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University of Greenwich

The Most Effective Retention Methods in Reducing Staff Turnover in the Retail Industry

By

March 2011

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Executive Summary
The retail industry has always been recognised as the industry most adversely affected with the highest rates of staff turnover than any other industry (Booth and Hammer, 2007; Foster et al 2008; Ramaseshan, 1997; Sparks, 1992). The literature further highlights the consequences of staff turnover as extremely detrimental, as retail organisations are exposed to very high costs and an unproductive workforce due to the constant recruitment and training of new employees, which leads to a lack of skills and cohesion amongst the retail workforce (Booth and Hammer, 2007; Firth et al, 2004; Hendrie, 2004). Therefore to overcome such problems faced by the retail industry, the main aim of this management research was to analyse and identify a variety of different retention methods that are most appropriate and effective in retaining employees working in the retail industry. In order to achieve the aim of this study the following research question was formed What are the most effective retention methods in reducing staff turnover in the retail industry? Subsequently, in order to address the research question a pragmatic approach was adopted along with the mixed method research design. Consequently, to understand the retail employees perception in regards to identifying the most important and valuable factors that influences and encourages them to stay working in the retail environment, questionnaires were conducted by thirty retail employees. Whereas, semi-structured face-toface interviews were conducted with two retail managers to attain a managerial perspective on the most effective retention methods that are also highly valued by their retail employees. Ultimately, from the data analysis three key findings supported by the literature emerged. The first key findings of this research highlight a vital correlation between the retail employees age and the most appropriate and effective retention methods. Since it was identified that the younger the age of the retail employees the higher the employees value pay, bonus payment and career development opportunities as factors that greatly influence and encourage them to remain working in the company. In contrast, the older the age of the retail employees the higher they value employee recognition and a supportive-workenvironment. The second key finding emphasises that good relationships between retail employees which reflect a friendly and family orientated work environment is essentially a highly effective retention method in reducing staff turnover in the retail industry. The third and final key finding of the research indicated a potential key contributor towards the high rates of turnover in the retail industry, which were the young part-time retail employees in education who plan on eventually leaving their retail jobs for a career more related to their studies and Page | 3

degree. Consequently, the research also suggests retention methods that can help prevent such situations. Overall, the management research provides a deeper understanding of the most effective retention methods that are most appropriate for the retail environment by examining the perceptions of both retail employees and managers. Furthermore, the research highlighted various key retention methods, which retail organisation should focus on implementing in order to reduce staff turnover and increase organisational efficiency and a competitive advantage.

Acknowledgements

Firstly, all praise and thanks is to Allah who Has helped me complete my dissertation. I would also like to thank my dissertation supervisor Mr Niels Wergin who has continuously assisted and supported me throughout my management research. I am also greatly thankful to my parents, family and friends who have constantly motivated me to do well. I would like to express my sincere gratitude to the staff and management team at Waitrose in Barbican who participated in this research. Thank You

Table of Contents
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CHAPTER ONE INTRODUCTION 1.1 Background ..................................................................................................................... 7 1.2 The Research Question .................................................................................................. 7 1.3 Justification of the Study ................................................................................................. 7 1.4 The Structure of the Paper & Conclusion ........................................................................ 9

CHAPTER TWO - LITERATURE REVIEW 2.1 Introduction ................................................................................................................... 10 2.2 Job Satisfaction and Organisational Commitment ......................................................... 10 2.3 Pay ............................................................................................................................... 12 2.4 Employee Recognition .................................................................................................. 13 2.5 A Supportive Work Environment ................................................................................... 15 2.6 Career Development Opportunities .................................. Error! Bookmark not defined. 2.7 Gaps in the Literature ....................................................... Error! Bookmark not defined. 2.8 Conclusion ....................................................................... Error! Bookmark not defined.

CHAPTER THREE METHODOLOGY 3.1 Introduction ...................................................................... Error! Bookmark not defined. 3.2 Research Paradigm ......................................................... Error! Bookmark not defined. 3.3 Research Design.............................................................. Error! Bookmark not defined. 3.3.1 Mixed Method Approach......................................................................................... 22 3.4 Research Methods ........................................................... Error! Bookmark not defined.

- Questionnaires................................................................. Error! Bookmark not defined.

- Semi-Structured Face to Face Interviews......................... Error! Bookmark not defined. 3.5 Sampling Procedures and Population .............................. Error! Bookmark not defined. 3.6 Ethical considerations ...................................................... Error! Bookmark not defined. 3.7 Validity and Reliability of the Study .................................. Error! Bookmark not defined. 3.8 Conclusion ....................................................................... Error! Bookmark not defined.

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CHAPTER FOUR KEY FINDINGS & DISCUSSION 4.1 Introduction ................................................................................................................... 28 4.2 Key Findings One Correlation Between Employees Age and Effective Retention Methods .............................................................................................................................. 28 4.3 Key Findings Two Good Relationships Between Employees in a Friendly and Family Orientated Work Environment ............................................................................................. 34 4.4 Key Findings Three Students Working Part-time with Different Career Aspirations other than Retail Eventually Leave .................................................. Error! Bookmark not defined. 4.5 Summary of Key Findings and Conclusion ....................... Error! Bookmark not defined.

CHAPTER FIVE CONCLUSION 5.1 Introduction ................................................................................................................... 40 5.2 Summary of the Study ................................................................................................... 40 5.3 Addressing the Research Question ............................................................................... 41 5.4 Key Findings & Discussion ............................................................................................ 41 5.5 Limitations of the Study ................................................................................................. 42 5.6 Future Research ........................................................................................................... 42 5.7 Conclusion .................................................................................................................... 43

REFERENCE LIST: 44 APPENDIX 1 .......................................................................... Error! Bookmark not defined. APPENDIX 2 .......................................................................... Error! Bookmark not defined. APPENDIX 3 .......................................................................... Error! Bookmark not defined. APPENDIX 4 ....................................................................................................................... 60 APPENDIX 5..........................................................................................................................61

Chapter One Introduction

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1.1 Background
The literature highlights that the retail industry amongst all other industries has always been recognised to be adversely affected with the highest rates of staff turnover (Booth and Hammer, 2007; Foster et al 2008; Ramaseshan, 1997; Sparks, 1992). Therefore, the main purpose of this management research is to analyse and identify a variety of different retention methods that are most appropriate and effective in retaining employees working in the retail sector. Since, according to Booth and Hammer (2007) and Firth et al (2004) the consequences of staff turnover consists of a loss of talent, experience and skills as well as high costs related to constant recruitment, selection and training of new staff; also turnover decreases commitment and cohesion amongst the remaining staff that are left feeling overworked and stressed, leading to an unproductive organisation (Hendrie, 2004). Clearly, such consequences of staff turnover are detrimental to the retail industry, proving retention methods to be of great importance (Bergiel, 2009; Vos and Meganck, 2009). As a result a further investigation and understanding of a variety of retention methods and its impact and effectiveness on the retail staff needs to be established, in order to depict the most appropriate retention methods that can effectively reduce staff turnover in the retail industry.

1.2 The Research Question

The following research question of this study was formulated on the basis of the research topic which attempts to resolve the retail industrys problematic issue of extremely high staff turnover rates: What are the most effective retention methods in reducing staff turnover in the retail industry? Therefore by addressing this research question, the management research is directed to focus on investigating the various factors which influences and encourages the retail employees to remain working within the retail environment. Consequently effective retention strategies for retail organisations can be identified, thus fulfilling the fundamental aim of this research. However to further acknowledge the importance of this management research, the justification of the study is required.

1.3 Justification of the Study

The management study is justified by several factors which illustrate the need and importance of this study. For instance, the study ensures to gain a deeper understanding of the most effective retention methods that are most appropriate for the retail environment by examining the perceptions of both retail employees and managers. Since, it is identified that Page | 7

utilising labour more effectively and reducing costs are fundamental to retail organisations survival amongst the competitive market (Broadbridge, 2002). However this is difficult to obtain as the retail industry suffers from the highest rates of staff turnover (Booth and Hammer, 2007; Foster et al 2008; Ramaseshan, 1997) that leads to detrimental losses of extremely high costs due to constant recruitment and training of new employees, which also adversely affects the workforce as it lacks well experienced and skilled employees (Booth and Hammer, 2007; Firth et al, 2004). Hendrie (2004) also highlights that due to the constant recruitment and replacement on new employees in retail organisations, cohesion amongst the workforce is lost. Therefore, Bergiel, (2009) and Vos and Meganck (2009) argue that effective retention methods are highly significant to overcome such damaging consequences of staff turnover, that is hugely prevalent in the retail industry. Ultimately this indicates the need and importance of addressing the research question of this management study, as the research question aims to investigate and identify the most effective retention methods in reducing staff turnover in the retail industry. Furthermore, there is insufficient research in relation to effective retention methods in the retail industry that has the highest rates of staff turnover (Booth and Hammer, 2007; Ramaseshan, 1997). And previous research on retention methods in retail only address correlations between one or two particular variables, such as pay and retention or career development and retention, hence, literature stresses that other variables be investigated (Firth et al, 2004; kim et al, 2009; Vos and Meganck, 2009). Consequently, this study concentrates on adding value to the existing literature by investigating a variety of retention methods which includes pay, employee recognition, career development opportunities and a supportive-work-environment. Also the open-ended question style in the interviews and questionnaires conducted by retail managers and employees has led the study to investigate further unanticipated retention methods such as bonus payment and a friendly and family work environment. Accordingly, the findings of the study could provide retail organisations to consider implementing effective retention methods that are appropriate and valued by retail employees which could essentially reduce staff turnover in the retail environment. Additionally, to answer the research question and gain an in-depth understanding of the research topic a pragmatic approach was adopted, along with a mixed method research design which was considered to be most suitable for the research. Therefore, to identify the most effective retention methods that is highly valued by retail employees from a managerial perspective, two retail managers were interviewed. Whereas the employees perception Page | 8

regarding the most important and valuable factors that influences and encourages them to stay working in the retail environment was identified through questionnaires.

