Employee Satisfaction and Retention at Superdry: An In-depth Report

Desklib provides past papers and solved assignments. This report analyzes employee satisfaction's impact on Superdry's retention.

The impact of employee satisfaction process on employee
retention of super dry
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Table of Contents
Chapter 1: Introduction....................................................................................................................3
Chapter 2: Literature Review...........................................................................................................7
Chapter 3: Methodology................................................................................................................12
Chapter 4: Data findings and analysis...........................................................................................15
Chapter 5: Conclusion and Recommendation...............................................................................24
Reference List................................................................................................................................26
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Chapter 1: Introduction
The motive of the organisations is to improve the satisfaction of the employees so that employee
retention rate can be improved. In addition to the employee, satisfaction can be created if the
management provides an effective working atmosphere for them. For instance, the employers
need to provide incentives, appraisals and promotion to the employees so that their level of
satisfaction can be boosted. On the contrary, at times the management fail to analyse the need of
the employees, which in turn affect the employee satisfaction rate. In the present chapter,
importance of employee satisfaction will be discussed. In addition to that, the aims, objectives
and the questions of the study will also be discussed. On the contrary, the problems related to
employee satisfaction will also be critically analyzed. Lastly, the structure of the dissertation will
also be presented.
1.1 overview of the study
As per the literary underpinnings of Bakotić (2016), employee satisfaction is a term, which is
being used to define the working condition of the employees within the organisation. The scholar
has further mentioned that employee satisfaction is positively related to employee retention.
Further, in order to boost the employee satisfaction level the management need to create an
employee friendly working atmosphere by providing them incentives, appraisals and promotions.
In certain organisations, the employee satisfaction witnesses a downfall because they fail to
maintain their work life balance. As per the report of Glassdoor, the management of Superdry is
friendly to the employees so that they can be motivated. For instance, they provide discount to
the employees so that they can also get a scope to purchase their products. In addition to that,
they also provide fixed off for the employees so that they can maintain their work life balance.
In recent times, the working condition of fashion retail sector is facing a challenge because of
excessive work pressure. Moreover, 75% of the employees in retail sector prefer to change their
jobs due to unfavourable conditions (Hanaysha, 2016). For instance, the women employees fail
to manage their responsibilities, which affect their satisfaction rate. In addition to that, 40%
executives of fashion retail think that retaining the employees within the organisation is a
challenging job for them. Further, 69% of the management people think that they need to
innovate new strategies in order to increase the level of employee satisfaction.
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1.3Aim of the study
The aim of the study is to analysis the impact of employee satisfaction on employee retention.
1.4 Objectives of the study
The objective of the study has been discussed below:
● To analyse the impact of satisfaction process on the employee retention rate of Super Dry
● To surface the challenges that are being faced by Super dry while retaining their
employees
● To pinpoint the methods used by super dry in enhancing employee retention rate
● To recommend the strategies which are being used by super dry in order to mitigate the
organisational issues
1.5 Research questions
The questions of the study have been discussed below:
Primary Question
● What is impact of employee satisfaction on employee retention rate
Secondary Questions
● What challenges are being faced by the management of super dry while retaining the
employees
● What strategies are being used by the management of super dry while retaining their
employees
● What steps are being used by the management of the organisations in order to solve their
issues
1.6 Rational
Employee satisfaction rate plays a crucial role within the organisation because it helps the
organisation to earn high rate of profit in the market. In addition to that, employee satisfaction
also improves the employee turnover rate within the organisation. On the contrary, in the fashion
retail sector, the unemployment rate has been increased by 4.8% because employees fail to
manage their work pressure. However, it can be stated that the management of the garment retail
sector can provide salary increment to the employees so that they can be motivated. In recent
times, 555,000 employees have been recruited in the garment retail sector of UK so that the work
pressure can be equally divided among the employees. In order to increase the employee
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retention rate the management need to provide then effective training so that their level of skill
can be enhanced (Kim, 2016).
