An assessment of the impact of motivation on employee retention in the retail sector: A Case Study of Tesco
Name
Master’s Proposal Paper
Outline
Introduction
Rationale for the proposed study
Research Questions
Research Objectives
Literature Review
Research Methodology
Research Design
Sources of Data
Primary data collection
Secondary data collection
Study Area
Population
Sampling Techniques
Data Collection Techniques
Research Design
Data Analysis
Barriers and Limitations of the proposed research
Ethical Considerations
Introduction
A major concern for many organisations is the ability to retain a skilled workforce to promote high levels of employee turnover and wok satisfaction. Employees are the major asset of any organisation as it is through their expertise that a competitive edge in the market is created in addition to competing favourably. However, it is hard for most organisations to retain their skilled employees owing to the fact many incentives being offered by rival companies, thus taking competition to a higher level (Armstrong 2009). To do away the negative effects of turnover, it is advisable to promote retention of employees in the workplace. Reiß (2008) defines employee turnover as the movement of workers inside and outside organisations as part of employment process. Employees’ turnover can be positive of negative or positive consequences on an organisation. Nonetheless, majority of organisations carryout practices to do away with the negative effects of employee turnover to promote positive results in the workplace (Reiß, 2008; Zahorsky, 2010).
The most vital resource of an organisation is employees and as such, they out to be motivated. In an event a company fails to fulfil employees expected basic working conditions, employees tend to be frustrated (Deiblová 2005). Kolman (2003) contends that this prompts an employee to leave the workplace because of inadequate job satisfaction (Linhart 2003). Motivated employees are empowered and are likely to deliver quality products and services to customers, leading to satisfied customers. In this vein, it is vital to determine whether the level of motivation at Tesco has resulted in improved products and services. It is vital to note that highly motivated employees tend to be very innovative, effective and enhance a company's reputation, in addition to reducing high rates of turnover.
The following research proposal attempts to examine the effects of motivation on employee retention in a Tesco store, located in London Road, UK.
Rationale for the proposed study
Because of its position in the UK’s retail sectors, there is need to determine the impact of motivation on employee retention at Tesco (UK) supermarket from both a strategic and an operational context. Besides, measuring employees retention factors and understanding employee perspectives are vital any organization‘s success. From an operational context, Tesco is a key player in the UK retail sector and this call for an effective supply chain management. When employees are not well motivated, they are likely to quit their jobs, which in turn, affect the supply chain management and profitability. By carrying out the research, it is the hole of the research to reveal the important role played by satisfied employees in Tesco's supply chain and determine factors that motivate employees to reduce employee turnover to save the cost incurred in the form of recruiting new employees. The research is significantly important as it shall assist in revealing how the management of Tesco motivates its employees, and whether this has resulted to high or low employee retention rates.
Financial incentives are commonly used forms of motivation to promote employee retention (Vnouckova & Klupakova, 2013). Therefore, the study shall show how practices such as financial security as motivation factors entice employees at Tesco to remain. The current study will therefore help to shed light on whether the existing motivation strategies practices by the organisation are adequate to help the organisation achieve this goal.
Research Questions
The proposed research seeks to answers the following questions:
a. What factors influence employee retention?
b. What is the relationship between motivation and employee retention?
Research Objectives
The research hopes to determine the impact of employee motivation at Tesco. To achieve the aim, the specific objectives are to:
i. Determine the factors that motivate employees at Tesco
ii. Assess the key retention factors of workers at Tesco
iii. Evaluate the type of environments likely to contribute to high employee turnover at Tesco
iv. Provide recommendations for adoption by stakeholders at Tesco on how to improve employee motivation.
Literature Review
The major responsibility of management of any organisation is to ensure that its workforce is motivated. Different types of motivation have to be operationalized by the management (Mintzberg 2006). Šule? (2008) contends that the major role is to engage the subordinates staff via delegation, mentoring coaching and performance appraisal (Šule? 2008). A workforce culture should be cultivate that supported the path and time of the staff should be cultivated (La Brosse 2010). As such, the management should endeavour to take hold of all opportunities in a bid to recognise and persuade their worker force. Limited motivated behaviour ensures that the actions and goals of employees are not fulfilled and established. The major shortcomings associated with lack of motivation in the workplace are such as work inefficiency, absenteeism, and high employees’ turnover (Šule? 2008). These problems can be avoided if employees are activated.
According to Plamínek (2010), lack of appreciation, adequate communication, and treating employees with utmost respect results into dissatisfied employees. Consequently, this results to low performance levels supported by imminent turnover problems, increased physical problems, and absenteeism (Crainer 2004). Employees’ motivation is a significant managerial task (Niermeyer & Seyffert 2007; Daigeler 2008). Daigeler (2008) opines that manager's dimension to motivate employees is limited since fundamental motives are innate to an individual employee. Nevertheless, the innate fundamentals of motivation can be achieved through stimulation of employees (Daigeler, 2008). Therefore, management should always pay a closer attention to its workforce even when it is hard to determine their internal motives (Niermeyer & Seyffert 2007).
