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Employee Turnover and Retention Strategies

This chapter shows a brief introduction of the research, and main objectives of the
research. It also provides the structure of this research paper. It also gives an
introduction to the company under consideration and its journey from its founding
till present. This chapter also highlights the concerned issue that is employee

1.1: Background
The research paper is based on investigation of different factor in context with
employee turnover on franchised petroleum industry. The researcher is aim to
highlights those factors which play vital role in employee turnover. The main
focus of this research is on employee turnover.

1.2: Petroleum Sector in UK

The commercial extraction of oil on the shores in the UK dates back to the 1851
when James young restored oil from the midland valley of Scotland. The rights of
licensing start in late in 1960s. The department of trade and industry is
responsible of granting licences

1.3: History of Shell UK

About 200 years ago a London antique dealer start importing sea shell from Far
East to feed a fashion for exotic deco. Marcus Samuel laid the foundation of shell
transport and trading company which is later on run by his sons Marcus junior and
The arrival of internal combustion engine in 1886 leading the demand of transport
fuel, building on their shipping expertise the Samuel brothers commissioned a
fleet of statement to carry oil in bulk. They revolutionised oil transport with the
maiden voyage of their first oil tanker which transit oil in 1992. The brother

Employee Turnover and Retention Strategies

company was named the shell transport and trading company and registered the
trade mark of mussel shell as it logo in 1897.

1.4: Becoming Royal Dutch Shell

The shell transport activities, combined with the new sources of oil brought in to
contact with royal Dutch petroleum. The two companies fully merged in to the
royal Dutch shell group in 1907. Shell changed its logo to the scallop shell or
pectin which is used to this day .by the end of 1920 shell was the worlds leading
oil company producing 11% of the worlds crude and owning 10% of its tankers

1.5: 1920 to Present

After the world war shells expanded in to Africa and South America shipping
become larger and better and in 1947 shell drilled first off shore oil well in the
Gulf of Mexico. By 1955 shell had 300 wells. In 1969 Ghaddafi took power in
Libya cutting oil production and raising prices this brought the crises. 1970 were
marked as a notable for shells development in the oil field in the North Sea and
South America. In 1978 shell completed cognac drilling and production platform
in Gulf of Mexico the worlds tallest platform at 1100 feet.
From the mid 1990 shell was criticised on environmental issues to dispose of the
Brent spar platform and also face difficulties in Nigeria. As in the new millennium
under way shell expanded in china and Russia. In 2005 shell dissolved its old
corporate structure and creates a single new company (shell.co.uk, 2011).

1.6: Select Service Station

Shell starts its franchises in 1997, in which shell start distribute their franchises
among different retailers and business man. Mr. Iqbal and Mr. Surjit start
partnership with the 4 franchises. With the passage of time their hardworking and
determination towards their work, now they owned 13 sites in Birmingham and
having more than 95 employees the information regarding company is as

Employee Turnover and Retention Strategies

Table 1.1: Corporate Information about Shell UK



Mr. Iqbal and
Mr. Surjit

Manager Franchise Employees





1.7: Employee Turnover

There is no set definition of employee turnover but employee turnover is often
regarded as the movement of employee in and out of the organization. The
turnover is classified in to number of ways these are:

Voluntary Turnover
Voluntary turnover may be defined as and individuals decision to leave
there current position and move to another (Niederman, et al., 2006).
There are many reason for voluntary turnover including better career
opportunities, pay, personal and family reason (Robert, et al., 2005).
Voluntary turnover also appear to increase when the size of organization is
larger and organization are less personal.

Involuntary Turnover
Involuntary turnover is defined as turnover which is initiated by the
organization. Involuntary turnover triggered by organization policies work
rules and performance standards are not meat by the employee (Taylor,

Functional Turnover
Functional turnover is defined as the low performance employee or
disruptive employee leaves. Functional turnover is not negative for the
organization because some work force losses are desirable (Jackson and
Mathis, 2007).

Dysfunctional Turnover

Employee Turnover and Retention Strategies

Dysfunctional turnover means key individual leaves at a critical time for

example for some software project key programmers leaves that will result
delay in project (Abelson and Baysinger, 1984).

These reasons are beyond organization control. These include employee
move from geographical region or employee want to stay in the home with
younger childrens or employee is a graduate student (Jackson and Mathis,

These are turnover which can be control by the organizations by giving
employee flexible working environment and give benefits to key
employees (Jackson and Mathis, 2007).

1.8: Measuring Employee Turnover

Most organizations calculate their turnover on monthly, quarterly or yearly basis.
The formula is total number of leavers over period *100/average total number
employed over period. The total figure includes all leavers which leaves voluntary
or involuntary without distinction between control or uncontrolled turnover (CIPD
resourcing and planning survey 2010).

1.9: Rationale for Proposed Study

The researcher has chosen the topic of employee turnover to highlight the major
trends of employee turnover and their effect on the organization and how the
organizations insure that they will keep their key individuals.
From a managerial point of view the attraction and retention of the key
individuals is more important than ever before. Increasing of competition change
in economy and technology it is important for the firms to retain their human
capital. During the past decade turnover has become serious problem for the
organizations. Managing recruiting retention and turnover below is one of the
most challenging issues faced by the business industry.

Employee Turnover and Retention Strategies

There is no set level of employee turnover that determines us what point turnover
has positive or negative effect on the organization. This effect varies from country
to depend upon the type of labour market we have. When it is relatively easy to
find the alternate employee quickly with low cost than it is possible to sustain the
high quality of service despite of high turnover.
By contrast were skill are short and recruitment is costly and it take several weeks
to fill a vacancy or where the employee has direct relationship with the customer
the turnover is likely to be problematic.
Shell UK franchised industry is a service industry and the employee has direct
relationship with the customer it will take several weeks to fill a vacancy. In
service industry there is always been problem to maintain staff. The ratio of
employee turnover is high in service industry. There researcher been working
there and realize that it really hard for mangers to maintain staff.
In context with franchised industry researcher is planning to carry on research on
wide basis analysing different turnover concepts which have effect on
organization. Researcher believes that this research will contribute to finding the
answer of high turnover rate in service industry.

1.10: Research Question

An investigation on trend of employee turnover and retention

1.11: Aims & Objectives

The research topic move around its objectives which is clear and researcher tries
to not only simplifies them but also clarify them properly for the conclusion

To investigate factors creating employee turnover in franchised

To analyse the Effect of turnover on the franchised industry.
To examine the relationship between employee turnover and
retention strategies.

Employee Turnover and Retention Strategies

To provide recommendations for improvement and controlling


1.12: Structure of the study

Chapter 1: Introduction
First chapter gives a brief preview of the background of the company and its
related employee turnover and retention strategies. It also presents the outline for
next chapters.
Chapter 2: Literature Review
The second chapter gives a review of the previous literature work related to the
employee turnover and retention strategies.
Chapter 3: Methodology
Chapter number three presents the methodology used in this research work.
Chapter 4: Findings and Analysis
In chapter number four the data is analysed in detail.
Chapter 5: Conclusion and Recommendation
The chapter number five concludes the research work and suggests few
recommendations for the company related to employee turnover.
Chapter 6: Reflection Learning
The chapter number six concludes the reflection of the research work on
References: All the references and appendices used in this research are presented
in this.
Table 1.2: Structure of Study

Chapter 1


Employee Turnover and Retention Strategies

Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6

Literature review
Findings and Analysis
Conclusion and Recommendations
Reflective learning

Employee Turnover and Retention Strategies

Chapter 2
Literature Review
This chapter will give a brief review of the previous work done on the
phenomenon of employee turnover. Firstly the chapter gives a brief chronological
review of previous studies and after that other dimensions of turnover are
Employee turnover is a much studied phenomenon. There is immense literature on
the causes of voluntary/involuntary employee turnover dating back to the 1950s.
For the research point of view it is necessary to have a careful look on the
beginning of the literature on employee turnover. The researcher divided the
research work in three portions:
Turnover research before 1985
Turnover research after 1985 to 1995
Turnover research after 1995 till present date
After that factors that contribute to employee turnover are discussed in detail with
the help of models. Effect of employee turnover on the organization is also
describes and at the end employee retention strategies are characterized.

2.1: Turnover Research before 1985

The time period before 1985 witnessed the evolution of different key models of
turnover which gives the bases for future researchers. The researchers who
significantly contributed to the initiation of turnover research in this time period
are March and Simon (1958), Porter and Steers (1973), Mobley (1977), Mobley,
et al. (1979), Price and Mueller (1981, 1986), Steer and Mowday (1981) and
Hom, Griffeth and Sellaro (1984).

Employee Turnover and Retention Strategies

2.2: March and Simon

March and Simon (1958) introduced the general theory of organizational
environment which focus on the importance of balancing the employee and
organizational contribution. The two factors which conclude employee perceived
desirability and apparent ease of leaving today labelled as job satisfaction and
perceived alternates. March and Simon (1958) emphasised individual differences
in age, gender and ability are key factors of perceived ease of movement and
organizational size and job satisfaction are determents of desirability. This model
focus on factors which are involves in voluntary turnover. The graphical
representation of this model is show in the figure below.
Figure 2.1: Turnover Model by March and Simon

Source: March and Simon (1958)

Employee Turnover and Retention Strategies

2.3 Potter and Steers

Porter and Steers (1973) introduced the model in which personal expectations are
the key drivers of turnover decisions. The base of this model is on March and
Simon (1958) model, with the addition of employee personal prospect. Potter and
Steer (1973) research shows that the critical events play a vital role in employee
turnover. This model is presented in figure below;

Figure 2.2: Turnover Model by Potter and Steers

Source: Potter and Steers (1973)


Employee Turnover and Retention Strategies

2.4: Mobley Model

Mobley (1977) identified withdrawal process and enlighten the process that
employees go through before turnover. Mobley, et al. (1979) noted in his research
that relationship between intentions and turnover is consistent and normally
stronger than the satisfaction turn-over relationship. Author disclose that the age,
tenure, overall satisfaction, job content, intentions to remain on the job, and
commitment were all negatively related to turnover (i.e. the higher the variable,
the lower the turnover).

