Investigating Labour Turnover Issues: Senheng Electric Research Report

This report presents a research study on labour turnover within Senheng Electric, a major electronics retail chain in Malaysia. The research investigates the factors contributing to employee departures, including issues such as low pay, lack of recognition, and poor work-life balance. The report provides background information on Senheng Electric's operations, history, and organizational culture. It explores the significance of the research, highlighting the impact of high turnover rates on business performance and the need for effective retention strategies. The study outlines the rationale behind the research, defines the problem statement, and establishes research aims, objectives, and questions. The report also reviews relevant literature, discussing common approaches to reduce employee turnover, such as exit surveys, engagement surveys, and data-driven solutions. The findings of this research aim to provide Senheng Electric with actionable insights to improve employee retention and optimize business operations.

Research Methodology

Table of Contents
Introduction......................................................................................................................................1
Overview of the research.................................................................................................................1
Background......................................................................................................................................2
Research significance.......................................................................................................................4
Rationale of Research......................................................................................................................5
Research aims and objectives..........................................................................................................6
Research questions...........................................................................................................................6
Framework and analysis..................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
Labour turnover refers to the ability of an organisation to retain their employees in the
firm. It is defined as the proportion of employees of a firm which leave the firm due to their
professional and personal problems or issues. When the labour turnover increases, it means the
employees are leaving the company whereas if the labour turnover decreases then the firm is not
capable of retaining their employees. The taken firm in this research is Senheng Electric which is
a retail electronics company based in Pandan Jaya, Malaysia. This research will identify
problems or issues in business and management along with the need for research. Further, this
reserach will identify, define and develop the problem statement of the labour turnover in
organisation. This study will also determine the research questions and objectives which are
suitable for the problem of employees turnover. In the end, importance of doing this
investigation will be discussed.
Overview of the research
This research is based on the problem of employees turnover which is faced by the taken
organisation. The labour turnover problem is the major problems which is faced by the many
organisations due to the unhealthy competition and working environment within the company.
The taken firm i.e. Senheng electric is also facing this problem in their company due to which
the predetermined goals and objectives of the firm are not achieved in the given time frame. This
research will determine the problem of labour turnover in the Senheng electric and how it is
effecting the working and functioning of the business operations. Through this research,
researcher can determine the cause of the problem and how it can be mitigated to minimise the
impact on the business operations (Agarwal, & Sajid, 2017). Employees turnover cannot be
reduced completely but it can be controlled so that the high rate of labour turnover could not
occur. High labour turnover is very unhealthy for the retail organisations like Senheng electric. If
the employees turnover of a firm is increasing then it can be proved as a opportunity for the
competitors of firm to get an upper edge in the retail market of Malaysia. Because of this
increased labour turnover, the profitability along with the performance and productivity of the
firm is decreasing.
According to Derek Stratton, (2018) the main causes of employee turnover is low pay
scale, non-competitive benefits packages, unhealthy company culture, weak personal and
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professional life balance, lack of or appreciation or recognition, no training, poor communication
etc. due to which the workers quit their jobs. These reasons are concluded based on the employee
surveys. According to him, The most common approaches for reducing the employee turnover
are discussed below:
 Conduct exit surveys for determining the reason behind leaving of employees.
 Conducting engagement surveys for engaging the customers more
 Developing solutions based on the data of surveys
 Providing universal solution to employees for their problems
 Conducting surveys again for measuring the improvement
According to the Karamjit Singh, (2016) displaying the same decisive decision-making in
facing the attack of e-commerce startups seems to enjoy the selling of goods at heavy discounts,
The founder of the firm has two choices i.e. either hide or join the fight. Hiding was not a good
thing so the founder Mr. Lim Kim Heng formed a new department by determining the strengths
and decided to develop a suitable e-commerce strategy for the offline-to-online model. Senheng
is providing their products to the consumers within 24 hours through their 12 warehouses across
the country which is a major strength for the firm in Malaysia retail industry. The annual
turnover of the Senheng crossed US$248 million in the year 2013.
Competition also exist in business world and for the small firms it doesn't only with the
SME's but also with big corporations. For reaching to the consumers, small business needs to
strive hard for getting the recognition of brand in the market (Amazue, & Onyishi, 2016).
