Resourcing the Organization: Staff Turnover Impact on Tesco & M&S

This report examines the impact of staff turnover on organizations, focusing on Tesco and Marks & Spencer (M&S). It discusses both the positive and negative effects of staff turnover, including the loss of productivity and sales, as well as the introduction of new talent and ideas. The report analyzes the link between staff turnover and poor staff performance, highlighting issues such as overwork, lack of opportunities, and insufficient feedback. Furthermore, it explores how staff appraisal manages and improves employee performance and development, emphasizing clear understanding of responsibilities, motivation, and professional growth through training and open communication. The report also considers the use of performance standards and feedback mechanisms to enhance employee performance within Tesco and M&S.

Resourcing the Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Impact of staff turnover on organization.................................................................................3
2. Analysing the staff turnover linked to poor staff performance and critically discussing how
staff appraisal manages and improves employee performance and development.......................5
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Staff turnover is one of the major issue in relation with the corporates that may negatively
impact the organization in terms of loosing of productivity and sales of the company. In respect
to an organization for sustaining in the market it is important that the staff management need to
be incorporate in an organization so that it can attain growth and success (Belete, 2018). Thus, it
can be right to said that staff turnover has positive as well as negative impact towards the
organization. Tesco is one of the major retailing firm of UK which was founded in 1919. Its
main aim is to serve its customer the best quality product at the low price. This report will
discuss the positive as well as negative impact towards the organization. Likewise, the link
between the staff turnover and staff performance and contrary to this staff appraisal and staff
management is also a part of this report.
MAIN BODY
1. Impact of staff turnover on organization
Staff turnover is one of the major issue that has major impact towards the organization in
terms of acting as a barrier towards the growth and success of the organization. With the
persistence of high staff turnover, the organization and its working would be affected (Fukui, Wu
and Salyers, 2019). This would be right to said that with the aspect of turnover of staff the
resources as well as expenses of the company both being affected in terms of loss of highly
trained staff and affection towards the competitiveness of the company. With the loss of
employees, the organization would be affected in terms of losing the competitiveness in the
market.
In case of Tesco the staff turnover would lead to have a major impact towards the
organization in terms of raising of cost of recruitment, declining productivity, avoidable time
spend on training of employees as well as loss of sales. This shows that the staff turnover would
have a negative impact towards the Tesco and thus affect the organization in an extensive level
in terms of affecting the sales and the profitability of the company. With the persistence of high
employees turnover Tesco is affected in terms of declining productivity and low employee’s
morale among other. This means along with leaving of employees the other employees and staff
of the organization has been affected in terms of declining morale and thus a decline in the
performance of the existing employees (Xiong and Wen, 2020). This means with the persistence

of high employee turnover the Tesco may face the issue of high loss of cost and expenses which
are being spend towards their training and productivity.
However, on a contrary note with respect to leaving of employees the Tesco can also be
positively impacted in terms of broadening of ideas and the introduction of new talent in an
organization. With respect to staff turnover the Tesco may get rid of the toxic employees and
thus implement the positive work culture in the organization. Likewise, with respect to leaving
the employees the organization would be benefited in terms of bringing new talent in an
organization and thus assist its growth and success (Salleh and et.al., 2020). This will also lead to
assists the organization to move as per the changing trends with the presence of new talent and
knowledge. Likewise, with the hiring of new and talented employees the organization would be
positively impacted in terms of raising the morale of existing employees and thus initiate their
performance and progress. In the way with the measurement of employee’s performance against
the set standard Tesco also removes the toxic and inefficient employees which may destroy the
culture of organization. With such turnover rate the company would be positively impacted in
terms of dealing in the market and bringing and retaining the talented and knowledge staff.
On the other hand, in case of Marks and Spencer (M&S) the staff turnover would
negatively impact the organization in terms of loosing of productivity along with declining
performance. With respect to leaving of employees from the organization the morale and
productivity of the existing employees would be affected. Likewise, the company is also forced
to recruit new employees that will raise the cost of company and thus negatively impact its
working and operations (Wynen and et.al., 2019). With reference to M&S the company may face
the issue in relation with bearing of high expenses which are associated with the cost of hiring
and training. The high turnover of the company would also affect the competitive position in the
market and thus the performance of the company would be impacted at the higher rate.
In the same way with respect to turnover of the employees the M&S would be positively
impacted in terms of building up of productive team force in the organization. This is because
with the hiring of new talented candidates the M&S would build the highly productive workforce
in an organization which would assist the company in grabbing its goals and objectives. In the
same way the with the inviting of new talent in the organization the wider approach of the
organization can be achieved. Diversity in culture can also be bring with respect to hiring of new
talent and candidate in the organization (Loan, 2020). This means with the staff turnover the new