2.5: Contribution of the other Researcher

Based on previous work Price and Muller (1981, 1986) developed a broad
structural model, that model discover the antecedents of job satisfaction and
intention to quit job and put forward a third variable organizational commitment.
Steer and Mowday (1981) attempted to fit in all turnover models in to broad
process of voluntary employee turnover. Based on Mobley process model Hom, et
al. (1984) present a model that recommended two different ways; proposed to quit
and calculate the expected benefit of quitting.
These models became the foundation for new research related to employee
turnover issue. Sheridan and Abelson (1983) introduced catastrophe model that
incorporate two turnover determinants;

Organizational commitment

Job tension

This model was taken as primary criticism on traditional theories and was
foremost to call it a dynamic process.
In the early 1980s many other researchers work on the factors contributing to
turnover for example Graen, et al. (1982) explored that the quality of leader
member exchange relationship forecast employee turnover, and Pfeffer (1983)
discussed the significance of the demographic fit. During this period researches
tried to explore the cost of turnover, for this they primarily work on the effect of
turnover on two factors that are;

Employee Turnover and Retention Strategies


Organizational performance

Turnover model before 1985 can be seen in this figure below;

Figure 2.3: Turnover model before 1985

Source: Holtom, et al. (2008)


Employee Turnover and Retention Strategies

2.6: Turnover Research from 1985 to 1995

Most of the early models employed traditional approach of satisfaction and
commitment, as during 1985 to 1995 there was a major raise in considering
contextual variable and other negative personal condition like exhaustion and
stress. The researchers during 1985 to 1995 presented their work in complicated
organizational and group level concepts, which are;

Organizational culture

Group cohesion

Organizational reward system

Gender composition

And demography (Holtom, et al., 2008)

Abelson in 1993 anticipated the pressure of organizational culture on turnover,

this was done by using the development of unique turnover culture, in that culture
employee engage in sense making and social information process which cause
turnover cognition. Pfeiffer & Davis (1992) recommended that the, pay and pay
inequality in the companies pay system cause employee withdrawal from the
universities administration. Study also find out that the level of employee
withdrawal was lesser at organizations with more compressed pay structure.
In the year 1991 the researcher explored that the workers whose individual worth
did not match with the companys value were more expected to quit the job by
completing 20 month time (OReilly, et al., 1991). This model is presented in the
figure 2.4;


Employee Turnover and Retention Strategies

Figure 2.4: Turnover Model for the Year 1985- 1995

Source: Holtom, et al., (2008)


Employee Turnover and Retention Strategies

2.7: Kristof Model of Person-Organization(P-O)

Kristof in 1996 presented the model of person-organization fit (P-O), it highlights
the balance between organization and person. P-O fit was not similar to other
form of environmental compatibility that is person fit and person group in the

2.8: Social Network Perspective

In view of a social network the research of McPherson, et al. (2005) explored that
the employees with more ties with the organization social network were having
lesser chances of withdrawal.

2.9: Three-fact Conceptualization

The important development in this era made by the researcher was the three fact
conceptualization of organization commitment which was put forward by the
Meyer and Allen (1991). To carry forward the research and testing of the refined
conceptualization Meyer, et al. (1993) confirmed the contribution of the three
facts to understanding the turn over and related with drawl attitude and
Beyond the traditional job attitude of satisfaction and commitment researchers add
a new set of attitude in turnover research like emotional exhaustion and job
insecurity. The research of Jackson, et al. (1986) found that job insecurity is
positively related with the turnover intentions .There argument is further
confirmed by the research of (Ashford, et al, 1989).

2.10: Unfolding Model of Turnover

Lee and Mitchells (1994) unfolding model of turnover is a remarkable
achievement at the end of the 1985-1995 time period. Lee and Mitchell proposed
that turnover decision are not always the result of job dissatisfaction and may
occur without much reflection. This model is based on image theory (beach 1990).
They suggested five paths which employee may follow prior to actual turnover,
path 1 and 3 show decision paths which initially begins with the shock. Path 2 and
3 shows how shock leads to image violation and employee to consider their
attachment with the organization .in path 4 there is no initial shock and lower

Employee Turnover and Retention Strategies

level of job satisfaction cause and employee to quit without consideration .In
general this model focus on the complexity of turnover process and suggest that
future turnover researcher should take in to account the process how people leaves
their job.
Figure 2.5: Unfolding Model of Turnover












Employee Turnover and Retention Strategies

2.11: Integrative Adaption and Withdrawal Model

Hulins (1991) introduce a new model to the turnover which was called as
integrative alteration and turnover model. He argues that dissatisfaction in job
activate a sequence of performance and responses which led to adaptive actions.
Finally the researchers broadened the research on the consequences and of turn
over by examining the individual level consequences.
Figure 2.6: Model of Adaptive Behaviour

Source: Hulins (1991)


Employee Turnover and Retention Strategies

2.12: Turnover Research from 1995 until Present

Turnover research has considerably expanded and theoretical expansion in it. The
researchers are focused on new trends like:

New individual differences

Focus on change level attitudes
Empirical research on unfolding models
Interpersonal behaviours
Factors focus on staying
Job satisfaction
Expansion of previously identified relationships

In 1995, a meta-analysis of some 800 turnover studies was conducted by Hom and
Griffeth, which was newly updated (Griffeth, et al., 2000). Their analysis
confirmed some well-established findings on the causes of turnover. These
comprise: job satisfaction, organisational pledge, association of alternatives and
plan to quit. Many other factors were found less effective in withdrawal.
Illustrating from the research work of March and Simons (1958), Trevor (2001)
concluded that movement capital, general job availability, and job satisfaction
concurrently correlate to persuade employee withdrawal. The relationship
between employee turnover and employee turnover intentions was reasonable as it
was also supported by diverse personality behaviours. For example the
relationship was concluded as influential for employees with;

Low risk aversion,

Low self monitoring,

And an internal locus of control (Allen, et al., 2005)

2.13: Comparison of Alternatives

Economic research on macro level gives reliable and important proof of the labour
market conditions affect on employee withdrawal rates at macro level.
On micro level the alternatives and turnover relation has been explored
extensively since work of March & Simons in 1958 on ease of movement. Where
later studies find out the relation between;


Employee Turnover and Retention Strategies

Job satisfaction

Perceived alternative opportunities


These studies focus on the function of both actual and real opportunities in
elucidating individual withdrawal decisions.
Succeeding studies has showed that actual alternatives are a superior predictor of








unemployment rates as a substitute for actual opportunities in workers

withdrawal showed that unemployment rates has an impact on the jobsatisfaction/withdrawal







(Kirshenbaum & Mano-Negrin, 1999). Further Bortal and Martin (1998) reaveled
that the change of wages from one job to another has an impact on turnover.

2.14: Factors Contributing Turnover

A study by Khatri (1999) analyzes three sets of turnover intention;
1. Demographic
2. Controllable
3. Uncontrollable
Results of study showed that the level of turnover that is controllable is far higher
than that caused by uncontrollable turnover. The study also revealed poor
management practices as a major factor contributing employee turnover. The
employee turnover model suggested by this study is given in figure 2.7;


Employee Turnover and Retention Strategies

Figure 2.7: Employee Turnover Model

Source: Khatri (1999)

Another study by Min (2007) attempted to explore the major variables affecting
turnover. The variables that he took under consideration were;
1. Occupational variables
It includes skills of employees, their experience time and others.
2. Organizational variables
It includes organizational size, industry and other.
3. Individual variables
It includes pay scale of the employee, his/her security of job and others.

This study introduced a conceptual model that relate the above mentioned
variables this model is presented in figure 2.8 that highlights the job satisfaction
and job alternatives to the turnover.

Employee Turnover and Retention Strategies

Figure 2.8: Employee Turnover Conceptual Model

Source: Min (2007)


Employee Turnover and Retention Strategies

Another author Kolluru in his article, A White Paper on Employee Retention,

discusses the factors that cause employees turnover. According to this article in
the recent time the workers are not doing their job with a lifetime mindset. Author
named this factor as pull factor. Study reveals that the major reason for changing
jobs are;

Lack of interest
Frustration at work
Lack of communication

Where author also emphasis on the push factor causing worker turnover.
According to this study the satisfaction of work is very important for any
employee. So, results show that due to the lack of synchronization between many
departments employees affected and they take the decision of quitting job. As this
bonding gap within the company arises resentment among employees that
gradually set the minds of the workers toward leaving the job. This model is
presented in Figure 2.9.
Figure 2.9: Factor Causing Employee Turnover

Source: Kolluru (2011)

In 2003 Carbery, et al. conducted a study to predict turnover cognition of hotel

managers. The major factor contributing to turnover cognition of hotel managers
are given below in figure 2.10;

Employee Turnover and Retention Strategies

Figure 2.10: Turnover Cognitions

Source: Carbery, et al. (2003)

In this way turn over studies recognizes many factors which contribute towards
staff turnover which are described as follow in detail;


Employee Turnover and Retention Strategies

2.14.1: Intention to Quit Job

Much of the research is based on actual turnover as Mobley, et al. (1979) noted in
his research that relationship between intentions and turnover is consistent and
normally stronger than the satisfaction turn-over relationship.
There are also few Job related factors that determines the workers intention to
quit a job. In previous studies these factors are in detail discussed and researcher
tries to find out all the possible antecedents of employees intentions to quit
(Bluedorn, 1982; Kalliath and Beck, 2001; Kramer, et al., 1995; Peters, et al.,
1981; Saks, 1996). Of these studies they find out many diverse factors. Here
diversity arises because of different target population of the research, as diverse
groups of employees were investigated by different researchers. Finally to address
the question that reasons why people quit from one organisation to another, a
number of reason were exposed that includes the experience of job related stress.
There are further factors for job stress that are job dissatisfaction and lack of
commitment in the organisation (Firth, et al., 2004). These factors show that the
decisions for leaving job were on individual basis. According to Manu, et al.
(2004) the other possible reason for quitting job may include economic reasons
also. For this purpose an economic model was used, that concluded that, that
economic model can be utilized to predict the labour turnover in the market.
Figure below highlights few important factors contributing turnover intention.


Employee Turnover and Retention Strategies

Figure 2.11: Factor Contributing Turnover Intention

Source: Bigliardi, et al. (2005)

2.14.2: Job Satisfaction

The relationship between job satisfaction and turnover is been found in various
turnover studies. Mobley, et al. (1979) indicates that overall job satisfaction is
negatively linked to turnover where the main reason for people leaving their
employer was for more interesting work elsewhere. A study by Trevor (2001) also
revealed that local unemployment rates relate with job satisfaction to forecast
turnover in the market. A study by Mudor and Tooksoon (2011) presented the
conceptual framework explaining the three human resources management

Supervision, job training, and pay practices

Job satisfaction


Employee Turnover and Retention Strategies

This study reveals that the role of job satisfaction is crucial in determining
employees turnover, in the way as workers tend to leave the job when the level of
their job satisfaction is lowered it is presented in figure 2.12.
Figure 2.12: Employee Turnover Conceptual Framework
Source: Mudor and Tooksoon (2011)

The figure below shows that job satisfaction is one of important factor
contributing employee satisfaction. There is a directly proportional relation
between these two and indirectly proportional relation with turnover. So, if job
satisfaction level is increased it would increase the employee satisfaction level
that in turn would lower the turnover rate.


