2020). Due to
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ineffective style leadership employees cannot understand what they perform to attain the
task that affects the businesses and their survival.
9. Lack of performance appraisal- It is one of the major cause of employee demotivation.
Lack of performance appraisals and positive recognition of employees by companies
affects the working of workers and also creates demotivation among them. It is essential
because each and every employee need to come in good books of company for securing
long term survival within an enterprise. This will appreciate workers so that they further
take initiatives to enhances the profits of business enterprise.
Methods by which Savola group will raise its employee's motivation
As per the opinions present by Susan M. Heathfield, (2021), employee motivation is a very
crucial aspect of organisation which human resource manager needs to consider in order to
ensure growth and success of company. It is a powerful energy which excites and derive
employees, that outcomes in their increased contribution towards the organisation. Clear
expectations, setting and accomplishing goals, feedback, recognition and encouraging
management, all these contribute to enhance the motivation at workplace (9 Ways to Inspire
Motivation in the Workplace, 2021). It flourishes in some optimistic work surroundings which is
the main reason of why managers want to learn the ways to keep their employees motivated.
Different strategies to motivate employees are provided below:
1. Provide employee recognition - it is very important for an organisation to recognise its
employees for their work. It can enhance their motivation level, if it is offered and
executed effectively. It assists in satisfying the employees by developing trust among
them towards their supervisor as well as the workplace. Rewarding behaviour that a
manager wants to see in employees reinforces the goals of organisation and increase
engagement (Hakola, and Uusitalo, 2017). Workforce proud to see the way their
individual efforts influence the company and this strengthen a notion that they are valued
in the organisation. Thus, providing recognition to employees for the work they have
done in the organisation would be very helpful in keep them motivated and increase their
satisfaction level. This in turn also assist in improving the performance of Savola Group
in an effective way.
2. Training and development opportunity - for performing roles and responsibilities in an
effective way in the workplace, different skills and competencies are needed. If the
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employees are skilled and competent, then this in turn improves their productivity as well
as organisational productivity. Providing training and development opportunities to
employees highly contribute in improving their motivation. The variety and quality of
training options that an organisation offer to its employees is the key for motivation.
Savola Group can provide training associated with management development, new
employee on boarding, team building, new concepts for work group and the way to
operate new technology etc. Training and development programs help in enhancing
competency level of employees which in turn make them able to perform their duties and
responsibilities in more effective manner (Rosin, 2020). Apart from this, it also helps in
personal development of employees which ultimately contribute in their future career
growth. Thus, administer training and development opportunities to employees will help
in improving their motivation level.
3. Communicate effectively - good communication is very crucial in order to maintain
healthy workplace environment and keeping the employees motivated. Its sets managers
apart. It is important for the management to talk employees face to face and let them
know that they see employees as a person. Managers also need to encourage employees
to share their impressions and thoughts. Effective communication helps employees in
express their views effectively and it also assist in communicating all the information
clearly and effectively in the organisation. Apart from this, if employee is able to
communicate effectively then it will develop a sense of satisfaction among them feel
valued in the organisation. This in turn increase their motivation level and performance.
Thus, it is very necessary for manager of Savola Group to use effective communication
channels so that good communication can be encouraged in the organisation and all the
employees are able to communicate effectively. This will result in to improved
motivation of employees (Miežienė, and Gruževskis, 2018).
4. Prioritize employee wellbeing - it is very important for an organisation to prioritize
wellbeing of employees as healthy and happy employees are more motivated. It is very
crucial that employees are provided with adequate flexibility, ensure that plenty of water,
food, bonus perks and healthy snacks are available for employees so that they stay
healthy. Apart from this, it is significant to provide employees with regular breaks and
ensure work life balance so that they stay stress free, happy and healthy. This will in turn
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