1.4 Structure of the Paper & Conclusion

The structure of this management research paper consists of five chapters. Chapter one displays the introduction of the research and outlines the research question and justification of the study. Chapter two provides an analysis of existing literature in relation to the effectiveness of retention methods, whereas chapter three illustrates the methodological approach of the study as well as the ethical considerations and sampling procedures. The key findings and the interpretation and discussion of the findings in relation to the literature review are portrayed in chapter four. Lastly, chapter five provides an overall summary and conclusion of the research. In conclusion chapter one introduced the aim and purpose of this management research along with the research question What are the most effective retention methods in reducing staff turnover in the retail industry? The justification of the research was also presented, highlighting the importance of identifying the effectiveness of a variety of retention methods most appropriate for the retail environment. The structure of the paper was then illustrated. Nonetheless, the analysis of the literature relating to the research topic and the gaps found in the literature is discussed in the next chapter.

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Chapter 2: Literature Review 2.1 Introduction

High rates of staff turnover have always been one of the consistent major problems that face the retail industry (Booth and Hammer, 2007; Foster et al 2008; Ramaseshan, 1997). According to Booth and Hammer (2007), Firth et al (2004) and Hendrie (2004) the consequences of staff turnover are highly detrimental, since retail organisations are left exposed to extremely high costs from constant recruitment and training of new employees, which leads the organisation vulnerable from an unproductive workforce that lacks experience, skills and cohesion amongst employees (Hendrie, 2004). Therefore, effective retention strategies are increasingly crucial for Human Resource managers in order to retain retail staff, increase organisational efficiency (Bergiel, 2009; Vos and Meganck, 2009) and to attain a competitive stance in the market (Booth and Hammer, 2007). Therefore the purpose of chapter two is to critically analyse existing literature regarding What are the most effective retention method in reducing staff turnover in the retail industry? Hence, the comparative analysis in this chapter will be focused on the following views of retention methods, pay, employee recognition, a supportive work environment and career development. Job satisfaction and organisational commitment will also be reviewed as mediating variables of staff turnover.

2.2 Job Satisfaction and Organisational Commitment

The literature highlights job satisfaction and organisational commitment as significant variables negatively associated with staff turnover (Ackfeldt and Coote, 2005;Chiu and Francesco, 2003; Gaertner, 1999; Kim et al, 2009; Rode et al, 2007). Booth and Hammer (2007) define job satisfaction as the positive experience resulting from the employees needs and interests being met with their various job aspects. Whereas organisational commitment refers to the relative strength of a persons identification with the values and goals of the organisation and loyalty to the organisation (Lee and Gao, 2005, p377). According to Cheung et al (2009) previous research have argued that job satisfaction is a primary determinant of organisational commitment and the employees that are satisfied by their job are more likely to be more loyal and committed to their organisation. Similarly, Voss and Megancks (2009) study illustrated job satisfaction to significantly and consistently impact employee loyalty and in turn also shown as a vital factor of turnover. Correspondingly, Boyles (1997) findings affirm organisational commitment to be positively related to job satisfaction and negatively related to intentions to leave, therefore a reciprocal relationship Page | 10

between job satisfaction, organisational commitment and turnover is identified. Furthermore Vandenberghe et al (2004) further discusses that the employees decision to leave or to remain in the organisation is resolved once the employee evaluates his/her current level of commitment to the organisation. Since, employees emotional attachment to their organisation is reflected due to organisational commitment (Cheung et al, 2008) Moreover, Lee and Gao (2005) postulate that job dissatisfaction causes employees to obtain negative psychological identification with their organisation which leads to staff turnover, whereas, job satisfaction influences employees to remain working with the organisation (Kim et al, 2009). In addition, Firths et al study (2004) of 173 retail employees highlights that lack of organisational commitment and job dissatisfaction was highly influential on turnover intentions. Additionally, Ackfeldts and Cootes (2005) research suggests job satisfaction and organisational commitment are vital in developing organisational citizenship behaviours amongst retail employees. Furthermore, Booths and Hammers (2007) research illustrates employees in retail are more inclined to leave the organisation when they feel unsatisfied with their working conditions. Such empirical evidences indicate job satisfaction and organisational commitment as key predictors to turnover in the retail industry. However, Wheeler et al (2007) argues that job dissatisfaction does not essentially lead to staff turnover; rather, turnover further depends on the suitable/available job alternatives perceived by the employee, since, when there is no job alternative the unsatisfied employee remains working in the organisation. Similarly Khatri et al (2001) advocates that labour market conditions and perceived job alternatives are positively related with turnover, since, the higher the unemployment rates the lower the job alternatives and vice versa. Accordingly, the CIPD survey (Willmott and McCartney,2009) highlights, that more than a third of all employees plan to leave their current jobs once the recession diminishes and the labour market is reignited. However the survey also illustrates the main reason of doing so is due to low job satisfaction (Willmott and McCartney, 2009), as the trigger that leads employees to search for job alternatives is none other than job dissatisfaction (Wheeler et al, 2007). Therefore, ultimately it is argued that job satisfaction and organisational commitment are major determinants in reducing staff turnover (Boyle 1997; Firth et al, 2004). Hence it is only logical and necessary that effective retention methods for the retail industry address job satisfaction and organisational commitment (Vos and Meganck, 2009). For instance the most popular retention methods implemented were related to pay, since, pay was identified Page | 11

as an essential variable of job satisfaction and organisational commitment (Horwitz et al, 2003).

2.3 Pay
According to Ryan and Sagas (2009) and Tang et al (2000) one of the main reasons of employee turnover is due to low pay satisfaction leading employees to leave for a higher paid job that meets their needs and satisfaction. Similarly, Judge et al (2010) postulate that pay satisfaction is one of the fundamental components of job satisfaction and Booth and Hamer (2007) acknowledge that when pay is perceived as poor and not satisfying to the employee it causes the employees to leave. Furthermore, Ryans and Sagass study (2009) identifies that when pay dissatisfaction increases, employees are more likely to be perceptive to work-family conflict, which ultimately creates turnover intentions. In relation, Tekleab et al (2005) argue that previous studies demonstrated pay satisfaction to be negatively associated with turnover intentions. In support of this, research reveals that dissatisfied employees who leave, gain a 20% pay increase in their new job, thus, indicating pay as a crucial factor to attract and retain staff. (Tang et al, 2000). Consequently, Taylor et al (2006) postulate that most managers acknowledge money as a prime retention method and that employees leave one employer to another for better pay, therefore to be successful in retaining staff, pay must have a competitive advantage compared to what other organisations are providing. However in the retail industry pay seems far from competitive as previous research into the UK food retail environment, found that out of all the elements of job satisfaction employees were most dissatisfied with their promotions and pay in particular (Omar and Shittu, 2005). Sparks (1992) also highlights that the retail industry is widely known as a low pay sector and such low wages causes detrimental effects in the long term as retailers struggle to retain its employees. Hence, this reflects the importance of pay and the lack of satisfaction received from it as a likely contributor to the retail industrys exceedingly high turnover rates. Accordingly, Hendries study (2004) into a retail chain concludes that the employees working in retail perceive pay as strong enough reason to leave, if it were unsatisfying and unacceptable. Therefore, in relation to the research question, the literature indicates pay as a key candidate for the most effective retention method in reducing staff turnover in the retail industry. On the other hand, Chew and Chan (2008) suggest that pay may not necessarily retain employees as there may be other factors such as employee recognition that may lead to Page | 12

greater satisfaction and commitment to remain in the organisation. Consequently, Kinnies et al study (2005, p.20) illustrated a positive correlation between employee recognition and organisational commitment and job satisfaction, which was clearly evident from the responses from the employees interviewed, for example one employee stated If someone comes down and says you are doing a good job or you handled that well, it is worth more than a pay rise. More importantly, in relation to the retail industry Firth et al (2004) advises retail managers, that not only should extrinsic sources of job satisfaction be monitored for employees, but intrinsic factors must also be monitored to effectively retain staff and reduce turnover intentions in the retail environment. In relation, Jamess et al study (2011) revealed that the older generation of employees continue working for attaining intrinsic reward rather than extrinsic rewards such as benefits and income. On the other hand, interestingly further research into the retail workforce indicates that in order to effectively retain the younger retail workforce, pay had to be improved to their satisfaction (Hendrie, 2004). Similarly Broadbridge et al (2009) highlights that to successfully retain generation Y in the retail industry the most significant engagement drivers such as reward packages and good pay must be applied. Therefore, in addressing the research question, interesting and important conclusions can be drawn from the literature on pay. A strong argument is portrayed in favour of pay as an effective retention method capable of reducing staff turnover in the retail industry (Hendrie, 2004; Omar and Shittu, 2005; Sparks, 1992). However there seems to be differences amongst retail employees, since literature acknowledges that pay is highly important and effective in retaining younger retail employees (Broadbridge et al, 2009; Hendrie, 2004) than it is for older employees (James et al, 2011). Since, it is argued that pay alone may not be sufficient to retain retail employees; rather other intrinsic methods must also be applied (Firth et al 2004). For instance, employee recognition may lead to greater employee commitment and attachment to remain with the organisation than pay (Chew and Chan, 2008).