Background
Background of the firm
Senheng Electric is the biggest electronic retail chain store of Malaysia having more than
118 stores within Malaysia and five stores in Vietnam. It is a private held company. The mission
of the firm is to create a better quality of living for company and its consumers by delivering
these values to consumers. The company is providing a wide range of electronic products to its
consumers such as Television, mobile phones, washing machines, refrigerators etc. from
different brands such as Panasonic, Sharp, Samsung etc. The company was established in Pandan
Jaya, Malaysia by Mr. Lim Kim Heng on 1 September 1989 with a single store. The company is
employing more than 2000 employees only in Malaysia. The company announced fixed price
policy in the year 2002 for ending the price-bargaining with consumers (Atkinson, & Storey,
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2016). The firm has also introduced customer loyalty programs and credit card for their
consumers. In the year 2003, Senheng introduced their new retail brand i.e. senQ Digital Station,
which is focused on providing premium electronics products for the consumers having higher
purchasing power. Customers of the firm can buy the products from website of company or can
pick up the products from nearest Senheng or senQ outlets. Average size of SenQ outlets is
20,000 square feet, which is 10 times bigger then the size of a Senheng outlet. The first outlet of
SenQ Digital Station was established in South City Plaza near Seri Kembangan in the year 2003.
Also the Senheng electric launched their online shopping website in the year 2009.
The workers at Senheng can work as full time or part time employees. The full time
employees are helpful for doing the regular routine such as receptionist and salesperson.
Whereas part-time worker works on Saturday and Sunday. This because of the high demand of
consumers on weekend. Senheng operates from Monday to Sunday. Senheng is standing on three
unique culture pillars which motivates the employees to achieve success. These three pillars are
Dare To Challenge, Integrity, Gratitude (Dhamija, & Singla, 2016). The firm is also organising a
wide range of staff engagement and networking activities for their employees such as sports
activities, birthday celebrations, Movie nights and other CSR activities. The company also got
several awards due to their effective services and products which are given below:
 Franchise Employer of the Year in 2015
 Best Companies to Work for in Asia in the year 2014 from HR Asia
 Best Companies to Work for in Asia the year 2013 from HR Asia
 Best Franchise Employer-Finalist in year 2012
 Employer of Choice 2011-Bronze Award
Background of the study
The problem of labour turnover is taken for this research study in order to determine the
impact of this problem on the business operations and performance of the taken company i.e.
Senheng electric. Through this study, the firm can determine the factors which are responsible
for the problem of labour turnover and to eliminate such factors for reducing this problem in
their workplace (Failla, Melillo & Reichstein, 2017). Through this investigation, researcher and
taken firm can identify the problems of the employees due to which they are leaving the
organisation. By identifying the problems of employees, organisation can develop and
implement new strategies and policies for resolving their issues so that they can perform their
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work effectively without any problem which will ultimately improve the performance and
productivity of the organisation i.e. Senheng. Also this study is helpful for the company in order
to determine the different solution through which the problem of the labour turnover can be
controlled in an effective manner.
Research significance
The main purpose of research is to inform about the action. So the study must provide the
contextualized findings within the research. Research should be of high quality for developing
proper knowledge and information which can be applicable outside of research. The results
obtained from the research can be applicable and implemented in the policies and future projects.
The taken research for the problem of labour turnover in Senheng electric is helpful for the firm
to develop and implement effective strategies and policies which can lower the labour turnover
rate in the firm. Through the research, researcher will get the opportunity to understand the
problem of labour turnover in an organisation and its impact on the different operations and
activities of the company (Krzywdzinski, 2017). Through this study, management of the taken
company i.e. Senheng can identify the root cause of the problem due to which the employees are
leaving the firm. Based on the findings and results obtained from this investigation, the
management of Senheng can take suitable measures through which they can reduce their labour
turnover rate. Also the researcher will get the chance to understand the various reasons and
causes that are causing the increase in employees turnover of the taken firm.
According to the Leann Zarah, (2018) Research is necessary not only for firms but also
for the professionals to enhance their knowledge of the research topic and its area. Through the
research, professionals can find an interesting topic for discussion. Research is the means for
understanding the different issues and problems for increasing the awareness in public or
employees of a company. It assist the business or organisations to gain success and growth in the
market. The study is the way to prove the lies and to support the truth behind the problems and
issues. It is a means for finding, gauging and seizing the opportunities to achieve the desired
organisational objectives and goals.