talent will be brought by the company that would assist the growth and success of the company.
This would also bring success to the company so that it can beat the market competition and thus
raise the proportion of sales and profitability.
Thus, it can be right to said that with respect to employee’s turnover the organization
would be positively as well as negatively impacted which may at the some may affect the
productivity of the company and at the same side with the persistence of fresh talent the
company can direct towards the success and growth (Kurniawaty, Ramly and Ramlawati, 2019).
In both the case of Tesco and M&S the staff turnover would positively as well as negatively
impact the organization which at certain level would assist the growth and success of the
organization and at the same side would negatively impact the organization in terms of losing of
sales and profitability.
2. Analysing the staff turnover linked to poor staff performance and critically discussing how
staff appraisal manages and improves employee performance and development
Employee turnover is defined as the number of workers, employees or staff who leave a
company over a certain time period. Employee turnover is the basis through which either the
employees are either fired or voluntarily exit the company they are working in. In the context of
employee turnover, there are certain aspects which helps in addressing how the employee
turnover is being addressed. The employee turnover can be due to death, retirement, termination,
transfer and resignation etc (Afzal, Arshad and et.al., 2019). The staff turnover rates have been
increasing in Tesco which is addressing the aspects as to how the employee turnover can be
stopped by providing the facilities to the employees as per their requirements so that there is less
employee turnover. The staff turnover is linked to poor performance by being overworked, lesser
opportunities in the decision-making, there is lack of feedback and recognition at large scale.
Due to poor staff performance within Tesco, there are higher rates of staff turnover which helps
in addressing that how the staff is working poorly which is affecting the performance at large
scale within the organization.
There are certain aspects which helps in addressing that how the staff turnover is linked
to the poor staff performance. Due to poor staff performance, Tesco may terminate the staff and
this impacts the growth and development of overall company. Poor staff performance is linked to
the staff turnover which helps in addressing the aspects of how the employees are performing

within organization and what are the reason which are being brought up for the employee
turnover (Stamolampros and et.al., 2019). Staff turnover is also affecting the perceptions of other
employees or other staff members which addresses that how Tesco is taking concern of reducing
the employee turnover and providing the employees or staff benefits so that the employees are
engaged in providing the aspects of how effectively they are contributing towards the growth and
development at large scale. If there is higher rate of staff turnover, then the other staff members
will also be affected and this will address the aspects as to how the employee turnover creates a
negative influence on the organization. The organization negatively impacts the growth and
development of Tesco.
The staff appraisal might be used to manage and improve employee performance and
development. Staff appraisal is defined as the review of employee's job performance and its
overall contribution to the company. The performance review and evaluation helps in addressing
the aspects as to how effectively and in appropriate manner the staff is appraised for their good
performance within Tesco. The staff appraisal helps the employees to address the employees'
growth, skills, abilities and achievements etc (Roscoe and et.al., 2019). Staff appraisal helps in
improving the performance of employees and help in developing the scale of success throughout
the performance within organization. The performance evaluation of employees within Tesco is
being done which helps in addressing the positive and negative reviews of the employees which
are given to them with the help of feedback. The job performance of the employees is
documented and evaluated at large scale and this helps in knowing that much the employees
have been performing in their job roles in Tesco.
The staff appraisal is being managed and improved by the following aspects which are
being addressed effectively and the staff appraisal can be used to enhance employee performance
in the following manner -
 Employees have a clear understanding of their outcomes and responsibilities.
 Employees are motivated and driven towards their individual goals.
 The performance of Tesco can be positively influenced which helps in the overall growth
and development of the company in effective manner (Tai, Ajjawi and et.al., 2018).
 Employees or the staff members within Tesco seek the path for their professional
development through training and development.

Also, with the help of open communication both in formal and informal manner the employees
are able to manage and improve the employee performance and development. The overall goals
and objectives which are being set helps in knowing that how the employees are setting the
aspects of achieving the performance excellence within Tesco (Stone, Cox and et.al., 2020). The
best staff appraisal delivers the positive feedback and advice for improvement by addressing the
communication which is done between the employees and the management of Tesco. There are
certain key aspects which helps in knowing the basis through which employee performance can
be improved and developed at large scale. These points of consideration are -
 The performance standards should be framed by discussing the potential of the
employees within Tesco.
 Choosing the best communication practices both formally and in informal ways.
 Giving the feedbacks frequently to enhance the performance of employees within Tesco.
 Training the managers to maximize the process of appraisal which helps in delivering the
aspects as to how the employee performance can be taken into consideration and how the
managers are being trained so that they take consideration the training and development
of the employees (Abubakar, Elrehail and et.al., 2019).
 Serving different tools to obtain important data so that the performance of employees is
being analysed and evaluated within Tesco.
Tesco has framed the performance appraisal scheme which is very engaging and motivating.
Tesco uses 'Tesco Steering Wheel' as a tool to drive performance which keeps intact the process
through which the employees' performance is being analysed and improved at large scale. Tesco
also has framed the discipline policy for the employees' performance. The appraisal system is
very effective in its feedback and this is provided on regular basis (Lacerenza and et.al., 2018).
The feedbacks help in improving the employee performance and creates value through which all
employees work more on improving their performance at large scale within employees. The
managers and supervisors provide training to the employees so that their performance is
improved in appropriate manner within Tesco.
If the employees are not doing well within Tesco then they are provided the aspects as to
how effectively the manner in which all employees whose performance is not up to mark are
undergone into training and development at large scale. It is very important that the employees'
performance is being analysed and scaled upon which helps in addressing the aspects as to how