2.4 Employee Recognition

Employee recognition is to acknowledge and appreciate the achievements and accomplishments of employees (Appelbaum and Kamal, 2000). Organisations can implement non monetary employee recognition formally or informally, for instance from giving out awards of achievement, introducing employee of the month to just simply praising the employee and saying thank you (Lloyd, 1996; Nelson, 2004). According to Appelbaum and Kamal (2000), Chew and Chan (2008) and Saunderson, (2004) a lack of employee Page | 13

recognition is a major contributor to staff turnover, whereas, organisations with employee recognition programmes ultimately succeed in employee retention. Therefore, this indicates employee recognition to be a highly effective retention method that can potentially benefit the retail industry to retain employees without incurring any costs. Furthermore, Rooney et al (2009) postulates that employees who are recognised and appreciated by their managers for doing a good job and handling difficult situations, develop greater job satisfaction, confidence as well as job self efficacy. Since, it is regarded that employee recognition is fundamental in giving meaning to an employees work and in promoting development (Brun and Dugas, 2008). Additionally, Appelbaum and Kamal (2000) argue that recognition of employees accomplishments leads to satisfying the motivational and psychological needs, thus, enhancing job satisfaction. Moreover, Amundson (2007) argues that it is essential for organisations to implement employee recognition strategies in order to attract and retain its employees, since; employees are social beings that need to be valued and appreciated and feel that their contribution to the workplace matters. Chews and Chans (2008) research results portrayed that when employees felt that their efforts, capabilities and performance were recognised and appreciated they were more inclined to remain and be committed to the organisation. In comparison, Appelbaums and Kamals study (2000) concluded that employee recognition was identified to enhance job satisfaction and employee productivity, which ultimately led to a decrease in employee absenteeism and turnover rates. Consequently, Broadbridges et al (2000) research identified that a lack of employee recognition within the retail work environment was viewed as a major source of job dissatisfaction amongst retail employees. The retail employees further expressed their anger by saying you just like to be appreciated dont you It doesnt take much to say thank you and youve worked hard does it? (Broadbridge et al, 2000, p425). Therefore, this highlights the importance of employee recognition in the retail environment as an effective method of increasing employee job satisfaction that can ultimately lead to the retention of retail employees. However previous study reveals that employee recognition can be an ineffective retention method if the employee is unable to acquire a comfortable living standard due to a low income level (Appelbaum and Kamal, 2000). Nevertheless researchers highlight that employee recognition is a highly successful retention strategy (Chew and Chan, 2008; Saunderson, 2004). The findings of Saundersons survey (2004) into the effectiveness of employee recognition in the public sector illustrated that over 90% of the public sector managers surveyed, reported that employee recognition improved staff retention. Moreover, Page | 14

Glenmorangie case study (Drysdale,2005) revealed that one of the main problems associated with staff turnover was due to the lack of recognition and not the level of pay, since, employees felt that their achievements went unnoticed by their managers, therefore recognition programmes were implemented that led to high levels of employee morale and commitment and the prevention of increased employee turnover. Similarly, Hendries study (2004) in a retail chain revealed that a lack of employee recognition was one of the causes of retail staff turnover. Moreover, Jamess et al study (2011) highlights that employee recognition was one of the most effective force of employee engagement for the older retail employees in particular. Hence, in relation to the research question, employee recognition is essentially perceived as one of the most appropriate and effective retention method amongst retail employees. Overall, the literature highlights the significance of employee recognition as an effective retention method (Amundson, 2007; Chew and Chan, 2008; Saunderson, 2004) that can potentially reduce staff turnover in the retail industry (Hendrie, 2004), since; empirical research has identified employee recognition to effectively decrease staff turnover and successfully accommodate the retention of employees. However, according to Sucharskis and Rhoadess study (2002) a supportive work environment proves to be a more valuable retention method for the retail industry.

2.5 A Supportive Work Environment

A supportive work environment is sought to stem from the organisation, supervisor and/or co-workers which are all closely interrelated (Ng and Sorensen, 2008), support from these three sources either individually or together are formed and perceived when employees receive emotional and instrumental assistance and whilst employees acknowledge that their well being and contributions are being valued and cared for (Dawley et al 2008; Ferres et al, 2004; Vandenberghe et al, 2004;). According to Jr et al (2007) support is highly desired and valued by an employee, which if support is received, literature highlights that the outcomes of a supportive environment leads to employee retention, thus, a decrease in staff turnover (Jawahar and Hemmasi, 2006; Karatepe, 2009; Ng and Sorensen, 2008; Rooney et al; 2009). For instance based on the social exchange theory and reciprocity norm, Jr et al (2007) and Ristig (2009) postulate, that organisational support causes employee obligation towards the organisation in terms of employees caring for and achieving organisational goals along with feeling obliged to remain with the organisation. Similarly organisational support theory proposes that organisational support reduces staff Page | 15

turnover by reinforcing employee obligation and employees sense of identification and belonging with their organisation (Vandenberghe and Stinglhamber, 2003). Furthermore Dawleys et al (2008) findings demonstrates that employees receiving organisational support, develop feelings of employee loyalty and attachment to the organisation and are less likely to search for job alternatives, however employees that are exposed to low organisational support instigate job search behaviour. Accordingly, the findings from Rhoadess et al study (2001) into the retail sector revealed that perceived organisational support led retail employees to gain affective commitment to the organisation, whilst, perceived organisational support was also found to be negatively related to voluntary retail employee turnover. Similarly, Sucharski and Rhoades (2002) acknowledge a supportive-work-environment as a valuable retention method for the retail industry since their study with 493 retail employees portrayed supervisor support to be positively related to organisational support and negatively associated with turnover. Furthermore, Jamess et al study (2011) indicates supervisor support as one of the most effective force of employee engagement amongst older aged retail employees. Therefore from the literature it is evident that a supportive-work-environment is a highly effective retention method in reducing staff turnover in the retail industry. Consequently Firth et al (2004) argues that supervisor support is highly influential in reducing intention to leave amongst retail employees (Firth et al, 2004). Moreover supervisor support helps build better relationship between employees and managers (Bergiel et al, 2009) and was found to be related to employees self esteem and life satisfaction (Ng and Sorensen, 2008). Additionally Ng and Sorensen (2008) argue that co-worker support is also influential in increasing job satisfaction, enhancing employee wellbeing, work attitudes and trust between co-workers. Such working relationships which harbours mutual respect and trust between co-workers ultimately increases job satisfaction (Sias, 2005) and develops employee loyalty and emotional attachment and commitment towards the organisation, which leads to employee retention (Min, 2004; Wang, 2008). Therefore, a supportive-work-environment not only reduces staff turnover but also helps develop strong relationships between employees which further strengthens the retention of employees in the retail sector. Since, Broadbridges et al (2000) findings illustrate that companionship between retail employees were perceived as a significant positive feature of the job and as a main source of job satisfaction. Subsequently, satisfaction from good relationships with supervisors and co-workers significantly increased retail employees continuance and affective commitment towards the organisation (Lee and Gao, 2005).

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However, certain findings from organisational support studies suggest that a supportive work environment may not be an effective retention method compared to career development opportunities. Since, one of the results from Vandenberghes and Stinglhambers (2003) study portrayed that receiving supervisor support on enhancing career opportunities was much more favourable than anything else. Furthermore Jawahars and Hemmasis (2006) research acknowledged that employees tend to leave organisations that fail to provide support for career advancement. Nevertheless research highlights that a supportive work environment not only retains employees but also helps employees to deal with stress (Stinglhamber and Vandenberghe, 2003). Karatepes (2009) research findings illustrated supervisor support to alleviate employees work-family conflict and reduce stress as well as turnover intentions. Similarly, Babins and Boless (2002) research highlights that supervisor support increases job satisfaction and reduces stress amongst employees working in retail. Furthermore, Booths and Hammers (2007) research findings further establish a supportive-work-environment as a vital retention method which reduces stress and pressure for retail employees, making work more manageable. Therefore in relation to the retail work environment which is known to be highly stressful with high absenteeism and turnover rates (Knight et al, 2007), a supportive work environment proves to be an even more successful method of managing stress and retention for the retail industry (Booth and Hammer, 2007; Firth et al, 2004; Sucharski and Rhoades, 2002). However it is also important to acknowledge the effectiveness of career development indicated from the research.