Employee Turnover and Retention Strategies

Figure 2.13: Employee Satisfaction Model

Source: Chen, et al. (2006) adapted from Fosam, et al. (1998)

2.14.3: The Role of Shocks

Lee & Mitchells (1994) unfolding model of employee turnover represented a
significant departure from the previous labour market- and psychological-oriented
turnover literature. This model is based on the premise that people leave
organisations in very different ways and it outlines four decision pathways
describing different kinds of decisions to quit. A notable feature of the unfolding
model is its emphasis on an event or shock (positive or negative) that prompts
some decisions to quit. Another study by Schervish (1983) highlighted that good
condition of local labour market can improve organizational stability.

2.14.4: Organisational Instability

Previous studies reveal that organizational instability can contributes towards
much higher level of employees turnover, as; the workers would prefer to stay at
the predictable work place and vice versa (Zuber, 2001). Study by Alexander, et
al. (1994) shows that a higher level of staff turnover was found within the
organizations, with high degree of inefficiency. Consequently, employees tend to
quit from unstable organizations and look for work in the stable organisations.


Employee Turnover and Retention Strategies

This happens because within stable organisations the employees become capable
of predicting their career development.

2.14.5: Approach used to Manage Employees

The use of a quantitative approach for managing the employees can lead towards
the dissatisfaction of staff. That further causes employees turnover. Thus the
management should avoid using quantitative approach for managing its staff. On
the other hand if the organizations start employing cost oriented approach for
managing its staff, that will also accelerate the level of workers turnover Simon,
et al. (2007). Therefore the organizations should not use these approaches if want
to reduce employee turnover.

2.14.6: Poor Management Policies

Employees believe that they are secure and prefer to stay for longer time, in the
positions where they are implicated at any level of the decision-making process.
In this way the workers can completely understand about the issues that affect
their working environment (Magner, et al. (1996). But in the case where there is
lack of openness particularly in sharing information, the chances that the
employees with stay become low. A research by Costly, et al. (1987) figure out
that a high degree of labour turnover reflects poor personnel policies, poor
recruitment policies, poor grievance procedures, poor supervisory practices, or
deficiency of motivation. If there are no proper management policies particularly
on personnel matters then all this will result in a high degree of staff turnover.
Because if the promotions of workers are not base on predicted policies and the
staff is not recruited systematically thus as a consequence the workers would
prefer to quit job.

2.14.7: Poor Hiring Practices

The work done by Griffeth, et al. (2000) put forward the results that pay and payrelated variables have a lower effect on turnover. In their work they observed the
relationship between the factors; a persons performance, workers pay and
employee turnover. Results of their study confirmed that when the workers with
higher level of performers are insufficiently rewarded, they prefer to quit the job.

Employee Turnover and Retention Strategies

Thus in this case the factors that make workers to quit job are poor hiring
practices, lack of recognition, lack of competitive compensation system, and toxic
workplace environment (Abassi, et al., 2000).

2.14.8: Organizational commitment

Another major factor effecting job quitting decision is organizational
commitment. Many studies have reported a significant association between
organisational commitment and turnover intentions (Lum, et al., 1998). Tang, et al
(2000) study confirmed the link between commitment and actual turnover and
analysis of Griffeth, et al (2000) showed that organisational commitment was a
better predictor of turnover than overall job satisfaction.

2.14.9: Organisational size

Kirshenbaum & Mano-Negrin (1999) indicated that turnover is affected by
organisational size, with size being the key mediator of an organisations internal
labour market. They suggest that organization impacts on turnover through wage
rates but also through career developments. A study by Idson and Feaster (1990)
showed that the large organizations can provide higher wages and employees with
enhanced chances for improvement. In this way the large organizations ensure
organizational attachment.

2.14.10 Unionisation
Martin (2003) looked at the effect of union labours and found clear that unionism
is associated with lower turnover.

2.14.11: Influences of Coworker

A 2002 study by Kirschenbaum and Weisberg of 477 employees in 15 firms
examined employees job destination choices as part of the turnover process. One
of their main findings was that co-workers intentions have a major significant
impact on all destination options - the more positive the perception of their coworkers desire to leave, the more employees themselves wanted to leave. The
researchers suggest that a feeling about co-workers intentions to change jobs or


Employee Turnover and Retention Strategies

workplace acts as a form of social pressure or justification on the employee to

make a move.

2.14.12: Lack of Role Clarity

Mobley, et al. (1979) concluded that a number of studies offered moderate support
for a negative relationship between satisfaction with supervision and turnover. If
the supervisors or management do not clearly define the roles of employees, this
would step up the scale of employees quitting their jobs. And the factor behind
this will be the lack of role clarity (Tor, et al., 1997). A study by Labov (1997)
concluded that employees have a strong requirement to be informed, and the
results shows that organisations with strong communication systems have enjoyed
lower degree of staff turnover.
However lack of role clarity refers to the difference between what one feel one
should do and what others expect from one on the job. This raises the issue of
uncertainty about the role of employee (Kahn, et al., 1990). Inadequate knowledge
about the adequate performance of job, ambiguous expectations of supervisors,
insufficient information about the performance evaluation methods, lack of
compromise on job duties and extensive job pressures may be the reason for
employees to feel less satisfied with their job, lower level of commitment to their
organizations, all this end up with inclination towards job quitting (Tor, et al.,

2.14.13: In-voluntary Turnover

Some elements are such that management cant control that may include the death
or incapacity of a member of staff or the need to aged relatives or care for
children. Expect the death or incapacity the other two factors were considered in
the past as a reason for involuntary turnover, but in the present world the case with
these elements is not the same. As together company policies and the government
regulation they make the opportunity to continue to job on a flexible basis (Simon,
et al., 2007).

2.15: Effects of Employee Turnover on the Organization


Employee Turnover and Retention Strategies

Findings of many previous studies show that turnover has some significant effects
on organisations (DeMicco and Giridharan, 1987; Dyke and Strick, 1990; Cantrell
and Saranakhsh, 1991; Denvir and Mcmahon, 1992).From the organizations point
of view employee turnover is considered quite expensive.

2.16: Cost of Employees Turnover

The employees turnover includes huge cost particularly to the organizations.
Voluntary quits which represents a mass departure of human capital investment
from the companies. Where the following staff replacement process require
multiple costs for the companies (Fair, 1992). These staff replacement costs
comprise of exploration of the appropriate labour market, choosing between the
challenging substitutes, training of the selected substitute until they reach at the
performance levels equal to the previous employees who have quit the job (John,
2000). Further costs are also there as, output of the organization would be affected
to a certain level and then the required output level will be attained at the cost of
overtime payment.

2.17: Effect of Turnover on the Profitability of the

Many of the studies revealed that if the increased turnover rates are not managed
properly in time then they can have negative effects on the profitability of the firm
(Hogan, 1992; Wasmuth and Davis, 1993; Barrows, 1990). According to a study
by Hogan 1992, in the past the direct and indirect cost of worker who quits the job
was between $ 1400 and $4000. Study by Philips (1990) concluded that turnover
also has many hidden costs. This cost arises from incoming employees, colleague
that are strongly linked with incoming employees, colleague strongly related with
departing employees and the vacant position that has to be filled. All of these
costs affect negatively the profitability of the firm.

2.18: Effect of Turnover on the Customer Service and


Employee Turnover and Retention Strategies

Employees turnover also have an affects on the customer service and satisfaction
Kemal, et al., (2002). As with the passage of time there becomes a bound between
customers and employees and the experienced employees know their customers
and their needs. In this way it will take a long time for a new employee to reach at
the level customer services and satisfaction provided by previous employee. This
can affect adversely the customer services.

2.19: Effect of Turnover on the Productivity of

According to a study by Catherine (2002) turnover also compromises of the cost
in the form of productivity loss, sales loss, and managements time loss. In case of
an hourly employee the estimated turnover costs is calculated to be $3,000 to
$10,000. This is an obvious indication that the rate of employees turnover affects
the profitability of the organisation. Further if the turnover is not managed
properly then it can have worse effects on the firms profit. A research by Johnson,
et al., (2000) point out that hiring and training of a new employee costs just about
the fifty percent of the workers annual salary, and each time when a worker quits
the job, the productivity further drops. This happens because of the learning curve
that is involved in understanding the company and the job.

2.19.1 Advantage for Competitors

This is not the only the case that the firms lose the human capital and relational
capital as a result of employees turn over, but now there is also a chance that
competitors can potentially take advantage of these assets (Meaghan, et al., 2002).
Consequently, if the situation of turnover is not handled appropriately then it can
affect the firm adversely in the form of personnel costs, however in the long run
employees turnover can affect the liquidity position of the organization.

2.19.2 Organizations Direct and Indirect Cost

The research by Dess, et al. (2001) reveals that voluntary turnover gives raise to
considerable cost for firm. This cost arises both in terms of direct cost and indirect

Employee Turnover and Retention Strategies

cost as well. However, the direct cost includes staffing, replacement, and
assortment, temporary staff and time administration. Where, the indirect cost
includes self-esteem, stress on remaining staff, training cost, loss of service
quality, and the loss of social capital. According to the author the indirect cost
effect is more significant than the affect of direct cost on the organization.

2.20: Strategies to Minimize Employee Turnover

For a firm it is really important to minimize the employee turnover to maximize
its profit. Strategies designed to reduce workers turnover, tackle with the problems
of the turnover. Administration has many policy options, which may include
shifting (or getting better than existing) policies for the staffing, selection,
orientation, training, wage imbursement and job propose. For better strategy
policy should be designed keeping in view the situation of problem. Such policy
should be defined that is proper for the precise analysis of the problem (Ongori
Kolluru (2011) presents employee retention framework according to author in the
modern market the employees objectives, aims, and targets are given importance.
Not like the past when workers were hardly thought as an assets. There should be
an environment that suits both workers and organization including, the
Framework of employee retention presented by author is given in figure 2.12.


Employee Turnover and Retention Strategies

Figure 2.14: Framework of Employee Retention

Source: Kolluru (2011)

2.20.1 Poor Selection Procedures

One of the main reasons for workers turnover is poor selection procedures. This is
very first step of strategy for employees turnover. As if right person is chosen for
the right position then the chances of that person quitting the job are lower. In this
way policy focuses mainly on the induction process (Ongori, 2007).

2.20.2 Inappropriate Wage Rate

Inappropriate wage rate is also another contribution toward employee turnover.
The right strategy is made to tackle this issue can lead to decrease the level of
employees turnover. This happens particularly in the case where the wage rates
are offered that are not competitive with other organizations in the local labour
market (Ongori, 2007).