effectively the company is taking concern of what are the measures of improving the
performance of employees at large scale (Aburumman, Salleh and et.al., 2020). The growth and
development of the organization is identified by the employees' performance which keeps the
aspects of how the company is addressing the positive and negative performance scales. This
helps in indicating that Tesco is following the appraisal system which keeps intact the
performance of employees and engages them to deliver high scale performance.
There are monthly, yearly and weekly performance appraisal systems which helps in
addressing the aspects of growth and development at large scale. Tesco is focusing and is in
concern with the performance with the employees which is being analysed at large scale. This
helps in knowing that how the employees' performance is keeping the scale of providing
opportunities to the employees and is helping them to focus on their job roles in an effective and
efficient manner. Tesco is also helping the employees to improve the performance by motivating
them by framing some activities and tasks which are being addressed to solve the perspective of
how the management is taking concern at large scale.
Thus, it is very important that the company is considering the aspects of growth and
development through the employees' performance at large scale. This helps in knowing the
measures as to how Tesco is engaged in planning and framing of activities at large scale in
appropriate manner. Employee performance is being evaluated with the aspects as to how the
Tesco is considering the aspects of growth and development overall (Diamantidis and
Chatzoglou, 2019). Tesco is also providing the positive work culture facilities to the employees
so that there is less employee retention and the employees are working effectively and in
appropriate manner at large scale. Also, with the help of training and development, Tesco is able
to deliver the aspects of growth and development which are making and keeping the perspectives
of evaluating and scoring the performance of individuals or employees. With the help of taking
care of the employees, the company is able to take concern of employee motivation which is
being considered for improving the performance of employees at large scale.
Considering the positive aspects of growth and development within Tesco, it is important
that the company considers the positive aspects of how to improve the skills, achievement and
abilities of the employees within their job role. Tesco is also working for the welfare of the
company and is taking concern of the aspects of improvements within performance in an
effective and efficient manner (Saeed, Afsar and et.al., 2019). Therefore, the employee

performance is measured and appropriate tools are utilized for improving the poor performance
of employees within Tesco. This helps in addressing the aspects of both the employee welfare
and the performance which they are delivering at large scale in appropriate manner possible for
growth of Tesco.
Thus, from the above it can be analysed that staff turnover has a direct impact towards the
poor performance of employees. This is because with the leaving of employees the organization
would be negatively impacted in terms of losing and declining the performance of existing
employees and the whole team. Likewise, on a contrary note is also analysed that with respect to
performance appraisal the management of staff can be ensured (Diamantidis and Chatzoglou,
2019). This is because with the appraisal of good moves of the employees, the staff will be
motivated in terms of taking more effective moves and thus the performance of the employees
will be raised and lead to the management of staff. In the same way it is also analysed that with
the appraisal of employees moves they will be directed and insisted towards the growth and that
lead to their development and the attainment of individual goal along with the goal of the
organization.
Likewise, it was also analysed that with respect to high turnover of the employees in an
organization the performance of the employees will be decline along with affecting the
organizational performance. This is because with the leaving of talented staff the organization
would be affected in terms of loosing of productivity and competitiveness (Fukui, Wu and
Salyers, 2019). Thus, it is important that appropriate moves like the appraisal of employees and
other necessary moves will be taken so that the staff management can be ensured along with
ensuring retaining and development of employees. This means in order to succeed and retain in
the competitive market it is important for the company that they take most effective moves
towards the retention of employees and staff management and at the same time would also
consider towards the removal of ineffective and inefficient employees so that productive
workforce can be build.
CONCLUSION
From the above report it can be concluded that staff turnover is one of the major issue in
relation with the organization that would negatively impact the performance and working of the
organization. The high turnover of the organization would negatively impact the organization

and thus need to be managed with the adoption of performance appraisal technique so that with
the appraising of good moves of the organization the performance of the company can be raised.
In the same way it is also understood from the report that with respect to persistence of staff
turnover the organization would be impacted in terms of declining the performance of the
organization. This shows that it is highly important that the organization need to adopt most
appropriate method that can retain the talented workforce along with considering the removal of
toxic employees which may have a negative impact towards the organization and its culture.

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