As per the report presented by BBC news, the clothing industry of UK is undergoing a turmoil
condition because it is posing a great threat to the environment. The Processing of synthetic
fabric releases carbon dioxide, which in turn increases the rate of global warming. Discarded
clothes are also being piled up on the landfills, which further cause land pollution (Bbc.com,
2019).
As per the report of The Guardian, in UK, the rate of employee turnover within the clothing
sector is increasing because the employees are being paid less as compared to other sector. The
present study will surface the impact of employee satisfaction on employee retention rate.
1.7 Significant of the study
This study is important because it has surfaced the ways of enhancing employee satisfaction
level so that the competitive position of the organisation can be improved in the market. Through
this study, the management of garment retailers can get an idea about the ways through which
they can enhance employee satisfaction rate. Thus, it can be mentioned that this study will
enhance the employee retention rate within garment retail organisations, which further will
enhance their profitability. Lastly, it can be mentioned that this study will also guide the future
researchers conducting the study based on the same topic.
1.8 Structure of the dissertation
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Figure 1: Structure
(Source: Created by the learner)
1.9 Summary
Thus, in this section, the importance of employee retention with the garment retail has been
discussed. In addition to that, the objectives, aims and questions have also been discussed in this
section. Further, the present working condition of garment retail sector has also been critically
analysed here.
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IntroductionMethodology

Chapter 2: Literature Review
2.1 Introduction
Literature review is a technique in which the past work of the scholars have been critically
analysed so that the study can be conducted in an effective manner. In this study, the importance
of employee satisfaction has been analysed. In addition to that, factors affecting employee
satisfaction has also been discussed. Further, the challenges faced by the clothing industry have
also been critically analysed. The impact of employee satisfaction on employee retention rate has
also been mentioned here. Lastly, the strategies used for improving the employee satisfaction
have also been discussed.
2.2 Theoretical framework
Importance of employee satisfaction
Employee satisfaction plays an important role within the organisation because it helps to
improve the employee retention rate. As asserted by Zheng et al. (2015), employee satisfaction is
a process of making the employees happy so that they can give their best to the organisation.
Further, the scholars have mentioned that employee’s satisfaction increases the employee loyalty
towards the organisation so that more number of employees can be attracted in the future days.
On the contrary Amdam et al. (2015), has mentioned that employee satisfaction can reduced if
the management pressurises the employees. Moreover, if the employees are pressured they are
compelled to work which further affects the performance level. As opined by Maduenyi et al.
(2015), employee satisfaction level enhances the employee retention rate. However, as per the
report of The Guardian, in the year 2010, 11,700 employees have been recruited within the
garment retail sector. The report has further mentioned that in the year, 2017, 75% of the
employees have left the industry because they were paid 3 pounds per hour. In addition to that
Maia et al. (2017), has mentioned the salary that is being paid to the employees of clothing
industry is less than the minimum wage rate and living rate of UK.
Employee satisfaction is important within the clothing industry because it helps to enhance the
rate of profit earned by the organisation. Further, in order to enhance the satisfaction level among
the employees the management of the organisations need to provide employee benefits such as
salary hike, medical benefits and performance appraisals. Further, the management has to
communicate with the employees effectively so that their satisfaction can be boosted. For
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instance, the management of NEXT PLC conducts interdepartmental group communication so
that the relation between the employees can be improved which further enhances their
satisfaction level. Lastly, Mahmood and Muhammad (2017) have mentioned that if the work
environment satisfies the employees then they can adjust themselves under any circumstances.
Factors affecting the employee satisfaction within an organisation
The factors that affect the employee satisfaction within the clothing industry have been
mentioned below:
Effective training
As opined by Hendrayati (2015), the organisations need to arrange effective training sessions for
the employees so that their level of skills can be boosted. Further, the training needs to be
provided as per the requirement of the employees so that their satisfaction level can be uplifted.
For instance, in NEXT PLC, online training sessions has been launched so that employees from
various geographical local can attend the training sessions. However, Rogerson (2018) has
mentioned that at times all the employees cannot take the training sessions equally because their
potential level is different.