2.20.3 Information Accessibility

The degree of the organisations cooperation with its employees and its facility for
making information and ideas extensively accessible to employees would decrease
the chances of employees quitting their jobs. This sharing of knowledge should
be available at the all levels of management. This openness of information would
enhance the performance of the workers and will also lead to make strong
corporate culture. In this way workers may feel a sense of appreciation for their

Employee Turnover and Retention Strategies

improving performance and the chances of turnover will reduce (Meaghan, et al.,

2.20.4: Workforce Optimization

The secret of a business success is hidden in the process of workforce
optimization. A firm can optimize the performance of its workers by setting up all
the important processes for getting work done, by creating accountability, offering
good quality of working conditions, and creating proper hiring choices would
increase the chances that their workers will not quit the job (Badawy, 1988; Basta
and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986).

2.20.5: Increased Competitiveness

Due to the accelerating competitiveness on globalizations, managers in a number
of firms are now facing more pressure from the top level of management
specifically to enhance training, staffing, selection, and withholding of good
workers and particularly in the long run to push workers to stay in the firms.

2.20.6: Job Involvement

Job involvement refers to a workers ego attachment with work and shows the
degree to which a worker recognizes psychologically with his/her job (Kanungo,
1982). This includes the morals that a worker has toward its work i.e., the worker
recognizes the importance of his or her work. To the extent a worker is passionate
about his or her work that it will not be easy for that worker to quit the job. Most
of the time these involvements are associated with the task characteristics of work.
The employees with higher ability of handling a wide range of tasks do not tend
quit the job. These task oriented characteristics have been come out as prospective
determinants of turnover among workers (Couger, 1988; Couger and Kawasaki,
1980; Garden, 1989; Goldstein and Rockart, 1984). These compromises of the
five main job characteristics that are recognized by Hackman and Oldham (1975,
1980): these are skill variety, task identity, task significance, job autonomy, and
job feedback. These reflect the degree to which the job provides information about
the effectiveness of ones performance (Toret, al., 1997).


Employee Turnover and Retention Strategies

According to the previous research the employees that are more involved in their
jobs are having higher degree of job satisfaction and are also more devoted to
their work and committed to organization (Blau and Boal, 1989; Brooke and
Price, 1989; Brooke, et al., 1988; Kanungo, 1982). Stidies shows that the job
involvement is negatively related to turnover intentions (Blat and Boal, 1989).
To increase the degree Job involvement the management should, empower the
employees, enrich the jobs and compensate employees appropriately. These
factors together bound the workers to remain committed to the firm and in this
way the chances of quitting jobs are lowered.
Employees turnover in the companies can be reduced if the managers treat their
employees as an important asset for the organization. If strategies are made for
reducing employees turnover then it would be possible for the organization to
carry on in a dynamic environment by taking care of their workers. As for any
organization the workers are the backbone and for the success of a company the
workers need to be motivated and maintained in the company. This is really
important for a firm to make it globally competitive especially with respect to the
provision of quality products and services to the customers. (Ongori, 2007)


Employee Turnover and Retention Strategies

Chapter 3
Research Methodology
The purpose of this chapter is to explain the procedure and structure involves
involve in the data collection of the primary data of this dissertation and show the
readers the steps involved in conducting the research. This chapter provides the
thorough understanding of the specific methodology applied for this study. In
addition the researcher discusses the research philosophies, approaches, ethics and
strategies implemented in this research.
Aaker, Kumar and Day, 1997 defined methodology as collecting, interpreting
and analyzing of data for research purpose.
According to Dr. C. R. Kothari Research methodology is a way to systematically
solve the research problem, it may be understood as a science of studying how
research is done scientifically. Every research analysis faces choosing the most
suitable methodology to meet its research objectives. The choosing the best
methodology depends upon the resources along with other variables.

3.1 Research Paradigm

Guba and Lincoln in 1994 argues that question of research method are of
secondary importance to question of which paradigm is appropriate to your
research. Research philosophies is the belief about how the data and research
should be conducted Figure 1 define the approaches and methodology that are
available to the researcher to carry out this research work.


Employee Turnover and Retention Strategies

Figure 3.1: Research Onion

Source: Saunders, et al., 2007, p 132

3.1.1 Pragmatism
Pragmatism argues that the most important determent of philosophy you adopt is
research questions.-one may be more appropriate than the other for answering
particular question (Saunders, 2009).
Tashakkori and Teddlei (1998) contended that pragmatism is naturally appealing
largely because it avoids the researchers engaging in what they see rather than
pointless debates as such concept as truth and reality.

3.1.2 Positivism
Positivism has been described as the natural science model of a social research
(lee, 1994). The belief, shared by most scientist that there is a reality that exists

Employee Turnover and Retention Strategies

quite apart from our own perception of it, that it can be understood through
observations, and that if follow general laws. Researchers prefer to work along
with observable reality that end product of this reality is similar to those produce
by the physical and natural scientist (Remeneyi, et al., 1998:32). It is frequently
advocated that the positivism researcher will be likely to used highly structured
methodology to facilitate replication (Gill and Johnson 1997) and quantifiable
observations that lend themselves to statistical analysis.
Another important component of positivism approach is that the researchers can
go as far as possible in a value free way (Saunders, 2007).

3.1.3: Interpretive
This philosophy is described by Hatch and Cunliffe (2006) as anti-positivist and
by Blaikie (1993) as post-positivist since it is contended that there is a primary
difference between the subject matters of natural and social science.
The belief that reality is socially constructed and that the goal of social scientist is
to understand what meaning people give to the reality. Interpretivism philosophy
is that researcher has to adopt empathetic stance. The strongest argument the
Interpretivism can mount is to understand the details of the situation to understand
the reality (Remenyi, et al., 1998:35). Interpretivism is useful in case of business
and management research particularly in field of marketing organizational
behaviour and human resource management. Researcher also follows this
approach as it best explores the issue under consideration.

3.1.4: Realism
Realism is philosophy which relates to scientific enquiry .Realism is based on the
belief that a reality exists that is independent of human thoughts and beliefs. The
philosophy or realism is that the reality is quite independent of mind in this sense
realism in opposed of idealism. There are two types of realism;


Employee Turnover and Retention Strategies Direct realism

What you see is what you get .what we experience through our senses portrays the
world Critical realists

A critical realist argues that what we experience are sensations the images of the
things in the real world not the things directly.
There should be distinction between direct and critical realism as both are
important to carry on management and business research. Both qualitative and
quantitative approaches are utilized when adopting a realism stance (Maylor and
Blackmon, 2005). Rational of Choosing Approach

The approach taken in researchl depends on the type of question to be
investigated. Also, it rely on the flexibility required to conduct a specific study in
order to reflect the most consistent and valid reality.
The proposed research is widely open to use any of these stances but to carry on
this research the researcher decide to use the combination of Interpretivism and
realism philosophy. Interpretivism was necessary as it aims to answer relationship
between employee of a shell that are underlined in a social environment, based on
opinions, views and the assessment of industry experts. Realism is important to
carry on other objectives of this research. Moreover, as Saunders, et al., 2000
argue, management-related research can be in practice a mixture of both
philosophies. It is difficult for researcher to be conducted from purely from a
single philosophical perspective; a combination of stances is usually the most
effective way to allow research objectives to be met (Easterby Smith, et al., 2002).


Employee Turnover and Retention Strategies

3.2: Research Approach

According to Saunders, et al., 2007 there are two approaches that can be followed
to conduct a research project.

Deductive Approach

Inductive Approach

3.2.1 Deductive Approach

The deductive approach stems from hypotheses that form a theory to potentially
provide a possible explanation to a specific problem. Based on scientific research,
it develops and tests theory by collecting empirical data, accepting that
observation is guided through and deducted by theory. In addition, it follows a
highly structured methodology and is mainly concerned on quantitative data. Such
enables facts to be measurable and reliable, as well as valid and useful for

3.2.2: Inductive Approach

The Inductive Approach intends to build theory. Taking an emphasis on gaining
an understanding for the meaning of events, concerned with social science
research, this approach moves from a particular situation to infer broader ideas
and theories. In other words, it entails the formulation of a theory directly from
reality. Additionally, it presupposes that explanations should be based on pure and
unbiased observation rather than on preconceived thinking
Both these approaches derived from the positivistic and phenomenological
philosophies, respectively. Both differ in the starting point from which knowledge
will be developed along the research.
Both qualitative and quantitative methods are used in this research so it is
important to discussing both of the approaches


Employee Turnover and Retention Strategies

3.2.3: Quantitative Approach

According to Collis and Hussey, 2003 Quantitative research is on collecting and
analyzing numerical data; it concentrates on measuring the scale, range, frequency
etc. of phenomena. Initially it is harder to design this type of research, is usually
highly detailed and structured and results can be easily collected and presented
The Quantitative Approach is based on collecting and analysing numerical data,
giving highly detailed and structured results that will provide a view to generalise
the findings, from which conclusions become statistically reliable and can be
corroborated. Furthermore, research usually starts with a theory proposing
relationships between variables. As such, it goes hand-in-hand with the deductive
approach previously described.

3.2.4: Qualitative Approach

Qualitative research is more subjective in nature than Quantitative research and
involves investigative and reflecting on the less tangible aspects of a research,
subject, e.g. values, attitudes, perceptions. Although this type of research can be
easier to begin, it can be often difficult to understand and present the findings; the
findings can also be challenged more easily.
According to Collis and Hussey, 2003 the Qualitative Approach focuses on quality
rather than quantity, as its name implies. It emphasizes more on evaluation of less
tangible aspects of a research study, such as perceptions, behaviours and attitudes.
What is more, the objective is to gain knowledge of the underlying meanings of
phenomena to better reflect reality. With this approach, the emphasis is more on
generating hypothesis from the data collected rather than testing hypothesis.
Although in this particular research there is an element of qualitative research
approach but researcher collected the data through quantitative research
technique. According to Aaker, Kumar and Day, 1997 usually deductive
approaches are associated with quantitative research methods.

3.3: Research Strategies


Employee Turnover and Retention Strategies

In this section the research strategy employed in this research is explained.

3.3.1: Case Study

Robson (2002:178) defines case study as strategy for doing research which
involves a practical investigation of a particular component with it is real life
context using multiple source of evidence. A case study research design involves
the examination analysis of a single case, which may be an organization, location
or event (Maylor and Blackmon, 2005). The case for this research is shell
franchised industry (select service station) .there are different advantages of using
this strategy. Shell has different branches throughout the UK which helps the
researches to examine all parties involved in it. It is easy for the researcher to
examine the employee of one shell cluster in given time period.

3.4: Secondary Data

Secondary data is a data that has been previously collected by someone else and
consequently been collected for different purposes. (Crowther, et al., 2005).
Secondary data gives an idea of the short comings and difficulties involved and
may provide necessary background information regarding the customers, staff and
how the primary research can be effectively conducted. In order to carry on
successful research various sources of secondary data has been used. These have
included books, internet sources, journals, library and a data that has been already
collected by the HR department of petroleum franchised industry in shell and this
secondary data collection will help me to design questionnaire and survey.
Additionally the secondary data that has been collected will increase the validity
and credibility of this research.