Through the research, researcher can determine the aims and objectives which must be
accomplished upon the successful execution of the taken study. The researcher develops the aims
and objectives along with the questions which are provided to the respondents of the
questionnaire and survey. In this research, the data collected by the researcher regarding the
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problem of employees turnover can be utilised by the managers of the Senheng electric for
developing strategies and policies to resolve the problem. The managers can determine the cause
of the issue of labour turnover and its impact on the business performance and operations of the
company. By determining the cause and impact, managers can take suitable actions for
eliminating such problems in their work place so that they can actively work without any issues
for accomplishing the predetermined goals of the company.
Rationale of Research
Rationale is the essential part of research which explains the purpose of study and for
providing a structure which must be followed by evidences and practical applications. This study
is taken for discussing the issue of employees turnover. This rationale will discuss what is the
issue, how it is an issue and why it is an issue.
Employees turnover is the issue for this research which is caused due to the leaving of
employees within an organisation. Increasing employee turnover means that the firm is not
capable of retaining its employees whereas lower employee turnover means that the firm is
retaining its employees. This issue is arising due to the dissatisfaction among the employees
because of their problems at the workplace (Mohiuddin, 2017). The dissatisfaction can be caused
due to the various reasons at the workplace such as unhealthy company culture and environment,
weak personal and professional life balance, lack of appreciation or recognition, no training, poor
communication etc. due to which they won't feel encouraged and motivated in their working
which ultimately leads to their reduced performance and efficiency.
This is a major issue for the taken firm i.e. Senheng because due to increasing employee
turnover, the performance and productivity of the company is decreasing. Due to this reduced
performance and productivity, the firm is not capable of properly executing their business
operations and functions. Due to the leaving of employees, the company is not capable enough to
provide their products and services to the consumers in an effective manner due to which they
dissatisfaction among the consumers is also increasing for the company and its products.
The problem of labour turnover is an issue because the employees won't get satisfaction
at the workplace as their rights are disrupted by the organisations and even the organisation is not
including them in the decision-making process. Due to the low motivation, they could not
perform their work with the required efficiency and accuracy and as a result their performance is
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decreasing. Due to the reduced performance, they feels dissatisfied in their working and leave the
organisation.
Research aims and objectives
Aims of the research refers to the broad statements of desired outcomes which can paint
the picture of the taken study. These aims are focused on things which needs to be achieved by
the doing the investigation. These aims address the project outcomes which can be accomplished
in the long-term for reflecting the expectations of the topic of research. After deciding the aims,
objectives are developed which are generally two or three aims statements (Phetkaew, 2015).
The objectives are steps which must be taken for answering the research questions in order to
achieve the project goals. The objectives are focused on the way through which the aims are
achieved. It is highly focused on the feasibility of the research and data collected.
Aim:
“To determine the cause of the problem of employees turnover and its impact on the
business organisation”. A study based on Senheng electric.
Objectives:
 To understand the problem of labour turnover in Senheng electric.
 To determine the impact of labour turnover on the performance of business operations of
Senheng electric.
 To determine the relationship between the employees turnover and business performance
of Senheng electric.
Research questions
The research questions are developed for taking the suggestions and opinions of the
respondents whom the survey or questionnaire is given. Through their opinions and suggestions,
researcher can conclude the study or get the desired results which can be used by the firms for
implementing effective strategies in order to reduce the problem of employees turnover
(Rondeau, 2015, April). These questions are associated with the topic of research and provided
to the respondents for getting their views and opinions on the problem of labour turnover. Some
of the questions for this taken research are discussed below:
 What do you understand about the concept of labour turnover.
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 What is the impact of labour turnover on the performance of business operations of
Senheng electric.
 Describe the relationship between the employees turnover and business performance of
Senheng electric.
Framework and analysis
Framework and analysis is the essential part for conducting any research. It consist of the
in-depth information which is useful for drawing a valid and meaningful outcome in the end of
study. For the taken study of employees turnover problem, several tools and techniques are used
which are discussed below:
Research design: The present research is based on the application of descriptive research
which is helpful for the researchers and scholar to gather the huge amount of data and
information on the problem of employees turnover. This design is useful for proving the
effectiveness of the gathered data by studying the description of population.
Research philosophy: The taken investigation is based on the theoretical aspect for
effectively dealing with the problem of employees turnover of an organisation. This study is
using the interpretivism philosophy for gathering the data.