Some of the motivational methods such as the use of motivation statements, principles and slogans, and motivational speeches rarely work (La Brosse 2010; Niermeyer & Seyffert (2007). Therefore, harmony among employees is core to addressing the issue of employees’ turnover rates (B?lohlávek 2008; Jenkins 2009; Ramlall 2004). Maslow's hierarchy of needs which is based on a pyramid of needs is employed when motivating employees. According to this Maslow's hierarchy of needs motivation theory, when a worker feels that a need higher on Maslow's hierarchy of needs is not been fulfilled, they certainly look for satisfaction of another need ranked lower on Maslow's pyramid of needs. For example, if employees’ self-development needs have not been met, they tend to fulfil their relationship needs (B?lohlávek, 2008; Mikuláštík, 2007). If their relationship needs not met, there is likelihood that the employee will ultimately leave his jobs because the work conditions do not work in his favour. Therefore, motivation ought to be practised to promote employees’ retention in the workplace.
In a study to determine the effect of career development practices on employees' turnover intention, Foong-ming (2008) established that the key factor that influenced employees' ‘turnover intentions was the nature of a company’s practices. He further established that such practices positively motivated employees, in that way reducing employees turnover rates. In the process to determine the impact of employee job satisfaction on motivation and how this affected their turnover intentions, Bloch (2004) established that job satisfaction increased employee motivation, in addition to minimising employees’ turnover intention. The findings are supported Olusegun’s (2012) research conducted that found that there existed a closely knit relationship between job motivation and turnover intention. He further found that less motivated employees tended to quit their jobs for job positions with better pay and conditions. As such, Olusegun (2012) recommended the use of job motivation to enhance job satisfaction among the workforce. As a result, organizations cut down the levels of turnover intentions. He posits that “Motivation on the job should not be restricted to material gifts, awards of medals and certificates; sponsorships for training should also be introduced” (Olusegun 2012, p. 14).
Ahmed (2001) states that a reward and recognition program effective strategies to amplify employee's satisfaction and motivation in the workplace. He notes that promotion, payment, and working conditions are the primary factors that influence on employee's satisfaction and motivation. These factors when implemented promote employee retention and enhanced performance. Furthermore, guaranteed work security plays a “vital role in assisting employees in the achievement of organizational objectives such as the rendering of quality service in enhancing customer satisfaction whilst attaining customer retention and loyalty” (Nepwanga 2011, p.53). Thus, guaranteed work security is vital as a part of motivation strategy because it promotes productivity and quality of work done as well as working towards the achievement of organizational and personal goals.
To determine the link between training programs, employee retention and rates of retention among employees of a Wisconsin-based company, Kaiser (2006) carried a study that established that employee's turnover is reduced by proper orientation and training. A different study carried by Brum (2007) established that the use of employee training and development can act as a motivating tool that establishes a productive workforce. Furthermore, of employee training and development promotes employees commitment, which in turn, assist in reducing turnover. In spite of the importance of employees training and development, management should not be over emphasized. However, it is clear that it is useful in retaining employees in the workplace in addition to making them feel appreciated. Nepwanga (2011) advises that after employees training, management is required to “offer them support systems and then put in place measures to retain them within the organization after undergoing the training and development” (p. 57). This means that employees have to be supported to effectively put into work what they have learned through training.
To determine the retention factors and turnover drivers among hourly workers, Borstorff and Marker (2007) took a research that showed that work/life balance, base pay and health benefits were the primary factors that determined employees’ turnover and retention rates among hourly workers. For this reason Faustina (2011) advises that, “More attention should be given to the direct and indirect influences of variables on intention to quit as opposed to the actual act of turnover” (p. 59). The rationale provided was that “intention to quit may be a more important variable than the actual act of turnover” (Faustina 2011, p. 59). In the same vein, better understanding of employees’ intention to quit their jobs is important to the employer because the knowledge can be used to provide incentives and better work environment conditions, thus retaining the employees. Besides, motivation is always vital because it considerably relates to the employees turnover intentions in the workplace (Nepwanga 2011).
The major factors identified to influence employee turnover in a study by Hackman and Oldham (1980) are (1) employee level of benefits and compensation, (2) establishing meaning in work, (3) employee promotion and development, (4) work safety, (5) the superior style of management, and (6) the way in which employees relate with each other. Pass (2005) as cited by Anderson (2009) identified respect, relationships and recognition (the 3R system) as the key factors for employee satisfaction in any organisation. Above the 3R system are factors that influence employee turnover are such as safety and security at the workplace, remuneration, and an appropriate workplace culture (Anderson 2009; Branham 2005; Katcher & Snyder 2007).