Communication level
As per the comment of Goss (2015), effective communication is important within the
organisations because it helps to maintain positive relation among the employees. Through
effective communication process, the employees can easily share their issues with the
management, which further enhances their satisfaction level. On the contrary Goss (2015) has
mentioned that at times the communication process becomes ineffective due to language barrier.
Thus, it has been suggested the management need to train the employees in two languages. For
instance, in Marks and Spencer, the management celebrates various social occasions such as
birthday of employees so that they can get a chance to communicate with each other.
Facilities
In order to enhance the employee satisfaction rate the management of the organisations need to
provide various facilities to them such as promotion to the employees, performance appraisals,
incentives and health facilities. However, as stated by Hammer (2015), performance appraisal
may affect the relation between the employees because all of them cannot perform in a same
way. In Marks and Spencer, the management provides discounts to the employees so that their
satisfaction level can be improved. Further, they also provide awards to the employees based on
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their performance in order to motivate them. In order to secure the life after retirement, marks
and Spencer provide pension to the employees. The management of Marks and Spencer also
provide promotion to the employees based on their promotion so that their satisfaction level can
be enhanced. Lastly, in order to enhance employee satisfaction, the management provides health
insurance to all the employees so that they can get a chance to live a healthy life.
On the contrary, as per the report of the guardian, in Clothing retail sector, the management does
not look after the wellbeing of the employees, which in turn affects their employee retention rate.
For instance, the clothing sector of UK does not provide health benefits to their employees for
which they get de-motivated. Further, the employees are often bullied which also affected their
mental condition (Theguardian.com, 2019).
Theories of employee satisfaction
In order to improve employee satisfaction the management of the organisations can use Herzberg
Two Motivational theory. In addition to that, two factors of motivational theory are hygiene
factors and motivational factors. In order to maintain the hygiene factors the management need
to pay timely salary to the employees along with incentives and performance appraisals. On the
contrary, in order to maintain the motivational factors the management of the clothing industry
need to treat all the employees equally. For instance, while taking organisational decision the
management need to include all the employees so that their importance can be boosted (Hammer,
2015).
Advantages of employee’s satisfaction within the clothing industry
The advantages of employee satisfaction have been discussed below:
Employee retention Rate
As per the comment of Hendrayati (2016), if the working environment of the organisation
satisfies the employees then the employee retention rate also is enhanced. Further, if the
employee retention rate is high then the competitive position of the organisation can also be
improved. For instance, in Marks and Spencer, the employee retention is high because they
provide various facilities to them. For instance, in Marks and Spencer, the management provides
20% discount to the employees while shopping so that they can be motivated. On the contrary, in
the clothing retail sector the employee turnover rate has been increased to 4.8% because the
organisations have failed to provide facilities to the employees. For instance, in the clothing
sector, the employees are denied of providing health benefits and other elements of welfare. In
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addition to that, the female employees are also bullied in the workplace, which further affects the
employee’s satisfaction level.
Organisational profit
As per the comment of Hendrayati (2016), training sessions does not help the employees if they
are not attracted to the organisation. On the other hand, Goss (2015) has mentioned that,
employees spend maximum time by fighting with their counterparts, which in turn affects the
working atmosphere. In order to improve the working atmosphere of the organisations the
management need to treat all the employees equally.
However, the schloar has mentioned that if the working atmosphere satisfies the employees then
the competitive advantage of the organisations will also be improved through the word of mouth.
The employment rate will also be increased because the present employees will try to motivate
their acquaintances so that also join the same organisation. For instance, in NEXT PLC, the
present employee get referral amount for referring candidates.
The challenges
The challenges faced the employees of the clothing industry have been discussed below:
Different treatment
In the clothing retail sector of UK, the employee satisfaction level has been affected because the
management treat the employees differently. For instance, the female employees are always
looking down. Further, the management denies providing maternal leaves to the female
employees. At times, the female employees are provided with toilet and lunch break. At times,
the salaries are also not paid on time. Lastly, the female employees are also mentally harassed
and are not provided with employment contract (Bakotić, 2016).