2.6 Career Development

According to Chen et al (2004), Gaffney (2005), Joo and Park (2010) and Jr et al (2006) career development is perceived as one of the most effective and invaluable retention method. For example, the employee retention case study of the retail giant Wal-Mart by Peterson (2005) revealed, that the success of its retention laid on providing career development opportunities for its employees, which in turn reduced staff turnover rates from 70% in 1999 to 44% in 2003. Hence this indicates the sheer effectiveness of careerdevelopment-opportunities as a retention method for reducing staff turnover in the retail industry. Furthermore, Jr et al (2006) emphasise that career development programmes are highly beneficial for both employees and organisations, since, on one hand employees gain greater career prospects, it enriches their present job and increases job satisfaction. On the Page | 17

other hand organisations achieve better employee retention and an increase in employee loyalty. Similarly, Bambacass study (2010) and Wengs et al research (2010) highlights career development opportunities to be positively correlated with employee loyalty and organisational commitment. In relation, Gaffney (2005) postulate that employees who experience professional development are more satisfied and inclined to remain with the organisation. Subsequently, Chens et al study (2004) concluded that organisations that fail to provide opportunities for career development, fail to satisfy employees career needs, thus, widening the gap between career needs and career development, which creates low employee morale, job dissatisfaction and high staff turnover. Furthermore, Joos and Parks research (2010) portrays organisational commitment and career satisfaction as significant determinants to turnover intentions and Kappias et al (2007) findings highlight career development as a primary factor in influencing career choice and retention. Correspondingly, according to the CIPD annual survey report (2010) learning and development opportunities were amongst the most commonly rated effective retention method. In addition, Ackfeldt and Coote (2005) suggest that professional development improves the employee and employer relationship and acts as an opportunity to promotion, such promotional opportunities are found to be correlated to normative and continuance commitment (Weng et al, 2010). More importantly it is identified that the majority of the staff in the retail industry consists of young employees who seek career development opportunities (Kim et al, 2009), research into a retail chain of mainly young employees found that a lack of career prospects was one of the main reasons given by employees as to why staff leave (Hendrie, 2004) Similarly, Jamess et al study (2011) of employees in retail, revealed that the relationship between career-development-opportunities and employee engagement was the strongest for younger retail workers, however career-developmentopportunities was an insignificant employee engagement factor for older retail employees. Therefore this implies that career-development-opportunities is one of most effective retention method for reducing turnover amongst younger retail employees than their older colleagues. However, the literature emphasises that turnover rates are much higher for industries such as retail that recruit younger-than-average employees, who work part-time whilst studying (Hurst and Good, 2009). Since, students in general perceive a career altogether in the retail industry as least attractive compared to other industries (Broadbridge, 2003), thus, a career in retail remains to be the last choice after graduation (Broadbridge et al, 2009). Therefore this indicates that young part-time employees in education will inevitably leave Page | 18

their retail jobs regardless of any career-development-opportunities in retail. On the other hand Broadbridge et al (2007) argues that young students working part-time in retail ultimately leave due to their perception of poor salary, poor working hours and poor careerdevelopment-opportunities in retail. Similarly, Tang et al (2002) advocates that part-time jobs are essentially perceived as dead-end jobs, which contain little responsibility and opportunities for advancement. Hence, this ultimately suggests that the very reason young part-time employees in education leave, is due to the lack of career-developmentopportunities in retail. Therefore this reinforces the importance and effectiveness of careerdevelopment-opportunities as a retention method for reducing turnover especially amongst the younger aged retail employees. Overall, in relation to the research question the literature acknowledges careerdevelopment-opportunities to greatly influence employee satisfaction, commitment and retention (Bambacas, 2010; Joo and Park, 2010;) amongst retail employees (Peterson, 2005), particularly for the younger employees (Broadbridge et al, 2007; Hendrie, 2004) Hence, career-development-opportunities is essentially an effective retention method that is able to reduce staff turnover in the retail industry. Nevertheless the main gaps in the literature must be identified in order to ensure the validity of the research.

2.7 Gaps in the Literature

The literature review displays several gaps that highlight potential areas that need to be investigated. Therefore despite the above literature, the management research argues that even though there is extensive research evaluating the effectiveness of retention methods and its effects on employee turnover, there is insufficient research in relation to the retail industry that has the highest rates of staff turnover (Booth and Hammer, 2007; Ramaseshan, 1997). Since it is acknowledged that research into the retail industry focuses more on customer loyalty as opposed to employee loyalty and commitment (Foster et al, 2008). Additionally, the researchers that have addressed the outcomes of retention methods in the retail industry, concentrated mainly on correlations between one or two particular variables, such as pay and retention or career development and retention, hence, it is stressed that other variables be investigated (Firth et al, 2004; kim et al, 2009; Vos and Meganck, 2009). Moreover research into employee recognition in the retail sector was very rare. Consequently, a further understanding and investigation of a variety of retention methods and its impact on retail staff needs to be established. Therefore from the gaps in

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the literature, the following research question is developed, What are the most effective retention method in reducing staff turnover in the retail industry?

2.8 Conclusion
In conclusion, the literature review of this chapter illustrates the importance and effectiveness of different retention methods through identifying its impact on reducing staff turnover and increasing levels of employee job satisfaction and organisational commitment that ultimately leads to employee retention. However from the literature review above, it is difficult to isolate the most effective retention method for the retail industry. As some researchers believe that low pay satisfaction is one of the main reasons of employee turnover in retail, hence increasing pay satisfaction will lead to lower turnover and higher retention rates in the retail industry (Hendrie, 2004; Omar and Shittu, 2005; Sparks, 1992). In contrast, Chew and Chan (2008) suggest that pay may not necessarily retain employees as there may be other factors such as employee recognition that may lead to greater satisfaction and commitment to remain in the retail organisation (Broadbridge et al, 2000). However, according to Firth et al (2004) and Sucharski and Rhoades (2002) a supportivework environment proves to be a more valuable retention method for the retail industry as it increases employee loyalty and attachment to the organisation and reduces retail employees intention to leave. Nevertheless, other studies portray that a lack of career development opportunities is one of the main reasons given by employees as to why retail employees leave (Hendrie, 2004; Kim et al, 2009). Overall, all of the retention method analysed seem to be very effective in reducing staff turnover in the retail industry. However, it is identified that there is little research on retention methods relating to the retail industry in particularly employee recognition. Therefore, the purpose of this management research is to investigate the effectiveness of the different retention methods in the retail industry; hence, the research question is What are the most effective retention methods in reducing staff turnover in the retail industry? In order to successfully investigate and address this research question the most suitable methodological approach must be adopted, which is explored in the next chapter.

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Chapter 3: Methodology
3.1 Introduction
The previous chapter critically analysed the existing literature in relation to the evaluation of effective retention methods in a retail environment. Consequently, the following research question was developed, What are the most effective retention method in reducing staff turnover in the retail industry? Accordingly, chapter three aims to justify the research paradigm, design and methods adopted for the study. Additionally the sampling procedures, ethical considerations and the validity and reliability of the study will also be discussed, however chapter three will begin by discussing the research paradigm.

3.2 Research Paradigm

A research paradigm is defined as a philosophical framework which guides the researcher on how the research should be conducted (Collis and Hussey, 2009; Biedenbach and Muller, 2010). One of the elements of the research paradigm is methodology, which ultimately is the researchers techniques used to investigate the reality (Healy and Perry, 2000; Sobh and Perry, 2006). The literature highlights various types of paradigms (Barker et al, 2001; Perry, 1998). However, the most suitable and advantageous research paradigm adopted for this study is pragmatism. Since, methodologically pragmatists highly support the use of a mixed method approach a combination of qualitative and quantitative data which is obtained in this research (Feilzer, 2010, Healy and Perry, 2000). Feilzer (2010) argues that pragmatism allows the investigator to be free from being constrained to one particular research method; instead the researcher is able to choose a mix of methods that is useful for answering the research question (Collis and Hussey, 2009). Therefore, pragmatic researchers are more able to combine empirical precision with descriptive precision (Onwuegbuzi and Leech, 2005, p.383), since the quantitative method provides a more empirical approach to the research whilst descriptive precision of the Page | 21

research is produced from qualitative means. Hence, by adopting the pragmatic approach the combination of both methods forms a more in-depth analysis into the different retention methods in the retail industry. Correspondingly, Saunders et al (2009) claims that pragmatism is an appealing research paradigm as it avoids pointless debates on concepts of truth and reality, but focuses mainly on answering the research question, with methods deemed as appropriate by the researcher. Consequently, in order to address the research question effectively with the use of a mixed method approach, adopting the pragmatism paradigm was essential. This then leads to the analysis of the research design, in particular the mixed method approach.