3.4.1: Advantages of Secondary Data

There are many advantages of secondary data the most important advantage of
secondary data that it will help to shape any primary data. It will help to identify
any problem and developing the approach to solve the problem. It will help for the
formation of research design. Significant cost saving made it inexpensive and easy
to access.


Employee Turnover and Retention Strategies

3.4.2: Disadvantages of Secondary Data

There are few disadvantages of the secondary data firstly the data which we
collected is might not be up to date. Secondly the data we are accessing is might
be collected for some other purpose before conducted the secondary research the
researcher should keep in mind that the data will suits its objective of the
research .thirdly the different sources of secondary data may provide contradictory

3.5: Primary Data

Primary data is collected data which collected for specific purpose or answer the
specific research questions. There are many ways of collecting primary data .the
researcher is using questionnaires and semi structure interview for collection of
primary data which will be discussed later.

3.5.1: Advantaged of Primary Data

One of the most important advantages of primary data its mostly up to date data
and its credible. The other advantage of primary data is it collected for some
specific purpose so new researchers can use this data for their research purpose.

3.5.2: Disadvantage of Primary Data

Primary data is hard to collect. Its a time consuming process first collect
participant then get the answer, observe on your opinion, draw a result and
conclusions on that opinions take time. The disadvantage associated with the
primary data is that it might be expensive if sample size is very large.

3.6: Survey
A survey is positivistic methodology where a sample is drawn from a population.
Survey is a procedure to obtain data for research (Willem, et al., 2007). Survey
methodology seeks to find out the principles about the design, analysing and cost
linked to the survey (Robert, et al., 2009) the survey can be anything which we
receive in term of feedback.
Survey provides the information about the customers preferences and ideas about
something. The type of survey depends upon the type of population investigated.

Employee Turnover and Retention Strategies

These types include face to face, telephonic survey, internet survey and paper
based survey.
The researcher chooses face to face survey because it offers numerous advantages
over other techniques. It offers an effective means of accessing target respondents.
It is easy to conduct survey when sample size is small. Also, the questionnaire can
be filled out at the convenience of the respondent since there is no interviewer and
interviewer error or bias is eliminated.

3.6.1: Advantages of Survey

The cost of survey is reasonable but it depends on the amount of information
gather. The another advantage of survey research is data a large amount of data
can be collected using different sources and the survey are not bound by the
geographic limits they can be collected from anywhere (Roger, et al., 2006).

3.6.2: Disadvantages of Survey

There are several disadvantages of survey in which he researchers has to deal with
,first of researchers is heavily dependent upon the responses of the questionnaire
and interview held with the individuals in the organization to meet the objective of
this research. It means that researcher is heavily oriented by the opinions not by
the actual facts (Greenfield 2002).

3.7: Primary Research Method

The researcher will use questionnaire and interview for the collection of primary
data .Before these are discussed it is important to explain sample because its play
important role in this research.

3.7.1: Sampling
A sample is subset of the population and should represent the main interest of the
study (Jill hussy and Roger Hussey 1988). The organization of fewer people is
very easy to collected (Saunders, et al., 2009). The survey strategy allows you to
collect quantitative data it is popular and commonly used strategy in business and


Employee Turnover and Retention Strategies

management research. There are two sample techniques available for the
researcher to carry on researcher: Probability Sampling

It means that it is possible to answer research question and achieve objective that
requires you to estimate sample size .probability sampling is normally associated
with the survey and experimental research strategies. Non Probability Sampling

It means it is impossible to answer the research question or to address objective
that requires you to make analysis about sample size but the researcher are still
able to generalize sample about the population.
Population: In research the population refers to the group of item of interest;
these can be described with respect to geography, demography, geography,
occupation, time, etc. The shell UK has more than 1000 petrol stations and 3000
employee throughout UK and it is been impossible for the researcher to carry on
research on given time period. In the case the researcher is taking the advice of
Henry (1990) that sampling makes possible a higher overall accuracy than census.
The researcher decided to carry on research select service station as the sample
size is small and the researcher work there and is easy for the researcher to collect
primary data. The questionnaire been given to all 16 employee.
Convenience sampling is a form of non probability sampling. It involves the
collection of the easily available samples. By using this method cost becomes
minimum, because takes lesser time and money of the researcher. In convenience
sampling, a thoughtful approach for the selection of a sample is usually justified
(Marshall, 1996). Characteristic of Sampling

The way to evaluate the sample is not by the result but it depends upon the way
they selected (Fowler 2002). There are three characteristic of sampling.

Sample frame


Employee Turnover and Retention Strategies

The sample frame is a group of people who have to be selected and given
the sampling approach. Sample can be representative only when the

population included in the sample frame

Probability sampling procedures
The probability sampling procedures determines the designated individual

units for inclusive in the sample.

Sample design
Sample design is details and size and selection of the procedures used for
selecting units. Disadvantages of Sampling

There are some disadvantages associated with the sampling if the selected sample
is on large scale there is a chance of repetition. If the sample size is large it might
be expensive. The researcher will follow the five step procedure as define by the
Churchill and lacobucci (2002) and Wilson (2006) in there suggestion to illustrate
the sample collection steps followed in this research:
Figure 3.2: Sample Collection Model
Define the population size

Identify the sample frame

Selection of appropriate
Determine the population
Collection of data from the
Source: Based on Churchill and lacobucci ,s Research (2002).


Employee Turnover and Retention Strategies

3.8: Questionnaire
A questionnaire is predetermined set of questions designed to capture data from
the respondent (Joseph, et al., 2007). It develops the structure to measure the
different characteristics of the people organization. According to Aaker, et al.,
1997 questionnaire should be designed by keeping the research objectives in mind
and there are no predefined rule how to develop a good questionnaire.

3.8.1 Questionnaire Design

The result of good research is depending upon the good questionnaire which
ensures the accuracy of data. Questionnaire surveys are usually designed to get
numeric data. The questionnaire survey work best with the standardised questions
in which all respondents answers the same questions (Robson 2002). The design
of questionnaire are different which depends upon the research conducted .the
questionnaire can be self administrated or interview administrated. In self
administrated questionnaire are completed by the respondent where as in
interview administrated questionnaire are recorded by the interviewee on the basis
of each respondent answers. Questionnaire has two types:

Open ended questioner

In open ended questions respondent give answer in its own way its a time
consuming process.
Close ended questionnaire
In close ended questionnaire there are standard question which every
respondent have to answer (Saunders, et al., 2007).

3.8.2: Delivering of Questionnaire

There are four ways of delivering the questionnaire i.e. postal, telephonic, groupbased questionnaire, and person-to-person questionnaire. Researcher used the
person to person questionnaire because it gives accurate response but on other
hand researchers presence could effect on respondent answer but it didnt.
According to Denscombe, 1990 there is variations in response rate amongst
different way of delivering survey postal questionnaire are likely to be between
20-30 %. On the other hand the response rate of face to face questionnaire is

Employee Turnover and Retention Strategies

between 70-75 %. The researcher can assumed that by using this method assumed
accuracy rate can makes data more authentic and reliable. Researcher kept this
point in mind while delivering the questionnaire face to face. Researcher designed
the questionnaire in such a way that, respondent gave answers very quickly.
Questionnaire was easy to understand and respondent had no difficulty at all to
answers the questions.

3.8.3: Likert Scale

Likert scale which is commonly known as agree-disagree scale was first
published by psychologist Rensis Likert in 1932. The technique presents choices
of attitude dimensions for each of the questions whether theyre agreed or
disagreed (Ian Brace 2008). The questionnaire design is based on Likert scale and
researcher is keeping in the mind the interrelated issue related with Likert scale

Make the questionnaire order right

Acquiescence which are related with the tendency of saying yes /no from

the respondents.
Central tendency is the reluctance of respondents to use extreme positions.
Pattern answering is related with respondents falls in to routine of ticking
box in a pattern

The researcher will use close ended questionnaire for this research and these
questionnaire has been distributed among 16 non managerial employees. The
researcher had already been agreed with the staff to full out this questionnaire to
get accurate result of this research.


Employee Turnover and Retention Strategies

3.9: Reliability and Validity of Data

Reliability refers to extent which the data finding, methods and analysis
techniques procedures yield consistent findings (Easterby-smith, et al., 2008:109).
Robson (2002) points out the major threats to reliability firstly the participant
error can be done if researcher are doing questionnaire the result could be
different for different times depends upon enthusiasm of the employee. Secondly
the participant biasness, bosses can force their employees to tell them what they
want. Thirdly the researcher can make an observation error if more than one
person is conducting a research there are different ways of asking questions.
Lastly the observation biasness is same as if more than one person is conducting a
research there are different ways to interpret the data.

3.9.1: Validity
Validity is concerned with the finding are really about what they appear to be
about (Saunders 2009) .Robson 2002 identify threats to validity:


The data the researcher is accessing is out of data or collected long time ago.


If the organization believes that the finding of the research damage them it can
effect t result.
The reliability and validity are the function of the method which the data were
collected and source. Dochartaigh (2002) refer to this as assessing the authority or
reputation of the source.

3.10: Pilot Test

The pilot test is used to find out how well the test or questionnaire performs
(Robert, et al., 2010). To make the research credible the researcher applies pilot
test to my friends to know there understanding of questionnaire and the result was
good enough, there is no problem in understanding the questions which make my
research more credible. The researcher will try to increase the validity of the data


Employee Turnover and Retention Strategies

by using different methods to insure that the researcher will show the true and
accurate situation of the research.
Survey data collected from large organizations market reports and government
agencies are likely to be reliable and trust worthy. The existing of this data
depends upon credibility of the organization.

3.11: Ethics
Ethics is defined by the as the moral principal governing and influencing conduct
or the branch of knowledge concerned with the moral principal (Soanes &
Stevenson, 2004). For researcher ethics can be defined as a moral stance that
involves respect and protection for the people actively consenting to be studied
(Payne & Payne 2004). There are many ethical principal in my research which
researcher will try his utmost to obey .these are

3.11.1: The Golden Rule

The golden rule is most fundamental rule of ethics principal of all. Maylor and
Blackmon (2005) define this principal as treat other as you yourself want to be
treated and provide benefits to the organization and individuals involve in your
work . By following the golden rule as the honesty is fundamental of every work
researcher will honest with its work, about its research methods and its data
finding and about every aspect of this research.

3.11.2: Plagiarism
Plagiarism is considered with the worst possible sins in academic research
.plagiarism is defined as the deliberately copy someone else work without
acknowledge it. The researcher will follow the plagiarism rules and regulations
which are set by the liver pool John Moors University. Researcher will guard
himself against plagiarism by ensuring that all the data and information used in
this study is properly referenced.