Salary Issues
In the clothing retail sector of UK, the satisfaction level among the employees has reduced
largely because their salary is less. In addition to that, the employees of clothing sectors get de-
motivated because they fail to maintain work life balance due to excessive working pressure. For
instance, the clothing retail sector the employees are paid three pounds for an hour which is less
than the minimum wage rate of UK. As per the report of international labour organisation, in the
clothing sector of UK, an employee is permitted to work for 8 hours a day. However, they are
being forced to work for more than 10 hours a day. As per the rule, in a week an employee can
work for 48 hours. However, in the clothing sector of UK, the employees are forced to work for
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more than 50 hours. Thus, it can be mentioned that that in the clothing sector of UK, the
employees are being harassed.
Treatment issues
In the clothing sector of UK, the employees are not being treated equally, which affects the
employee satisfaction rate. As per the report presented by The Guardian, the year 2010, 80% of
the workers in the clothing industry was women. However, in the recent times, it has been
reduced by 15% because of workplace inequalities. In addition to that, the female employees are
harassed by treating them in a different manner. Further, no paid holidays are provided to the
female employees. However, no maternal leaves are also provides to them. Lastly, the male
employees often bullies the female employees Thus, they get dissatisfied.
2.3 Research gap
In the present study, not all the articles have been accessed because the individual was unable to
access paid version journals. In addition to that, not all the articles have been used because they
contained repetitive information and less than 500 words. In the works of Bakotić (2016), the
importance of employee satisfaction has been mentioned. However, the factors affecting
employees satisfaction has not been surfaced. Therefore, in this study both the importance of
employee satisfaction and factors affecting employees satisfaction have been mentioned. On
ever, in the works of Kim (2016), the theories of employee satisfaction has not been mentioned.
Thus, in this study, the theories of employee satisfaction have been surfaced. Lastly, in the works
of Zheng (2015), the advantages and issues of employee satisfaction has not been mentioned. On
the other hand, in this study both the advantages and challenges have been mentioned.
2.4 Summary
Thus, in this section of the study the importance of employee satisfaction has been discussed. In
addition to that, the factors affecting employees satisfaction has also been critically analysed.
Additionally, the advantages of employee satisfaction have also been discussed. However, the
challenges faced by the clothing industry have also been discussed here. Lastly, the theory
related to employee satisfaction has also been discussed.
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Chapter 3: Methodology
3.1 Introduction
It is essential for the researcher to identify the way they would conduct the research and this
section will provide information regarding the way the research would be conducted. In order to
fulfil the research objectives the philosophy, approach and design would be discussed in this
section of the dissertation report. This section will provide information about the type of research
that would be conducted for this dissertation study.
3.2 Research process
The research process demarcates the research designs, research philosophies and research
approach performed in this study in order to understand the research topic and fulfil the research
objectives of this dissertation.
 Research philosophy determines the belief based on which the research data would be
collected, used and interpreted (Kumar, 2019). There are three primary types of research
philosophy, positivism, realism and interpretivism. Positivism research philosophy allows
the researcher to conduct research following an objective strategy. Results derived from
this type of research using positivism research philosophy allow the researcher to develop
knowledge based on facts and observation. Realism philosophy allows the researcher to
derive his results using human senses and external images or sensations to understand the
outcome of the research. An interpretivism research philosophy allows the researcher to
interpret the data collected through various existing theories.
For the successful fulfilment of research objectives for this research study, a positivism
philosophy would be applied.
 Research design determines the type of procedures and strategic steps that the researcher
would incorporate in their design plan for fulfilling the research objectives (Sekaran and
Bougie, 2016). In general, there exist three major research designs, descriptive,
exploratory and explanatory research designs. The descriptive and explanatory research
designs provide conclusive results to the researcher whereas the exploratory research
design gives inconclusive results to the researcher from the data collected and analysed
for the research.
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