MBA Dissertation: Factors Affecting Employee Retention in UAE

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Thesis and Dissertation
AI Summary
This dissertation explores the critical issue of employee retention within the United Arab Emirates (UAE), focusing specifically on the retail, tourism, and real estate sectors. It addresses the high employee turnover rates negatively impacting these industries, leading to decreased productivity, customer dissatisfaction, and economic challenges. The study investigates factors such as compensation, people development, employment security, and social culture to determine their influence on employee retention. Through a mixed-methods approach, including literature review, primary data collection via questionnaires, and data analysis, the research aims to identify the key reasons behind employee turnover and provide recommendations for organizations to improve their retention strategies. The findings offer insights into the perceptions of employees in mid-sized and large organizations, contributing to the understanding of expectancy theory, group theory, and relatedness in the context of employee retention within the UAE.
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Running head: EMPLOYEE RETENTION IN UAE
Topic: Employee Retention in UAE: Compensation, People Development, Employment Security
or Social Culture?
Name of the Student
Name of the University
Author Note
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1EMPLOYEE RETENTION IN UAE
Abstract
One of the primary problems in the organizations given the recent times has been the turnover of
employees which has been negatively affecting the industry and the market. The country of
United Arab Emirates are also falling prey to choose number of employee turnover leading to
poor financial performances, decrease in gaining competitive advantages in comparison to Other
industries, loss in productivity, deficiency in retailing the customers and failures in economy.
The people within the organization working together for manufacturing of product or providing
services are the biggest inventions of an organization as the workforce is regarded as one of the
chief assets within the organization. Losing employees in such a random way also results in the
loss of company assets as well. It is not always seen that employees are fired out of an
organization due to misconduct but it is also found that the problem with the organizations in
United Arab Emirates regarding no employee retention has numerous other factors working
behind. Therefore the following recitation would find out the reasons behind the problem that the
organizations in United Arab Emirates have been facing in retaining the employees mostly
focusing on three basic industries of retail, tourism and real estate. This would be conducted
through 5 chapters, which would establish the reason behind the entire research process and how
the research would be conducted, the review of relevant literature to find out what authors and
analysts have already stated facts about, the research methodology developed to find out all the
intricate information regarding the reason behind low level of employee retention, the primary
and secondary analysis of data regarding the subject and the recommendation and further scope
of future research done along the entire dissertation.
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2EMPLOYEE RETENTION IN UAE
Acknowledgement
One of the best and enriching experiences in my life has been the conduction of this research
paper and while contributing to this research, I have gained experience and this has enhanced my
analytical skills as well as my knowledge base. I have reached a paramount level regarding the
required skills for the research process. However, I would like to share that this would not have
been possible if my professors, peers and all the people involved with the research process have
not helped me with their valuable contributions to the enriching experience. They have added to
my research paper with their valuable guidance throughout my research process. I would like to
take this opportunity to thank my supervisor _________________________ for the constant
guidance and support provided to me during the process of this research. I would also like to say
that the academic guides I took help from were assisting me and guiding me with their valuable
assistance and encouragement with the entire process of research. I would also like to thank my
friends who had provided me with help and encouragement for collecting primary data and
valuable resources. The support of all these people has been inspiring and enlightening
throughout the process of research in the subject.