3.3 Research Design

The research design provides a structured framework for the collection and analysis of data that is required to answer the research question (Ghauri and Gronhaug, 2010; Jankowicz, 2000; Kumar, 2005). According to JR et al (2003) the researcher should select a research design that efficiently provides relevant data on the research question. Therefore, the research design for this research consists of a mixed method approach, where both quantitative and qualitative methods are utilised.

3.3.1 Mixed Method Approach

In order to analyse the mixed method approach in terms of its suitability for this research, it is essential to investigate the strengths and weakness of both qualitative and quantitative methods. Hence beginning with the strengths, Fossey et al (2002) and Nykiel (2007) highlights that quantitative research provides measureable objective data that is predictable of the population. Similarly, Onwuegbuzi and Leech (2005) advocate that the quantitative researcher is able to convey hard generalizable results, which can be easily replicated (Partington, 2002). Additionally, quantitative research primarily focuses on theory testing with a critical and logical approach, (Ghauri and Gronhaug, 2010) targeting at large samples and external validity (Bleijenbergh et al, 2010). Therefore the quantitative research will help this research by targeting a large sample of retail employees which will support the validation of this study.

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In contrast, the strengths of qualitative research allow the researcher to gain a thick description and an in-depth, holistic understanding of the phenomena, (Hopmann, 2002; Shah and Corley, 2006). Since the method captures the participants voice (Onwuegbuzi and Leech,2005) and its core strength of a flexible structure enables the researcher to develop further important questions and discover unanticipated relationships and findings (Partington, 2002). Hence the qualitative research focuses on theory building (Cooper and Schindler, 2008) and high internal validity (Bleijenbergh et al, 2010). Consequently, such strengths ensures a deeper understanding of the various retention methods and its level of effectiveness in the retail sector, since the qualitative research provides a possibility to discover further retention methods that have not initially been recognised. Ultimately, it is clear that both quantitative and qualitative methods have attractive strengths that are extremely useful for this study; however both methods also have weaknesses. For instance as opposed to qualitative research, quantitative research fails to focus on theory building, thus lacking in providing rich description and a detailed understanding of the phenomena (Parington,2002; Shah and Corley,2006). Whereas qualitative data collection and analysis is proved to be time consuming due to its nonstandardised complex data (Saunders et al,2009). Additionally, researcher bias is another weakness of qualitative research (Bleijenbergh et al,2010) as well as the small sample size which limits the generalisability of the research (Nykiel,2007). Consequently, for this research to be free from such weaknesses the mixed method approach must be adopted. Since the mixed method approach integrates both qualitative and quantitative research, thus developing data triangulation, which leads to the weakness of one method being counter-balanced and compensated by the strength of another (Jarratt,1996). Further advantages of the mixed method approach allows the researcher to combine strengths from both methods, providing a more in-depth understanding (Arora and Stoner, 2009) and a more complete picture of the phenomenon (Onwuegbuzi and Leech,2005). Since, the methods supplement and inform each other by aiding interpretation and addressing the different aspects of the research (Feilzer, 2010; Leicht et al,2010; Saunders et al,2009). Accordingly, Jarratt (1996) argues that both qualitative and quantitative methods are perceived as complementary instead of rivals. Additionally, Denscombe (2008) highlights, that the mixed method design avoids the intrinsic biases of a mono-method design; rather it strengthens the verification, generalizability, reliability and validity of the research (Jarratt, 1996; Leicht et al,2010). Hence, ultimately it is argued that the mixed method approach/triangulation of data provides Page | 23

a truer analysis of the phenomenon (Davies,2003) and provides a better understanding of the research than one method alone (Palinkas et al,2010). Therefore to adequately answer the research question, the mixed method approach was adopted as the research design for this study. Since the benefits discussed above such as, the complementary use of both qualitative and quantitative research, ultimately leads to gaining a better understanding of relevant retention methods that are effective in reducing staff turnover in the retail industry. Hence, in order to implement the mixed method approach appropriate research methods of data collection must be adopted in this study.

3.4 Research Methods

In order to effectively address the research question, questionnaires and semistructured face-to-face interviews were adopted as the most appropriate methods of data collection.

Questionnaire
Questionnaires are the most common method of data collection in business research (Cooper and Schindler, 2008; Ghauri and Gronhaug, 2010). Since Jankowicz (2005) highlights that due to the standardised questioning style in questionnaires, statistical analysis is easily obtained by the researcher. As a result, questionnaires are perceived as a highly efficient method of collecting data from a large sample (Saunders et al, 2009). Similarly, according to Maylor and Blackmon (2005) administering questionnaires are advantageous due to its low cost and accessibility to a large number of respondents. Consequently, to access a large number of retail employees efficiently, questionnaires were the most suitable method. Furthermore, the open-ended questions in the questionnaire provide a detailed response whilst the close-ended questions provide the researcher with precise data, making data collection and analysis considerably easy (Feilzer, 2010; JR et al, 2003). In relation to this research the majority of the questions in the questionnaire were close-ended whilst a few were open-ended questions. Since, analysing large amounts of open-ended questions increases opportunities of error and slows the analysis procedure (Cooper and Schindler,2008). Hence the close-ended questions provided the collection and analysis of data to be simple and uncomplicated. Whereas, the few open-ended questions in the questionnaire allowed the retail employees to discuss other important reasons for staying or leaving the retail organisation, which led to unanticipated findings. Therefore, due to the Page | 24

advantages discussed, self-completion questionnaires was utilised as the main method of collecting data in this study along with semi-structured face-to-face interviews.

Semi-Structured Face-to-Face Interview

Interviews help explore and provide in-depth understanding of the phenomena through the perceptions of the participant (Collis and Hussey, 2009). Accordingly, Saunders et al (2009) highlight that semi-structured interviews allow the researcher to probe answers in order to gain further explanation of the responses, this adds depth and significance to the data obtained. Similarly, Jankowicz (2005) advocate that researchers in semi-structured interviews are able to encourage participants to expand on their answers, thus, providing a more detailed understanding of the data. Hence, semi-structured interviews are useful to this research, as elaborate data of different retention methods in terms of evaluation and applicability in the retail industry can be probed and encouraged from participants. Moreover, Ekanem (2007) and Jarratt (1996) argue that the open structure of the semi-structured interviews allow new dimensions and unexpected facts of the research to be easily discovered and explored. Furthermore, interviews provide researches a level of adaptability and flexibility that is difficult to achieve in other methods (Cameron and Price, 2009). Therefore in order to discover new dimensions and attain elaborate data in regards to the research question, semi-structured face-to-face interviews were deemed as the most suitable method to conduct, in particular with managers. Since empirical evidence reveals that managers are more likely to accept being interviewed than complete a questionnaire (Saunders et al;2009). This leads to discussing the sampling procedures and population of the research.

3.5 Sampling Procedures and Population

It is necessary for a business research to obtain a representative sample of the population (JR et al, 2003). Since the choice of sampling techniques is dependent on the feasibility and sensibility of collecting data to answer your research question (Saunders et al, 2009, p.243). The target population for this study are employees working in the retail industry as the research question is based on identifying what are the most effective retention method in reducing staff turnover in the retail industry? Therefore the sample in this research consisted of both employees and managers of Waitrose, a retail store. Waitrose was chosen particularly for this research due to its reputation of attaining a low staff turnover rate in the retail industry. Page | 25

The questionnaires were distributed and completed by the sample consisting of 30 employees, 16 female and 14 male. According to Saunders et al (2009) a sample size minimum of 30 is sufficient for quantitative statistical analysis. The employees had to answer questions relating to the importance of different factors that encourages them to remain working in the job and factors that makes them leave the job. This was done in order to identify the most effective retention methods in retail through the perception of employees working in retail. In contrast to quantitative methods, Cooper and Schindler (2008) highlight that qualitative methods often focus on a small sample size, since the sample should be primarily chosen on the basis of being able to provide relevant in-depth data rather than how well the population is represented. Consequently, the sample conducting semi-structured face-toface interviews consisted of 2 managers, the store deputy manager and the Human Resource manager, who were both most adequate in providing in-depth detailed information on the different retention strategies that were effective and valued by the employees in the retail sector. Hence, along with the employees, the perspective of retail managers was also researched to discover if both managers and employees had the same opinion on what were the most appropriate and effective retention methods in the retail industry. Therefore, the samples for both methods were appropriate in order to gain sufficient data to answer the research question. However, while analysing and collecting data from participants, it is extremely important to observe the ethical principles of the research (JR et al, 2003).