Research type: The take research is qualitative in nature as it includes the qualitative
means for analysing the gathered data. This gathered data is helpful for the researcher in drawing
a valid outcome for accomplishing the aim and objectives of the research (Schubert, &
Andersson, 2015).
Research approach: This investigation is based on the deductive approach as this study
is dealing with the problem of employees turnover in the Senheng electric. This approach is
helpful for gathering the relevant and reliable data in an effective manner.
Data collection: In order to conduct this study, both primary and secondary type of data
collection method are used for gathering the required data in order to address the developed aims
and objectives of the research. For collecting the primary data, employees of the firm are used as
sample whereas secondary data is collected by using the various internet sources, journals, books
and other published material.
Data analysis: The data gathered in this research is collected with the help of qualitative
techniques in which the researcher has used the thematic analysis. In this analysis, data is
analysed by using the themes and graphical representation (Xu, Martinez & et. al., 2018).
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CONCLUSION
From the above discussed information or research, it can be concluded that developing
aims and objectives are very helpful for the researcher in order to execute the research properly
without any errors and problems. Through the data collected by the research, valid and
meaningful conclusion can be drawn by the researcher which can be further used by the taken
firm for eliminating the problem of labour turnover in the Senheng electric. Several questions
were developed with the help of determined objectives which can be given to the stakeholders of
the firm or other respondents who can share their views and ideas with the researcher for
ensuring the successful completion of the taken investigation.
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REFERENCES
Books & Journals
Agarwal, P., & Sajid, S. M. (2017). A Study of Job Satisfaction, Organizational Commitment
and Turnover Intention among Public and Private Sector Employees. Journal of
Management Research (09725814). 17(3).
Amazue, L. O., & Onyishi, I. E. (2016). Stress coping strategies, perceived organizational
support and marital status as predictors of work–life balance among Nigerian bank
employees. Social Indicators Research. 128(1). 147-159.
Atkinson, J., & Storey, D. J. (2016). Employment, the small firm and the labour market.
Routledge.
Dhamija, P., & Singla, A. (2016). Emotional labour and bank employees dissatisfaction: An
overlooked perspective in public sector banks. IIMS Journal of Management Science.
7(2). 234-244.
Failla, V., Melillo, F., & Reichstein, T. (2017). Entrepreneurship and employment stability—Job
matching, labour market value, and personal commitment. Journal of business
venturing. 32(2). 162-177.
Krzywdzinski, M. (2017). Automation, skill requirements and labour‐use strategies: high‐wage
and low‐wage approaches to high‐tech manufacturing in the automotive industry. New
Technology, Work and Employment. 32(3). 247-267.
Mohiuddin, Z. A. (2017). Influence of Leadership Style on employees performance: evidence
from literatures. Journal of Marketing and Management. 8(1). 18.
Phetkaew, C. (2015). Influence of leadership behavior, organizational culture and
organizational commitment on employee turnover intention (Doctoral dissertation,
Universiti Utara Malaysia).
Rondeau, K. (2015, April). Social Capital Accumulations and Employer of Choice Status: What
is Their Role in Reducing Voluntary Employee Turnover?. In European Conference on
Intellectual Capital (p. 279). Academic Conferences International Limited.
Schubert, T., & Andersson, M. (2015). Old is gold? The effects of employee age on innovation
and the moderating effects of employment turnover. Economics of Innovation and New
Technology. 24(1-2). 95-113.
Xu, S., Martinez, L. R., and et. al., (2018). The impact of abusive supervision and co-worker
support on hospitality and tourism student employees’ turnover intentions in Ecuador.
Current issues in Tourism. 21(7). 775-790.
Online
Stratton, D., 2018. What Is Employee Turnover? A Complete Overview. 2018. [Online].
Available through: <https://c-suiteanalytics.com/what-is-employee-turnover/>.
Singh, K., 2016. RETAIL GIANT SENHENG TO ENTER E-COMMERCE FRAY WITH O2O
MODEL. 2016. [Online]. Available through:
<https://www.digitalnewsasia.com/business/retail-giant-senheng-enter-e-commerce-
fray-o2o-model>.
Zarah, L., 2018. 7 Reasons Why Research Is Important. 2018. [Online]. Available through:
<https://owlcation.com/academia/Why-Research-is-Important-Within-and-Beyond-the-
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Heng, L., 2012. Senheng grow on branding. 2012. [Online]. Available through:
<https://www.pressreader.com/malaysia/the-starmalaysia/20120425/283798555755149
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