Employee Turnover and retention

strategies

Dissertation submitted in part fulfilment of the requirements for the

degree of Master of Business Administration at Liverpool John
Moores University

Zeeshan Khan Afridi

MBA

2011

Dedicated To My
Loving Parents
Especially my
Mother, and
Siblings, Who
Encouraged And
Supported Me A
lot. I Thanks All Of

Them For Being

There For Me.

Acknowledgment
All praises for Almighty ALLAH, the most merciful, the most beneficent, who guides me in
darkness and helps me in difficulties, whose uniqueness, oneness and wholeness is
unchallengeable. All respects for his Holy Prophet Hazrat Muhammad (Peace be upon
him), who enlightened my mind to recognize my creator.
I would like to thank to my supervisor Dr. Yvonne J Moogan (Research Director at
Kaplan) for suggesting my work. I am thankful to her for her inspiring guidance, consistent
advice and constant encouragement throughout the time of research, enabling me to
successfully complete this study and write this report.
I would like to mention my teacher Mr. Sukhdev Kumar, his motivation really helps me.
I am very thankful to my loving Father Mr. Yousaf Khan Afridi, my sweetheart Mother
Mrs. Zeba Afridi, and my close friend, Mr. Haseeb Qureshi, Tauseef Abbasi and Waqas
Abbasi, who pray for me every second in their lives. I want to give especial thanks to Mr
Haseeb Qureshi and Mrs Haseeb Qureshi for their constant support in every aspect of my
life whenever I needed. I want to thanks my parents I want to tell them without their love and
help I could not have come this far.

Table of Content

Dedication
Acknowledgement
Table of Contents
List of Figures
List of Graphs
List of Tables
Abstract

I
ii
iii
vii
viii
ix
x

Chapter 1
INTRODUCTION
1.1: Background
1.2: Petroleum Sector in UK
1.3: History of Shell UK.
1.4: Becoming Royal Dutch Shell
1.5: 1920 to Present
1.6: Select Service Station
1.7: Employee Turnover
1.8: Measuring Employee Turnover
1.9: Rationale for Proposed Study
1.10: Research Question
1.11: Aims & Objectives
1.12: Structure of the Study

Chapter 2
LITERATURE RIVEW
2.1: Turnover Research before 1985
2.2: March and Simon
2.3: Potter and Steers
2.4: Mobley Model
2.5: Contribution of Other Researcher
2.6: Turnover Research from 1985 to 1995
2.7: Kristof Model of Person-Organization
2.8: Social Network Perspective
2.9: Three-fact Conceptualization
2.10: Unfolding Model of Turnover
2.11: Integrative Adaption and Withdrawal Model
2.12: Turn over research from 1995 until present
2.13: Comparison of alternatives
2.14: Factors Contributing Turnover
2.14.1: Intention to Quit Job
2.14.2: Job Satisfaction
2.14.3: The role of shocks
2.14.4: Organizational instability
2.14.5: Approach used to Manage Employees
2.14.6: Poor Management Policies
2.14.7: Poor Hiring Practices
2.14.8: Organizational commitment
2.14.9: Organizational size
2.14.10: Unionizations
2.14.11: Influences of co worker
2.14.12: Lack of role Clarity
2.14.13: In-voluntary Turnover
2.15: Effects of Employee Turnover on the Organization
2.16: Cost of Employees Turnover
2.17: Effect of Turnover on the Profitability of the
Organization
2.18: Effect of Turnover on the Customer Service and
Satisfaction
2.19: Effect of Turnover on the Productivity of Organization

1
1
1
2
2
2
3
4
4
5
5
6

8
8
9
10
11
11
13
15
15
15
15
17
18
18
19
24
25
27
27
28
28
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29
29
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30
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31
31
31
32
32

List of Figures
2.1
2.2

Turnover Model by March and Simon

Turnover Model by Potter and Steers

9
10

2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13

Turnover model before 1985

Turnover Model for the Year 1985- 1995
Unfolding Model of Turnover
Model of Adaptive Behaviour
Employee Turnover Model
Employee Turnover Conceptual Model
Factor Causing Employee Turnover
Turnover Cognitions
Factor Contributing Turnover Intention
Employee Turnover Conceptual Framework
Employee Satisfaction Model

12
14
16
17
20
21
22
23
24
26
27

2.14

Framework of Employee Retention

34

3.1

Research Onion

38

3.2

Sample Collection Model

47

List of Graphs

4.1
4.2
4.3
4.4

Gender Distribution of Employee

Age Group Distribution of Employees
Job Title
Type of Employment

54
55
56
57

4.5
4.6
4.7
4.8
4.9

Time Period of Association with Organization

Likeliness to stay Within the Organization
Job Motivation
Fairly Paid for Work
Organizational Commitment

58
59
60
61
62

4.10
4.11
4.12

Job Security
Friendly Working Environment
Appreciation by Supervisor

63
64
65

List of TABLES
1.1
1.2

Corporate Information about Shell UK

Structure of Study

3
7

ABSTRACT
This research is conducted to investigate the trend of employee turnover and
retention in Shell franchises. The researchers aim is to highlight those factors which
play vital role in employee turnover with the main focus of research on employee
turnover. The objectives of this research work are; to investigate factors creating
employee turnover in franchised industry, to analyse the effect of turnover on the
franchised industry, to examine the relationship between employee turnover and
retention strategies, to provide recommendations for improvement and controlling
turnover. The effect of employee turnover on the organization is analysed and it is
also investigated that how the organizations insure that they will keep their key
individuals.
The result of research shows that the age of employee has the inverse relationship
with the turnover, where the most of employee of the select service station are
younger and the management need to balance the distribution of the employees.
Several problems have been identified as; the employment related dissatisfaction
factors are very high in the organization. Select service employees have feeling of
job insecurity 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 and recommendations by the researcher.