Heartfelt thanks and warmest wishes,
Yours Sincerely,
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3EMPLOYEE RETENTION IN UAE
Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.1 Background of the study........................................................................................................6
1.2 Research Aims and Objectives..............................................................................................6
1.3 Aims of the study...................................................................................................................7
1.4 Research Questions................................................................................................................8
1.5 Problem Statement.................................................................................................................9
1.6 Rationale of the study............................................................................................................9
1.7 Research Hypothesis............................................................................................................10
1.8 Structure of the study...........................................................................................................11
Chapter 2: Literature Review.........................................................................................................13
2.1 Introduction..........................................................................................................................13
2.2 Conceptual Framework........................................................................................................16
2.3 Causes behind Employee Retention in Retail, Tourism and Real Estate Industry..............18
2.4 Causes behind Employee Retention in Retail, Tourism and Real Estate Industry in UAE.22
2.5 Chapter Summary................................................................................................................24
Chapter 3: Research Methodology................................................................................................25
3.1 Introduction..........................................................................................................................25
3.2 Method Outline....................................................................................................................26
3.3 Research Philosophy............................................................................................................27
3.4 Research Approach..............................................................................................................28
3.5 Research Design..................................................................................................................29
3.6 Ethical Consideration...........................................................................................................29
3.7 Chapter Summary................................................................................................................30
Chapter 4: Data Analysis...............................................................................................................31
4.1 Introduction..........................................................................................................................31
4.2 Data Collection Process.......................................................................................................32
4.3 Analytical model..................................................................................................................54
4.4 Summary..............................................................................................................................55
Chapter 5: Conclusions and Recommendations............................................................................56
5.1 Conclusion...........................................................................................................................56
5.2 Linking with Objectives......................................................................................................57
5.3 Recommendations................................................................................................................58
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4EMPLOYEE RETENTION IN UAE
5.4 Limitations of research........................................................................................................59
5.5 Future scope of the study.....................................................................................................61
References......................................................................................................................................63
Appendix........................................................................................................................................75
Appendix I: Questionnaire.........................................................................................................75
Section 1: Demographics.......................................................................................................75
Section 2: Survey Questions..................................................................................................75
List of Figures
Figure 1: Conceptual Framework for developing the literature review........................................16
Figure 2: Are you satisfied with the compensation you receive from the organization you are
currently employed in?..................................................................................................................34
Figure 3: Do you believe that the compensation received by the employees in the organization
reduces absenteeism?.....................................................................................................................35
Figure 4: Do you believe that your decision to remain employed for a longer period of time is
driven by the amount of salary you receive?.................................................................................36
Figure 5: Are you satisfied with the corporate social responsibilities of your organization?.......38
Figure 6: Do you think employee turnover happens in response with the employee opportunities
provided by your organization?.....................................................................................................40
Figure 7: Do you feel that your organization listens to you?........................................................42
Figure 8: Do you feel that your organization does not treat you fairly?........................................43
Figure 9: Do you feel that your feedbacks are mostly ignored by your employer?......................44
Figure 10: Do you feel that your terms of service and hard work are not appreciated within the
organization?..................................................................................................................................46
Figure 11: Do you have proper job satisfaction in your current position and organization?........47
Figure 12: Are you satisfied with the resources provided for your work by the organization?....48
Figure 13: Is your workplace and productivity affected when an employee leaves?....................50
Figure 14: Do you feel that you are advancing in your career goals with this job?......................51
Figure 15: Are your promotion decisions made fair?....................................................................52
Figure 16: Do you feel like a valued employee within the organization?.....................................53
List of Tables
Table 1: Are you satisfied with the compensation you receive from the organization you are
currently employed in?..................................................................................................................33
Table 2: Do you believe that the compensation received by the employees in the organization
reduces absenteeism?.....................................................................................................................34
Table 3: Do you believe that your decision to remain employed for a longer period of time is
driven by the amount of salary you receive?.................................................................................36
Table 4: Are you satisfied with the corporate social responsibilities of your organization?.........38
Table 5: Do you think employee turnover happens in response with the employee opportunities
provided by your organization?.....................................................................................................40
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5EMPLOYEE RETENTION IN UAE
Table 6: Do you feel that your organization listens to you?..........................................................41
Table 7: Do you feel that your organization does not treat you fairly?.........................................43
Table 8: Do you feel that your feedbacks are mostly ignored by your employer?........................44
Table 9: Do you feel that your terms of service and hard work are not appreciated within the
organization?..................................................................................................................................45
Table 10: Do you have proper job satisfaction in your current position and organization?..........47
Table 11: Are you satisfied with the resources provided for your work by the organization?......48
Table 12: Is your workplace and productivity affected when an employee leaves?.....................49
Table 13: Do you feel that you are advancing in your career goals with this job?.......................51
Table 14: Are your promotion decisions made fair?.....................................................................52
Table 15: Do you feel like a valued employee within the organization?......................................53
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6EMPLOYEE RETENTION IN UAE
Chapter 1: Introduction
1.1 Background of the study
One of the big challenges in the industry in the recent times is the employee retention.