3.11.3: Permission to Publish

The data owned by the company and other organizations which researcher collect
as part of its research. The researcher take especial permission from the owner of

Employee Turnover and Retention Strategies

the shell franchised to allow me to carry on research on shell. My research

involves questionnaires and personal details of the employee by whom researcher
carry on research, all participant informed by the researcher from different aspect
of the research and give them details answer to their queries. Researcher will
follow the data protection act set by the Liverpool John Moors University.

3.11.4: Confidentiality
As there been the involvement of questionnaire and survey in my research
sensitive details like personal information researcher will undertake to ensure the
privacy and confidentiality of these persons. From the beginning of the research
researcher informed the concerning employee about research objectives and later
on about the findings of the research work.


Employee Turnover and Retention Strategies

Chapter 4
Finding and Analysis
When this research was design it had number of objectives these objectives are
outlined in chapter number one. To meet these objectives researcher handed
questionnaire to 16 non managerial employees and response rate was 100% which
was unusually higher for the management research this was due to the researcher
excellent relationship with the managerial and non managerial staff. Researcher
conducted the semi structure interview with the supervisor and HR manager of the
select service station.
The finding section was configured to meet the objectives therefore the finding
uncovered from the questionnaire and semi structured interviews are presented
together in relevant sections.

4.1: Demographic Data

The researcher feels that that demographic data was necessary to shed light on the
culture and environment of the shell. Question 1 and question 2 sought to be
demonstrated the demographic data (See Appendix I).

Question No. 1:
1. What is your gender?




Employee Turnover and Retention Strategies

Graph 4.1: Gender Distribution of Employee

4.1.1: Analysis of Question No. 1

Question no 1 is related to the gender of the respondents as the question No 1 is
divided into two options male/female, researcher analyzed in this part that no of
male employees are more than the number of female employees. According to the
research no of male employees are 87% and female employees are 13% which is
very low than the male employees (See Appendix I).

Question No 2:
2. Please tick your age group





Graph 4.2: Age Group Distribution of Employees


Employee Turnover and Retention Strategies

4.1.2: Analysis of Question No. 2

After the gender analysis researcher divide the gender into sub part that is age
group. The graphs show that the majority of select service station employees are
young male and aged of 18-29. 87% of the employees select service stations are
male, with 43% of the employees between the ages of 18 and 29. 25% of the
employees are aged between 30 and 39, with not a single employee over the age
of 60. This demonstrates the young male dominated work environment of select
service station; such demographic data may also prove useful for further analysis
relative to the following findings of this research.

Question No 3: it is sought to design to find out the occupation of the

employee on the shell (See Appendix I).
3: Which of these best describe your job









Employee Turnover and Retention Strategies

Graph 4.3: Job Title

4.1.3: Analysis of Question No 3

This question was asked to the respondent to find out which category they
belonged. The respondent has to tick one option in which category they fall .The
result shows that the most of the staff working in shell is low level staff and most
of them are customers service assistant the number of customer services
assistants are 12 who is front line staff which is mostly interacted with the
customers. This is the category which is most important for the business, because
these are the people who directly communicate, interact and face the customers.
These categories make the profit for the business.


Employee Turnover and Retention Strategies

Question No 4: Question 4 is designed to find out the job type of the employee
(See Appendix I).
4:What is your type of employment
Part time

Full time


Graph 4.4: Type of Employment

4.1.4: Analysis of Question No 4

In this question researcher tried to find out the type of employment in the shell.
The mostly employee are part time employee in shell which are 10. The
respondents who are mostly working as a part time are students who are looking
for extra money during educational break, 6 of employee are working full time in
the organization. The rate of turnover of part time worker is high in the
organization as they are mostly students. They left the job when their studies end
or find another job.


Employee Turnover and Retention Strategies

Question No 5: Question 5 is intended to find out the length of employment

(See Appendix I).
5: How long you been working In this organization










Graph 4.5: Time Period of Association with Organization

4.1.5: Analysis of Question No 5

The researcher find out the number of employee working less than a year is higher
than those which are working more than year. There are 10 employee who are
working within or less than a year in organization .Only 2 employee were those
who are working more than 5year. Time spent in the organization clearly represent
the commitment of the employee towards organization and affect the turnover.


Employee Turnover and Retention Strategies

Question No 6: Question number 6 is aimed to access the employee

relationship with the organization and to find out that how many employees are
loyal with the organization (See Appendix I).

6: Do you likely will stay in this organization in the future



No opinion





Graph 4.6: Likeliness to stay Within the Organization

4.1.6: Analysis of Question No 6

The result shows that the numbers of respondents do not want to stay in the
organization in the future are higher than those who are willing to stay in the
organization. Out of 16 respondents 11 respondents are not willing to stay in the
organization in near future. 3 respondents have no opinion about it .Only 2
respondents are agreed to stay in the organization in near future. The intention to
quiet is a second path of turnover process as defined by the Lee and Mitchell
(1994) in there unfolding model of turnover.


Employee Turnover and Retention Strategies

The researcher find out the most of the employee in the organization had the
intention to quit as relationship between turnover and intention to quiet is constant
(Mobley, et al., 1979).

Question No 7: Question number 7 is aimed to access whether employee felt

that they are motivated in this job (See Appendix I).
7: do you feel you are motivated in this job


No opinion





Graph 4.7: Job Motivation


Employee Turnover and Retention Strategies

4.1.7: Analysis of Question no 7

The result shows that the there is variation in motivation level within the
employees. Out of 16 employees 1 employee is strongly disagree and 2 are
disagree with the motivation level in this job. 7 employees were agreed with the
motivation level. Those employee who are disagree are mostly part time workers
normally works in vocation they are not highly motivated. Researcher also find
out that unmotivated staff are usually those who are doing tough jobs like
customer services and not getting proper incentives. The overall motivation level
is good, as the maximum numbers of employees are agreed. It is very important
for the well established company to motivate their staff to fulfill their

Question No 8: This question is design to find out the pay structure of the
organization (See Appendix I).
8: Do you feel you are fairly paid for the work you do
Strongly disagreed

disagree No opinion

Strongly agree



Graph 4.8: Fairly Paid for Work


Employee Turnover and Retention Strategies

4.1.8: Analysis of Question No 8

The result shows that the 11 of employees out of 16 are agreed that they are paid
according to their work. 5 employees are strongly agreed that they are paid well
according to their effort on job. Well paid to employees is very important for the
companies, because every employee wanted to be paid on time and according to
their time and effort. If company takes care of employees then employees can do
their best to complete all the tasks.

Question No 9: This question was aimed to access the organization

commitment towards employee (See Appendix I).
9: In general do your organization keeping promises and commitment to employee


No opinion





Graph 4.9: Organizational Commitment

4.1.9: Analysis of Question No 9

The result shows that only 2 employees are disagree with the statement that
organization keeps their promises and commitments, 3 out of 16 employees

Employee Turnover and Retention Strategies

having no opinion, 7 employees are those who are agree with the statement that
organization keep its promises and commitments, and also 4 employees are
strongly agreed with the given statement.

Question No 10: Question 10 is sought to find out what the employee feel
about their job security in the organization (See Appendix I).
10: Do you feel that your job is secure?








Graph 4.10: Job Security

4.1.10: Analysis of Question No 10

The result shows that 7 employees are strongly disagree, 4 employees are disagree
and feeling that they have job insecurity in the organization. There are only 2
employees who feels thats their job is secure in the organization. 3 employees
have no opinion about that.

Question No. 11:


Employee Turnover and Retention Strategies

This question was designed to find out the effect of the environment on the
employees (See Appendix I).

11: Do you find working environment in shell is










Graph 4.11: Friendly Working Environment

Do working environment is friendly is shell?


Strongly Disagree




4.1.11: Analysis of Question No 11

As these results shows employees are not appear to be satisfied with the working
environment of the shell. The result shows that 10 of the employee are strongly
disagree with the working environment in select service station. The result of this
question is that the working environment in shell is not friendly enough for the


Employee Turnover and Retention Strategies

Question No 12: question 12 is aimed to find out the role of

supervisor/manager in the organization (See Appendix I)
12: My supervisor recognize and regard my work
Strongly Disagree


No Opinion


Strongly Agree

Graph 4.12: Appreciation by Supervisor

4.1.12: Analysis of Question No 12

The researcher observed that the mostly employees are satisfied with the working
environment as the result of the questionnaire supported that, but several
employees are also disagree as well. As they said that their manager or supervisor
does not appreciate their work. Several sources suggested that working
environment is very necessary for the organization to retain their employee (Potter
and steer 1973). As old literature and research shows that it is very important for
company to look after their employees to get best and effective out of them.


Employee Turnover and Retention Strategies

4.2: Problem identified in Turnover

The result of questionnaire highlighted many different factors that are involved in
the turnover of the franchised industry. In this section these factors are discussed
in detail.

4.2.1: Type of Employment

The type of employment is categorized in two parts; full time employment and
part time employment. The research shows that number of part time employment
is higher than that of full time employment. Most of the part time staff is students
that are doing the job for earning extra money in the time of their educational
break. The research shows that the rate of turnover of part time worker is higher in
the organization; the reason behind this is that, they do the job on temporary basis
and left the job when their educational break ends or when their studies ends and
they find another job. So, in this way part time is a major factor affecting turnover
of the franchised industry.

4.2.2: Length of Employment

The research shows that the number of worker is greater for those who are
working for shorter time period. The greater ratio lies in the category of less than
one year time period and this decrease with increase in length of time. The length
of time a worker spent with any organization clearly symbolizes the commitment
of the employee towards the organization. In this way the workers who are
working for shorter time period are less likely to stay with the organization as
compare to the workers who are working for longer terms. The greater number of
employees with shorter time period represents that they cause for turnover to
increase in the franchised industry.

4.2.3: Employee Relationship with the

The employee relationship with the organization is another major factor that
affects the turnover for the franchised industry. This factor tends to be really
important as this represents the loyalty of the workers for the company and the

Employee Turnover and Retention Strategies

company should pay serious attention toward this factor. The research reveals that
the numbers of workers who do not intend to stay in the organization in the future
are higher than those who are willing to stay in the organization. Many previous
studies have also highlighted this issue as Lee and Mitchell in 1994 and Mobley,
et al. in 1979. So, this unwillingness to stay with organization also increases the
rate of turnover for the franchised industry.

4.2.4: Employee Motivation

Research reveals that the employee motivation is another very important factor
that affects the employee turnover. If the employees are motivated they are happy
with their work then there are fewer chances of employees to quit a job. This
shows an inverse relationship between employee turnover and employee
motivation. In case of the under discussion franchised industry the overall
motivation level is good. This shows that for this franchised industry the
employee motivation is not a major reason for turnover. The workers who are less
motivated are mostly part time workers and workers with tough jobs like customer
services. In case of part time workers they in themselves are a reason for higher
turnover as discussed above. Where for workers with tough jobs the lack of proper
incentives is the source due to which they lack motivation. However staff
motivation is a crucial issue and the company should focus on the motivation of
their staff to fulfil their requirements.