Based on the Maslow's hierarchy of needs, it is easy to divide the motivational factors responsible for employee satisfaction (Ramlall 2004). These can be based on workplace concept, treating employees equally, and fulfilment of expectations. There is a high correlation between the level of employee compensation and employee's level of satisfaction in the workplace (B?lohlávek 2008; Kocianová, 2010). This means, increase in the levels of employee turnover are motivated by these factors. Therefore, it is advisable to enhance employee qualifications via training and development programs in addition to providing distinct specification with regards to meaning of the content of a certain position, and to employees' competences improvement.
Research Methodology
Collis and Hussey (2007) describe methodology used in research as a way to meticulously plan and organize the goals of research and address any questions related to it. Different tasks carried under methodology ensure that the research is successful, since methodology is the core of a research.
Sources of Data
Data from both primary and secondary sources shall be used. Kumekpor (2002) describes secondary data as the application data and information already in existence, but was collected for other uses instead of the aim of the proposed study. The major sources of secondary data for the study shall be gathered from journals, peer reviewed articles, reports, and the World Wide Web (Kumekpor 2002). Thus, existing publications on the topics related to employees motivation and employee retention shall be used. On the other hand, the researcher shall collected primary data, specifically for the proposed study. As such, the primary data shall be collated from a specific Tesco store among the selected participants, through the use of semi-structured questionnaires (Nyamekye 2012).
Study Area
Specifically, the study shall be carried in Tesco UK Ltd, in one of its major stores located in East Midlands. The primary targeted is Tesco store, found in London Road. Tesco store was chosen because of its outstanding performance, in addition to being the current market leader in the UK retail sector, with a market share of 30 percent. By determining the effect of motivation on employees’ retention at Tesco, London Road, the study shall elucidate the pattern in the larger UK, retail sector.
Sampling Techniques and Sample Size
Employees working for Tesco, London Road form the target group of this study. A sample of 60 respondents shall be used in the research study owing to time and financial constraints. Thus, 60 participants shall be chosen from a sample population of 150 employees working in the selected store. A simple random sampling process shall be adopted to come up with the proposed sample size. A simple random sampling is one the simplest methods of sampling used in research study (Cresswell 2007; Gideon, 2012). Under this technique, the 150 employees are randomly sampled through the use of an identified random number generator. The implication is that each of the Tesco’s employees in London Road will have the same probability of addition into the data collection process. This means that each of the 60 respondents shall be selected by same likelihood and shall have an equal chance of being selected (Cresswell 2007). Simple random sampling is chosen over other sampling techniques because the probability of each member being selected is increased (Cochran 2007).
The key advantage linked to simple random sampling is the aptitude to allow freedom from bias and representativeness. According to Frerichs (2008), this means that the researcher will have freedom from human bias for the reason that each of the Tesco’s London Road workers shall have an equal opportunity to participate in selection process. As such, simple random sampling shall encourage external validity and reliability.
Data Collection Techniques
Collis and Hussey (2003) posit that data in empirical research studies is collected through interviews, participant observation, focus groups, and a questionnaire survey. Face to face or phone conversations are used while carrying interviews. Interviews can either bestructured, semi-structured, or unstructured interviews. On the other hand, focus groups are more often than not employed to collect data, predominantly in the form of views, collated from a selected group of people on a prearranged and particular topic (Silverman 1993). According to Saunders et al. (2007) focus groups should be conducted in a relaxed atmosphere to allow effective discussion of the matter. They are adopted to provide a platform for developing a questionnaire form or an interview schedule.
Participants’ observations like the name suggests allows the researcher to observe the behaviours of persons being studied. Gill and Johnson (1977) contend that a researcher plays a covert or an overt role as a complete participant, complete observer, observer as participant, or a participant as observer. A designed questionnaire with relevant questions is used to collected data that aligns with the research topic. The primary varieties of questionnaire approaches are online questionnaire, delivery and collection questionnaire, telephone questionnaire and postal/mailed questionnaire, (Saunders, Lewis & Thornhill 2003).
The primary data collection tool us a questionnaire survey, chosen over other methods because of its flexibility. Besides, t it presents a researcher with the opportunity to collect data necessary for statistical inferences and presentations (Khan 2011). As noted by Kumekpor (2002) questionnaires allow a researcher to provide consistency, organisation and path of the project in comparison to the other methods. Data collected through questionnaires can be scored and coded easily, thus enabling effective data analysis and interpretation. They provide a researcher with the room to use both closed ended and open ended questions, which allows respondents with chance to give their on issues raised in the questionnaire.