3.6 Ethical Considerations

Research ethics are defined as the moral principles related with the research design and the way in which access is gained and how data is collected, processed and stored (Saunders et al, 2009). Hence, the aim of research ethics is to ensure that no participants is harmed or adversely affected from the research activities (Cooper and Schindler, 2008). Consequently the researcher is obliged to treat the participants in the research ethically (JR et al, 2003). Therefore to conduct an ethically oriented research, consent of the organisation was first sought before commencing the research by a formal letter, detailing all the information of the research. Since Saunders et al (2009) advocates that it is advisable to send an introductory letter outlining the purpose of the research making the participants aware and assured. Additionally, JR et al (2003) outlines that participants must not be forced to participate in the study, rather voluntary participation must be emphasised. Consequently, informed consent was attained by all the participants and their right to Page | 26

withdraw from the research at any point was clarified as well as the purpose of the research. Furthermore, to offer participants anonymity and confidentiality (Collin and Hussey, 2009), no names were asked for in the questionnaires and interview, and the data collected was securely stored for research purposes only and was destroyed after research was completed. Therefore the research abided by the Data Protection Act and the research ethics were strictly upheld.

3.7 Validity and Reliability of the Study

The literature highlights that in order to reduce the chances of gathering wrong information and answers in addressing the research question, the validity and reliability of the study must be obtained (Saunders et al, 2009). Validity is associated with the accuracy of findings whilst reliability refers to the consistency of findings (JR et al,2003). Jarratt (1996) argues that reliability and validity of the research is strengthened by the mixed method approach, as it avoids the intrinsic biases of a mono-method approach (Denscombe, 2008). For instance quantitative methods obtain high external validity whereas qualitative methods have high internal validity (Bleijenbergh et al, 2010). Hence, combining both methods to address the same research topic leads to a stronger level of validity than one method alone. Therefore it is evident that the validity and reliability of this study has been sustained, through the implementation of the mixed method approach, whereby triangulation of data was formed, as both qualitative and quantitative research methods were utilized to address the same research question.

3.8 Conclusion
Overall, chapter three provided an overview of the research methodology. Pragmatism was outlined as the best fit for the research paradigm along with the mixed method approach as the research design. As a result data triangulation also took place and the validity and reliability of the study was maintained. Additionally, ethical standards were met as questionnaires and semi-structured interviews were utilised for the collection and analysis of data in order to investigate, What are the most effective retention method in reducing staff turnover in the retail industry? Subsequently, the next chapter focuses on presenting and discussing the key findings obtained from the research.

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Chapter Four Key Findings & Discussion

4.1 Introduction
This management research has aimed to achieve a comprehensive understanding of the effectiveness of various retention methods in the retail environment, by addressing the research question What are the most effective retention methods in reducing staff turnover in the retail industry? The research question was addressed using a pragmatic approach, in which a mixed method research design was implemented for the data collection process previously discussed in chapter three. Accordingly, chapter four not only aims to present the key findings of this research, but also aims to interpret and discuss the findings in relation to the literature review. Since, it was perceived to be more convenient to combine the key findings and discussion into one chapter. Additionally, three key findings have emerged from the data gathered from the questionnaires conducted by 30 employees and semi structured interviews conducted by two managers. Hence this chapter will present and discuss the following key findings: 1) The correlation between employees age and effective retention methods, 2) Good relationships between employees in a friendly and family orientated work environment. 3) Students working part-time with different career aspirations other than retail eventually leave.

4.2 Key Findings One Correlation between Employees Age and Effective Retention Methods
Key findings one presents the most interesting and vital findings which indicate a clear correlation between employees age and the most suitable and effective retention method. The findings emerged from the data collected from the questionnaires, in particularly from the employees responses from the question on How important is pay, supportive-workenvironment, career development opportunities, employee recognition and bonus payment in influencing and encouraging you to stay working in the company? Hence below are three graphs which represent the employees different age groups and responses.

Graph 1: Employees aged between 46 65 years

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How important is it in influencing & encouraging you to stay working in the Retail Company
12 10 8 6 4 2 0 Pay Supportive Career Employee Work Development Recognition Environment Bonus Pay Very Important

From looking at the graph 100% of employees aged between 46-65 years agreed that a supportive-work-environment and employee recognition were the most important factors in influencing and encouraging them to remain working in the retail company. However, only 9% of the employees rated career development opportunities as also very important factors for remaining.

Graph 2: Employees aged between 16 25 years

How Important is it in influencing & encouraging you to stay working in the Retail Company?
12 10 8 6 4 2 0 Pay Supportive Career Employee Work Development Recognition Environment Bonus Pay Very Important

This graph portrays 90.9% of the retail employees aged between 16-25 years acknowledge pay and bonus payment as the most important factors in influencing and encouraging them Page | 29

to stay. Similarly, 63.6% of the employees also chose career development opportunities as a very important factor. Whilst 54.5% of employees identify employee recognition as important and 45.4% of employees identify a supportive-work-environment to be an important factor also. Nevertheless the top 3 most important factors that influence and encourage the retention of retail employees aged between 16-25 years are pay, bonus payment and career development opportunities.

Graph 3: Employees aged between 26 35 years + 1 Employee aged 36-45

How important is it in influencing & encouraging you to stay working in the Retail Company
7 6 5 4 3 2 1 0 Pay Supportive Career Employee Work Development Recognition Environment Bonus Pay Very Important

Graph 3 reveals that similarly to the employees aged 46-65, a supportive-work-environment and employee recognition are also very important factors that influences and encourages 75% of retail employees aged between 26-35 to remain working in the retail company. However unlike their older colleagues in graph 1, 50% of employees in this graph also consider career development opportunities, pay and bonus payment as still relatively very important factors which influences them to stay working. This displays a comparison with the employees aged between 16-25 years in graph 2. Hence graph 3 portrays the employees aged between 26-35 + 1 employee aged between 36-45 to obtain similar views with both their younger and older colleagues in retail. Hence, interestingly employees aged between 26-35 + 1 employee aged between 36-45 seem as though going through a transition from moving away from factors encouraging to stay such as pay, bonus payment and career development opportunities, to moving more towards obtaining a stronger preference to a supportive-work-environment and employee recognition. Hence, gradually moving from the Page | 30

perception of the employees aged 16-25 towards gradually holding the same views and values of the employees aged 46-65 as they too get older in age. Therefore, the data on the graphs reflect a crucial unanticipated finding which indicates a clear correlation between an employees age and retention methods which are most appropriate and effective in a retail setting. Since the findings from the questionnaires given out to the employees, illustrate that the older the age of the employees working in retail, the higher they value employee recognition and a supportive-work-environment as important factors in the workplace which influences and encourages them to stay in the organisation. Whereas, the younger the age of the retail employees the higher they value pay, bonus payment and career development opportunities as important factors in the workplace which influences and encourages them to stay in the retail organisation. Such findings were further validated as older employees responded in agreeing strongly to statements such us I am likely to leave my job if it doesnt have a supportive work environment and if I am not being recognised and appreciated for the work I do. While, younger employees responded in strongly agreeing to statements of I am likely to leave my job if I am not happy with pay, bonus payment and career development opportunities Correspondingly, the literature review highlights that the majority of staff in the retail industry are young in age who seek career development opportunities (Kim et al, 2009). Similarly, Hendries research (2004) in a retail chain consisting of mainly young employees revealed, that one of the main reasons for leaving was due to a lack of career development opportunities as well as pay. It was highlighted that pay rates must be improved and acceptable especially amongst young retail workers to lead successful staff retention (Hendrie, 2004). Broadbridge et al (2009) also argues that in order to effectively retain generation Y in the retail sector, the key engagement drivers such as reward packages and good pay must be upheld. In contrast, the older generation of employees continue working for reasons such as intrinsic reward rather than benefits and income (James et al, 2011). Furthermore, Jamess et al study (2011) of employees in the retail sector, illustrated that the relationship between career development opportunities and employee engagement was the strongest for younger retail workers, whereas career development opportunities was an insignificant employee engagement factor for older workers who were retirement-eligible. Thus, leading to assume that older retail employees may feel that career development opportunities are not appropriate for them as they probably believe that the opportunities to further develop themselves is over. Therefore, in relation to the literature the findings in this research reveal consistent results as pay, bonus payment and career development Page | 31

opportunities are shown to be the most important and effective retention methods for young retail employees than older employees. Surprisingly, both the HR Manager and the Deputy Store Manager that were interviewed failed to mention any correlations between employee age groups and appropriate and effective retention methods. Instead, both managers attribute the different retention strategies to all employees as a whole. Since in questioning pay as an effective retention strategy, the Deputy Store Manager replied, pay is a tool for retention definitely! Surely, if we were paying less, that could you know, definitely sway a lot of our people to our competitors (Interviewee 1). Similarly, the HR Manager argues I definitely think pay is an incentive for people. I think peoples pay is always the thing that keeps them here (Interviewee 2). Both managers are also assertive in thinking that A lot of people, they stay or they like working here because of the bonus (Interviewee 1). People stay in the company because weve got the bonus scheme (Interviewee 2). Both retail Managers also agree that career development opportunities are essential retention strategies that entices people to stay in this company (Interviewee 1). The managers responses indicate their unawareness of the correlation between employees age and retention methods. Since, they strongly attribute pay, career-development-opportunities and bonus payment to all employees as a whole, whilst, it is evident that their views are only applicable to the younger retail employees than the older employees. In relation to the older retail employees aged 26-65 in this study; the findings suggest that the most important and effective retention methods are employee recognition and a supportive-work-environment. Interestingly, the literature review supports this finding and reinforces the effectiveness of both these retention methods for older employees in the retail industry, as Jamess et al study (2011) into the retail workforce confirmed that supervisor support and employee recognition were the most effective forces of employee engagement for older retail employees. Furthermore Sucharskis and Rhoadess research (2002) with 493 retail employees highlight a supportive-work-environment as a highly effective retention method in the retail environment, since supervisor support was negatively associated with staff turnover, as it reduces retail employees intention to leave (Firth et al, 2004). Whilst, Rhoadess et al study (2001) identified perceived organisational support to be positively related to affective commitment amongst retail employees. Additionally, Broadbridges et al (2000) findings reveal that a lack of employee recognition amongst retail employees was viewed as major source of job dissatisfaction. Such dissatisfaction with employee recognition was identified in Hendries study as one of the causes to retail staff turnover. Hence, even though the literature apart from Jamess et al study (2011) do not discuss any correlations to Page | 32

