The Influence of Job Satisfaction on Employee Retention at Wagamama

This report investigates the crucial relationship between job satisfaction and employee retention within the context of Wagamama, a British restaurant chain. The study begins with an introduction highlighting the importance of employee satisfaction for organizational growth, productivity, and a positive work culture. It then delves into a literature review, followed by a detailed research methodology section outlining the research philosophy, type, approach, data collection methods, sampling techniques, and ethical considerations. The report analyzes data collected to identify factors influencing job satisfaction, such as working conditions, salary, job roles, and external factors like government policies. It also examines the relationship between motivation and satisfaction, recognizing the impact of employee turnover and the need for effective retention strategies. The report provides a comprehensive overview of Wagamama's operations, including its services, locations, and employee demographics. It further explores the challenges faced by the Spitalfields Market London branch, including high turnover rates and employee concerns regarding service charges and work hours. The report concludes with recommendations aimed at improving job satisfaction and retention rates, offering valuable insights for Wagamama and other businesses in the hospitality sector.

Examining the impact on job
satisfaction on employee
retention at Wagamama

Table of Contents
Chapter 1 INTRODUCTION...........................................................................................................1
Background of study ...................................................................................................................4
Rationale of research ...................................................................................................................4
Aims and objectives.....................................................................................................................4
Research questions ......................................................................................................................5
Significance of study ...................................................................................................................5
CHAPTER 2 LITERATURE REVIEW..........................................................................................6
CHAPTER 3 RESEARCH METHODOLOGY............................................................................13
Chapter 3 Research Methodology..................................................................................................14
Research philosophy:.................................................................................................................14
Research Type............................................................................................................................14
Research approach.....................................................................................................................15
Data collection...........................................................................................................................15
Sampling....................................................................................................................................16
Data analysis..............................................................................................................................16
Ethical consideration .................................................................................................................16
Reliability and validity...............................................................................................................16
Chapter 4 Data Analysis................................................................................................................17
CHAPTER 5 CONCLUSION........................................................................................................28
Recommendation..........................................................................................................................30
REFERENCES..............................................................................................................................31
Questionnaire.................................................................................................................................33

Title- Impact of job satisfaction on employee retention
Chapter 1 INTRODUCTION
In recent time it is very necessary for organizations to gain employee satisfaction so that
they can be retained for long time. Also, employee satisfaction plays a significant role in growth
and development of organization. It is because it helps in improving productivity and attaining
goals and objectives in effective manner. Moreover, it has highly supported in developing a
positive culture at workplace through which competitive advantage is gained in the industry.
Furthermore, for every business it is necessary to satisfy their staff so that employee turnover
ratio is reduced and retention rate is maintained. However, in order to improve employee
performance it is necessary to motivate them. Job satisfaction also helps in maintaining work life
balance which is essential to live a happy life. In addition to this, it also supports in maintaining
relationship with supervisors and colleagues.
The main objective of job satisfaction is to enhance employee productivity so that goals are
attained. Furthermore, it helps in finding out what are the both personal and organisational
factors that is influencing on job satisfaction. Besides this, it helps in maintaining work life
balance which helps in improving social life. Moreover when employee feels that their job is
secured, they put more efforts and are ready to take challenging tasks. This results in growth and
development of business. Moreover, it supports in motivating them and developing a feeling of
employee engagement. For every organisation it is necessary to maintain job satisfaction of staff
so that positive culture is maintained.
It is necessary to maintain job satisfaction level among employees so that they are retained
for long term. The level of satisfaction can be affected by many factors. It may be either internal
or external. Internal includes working condition, salary and wages; job roles and responsibilities,
etc. and external are government policies, cultural factors, etc. Any change in these factors can
have either positive or negative impact on job satisfaction. It is because all these revolve around
an employee job role. Moreover, through motivation, satisfaction in increased.
It has been identified that there is a great relationship between motivation and satisfaction. It
is because motivation helps in increasing job satisfaction. Without motivating employee it is very
difficult to retain them and increase job satisfaction. A motivated employee contributes more
towards company.