4.2.5: Employees Pay

Study reveals that the employees pay is also a significant factor affecting the
turnover rate. The researcher reveals an inverse relationship between turnover rate
and employee pays as Martin in 2003 found same relationship between relative
wages and turnover. Interviews reveal that the reason behind this relationship can
be; if the employee is not getting competitive wages then the employee will left
the job as he gets any other higher wage job. As indicated by the previous studies
the wages opportunity is a significant factor contributing voluntary turnover
(Tang, et al., 2000)

Employee Turnover and Retention Strategies

Another reason behind this factor is that if a person is not getting up to his or her
performances then they tend to leave the job due to inappropriate pay system
Griffeth, et al. in 2000 also highlighted the same issue. However overall the
employees of selected company are happy with what they get.
This factor is also interlinked with motivation factors as when employees are not
paid up to their performance and efforts then the workers are no more motivated
toward their job. So companies should pay attention toward this factor also.

4.2.6: Organizational Commitment

Results from questionnaire and interviews shows that there is a significant
relationship between turnover and organizational commitment. Previous work also
represented the relationship between organizational commitment and turnover
(Lum, et al., 1998; Tang, et al., 2000; Griffeth, et al., 2000). As when
organizations fulfills their commitments and promises with their worker then the
worker show a positive tend towards staying with that organization. Research
reveals that this also increases loyalty of the employees toward the organization
and they become more motivated.
Previous study by Allen and Meyer (1990) find out relation between turnover and
affective Commitment that represents the workers emotional attachment and
association with the company. If the level of this commitment is higher, then as a
consequence the turnover rate will be lowered. Researcher found this commitment
the most significant. As the majorities of workers that are being interviewed
showed an emotional attachment with the organization. A larger number of target
audience is agree that the selected franchise fulfils all their commitment and
promises, and they showed a tendency toward remaining with organization.

4.2.7: Job Security

Job security is very important factor for the workers of any organization. When
they feel secure they perform at their best with full efficiency and high
motivation. As they know they will be there to get its reward. And they also work
for their self esteem, but if they are not sure about security of their job then they
concentrate more on finding new job.

Employee Turnover and Retention Strategies

The job security is negatively related with the turnover rate. The result of this
study reveals that most of the employees have the issue of job insecurity in the
organization. So this increased job insecurity may tend to increase turnover rate
for the franchise company.

4.2.8: Friendly Working Environment

For better performance of employees in any organization tension free and friendly
Working Environment is very important. A friendly working environment
increases the efficiency of the worker and at the same time reverse of it may cause
stress for employee resulting in poor performance and lower efficiency that may
lead to various issues within the organization that end up with quitting job. Many
previous studies also highlighted that the better working environment is a crucial
factor for any company to retain their employees (Potter and steer, 1973). So,
literature also agrees that for lower turnover rates the company should look after
their employees to get best and effective out of them.
The result of this research work reveals the employees are not much satisfied with
the working environment of the Shell. The result shows that 10 of the employee
are strongly disagree with the working environment in select service station. This
shows that the working environment in shell is not friendly enough for the

4.2.9: Role of Manager/Supervisor

Managers or supervisors role is very significant in determining turnover rates for
any organization. They are the people who can motivate workers by appreciating
their work. The extent to which the supervision is better the turnover level would
be lowered. Study by Mobley, et al. (1979) also supported this relation between
role of supervision and turnover rate.
In this study the researcher analyzed that the majority of workers are satisfied
with their managers/supervisors, where on the other hand many workers are also
disagree with it. Their argument is that their manager or supervisor does not

Employee Turnover and Retention Strategies

appreciate their work. In this way those workers were not seem to be happy with
manager role and showed a positive trend toward leaving the job.

4.3: Effect of Turnover on the Franchised Industry

"Employee turnover costs are a massive, continuous leak in many
an organizations revenue bucket

(William G. Blis)

Employee Turnover may turn into high cost for the organization. This cost can be
in many forms; few considerable costs that arise due to the employee turnover are
described below;

4.3.1: Recruitment Costs

This cost includes from the cost of advertising of the job, the cost of the hiring
department, the cost of the internal recruiter's time to realize the position
requirements, the administrative cost of handling, processing and responding to
resumes, the cost of reference, educational and criminal background checks to the
time spent in interviewing and sourcing (William G. Blis). The research reveals
that this is one of the main effect of employee turnover on the franchised industry
comes up in the form of recruitment cost. It is also clear from the duration of
employee stay with the organization, as most of them lies in less than a year
category. And most of employees are doing part time job which include students.
So, Shell has to bear this cost to a large extent.

4.3.2: Training Costs

Training cost includes the cost of hiring a person for training; the cost of a variety
of training materials that are required for the training process it may include
computers or technology tools that are essential for training, it also include the
cost of supervisory time spent due to which productivity of the supervisor is
lowered. Interviews revealed that franchise industry have to face all these costs
when an employee is replaced.


Employee Turnover and Retention Strategies

4.3.3: Lost Productivity Costs

The new employee is required to learn all the aspects of the new job, so that he or
she can perform the job smoothly, this may also include the companys policies
and practices. The new employee need time to get productive at optimal level.

4.3.4: Lost sales costs

This is also a major cost that occurs due to the employee turnover that is in the
form of the loss of business till the time the position for employee is vacant. So,
till the time the position is vacant there is a greater loss to business until the
person having similar experience and expertise is hired.

4.3.4: Losing Competent Employees

Above were the direct financial costs that occur to the organization. Now the
study moves toward the indirect cost of the employee turnover, losing competent
employees is one of these indirect cost. One of the major losses to the company is
in the form of losing its competent employees.
As during interviews respondent informed that many customer come and ask
about the existing employees who have left the job, even they want to know the
place where they are working now, by admiring them as, he/she was so nice
assistant. This happens mostly for the workers that are face to face contact with
employees, particularly customer assistants. They become famous among
customers. When customers have time and there is no queue they have a little chat
with them.
This cost becomes more serious particularly when rivals hire the competent
employees of any firm. So a new employee should have better qualities than that
of existing to capture the customers attention. In this way the loss is also higher.

4.3.5: Other Indirect Costs

Interviews reveal that there are many indirect costs as well which occur due to the
employee turnover. These costs are also seriously harmful to the organization.
This may include the loss of key skills that the existing employee ma had, the

Employee Turnover and Retention Strategies

knowledge and experience about the organizations operations and relations that
comes only with time. Employee turnover also have a negative effect on the other
staff as if the existing employee gets a better opportunity then his/her colleagues
are also motivated to leave the organization(William G. Blis). As few respondents
reveal during interviews that my colleague find a better job elsewhere and I am
also try for good one.
Resultantly high turnover rates depict instability in the organization along with
poor management system. All these direct and indirect costs results in lowering
the profit margin of the company. So a good company should take care of its
employees and make employee retention strategies. Now the study moves toward
explaining the relation between employee turnover rates and retention strategies.

4.4: Relationship between Employee Turnover and

Retention Strategies
Retention strategies are aimed at avoiding unwanted turnover, through the
procedure of retaining workers within the business. Retaining the advantageous
employees is a main objective for the firms. In this the companys main emphasis
is on the ways to select the right policies and procedures to achieve the target of
retaining good employees in the organization.

4.4.1: Role of Soft and Hard Approach

As there are two types of strategic approaches in Human Resource Management;
Hard Approach and the Soft Approach. These are explained below;
(a) Soft Approach
In this approach the employees are treated as an asset. The employees have
provided friendly working environment flexibility in working patterns that will
eventually result in low turnover.
(b) Hard approach


Employee Turnover and Retention Strategies

In this approach the employees are treated as a commodity that can be measured.
In this Human capital is thought to be managed as other inputs like machinery,
plants, land, Building.
Shell has adapted hard approach due to which its turnover rate has increased. In
the next chapter researcher will give the way to sort out these problem


Employee Turnover and Retention Strategies

Chapter 5
Conclusion and recommendations
5.1: Recommendation
Instead of a nominal section for recommendations, the researcher has opted to
give this area more significant coverage; this is on the basis that improving
turnover and development of retention policies was a major goal of this research
and a distinct objective. The previous sections have identified numerous problems
which are evident in select service station. On the basis of these the following
changes are recommended.

5.1.1: Treat Employees as an Asset

Employees are backbone of the organization and business should be survived in
dynamic environment if mangers will treat their employee as an asset which needs
a lot of attention.

5.1.2: Change of Policies

Change of recruitment policies will effect in more satisfied employee in the
organization. These policies included provider of better working environment
within the organization will result in decrease of employee turnover.

5.1.3: Employment Related Dissatisfactory Factors

Select service station can overcome turnover by reducing employment related
dissatisfactory factors like work pressure, hours load and handling difficult
customers but giving flexible hours and giving more customer service training to


Employee Turnover and Retention Strategies

5.1.4: Equally Employee Attribute

Treat all the employees equally and provide them better wage rate which are not
competitive with the other labour market. The employees those who are doing
hard job or those employees which are front line staff provide those better

5.1.5: Employees Engagement

Employee engagement, the organizations capacity to retain manage and how well
design their job of employee and how well they used the time of employee and the
commitment and support that is shown to employee by the organization will
result employee to stay in the organization.

5.1.6: Work Force Optimization

The organization success is based on optimizing the performance of the
employees by establishing standard procedure of how well work is done , and
providing good working condition and accountability and making good hiring
procedure well result in retention of the employees.

5.1.7: Career Leader for the Employees

Select service station should give their top performance employee a career path
way which includes pay incentive promotions and extra training.

5.1.8: Job Involvement

Job involvement defines as the individual ego or how much is individual
committed with his work. The research shows that the individuals more
committed with the job are not quitting. The select service station should design
their job in such a way that employees feel interesting to doing it.

5.1.9: Organizational Commitment

Organizational commitment is effective response of the organization towards
employee. Select service station should fulfil the commitment towards employees


Employee Turnover and Retention Strategies

regarding their pay structure and incentives which will result in employees to stay
within the organization.

5.1.10: Examine the Sources of Employee Turnover

Select service stations Management should examine the sources of employee
turnover and try to overcome the source with their best approach so they could be
in position to retain their key employees.

5.1.11: Performance Based Pay Structure

Select service management should pay their employee according to their
performance. Better pay bonus and share price schemes will result in
minimization of employee turnover.