employees age, the importance of employee recognition and a supportive-work-environment is nonetheless magnified in the retail industry. However according to the two retail managers that were interviewed in this research, there seems to be conflicting views regarding the effectiveness and value of employee recognition and a supportive-work-environment in the retail industry. Since according to the retail stores Deputy Manager a supportive-work-environment is an effective retention method in reducing staff turnover in retail, Because its one of the reasons why most people join the partnership (the retail store). So yes its definitely a tool you know, either people might leave because they are not getting the support or stay because they are getting it (Interviewee 1). In contrast, the HR Manager disagrees and postulates that the supportive-work-environment as a retention method in retail is probably one of the things that are least effective. I think that until you need it, you are unaware of it. Until you need the support of your business, umm you dont even think about it (Interviewee 2). Therefore it is interesting to see that the HR Managers views are in contradiction not only with the Deputy Store Manager but also with the stores employees aged 26-65, who find a supportive-work-environment very important in influencing and encouraging them to stay working. Perhaps, the HR manager is basing the importance and effectiveness of a supportive-work-environment on the employees aged 16-24, who perceive pay and bonus payment as far more important factors to remain working than a supportivework-environment. Furthermore, regarding the effectiveness of employee recognition as a retention tool in the retail industry, the Deputy Store Manager expresses that Whether its an effective tool, Im yet to see that. You know people dont sit and expect to have it. They dont even know, they think theyre doing their job. It (employee recognition) is a good to have, but it doesnt affect turnover in any way shape or form, not in my opinion (Interviewee 1) Whereas the HR Manager believes that employee recognition is an extremely effective retention tool, highly valued by retail employees as the manager states that just the simple well done, you done it well. I think if someones recognised, it definitely makes them feel better, definitely makes them feel valued. The rewards that make them stay are pay and definitely recognition (Interviewee 2). Interestingly contradiction between the managers is present again. However, the Deputy Store Managers opinion of employee recognition seems invalid compared to the views of the majority of employees in the study, especially with employees aged 26-65 who believe employee recognition is very important in influencing and encouraging them to stay working in the retail company. Consequently, this leads to question, whether the retail industry is faced with such Page | 33

differences of opinions regarding retention methods amongst managers and their employees. If so, it may result in failure to effectively reduce staff turnover in the retail industry. Ultimately key finding one has opened a new exciting dimension to the research, since prior to the finding the research question was formed to solely identify the most effective retention method for the retail industry, with no acknowledgement of the impact age would have on the different retention strategies. However the finding ensures that appropriate and effective retention methods for one age group of retail employees will not be so effective and appropriate for another age group of retail employees. Such findings are illustrated as being unknown to the retail managers, who also have conflicting views amongst each other and their employees regarding the effectiveness of different retention strategies in retail. Nevertheless, in addressing the research question, it is evident from the literature and the findings that pay, bonus payment, career development opportunities, employee recognition and a supportive-work-environment, all play an important role in effectively retaining and satisfying the needs of employees from different age groups in the retail sector. However, another factor that also seems be extremely effective in the retention of employees in retail is the unanticipated finding of a friendly and family orientated work environment.

4.3 Key Findings Two Good Relationships between Employees in a Friendly and Family Orientated Work Environment
The second key findings of the research reveal good relationships between employees that reflect a friendly and family orientated work environment is an effective method of retention for employees working in retail. Throughout the questionnaires conducted by the employees and the interview with the Deputy Store Manager it emerged, that close relationships based on mutual trust, respect and kindness between employees which reflected a friendly and family orientated work environment was highly valued. In relation to the interview, the first question posed to the Deputy Store Manager was, what types of retention strategies implemented in the organisation do you think is the most effective in retaining employees and reducing staff turnover? The managers reply included strategies such as career development opportunities and pension schemes, however more interestingly the manager went on discussing about the ethos with which we work. We work around principles that are set, which we all agree on and we treat each other with respect, were honest. So its kind of like a family thing. I mean you can go around and ask people who work here; it feels more like a family environment Page | 34

(Interviewee 1). The manager also gave an example of an employee whose husband died, she was given 2 weeks off from work for bereavement, but only after one week she came back to work and everyone was insisting she goes back home and mourn. But shes like I want to be at work because this is my family (Interviewee 1). Hence the Deputy Store Manager illustrates that a family work environment is a highly effective retention strategy implemented by the retail organisation which reduces staff turnover and ensures the retention of its employees. However, in the interview with the HR manager-interviewee 2, there was no mention of a family work environment. More interestingly, a significant theme was identified from the responses to openended questions in the questionnaire, in which the responses by 63.3% of employees in the study reflected and validated the Deputy Store Managers view of the family work environment as an effective retention strategy in retail. For example, in relation to the question, what other important factors influences and encourages you to stay working in the company? Employees answers included friendly people, Respect, working as part of a team, the workplace has a family like spirit, everyone is extremely kind and helpful, the family orientated workplace. Furthermore, to the question, if you are planning to still stay working in Waitrose in the future, please give reasons to why you are happy to stay working in Waitrose? Employees responses were Happy working environment, very friendly work colleagues, I will be staying because of good working relationships with both staff and management, The branch that I am at has a happy coherent, family orientated atmosphere. These examples were just some of many answers, all of which indicate that the employees working in retail are extremely satisfied and strongly prefer to remain working in a friendly and family orientated environment where everyone has good strong relationships of respect, trust and support with each other, just like friends and family. Consequently, these findings suggest that such an environment is an extremely effective retention method in retail. In comparison to chapter two, the literature review also acknowledges the effective retention of employees that occurs from good working relationships in a friendly and family orientated work environment. Since, the literature highlights that an employees emotional bonds with colleagues and supervisors results to stronger organisational commitment (Wangs, 2008). Accordingly, further research found that satisfaction from good relationships with supervisors and co-workers significantly increased retail employees continuance and affective commitment towards the organisation (Lee and Gao, 2005). Consequently, in a higher quality working relationships were mutual respect and trusts are high; the level of job satisfaction also increases (Sias, 2005). Similarly, Broadbridges et al (2000) findings Page | 35

illustrate that in a retail sector companionship with work colleagues for retail employees were perceived as a significant positive feature of the job, which was regarded as one of the main source of job satisfaction. Hence, in support of the findings in this research, it is also evident from the literature that good relationships amongst employees in the retail workplace, that in turn reflect a friendly and family orientated work environment, is an effective method of retention in a retail setting.

4.4 Key Findings Three Students Working Part-time with different Career Aspirations other than Retail eventually leave
The final key findings in this research recognises that part-time retail employees that are studying, plan to eventually leave their current retail jobs as well as the retail industry for a career more related to their studies and degree. These results transpired from the questionnaire in which the question asked the employees if you are planning to leave your current job in the future, please give your reasons for why you would want to leave? The graph below represents the employees that plan to leave their jobs for a career different to retail.