Employee retention has been a major factor in United Arab Emirates and it is critical as an issue
for the business leaders. It has been found in reports that over 4.5 million employees have had a
turnover from the respective organization just in the year 2014 because of various reasons like
terminations, layoff or resignation (Lindgren and Åkesson 2017). The industries of retail
management, real estate and tourism that have been found to witness the lowest rates of retention
rate compared to any other industry. This has been leading to a poor customer satisfaction as
well as decreasing profitability and productivity (Nivedhan and Priyadarshini 2018). Therefore,
the multiple case study in this dissertation has been taken as the topic to research the employee
retention in these industries in the backdrop of United Arab Emirates is to explore the perception
of all the three above-mentioned industry including mid-sized and large organization and former
conceptual Framework for the study to find out the main reason behind the expectancy theory
group theory existence and relatedness behind the reason of employee retention. The findings as
per the employee retention in United Arab Emirates as well as their reasons behind forms the
entire setup of the dissertation to provide solutions to the above-mentioned problem for all the
people in United Arab Emirates.
1.2 Research Aims and Objectives
Various authors have posted various ideas about the reasons that they think are
responsible behind employee retention in United Arab Emirates industries of real estate, tourism
and retail (Lindgren and Åkesson 2017). They have believed that employee retention is not a
factor that can affect only the organizations like small and mid-scale organizations but its
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7EMPLOYEE RETENTION IN UAE
implications on the organization which are larger than of and serve huge amount of people are
seen as well. All the three industries do not only include the people in the society but also it
forms of the people coming from lower economic strata. The employee retention process has
been emerging so far in the recent times by various industries and business organization as the
organizations have been continuing to form an ever evolving effort for retaining the best
employees within the organization. However, it is still found that the managers in any
organization face a number of challenges in managing the constantly changing workforce and the
number of employees. This is another reason or the main cause behind when employee retention
to find out the best possible way to retain the best possible of forces within an organization.
Therefore, as a summary, it can be stated that the aims and objectives of this research
dissertation would eventually find out all the hidden information within the topic that has the
tendency to objectify the reasons behind the retention of employees within the organizations in
United Arab Emirates focusing on the industries of retail, real estate and tourism (Roberts-
Lombard and Bruin 2018). The following are the primary research objectives behind the reason
for conducting the research dissertation for the above mentioned topic:
To find out what the reasons that formulates the difficulty in retaining employees
in the industry of retail, real estate and tourism industry.
To find out the ways by which the problem behind employee retention can be
solved with effective measures after finding out the ways by which the
organizations are facing problems in retaining their employees.
1.3 Aims of the study
The aim of the study is to have a thorough understanding of the entire situation behind
the retention of employees in the organizations of United Arab Emirates and the main reasons
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8EMPLOYEE RETENTION IN UAE
that the organizations in the industry of retail, tourism and real estate face in retaining their best
employees within the organization (Mekraz and Gundala 2016). This would further help in the
understanding of the further aspects as far the research process goes through to understand the
aspects of the industry in the ways by which the organizations have been facing problems and
justifying the reasons throughout the human resource management sectors in all the industries.
The primary aim is to find out the reasons for which the organization can apply specific
measures to make sure that the employees within the organization are retained in the best
possible ways so that there are no ways by which employee turnover can take place any more
(Zeffane and Bani Melhem 2017).
1.4 Research Questions
Following are the research questions that can be framed, and on the basis of which the
answers can be evaluated to find out the main reasons behind the retention of employees in the
industries of real estate, tourism and retail:
To what extent does the retention of employees form a problem to the retail
industry of United Arab Emirates?