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As Wagamama is a British restaurant chain that serves Asian food based on the Japanese
cuisine. There are different types of services that is being provided such as Food and Beverage,
Room services, Laundry services, Spa & Saloon and gymnastic. Under Food and Beverage
services it provide customers dining area and waiters come and take orders from them. Room
services include providing breakfast, lunch and dinner that is being provided 24 hour. Gym and
fitness centre provides equipment to its customers for doing physical exercise. At Spa & Salon it
provide services like health therapy and medieval baths. The first Wagamama was opened in
1922 in Bloomsbury, London. It was founded by Alan Yau Who is having Chinese restaurants
Hakkasan and Yauatcha. It has 190 restaurants from which 130 are in United Kingdom. It has
introduced two cookbooks for expansion of its brand in other countries. It is located in various
locations such as Austria, Bahrain, Belgium, Denmark etc. Its headquarter is located at London,
United Kingdom. The word Wagamama is Japanese term that means self indulgent.
Young age people are the customers of Wagamama. As generally people between age 15 to
25 are went to restaurants for taking dinner, lunch or for other purpose. As nowadays younger
generation are more attracted towards restaurants. By offering discounts or coupons it attract
customers. Customers are the king of market without them business cannot generate revenue. As
in restaurants generally businesspeople are come as they are living outside from their homes. It is
important for hospitality industry to maintain safe and secure environment so that more
customers are attracted towards it. Identification of target customers plays an important part for
this industry for future growth.
Restaurant consists of group of people that help in entire flow of business smoothly.
Restaurants work is depend on the size of it and the people that is hired in restaurants. As there is
head chef who's role is to plan the menu for customers and direct people of cooking staff. Person
who makes food also assure that the food is being served by waiters properly or not. Waiter
shows menu card to its customers of Wagamama and then take orders from them of their choice.
Then the order is sent to kitchen and the cook prepares the order and then give it to waiter for
serving it to customers. Then customers of Wagamama enjoys the meal and make payment.
Role of employees in Wagamama is to maintain cleanliness in the surroundings. Healthy
environment will be there so that customers are satisfied with their services. Every employee
have to its task completely and providing best services to its customers. Employees who are
working in the kitchen must ensure that fresh food is provided to customers. There role is to
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satisfy the needs and wants of customers that are visited there restaurant so that they will come
again to Wagamama. Precautions must be taken for health and care of customers so that they
may not cause any disease. Their aim responsibility is to cooperate with customers on providing
them proper services. It may have to ensure that proper rotation of food supplies is their in
restaurant. Have to make arrangements for those who has booked it for party. Proper availability
of food product is there so that there is no shortage at the time of urgency. Its a prime duty of
employees to ensure that neatness is necessary at the workplace. Employers have to check proper
supply of kitchen equipment that is used for making food for customers.
As I am using “Spitalfields Market London as branch of Wagamama in the project. In this
branch total of 39 people are working from that 18 are of Front of House and 21 works in Back
of House. There are 12 managers working from which 6 are working as Front of House and 6 are
working as Back of House. Further more this is divided as under Front of House 1 general
manager, 1 Assistant General manager, 2 Floor managers and 2 Junior floor Managers are
working. Under Back of House 1 Head Chef, 1 Senior Sous Chef , 2 Sous Chef and 2 Junior
Sous Chef are working.
I have choose Wagamama to identify issues that managers are facing regarding motivation
and employee engagement in the company. Other issues may arise regarding extra benefits that
is provided in the company. So I am looking for a job at the “Head office of Wagamama” so I m
doing this project that will help me in future job in the company.
As the staff turnover rate is 49.1% that is at third position in the London area. In financial
year that is going to be end in a week, 12 people left the Spitalfields branch. As Wagamama is a
restaurant where customers are more then people in the office, breaks given to the members is
longer i.e. around 3-4 hours daily. So people gets tired and they want to change their job.
Another factor of employee turnover is that the service charge is not including on the bill, so it
have to face difficulty many times when people are not giving tip even giving them best services.
They also have to go home in late evenings or around midnight this situation force them to leave
the job.