Research Design
De Vaus (2001) states that “the function of a research design is to ensure that the evidence obtained enabled us to answer the initial question as unambiguously as possible” (p. 9). As such, as social survey design shall be adapted. A social survey shall make the utilization of a smaller target audience thus doing away with a larger population. A survey according to Gideon (2012) allows a researcher to select smaller sample size and allow generalization of the research findings.
Research Approaches, and Research Philosophies
Quantitative and qualitative research, applied and basic research and deductive and inductive research are the key research approaches. A quantitative research involves the collection and analyzing of numerical data, whereas a qualitative research examines and reflects on concrete characteristics of research subjects such as perceptions and attitudes, (Cresswell 2003). In qualitative research, the outcomes are expressed in participants’ perceptions and attitudes, whilst in quantitative research entail statistical presentation of data.
Owing to the nature of the research and its setting, a quantitative research approach shall be adopted.This means that a survey questionnaire shall be used, with an emphasis on the collection and analysis of numerical data.
Inductive and Deductive Approaches
Deductive research comprises the move from broad theories and ideas already proven via previous researched to a specific situation, whilst inductive research essentially shifts from explicit and meticulous situations to deduce or make common theories (Collis & Hussey 2003). From the two, deductive is the most appropriate for the proposed study compared to deductive approach. Its suitability is based on Cresswell’s (2003) view that deductive approach provides a researcher with a comparatively methodical and simple way to assess existing ideas on a variety of persons. Thus, we shall assess the effects of motivation on employee retention in the retail sector.
Positivistic and Phenomenological Approaches
These are the common research philosophies adopted in qualitative and quantitative researches. Collis and Hussey (2003) posit that “Positivistic approaches are founded on a belief that the study of human behaviour should be conducted in the same way as studies conducted in the natural sciences” (p. 52). The implication is that positivistic approaches are applied when seeking, identifying, measuring, as well as assessing the effect of motivation on employee retention in Tesco UK, store and to make available rational explanation for it. Since quantitative approach shall be adapted, the most suitable research philosophy is positivistic approach.
According to Collis and Hussey (2003), phenomenological approaches are applied with the aim to comprehend the behaviours of a group of persons from their viewpoint. Positivistic approaches have been chosen over Phenomenological approaches because they are more suitable for surveys containing quantitative work (Collis & Hussey 2003). Besides, phenomenological approaches are majorly employed to comprehend the behaviours of a group of people from their point of view
Data Analysis
Secondary data is reviewed under the literature review part of the research study with the aim of providing the general idea of the existing studies on motivation strategies of employees in the workplace. As part of analysis, major findings, agreements, and gaps in literature are identified. Primary data gathered via a questionnaire survey shall be analysed through SPSS (Statistical Package for the Social sciences). SPSS is the suitable choice over Microsoft Excel tool since it is widely applied in the analysis of data in social sciences. The method is also easy to use, in addition to being flexible. Through SPSS, the research shall produce the required frequency tables and charts.
Barriers and Limitations of the proposed research
All employees in Tesco shall not be part of the research study, because the research is limited to 60 participants from a single store across the UK. Only employees (the subordinate staff) shall be used, meaning that management of the retail chain shall be excluded, despite their better position to provide answers to the research topic. Delays are anticipated as well as wrong answers from the employees. Since a quantitative approach shall be employed, the attitudes, perceptions, and views of the participants in regard to the research topic shall not be captured.
Questionnaires have potential limitations such as restrictive responses from the respondents because they leave no room for probing explanation of the answers provided. Busy schedules among employees in supermarkets may result to a low response rate. Lack of control over the respondents by the researcher leaves the room for collecting biased, inaccurate, or misleading information. However, we anticipate a response rate of more than 85 percent.
Ethical Considerations
Given that human subjects will be used in the research study, the research will seek consent from the university human research advisory panel prior undertaking the study. Therefore, the researcher will abide to several ethics considerations involved in a professional research study. Thus, complete confidentiality and anonymity shall be promised. Pseudonyms rather than real names of the participants shall be used. Explanatory letters and cover letters were sent to each of the participants indicating the research purpose and the intention to carry the study before data collection starts. The participants will be informed of their voluntary participation, and explained that each participant can discontinue his/her participation or ask for assistance where possible. In other words, force or duress will not be used to convince the participants to be part of the study. Suggested Further Research Activity
A further research activity shall entail a research with more than go participants drawn from different stores of Tesco, across UK. Data shall be collection through the combination of different methods such as focus groups, interviews, and survey questionnaires.
References List
Ahmad, K. (2001).Corporate Leadership and Workforce Motivation in Malaysia’, International Journal of Commerce and Management, vol. 11, no.1, pp. 82-101.
Armstrong M., (2009), A Handbook of Human Resource Management Practice, 10th Edition, Great Britain: Kogan Page