5.2: Conclusion
This chapter draws conclusion and give further recommendation on what was
define in previous chapters. This research conducted has few objectives these
objectives are:
To investigate factors involve in turnover in franchised industry?
To analyse the Effect of turnover on the franchised industry
To find out the relationship between employee turnover and retention strategies
To provide recommendation for improvement and controlling turnover
There researcher feels that during this researcher these objectives are satisfied and
shell franchised industry found to be inconsistent. Numerous problems have been
identified in this research.
The result of research shows that the age of employee has the inverse relationship
with the turnover the younger the employee more its chances to quiet this result
are consistent with the previous studies (Mobley 1982). The most of employee of
the select service station is younger and they management need to balance the
distribution of the employees.
Several problems have been identified by the researcher in select service stations.
Employment related dissatisfaction factors are very high in the organization.

Employee Turnover and Retention Strategies

Select service employees thinks thats the they are not sure about their future in
the organization and job related discomfort like pressure of work ,customer
handling ,role of supervisor are major reason for employee to be quit.
The practical use of this dissertation is that the research will be initially forwarded
to the HR Manager of select service station, with the knowledge that the HR
Manager will support some of the changes/recommendations discussed in the
previous section. It is also hoped that the Hr Manager will support/ agree with
these to the extent that this research will be forwarded to the senior personnel at
board level, so many of the important findings can be discussed at the highest
level; after initial discussion with the Hr Manager the likely outcome is that board
directors will want to conduct similar research at other franchised stations, to see
whether they will come out similar. Should this be the case, it may result in the
immediate changes that the researcher has recommended in the previous chapter.

5.2.1: Limitations
The limitations of this dissertation are a cause of the small sample size that was
adapted to make it practicable; the research focused on the select service station,
which has a total of 70 employees. The Shell UK LTD has in excess of 1000
stations and 30000 employees across UK. Time limitations and the fact that the
researcher had a good relationship with the select service station, meant that it was
only that select service station was seen as appropriate for research; this also
assured the full set of data which would make this research possible. The
researcher had hoped and still positive for a practical use of this study; this is
difficult from just this study alone, although it does provide use to a certain
degree; it was established that the turnover, including all aspects such as reasons
measures and effects, itself is the same across all stations. So in a sense we can
guess at a similar outcome across other stations; however, the study method of this
research, which heavily focused on asking employees means that results may
differ across other stations. For full practical use of this study and its findings,
would therefore require it to be repeated at other stations, for further research.


Employee Turnover and Retention Strategies

5.2.2: Further research

Limitation of research means that their findings are not perfect without further
research on other franchised. Therefore it is suitable to carry on research on more
franchised industry before the recommendations are put in to motion of carried
out. Further research should look at the financial cost that spend on the employee
and benefit of good recruitment policies; other costs and benefits (e.g. time)
should also be looked it in order calculate whether the organisations recruiting
procedures make economic sense.


Employee Turnover and Retention Strategies

Chapter 6
Reflective learning
Reflective learning is an activity that lets the individual to explore its potential and
his experience in order to lead to a new understanding of what he has done and
how he can learn from it. The term Reflective Learning is all about learning and
thinking. It is to reflect in order to learn something, or learn as a result of
reflecting. Reflective learning is the expression of some of the mental processes of
reflection. Other forms of expressing reflection are in speech, in film, in graphic
portrayal, music etc.
According to Moon, 1999 reflective writing usually have a purpose. It usually
involves the sorting out of bits of knowledge, ideas, feelings, awareness of what
you have learned how you behaved and so on. It could be seen as a melting pot
into which you put a number of thoughts, feelings, other forms of awareness, and
perhaps new information. All information that is perceived via the senses passes
through three processors that encode it as linguistic, nonlinguistic, or affective
representations. For example, if you go to a football game for the first time you
encode information linguistically such as rules; retain mental images non
linguistically, such as mental images of the players positioning themselves and
then getting set (pose); and finally, you have various sensations which are encoded
affectively, such as the excitement during a touchdown. Each representation can
be thought of as a record that is encoded and then filed away.
Reflection is a term used in two ways: Firstly, in a general sense, as being
synonymous with thinking and deliberating; and secondly, in a specific sense, as
being the recollection of past experiences and mental states by retrospection, i.e.
looking back. Quinn, 2000
Reflection has a role in:
academic and non-academic learning
self development


Employee Turnover and Retention Strategies

critical review
considering our own processes of mental functioning
emancipation and empowerment
There are different learning styles to follow.

6.1: VAK Learning Styles

This learning Style uses the three main sensory receivers - Vision, Auditory, and
Kinesthetic or touch to determine dominate learning style. Learners use all three
to receive information. However, one or more of these receiving styles are
normally dominant. This dominant style defines the best way for a person to learn
new information by filtering what is to be learned.
Auditory learners usually talk to themselves a lot. They also may move their lips
and read out loud. They have difficulty with reading and writing tasks. They often
do better talking to a colleague or a tape recorder and hearing what was said.
Visual learners have two sub channels - linguistic and spatial. Learners, that are
visual linguistic, like to learn through written language such as reading and
writing tasks. They remember what has been written down, even if they do not
read it more than once. They like to write down directions and pay better attention
to lectures if they watch them. Learners who are visual spatial usually have
difficulty with written language and do better with charts, demonstrations, videos,
and other visual materials. They easily visualize faces and places by using their
imagination and seldom get lost in new surroundings. To integrate this style into
the learning environment:
Kinesthetic learners do best while touching and moving. It also has two sub
channels - kinesthetic (movement) and tactile (touch) they tend to lose
concentration if there is little or no external stimulation or movement. When
listening to lectures they may want to take notes. When reading, they like to scan
the material first, and then focus it on the details. They typically use color

Employee Turnover and Retention Strategies

highlighters and take notes by drawing pictures, diagrams, or doodling. To

integrate this style into the learning environment:

6.2: Kolb's Learning Style

Kolb in 1984 provided one of the most useful descriptive models of the adult
learning process. Kolb's described four stage theories into two dimensions. First
dimension is based on task both performing and observing. The second
dimension is based upon thought and emotional processes. These four positions
on the two dimensions describe a four-step learning process
Feeling or Sensing: In this process learning of a person relies on feeling based
judgments i.e. empathetic. A person learns best from specific examples in which
he can be involved. The learner tends to relate to peers and wants to get along
with others, not be bossed around.
Watching: This process indicates a tentative, impartial and reflective approach to
learning and impacts on some aspect of our life. The individual relies heavily on
careful observation in making judgments and prefers learning situations that allow
the role of independent objective observers.
Thinking: This process indicates an analytical, conceptual approach to learning
that relies heavily on logical thinking and rational evaluation. The individual tends
to be more oriented towards things and symbols, and less towards other people.
He learns best in authority-directed, impersonal learning situations that emphasize
theory and systematic analysis.
Doing: This process indicates an active "doing" direction to learning that relies
on experimentation. The individual learns best when he is engaged in things like
projects, homework, or group discussions. Individual dislikes passive learning
situations such as lectures. This learner wants to touch everything (kinesthetic or
tactile). Problem solving, small group discussions or games, peer feedback, and


Employee Turnover and Retention Strategies

self directed work assignments all help the learner. The learner likes to see
everything and determine his own criteria for the relevance of the materials.

6.3: In the Beginning

The research work began when researcher started thinking of a topic area for my
dissertation. Researcher spends hours and hours to select the best topic and the
research area for my dissertation. Researcher always had an interest towards
human resource and how it works? What are the procedures to follow to make
employees fruitful for the organization they work for? Then researcher came up
with an idea of doing my research on employee turnover and its impact on the
organization. The main area of study was employee turnover. The reason behind
to choose this topic was researcher was working with the organization vary long
and knows the employee turnover is always a critical issue for the organization.

6.4: Learning Experience

It was a life-time experience for researcher to do this research. Initially it looked
quite a simple topic to study on employee turnover and its effects on the
organization but later on when researcher started doing my research researcher
found out that the topic itself has a depth. Each and every part of the research
comes with a new way of learning. When researcher selected the topic than it
come with the problem to take permission from the organization to carry on
research on the organization and it was difficult task to do so. when the researcher
got permission from the organization to carry on the research the other problem
come with the collection of primary data and it was time consuming to inform
every employee about my research its purpose and take a permission from them to
conduct survey and publish the research work as it involves personal details of the
employee and researcher has to regard the ethics of the employee and the
organization. During research I found out that there are some issues which have to
be defined to make workers more committed and motivated. Those issues were
making more positive and healthy contract and giving incentives.
When researcher started to make questionnaire than researcher realized that how
difficult it is to cover the all research objectives in questionnaire and the possible

Employee Turnover and Retention Strategies

reason was time and resources to cover the wide research on this topic, but in spite
of these entire limitations researcher tried hard to get the conclusion. My
supervisor and friends encourage me to complete the dissertation in given time.
When researcher started gathering secondary data the biggest and the most
important task for me was the validity of data. Researcher spends loads of hours
in the library and on the internet to get the latest and updated relevant literature
reviews and news. There was a point when researcher was stuck because there are
huge amount of data available and researcher was confused which one is relevant
and which one is irrelevant this problem was overcome with the advices of my
Although the employee of the organization was agreed with the researcher to
carry on research but it was very difficult to arrange the meeting with the
employee and fill out the survey questionnaire. Although researcher decided to do
survey research by using the questionnaires it seems very easy task in starting but
it gather the employee give them questionnaire ,collect them again for analysis
purpose it was difficult task for the researcher. To collect the questionnaire
involves lot of travelling which helps to observe the working condition of
different franchises and to meet the different peoples and that was awesome
In terms of gaining knowledge, leaning time management and research skills
researcher reckon my dissertation work as highly productive for my professional
Overall as a researcher my research work considers a good skill to implement in
my future life. I have learned from my mistakes which I think is my biggest
achievement in this dissertation. This is my general advice to everyone that
always gives importance to seniors advice if you want to be successful in your


Employee Turnover and Retention Strategies


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Employee Turnover and Retention Strategies


Appendix I
Question No. 1:
What is your gender?



Question No. 2:
Please tick your age group








Question No. 3:
Which of these best describe your job





Question No. 4:
What is your type of employment


Employee Turnover and Retention Strategies

Part time

Full time


Employee Turnover and Retention Strategies

Question No. 5:
How long you been working In this organization






Question No. 6:
Do you likely will stay in this organization in the future



No opinion



Question No. 7:
Do you feel you are motivated in this job



No opinion



Question No. 8:
Do you feel you are fairly paid for the work you do



No opinion




Employee Turnover and Retention Strategies

Question No. 9:
In general do your organization keeping promises and commitment to



No opinion



Question No. 10:

Do you feel that your job is secure?



No opinion



Question No. 11:

Do you find working environment in shell is friendly?



No opinion



Question No. 12:

My supervisor recognizes and regards my work.



No opinion



Employee Turnover and Retention Strategies