The staff of Wagamama is generally Chinese young man who come from different countries
around the world such as Romania, Italy, Moldova, Bangladesh, England, Congo, Poland and
Bulgaria.
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Wagamama in its second quarter to November has a turnover of 15.4 % year on year to £ 13.2m.
Earnings before interest tax and depreciation rise to 18.7% to £13.2 m. the sales is increased by
10% from the past years. Expenditure on maintenance and refurbishment was £ 4.7m compared
from first half of 2017- 18 at £8.8 m. Wagamama is opening outlets and maintain rate of seven to
10 restaurants each year. In 2017- 18 Wagamama UK restaurants generated an annual turnover
of around 301 million British pounds.
Background of study
Hospitality sector is expanded in wide area. It consists of different sectors that provide
variety of products and services to people. So, there are large numbers of people employed in it.
They work in different areas according to their skills and knowledge. It is been observed that in
restaurant it is difficult for companies to retain staff for long time. The job environment in
restaurant is very harsh. It is because staffs have to work for long hours with low salary.
Furthermore, the incentives and benefits are not as per expectation of staff. Also, sometimes they
have to perform multiple roles and duties at same time. This results in frustration and it affects
their performance as well.
Therefore, it is necessary to motivate workers frequently so that job satisfaction is
maintained. This can be done by retaining employees. It is the first step which in directly related
to job satisfaction. So, if employees trust is gained they can be retained. Through this, strong
relationship is developed.
Rationale of research
Recently, it has been observed that there has been rise in employee turnover rate which has
negatively impacted on Wagamama growth. Also, it has created a negative culture at workplace.
Besides this, staffs are not satisfied with their job. So, due to lack of satisfaction there is high rise
in absenteeism. However, with this conflicts have increased between management and
employees. It has resulted in low job satisfaction among them.
Aims and objectives
Aim
To investigate the impact of job satisfaction on employee retention at Wagamama.
Objective
 To understand concept of job satisfaction and employee retention
 To understand the importance of job satisfaction on employee retention.
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 To highlight the factors that influence job satisfaction.
 To recommend strategies to improve job satisfaction and increase retention rate.
Research questions
 What are the factors that are affecting the employee satisfaction and employee retention?
 What are the factors that influence job satisfaction?
 What is the relationship between job satisfaction and employee retention?
 What strategies can be implemented to enhance job satisfaction?
Significance of study
This study will help in finding out factors that impact on employee behavior. So, by taking
effective and proper measures the impact of factors can be minimized. Thus, other businesses
will get an insight about what strategies can be used to increase job satisfaction. In addition to it,
they will be able to motivate employee by using different types of motivational techniques.
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CHAPTER 2 LITERATURE REVIEW
Employees are an asset to an organisation. They perform various tasks and activities to
accomplish goals and objectives. Also, they are considered as pillars of company through which
mission and vision is achieved. Thus, it is important to maintain job satisfaction of employees. It
is because it improves their productivity and gain trust. Through this, they can be retained for
long time.
In the report of CIPD it has been found that in UK employee turnover rate has arise from
13.3% to 22.6% in restaurant sector. It is estimated an employee cost around 50% of their annual
salary for restaurant. The personal and organisation outcomes are influences by five job
characteristics. Also, turnover rate is high among employees of age 20- 29. But in some
restaurants it depends on size and its nature. The main causes of turnover are demographic and
personal factors, job satisfaction and culture. Moreover, 94% of manager finds out exit interview
as best way to identify reason for turnover.
It has been stated that in 2013 the employee turnover rate is nearly 63% in restaurant
industry. In report of Bureau of Labour statistics 2017 the turnover rate in fast food sector since
2010 has increased by 15.5%. Besides this, it is expected that in 2014 there will be rise in 34% of
turnover rate. So, this will cost huge loss for restaurant industry of €3.4 billion. In Starbucks the
employee retention rate is 65%.