To what extent does the retention of employees form a problem to the tourism
industry of United Arab Emirates?
To what extent does the retention of employees form a problem to the real estate
industry of United Arab Emirates?
What affect does the employee retention problems affect the above industries in
the backdrop of United Arab Emirates?
What does the employees working within an organization feel about the problems
in retention of employees in the organizations in the above scenario?
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9EMPLOYEE RETENTION IN UAE
What does the Human Resource department of the mentioned industries feel
about the employee retention factors working in the organizations in United Arab
Emirates?
1.5 Problem Statement
Human resource is one of the most valuable assets in an organization and low employee
retention in the organizations, mostly focusing on the industry of retail, tourism and real estate, is
at constant loss of economic capital with the departure of the human capital (Razack and
Upadhyay 2017). Research reports have found out that the general business problem that lies
within the low employee retention in the above mentioned industry is the inability of various
organizations to retain their employees at the places, which further results to the loss of customer
satisfaction, profitability and productivity of the organizations. Therefore, it can be said that the
specific business problem regarding the organizations and their industries result to the lack of
strategies that may cause in the improvement of retention for their employees working within the
companies.
1.6 Rationale of the study
The main issue behind the generation of the problem in employee retention within the
organizations of United Arab Emirates is that the people in the industries of the tourism, retail
and real estate are not being able to hold their employees within the organization in any way
(Lim, Loo and Lee 2017). This thus forms and implication to the organization since the low level
of employee retention in all these organizations have been resulting in loss of economic assets as
well as the industries have been facing problems in present to deliver proper customer
satisfaction and profitability as well as productivity.
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10EMPLOYEE RETENTION IN UAE
This is definitely an issue as if all these organizations cannot present proper quality of
customer satisfaction, profitability and productivity; the companies would face issues in loss of
human capital as well as economic capital within the economic and business competition in the
latest time where business has been ever changing (Al Mehrzi and Singh 2016). All the other
industries have been making progress and employee retention is higher in comparison of The
Other industries.
This is still an issue with the industry and the organizations in the latest time since
industry has been ever changing and the industries has been making progress continuously an
exponentially.
The research would shed light on all the issues and reasons behind the low employee
retention in these organizations so that proper measures can be taken in order to make sure that
no further know employee retention is found in all the industry is in the backdrop of the United
Arab Emirates (Ismail and Nowalid 2018).
1.7 Research Hypothesis
Following are the research hypothesis that can be framed as per the method by which the
initial idea behind the research needs to be followed through the entire research process:
H1: Employee retention is vulnerable to the Compensation of the employees in the
industries of United Arab Emirates.
H2: Employee retention is vulnerable to the People Development of the employees in the
industries of United Arab Emirates.
H3: Employee retention is vulnerable to the Employment Security of the employees in the
industries of United Arab Emirates.
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11EMPLOYEE RETENTION IN UAE
H4: Employee retention is vulnerable to the Social Culture of the organizations in the
industries of United Arab Emirates.
H0: Employee retention is not at all vulnerable to the Compensation, People
Development, Employment Security and Social Culture of the organizations in the industries of
United Arab Emirates.
1.8 Structure of the study
The research and the process of conducting the research have been dissected into several
chapters in this dissertation with the description of each chapter as mentioned as the following:
Chapter 1: Introduction:
This forms the first chapter in the dissertation paper that deals with the introduction of the
undertaken topic by defining them and also describes what the reasons are for taking the topic for
the research. All the aims of the researches have been identified including the problem statement
and all the aims that have been targeted to reach with this report. The research questions and the
hypothesis have been decided in this chapter have been conducted as per the requirements of the
research (Walliman 2017). All the research work that is going to be in motion with the
dissertation includes a short introduction for all the section that needs to be covered.
Chapter 2: Literature Review:
The second chapter of the dissertation would comprise of the Literature Review. This
chapter would include the past theories and concepts that have been identified to detect the
barriers in details (Pyrczak 2016). Along with that, a critical analysis has been conducted for the
food manufacturing and food production industries in the global market.
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