Meaning of job satisfaction
According to Shahryari and Ahmad, 2017, job satisfaction refers to the extent to which
employee feel motivated and connected to organisation for long term. It means the level to which
they are satisfied with their job roles and duties. Generally, it is said that employee motivation
plays a crucial role but now this concept has been integrated with job satisfaction. Besides this,
job satisfaction is related to internal state of mind of worker. It shows the level to which an
employee is professionally satisfied with their job. Besides this, a highly satisfied staff put in
more efforts than others. This is because a feeling of belongingness is created within them. Also,
it reflects that how much an employee value company. In same way, when business is able to
maintain high job satisfaction, it reflects the extent to which business value their employees.
Dimension of job satisfaction
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Jessen, 2018, stated that there are various dimensions of job satisfaction which helps in
determining its level. These dimensions vary in restaurant and depends on their size and nature.
Basically, the dimensions of job satisfaction of staff in restaurant are as follows :-
Individual factor – It is defined at individual level which includes various elements like
qualification, skills, character, etc. towards job role. By analysing all these elements it can be
easily found that whether worker is satisfied with his job or not.
Social factor- It represents social relationship of person with other in restaurant. This states that
how employee interact with colleagues, supervisors, etc. Also, it shows the way through which
they communicate with other. It reflects their behaviour, body language, etc. towards others at
workplace.
Culture factor – It reflects that how an employee expresses his opinions, use language and
speak to others at workplace, etc. besides this, it shows what ethical principles are applied by
them and how it helps in engaging with people.
Organisation factor – They are related to organisation which shows employee relation, working
conditions, etc. With this it is analysed that how worker behave within company, how they
follow rules and regulations, etc.
Environmental factor – This factor includes employment rules and regulations. It reflects how
employee follows and values those rules. Moreover, it shows that during harsh times how they
contribute towards business.
Importance of job satisfaction on employee retention
For restaurant industry job satisfaction helps in allowing staff to work in creative way. It
leads to flexibility in working and strengthening relation with manager. Moreover, it is found
that when restaurant increase staff pay this creates a positive impact on their behavior. There is
rise in motivation level which enables them to become more responsible. 56% restaurant
managers have rise pay of staff to encourage and retain them. It is very necessary to satisfy an
employee so that turnover rates are reduced. An employee satisfaction is related to motivation
(Jumah and Sulo, 2018). It directly gets affected when there is low motivation. Besides this, it
has been analyzed that high job satisfaction enables in maintaining strong and effective
relationship between employees and management. Also, it reflects on how well employees are
been valued. When an employee is provided vast number of opportunities for growth it boosts
their motivation. Also, it determines what efforts are been made by companies to fulfill their
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needs. It has been identified that there are many factors which makes it difficult for employees to
remain loyal for long time. Moreover, when a new staff works in restaurant, he or she expects a
lot from business in terms of growth and benefits. But with repetitive job roles and long working
hours leads to frustration. Furthermore, due to low incentives employee needs are not fulfilled.
There are
As elucidated by Shaikh and Zahid, 2016, a satisfied employee always perform better than
dissatisfied one. This is because his or her job is secured. In addition to it, the attitude and
behavior always remain positive towards company. It reflects the extent to which they are
satisfied with job. However, in present era an employee prefers secured job over growth
opportunities. This is because they want to be retained for long time instead of working for short
time period. In addition to it, there is a relationship between job satisfaction and employee
retention. This can be said that in order to retain employee for long term it is necessary to
maintain his job satisfaction. If not it automatically leads to increase in turnover rate. In addition
to it, job satisfaction can be maintained only when through employee retention.
Impact of job satisfaction of employee behavior
In UK the turnover rate has reached from €15.5 in 2010 to €21.5 billion in 2014. This has
highly impacted on growth of restaurant with decreases in sales up to 6.6%. This has created
negative impact on employee behavior.
As elucidated by George and Zakkariya, 2018, job satisfaction is related to many factors
that directly impact on employee. It is also related to employee behavior. This is because they
both are interrelated to each other. Any change in employee behavior directly affects job
satisfaction. A highly satisfied employee reflect positive attitude towards work. He or she
interacts with others in positive way. Moreover, a positive feeling is developed which supports in
putting more hard efforts. Also, when behavior is positive it automatically leads to satisfaction.
Moreover, employee helps others in completing their tasks.
On contrary a low job satisfaction leads to ineffective behavior of employee. It clearly
reflects how he or she treats others and communicates with them. Besides this, there is negative
feeling developed among them which makes it difficult to work for longer time period.
It has been analyzed that the major impact of employee turnover in restaurant industry is
on revenue and customer service. Due to this quality of customer service decreases that has
resulted in 13% decline in revenue.
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Techniques to measure job satisfaction
It is very difficult for employee to work for long time with high level of stress. Thus,
business uses different methods to measure job satisfaction. The scale on which job satisfaction
is evaluated contains many elements. Generally, there are three types of scales which are as
follows :-
Job descriptive index (JDI)- It is most commonly used survey and contain five facets that are
satisfaction with work, pay, promotion, supervision and colleagues. Here, each individual is
given rating. Then, results are evaluated and the employee who gets high rating is said to be
highly satisfied whereas low rated employee is considered as less satisfied.
Minnesota satisfaction questionnaire – This scale is second most popular. Here, employee
satisfaction is measured on basis of five point Likert scale in which 1 states that employee is
highly satisfied and 5 states low satisfied.
In view of Salem and Abdien, 2017, when job satisfaction is high in lower level
employees there is no impact on their performance even in times of high stress and workload.
They work more freely and in creative way to attain goals. This results in enhancing overall
business performance. Alongside it, they feel motivated and are energized to do complex task.
Factors that impact job satisfaction
In restaurant industry, the major factor that has lead to negative impact on job satisfaction
is pay. Staffs do not get pay according to their work done. It has been stated that 48% of staff
were less satisfied with their pay. They expect there must be rise in around 10-12 % annually
which helps them to work for long term. Another major factor of low satisfaction is relation with
supervisor. Employee said that manager do not provide them flexibility in working. Moreover,
working hours are extended by them which results in frustration. Thus, in spite of strengthening
relation with manager, these both factor become the barriers. Job stress is a factor as well where
staff feels depressed at work. They have to carry and perform various types of tasks at same
time. Therefore, they are not able to manage and handle it and complete in given time. Alongside
it, in season time workload increases which puts burden on employee work. Also, the pay
remains the same and working hour’s increases. It becomes difficult for them to work in such as
harsh environment.
As said by Watson and et.al., 2018, the level of job satisfactions gets impacted due to
change in many elements. It may be related to either internal or external. It is directly related to
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employee performance. The impact of factors depends on nature of job as well as organisation.
Also, it depends on employee behaviour that how he or she is able to handle or react in that
situation. So, it is important to identify those factors and minimise its impact so that job
satisfaction can be increased (Factors affecting job satisfaction. 2016). There are many factors
which are further divided into categories as states below –
Organisational factors
 Salary and wages – It plays a vital role in job satisfaction because money helps in
fulfilling basis and social needs. Moreover, it supports in improving the living standards
as well. When an employee feel that salary given is not up to his or her expectations or is
low as compared to job performance than a negative feeling is developed among
themselves. This results in demotivating them and it highly affects their performance.
Besides this, incentive and benefits given are not equal then it leads to low job
satisfaction.
 Promotion- In an organisation every employee must be given equal opportunities for
growth. There should be a systematic structure of promotion which enable employee in
their career development. This is because promotion helps in satisfying employee. But
when there are very low chances of promotion it affects on their job satisfaction level.
Their performance level gets declined (Vladimirov and Vedar, 2016). It allows them to
grab opportunities in other companies.
 Company policies – The policies and procedure of organisation reflects its overall
system and structure. It also plays crucial role in job satisfaction. This is because it
govern employee that how to behave with colleagues, supervisors, etc. Any change in
policies may result in shift towards employee behaviour. If policies are strict it does not
allow staff to work freely and in effective way but on other hand fair and liberal policies
results in high job satisfaction.
Work environmental factors
 Supervision – It also affects on job satisfaction. When an employee is supervised
properly and in effective way it enables in free and creative working. The supervisors
guides and provides them direction to attain goals. Also, he or she communicates and
solve problems of staff. But when supervisor behaves in bad manner and do not
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