Employees planning on leaving due to different Career Aspirations

12 10 8 6 4 2 0 Part Time Employees Full Time Employees Employees planning on leaving due to different Career Aspirations

Out of the total number of employees who expressed their plan on leaving their retail jobs for a different career, 83.3% were part-time employees whilst 16.6% were full-time employees. However all of the employees were young in age with 66.6% aged between 16-25 years and Page | 36

33.3% of employees aged 26-35 years. More significantly, 70% of part-time employees from the graph above highlighted that they aspire to attain a career in the field more related to their degree they are studying. Hence, this implies that majority of the employees that plan to leave for different careers are students working part-time. Similarly, Hurst and Good (2009) highlight that turnover rates are much higher for industries such as retailing that recruit younger-than-average employees, who work part-time whilst studying. The literature further emphasises that students in general perceive the retail industry as less attractive compared to other industries (Broadbridge, 2003), as their perception of retail entails poor salary, poor working hours and poor career development opportunities (Broadbridge et al 2007). Additionally, part-time jobs are also perceived as dead-end jobs that contain little responsibility and opportunities for advancement (Tang et al, 2002). Consequently, perhaps the students working part-time in this research who plan to leave may also have such perceptions of their retail jobs which instigate their intent on leaving. On the other hand Broadbridge et al (2009) argue that students that had positive experiences in their retail jobs also felt positively towards a career in retail. Therefore, this leads to question whether the employees in this research are more inclined on leaving due to negative experiences in their retail jobs. Since, literature further acknowledges that young employees reject or accept a career based on part-time employment, making students experiences working part-time in retail crucial in determining a potential career in retail (Hurst and Good, 2009). Hence in order for retailers to successfully retain their younger parttime employees in education, retail employers should ensure that employees receive a pleasant and positive work experience by meeting and satisfying their demands and needs of pay, rewards and career development opportunities which can be identified from key finding one of this research. Nevertheless, the retention of graduate employees in the retail industry remains to be a key issue (Broadbridge et al, 2007) as the retail industry remains to be the last choice after graduation (Broadbridge et al, 2009), due to the industrys unattractiveness compared to other industries such as accounting, finance (Hurst and Good, 2009), law and psychology etc, all of which may even be related to the graduates degree and qualifications. Hence coming back to the key findings which highlight, that young students working part-time in retail which aspire for a different career more related to their studies and degree eventually leave their retail jobs and the retail industry. Consequently, this indicates the possibility of student part-time workers leaving as one of the key contributors to the extremely high Page | 37

turnover rates that is prevalent in the retail industry (Hurst and Good, 2009). Therefore, in order to reduce staff turnover in retail, retail employers should maintain a strong focus on retaining their young part-time employees in education by meeting their demands and satisfying their needs.

4.5 Summary of Findings & Conclusion

Overall, the management research revealed three key findings that contributes to addressing the research question What are the most effective retention methods in reducing staff turnover in the retail industry? As a result, these core findings provide a more enhanced understanding of the effectiveness of different retention methods in the retail environment. Firstly, one of the most crucial and interesting results recognised by the research are the correlations which illustrate that the younger the age of the retail employees the higher the employees value pay, bonus payment and career development opportunities as factors that greatly influence and encourage them to remain working in the company. In contrast, the older the age of the retail employees the higher the value is for employee recognition and a supportive-work-environment as factors that influence them to stay working in retail. The literature also supports the finding as Broadbridge et al (2009) and Hendries study (2004) highlight that in order to effectively retain younger employees in the retail sector, good pay rates, reward packages and career development opportunities must be adequate, as it was amongst the main causes for voluntary turnover amongst younger retail employees. In further support of the key findings Jamess et al research (2011) also highlight that the older retail employees were found to remain working for more intrinsic factors, as supervisor support and employee recognition were the most effective forces of employee engagement compared to other factors such as career development opportunities. The key findings further reveal differences of perception between retail employees and their managers, since the research reveals the retail managers to be unaware of such correlations and attribute pay, bonus payment and career development opportunities as effective retention methods to retail employees of all ages. The managers further express conflicting views regarding the effectiveness of employee recognition and a supportive-workenvironment, which are in fact highly valued by their older employees. Therefore key finding one suggests that retail employers should further understand and acknowledge the effect an employees age has on the appropriateness and effectiveness of retention methods. Since most effective retention methods appropriate for the younger retail employees such as pay, bonus payment and career-development-opportunities will not be so effective for the older retail employees and vice versa. As the most effective retention methods for the older retail staff are employee recognition and a supportive-work-environment. Page | 38

Furthermore, the open-ended questions in the interview and the questionnaires illustrated a further vital unanticipated finding, which highlights that retail employees strongly prefer and are highly satisfied and encouraged to remain working in a friendly and family orientated work environment, where good relationships based on respect, trust and support is formed between the retail employee and their co-workers. Similarly in the interview the deputy store manager revealed that one of the most effective retention methods implemented in the organisation is the ethos of the company which reflects a family like work environment with principles of mutual respect and honesty. In support of the findings the literature also highlights that in the retail sector satisfaction from good relationships and companionship with supervisors and co-workers significantly increased retail employees continuance and affective commitment towards the organisation and was also perceived as a significant positive feature of the job, which was regarded as one of the main source of job satisfaction (Broadbridges et al, 2000; Lee and Gao, 2005). Ultimately, in addressing the research question, key finding two along with the literature indicate that good relationships based on mutual respect, trust and support between employees in a friendly and family orientated work environment is an extremely effective retention method that reduces staff turnover in the retail industry. Therefore retailers should establish such a working environment to ensure successful retention of their retail staff. Lastly, the final key findings of this research highlights that young students working part-time in retail that aspire for a different career more related to their studies and degree, eventually leave their retail jobs and the retail industry. The results further indicate the possibility of it being a key contributor towards the significantly high turnover rates in the retail industry. Similarly, the literature also acknowledges that students in general perceive the retail industry as less attractive compared to other industries (Broadbridge, 2003) making a career in the retail industry a last choice after graduation (Broadbridge et al, 2009). This is due to the perception of poor salary, poor working hours and poor career development opportunities held about retail (Broadbridge et al, 2007). Consequently, staff turnover rates are much higher for the retail industry that recruits younger-than-average employees, who work part-time whilst studying (Hurst and Good, 2009). Therefore the key findings of this research along with the literature essentially highlight that young students working part-time aspiring for a different career will eventually leave, however for retailers to overcome this, retail employers should ensure that employees receive a pleasant and positive part-time work experience by meeting and satisfying their demands and needs of flexibility within working hours, pay, bonus payment and career development opportunities which can also be identified from key finding one of this research. Hence, by instilling such a positive work Page | 39

experience, young part-time retail employees in education are more likely to be persuaded in adhering and continuing their career in retail (Broadbridge et al, 2009; Hurst and Good, 2009). In conclusion, this management research proposes various different effective retention methods that are most appropriate and adequate in reducing staff turnover and retaining employees successfully from of all different age groups in the retail industry. The next chapter presents an overview of the management research and discusses the key limitations of the research and highlights potential research for the future.

Chapter Five Conclusion 5.1 Introduction

In the previous chapter the key findings of this management research were presented and discussed in relation to the literature review. Therefore, chapter five aims to provide the overall conclusion of the research by highlighting the summary of the study, addressing the research question and summarising the key findings. Additionally, the limitations of the study and scope for future research will also be discussed.

5.2 Summary of the Study

The aim of this study was to analyse and identify a variety of different retention methods that are most appropriate and effective in retaining employees working in the retail industry. Since the literature highlights the growing concern of the retail industry, as the industry most adversely affected with the highest rates of staff turnover than any other industry (Booth and Hammer, 2007; Foster et al 2008; Ramaseshan, 1997; Sparks, 1992). The consequences of staff turnover are extremely detrimental, as retail organisations experience very high costs due to constant recruitment and training of new employees (Booth and Hammer, 2007; Firth et al, 2004), also retail organisations are more prone to an unproductive workforce as turnover and constant recruitment of new staff leads to a lack of skills and cohesion amongst the workforce (Hendrie, 2004). Therefore the literature argues that effective retention methods are extremely important to increase organisational efficiency and reduce staff turnover and its detrimental consequences (Bergiel, 2009; Vos and Meganck, 2009). However, there is insufficient research in relation to effective retention methods in the retail industry that has the highest Page | 40

rates of staff turnover (Booth and Hammer, 2007; Ramaseshan, 1997). Additionally, researches that addressed the outcomes of retention methods in the retail industry, concentrated mainly on correlations between one or two particular variables, such as pay and retention or career development and retention, therefore, literature stresses that other variables be investigated (Firth et al, 2004; kim et al, 2009; Vos and Meganck, 2009). Hence the justification of this study is attained due to the lack of research carried out to achieve an in-depth understanding of effective retention methods most appropriate for the retail industry.

5.3 Addressing the Research Question

In addressing the research question what are the most effective retention methods in reducing staff turnover in the retail industry? The management research aimed to focus on investigating the various factors which influences and encourages the retail employees to remain working within the retail environment, therefore effective retention strategies for retail organisations can be identified. Therefore in order to address the research question a pragmatic approach was adopted along with the mixed method research design which was considered to be most suitable for the research. Consequently, to understand the employees perception regarding the most important and valuable factors that influences and encourages them to stay working in the retail environment, questionnaires were conducted by thirty employees. On the other hand to identify the most effective retention methods that are highly valued by retail employees from a managerial perspective, semi-structured face-to-face interviews were conducted with two retail managers. From the questionnaires and interviews three key findings emerged.

5.4 Key Findings & Discussion

In answering the research question What are the most effective retention methods in reducing staff turnover in the retail industry? three key findings emerged. The first key finding revealed correlations which illustrate that the younger the age of the retail employees the higher the employees value pay, bonus payment and career development opportunities as factors that greatly influence and encourage them to remain working in the company. In contrast, the older the age of the retail employees the higher they value employee recognition and a supportive-work-environment. The key findings have been consistent with the literature which also acknowledges the correlation between age and appropriate and effective retention methods (Broadbridge et al, 2009; Hendrie, 2004; James et al, 2011). Therefore, the key finding of this research and the literature both present Page | 41

consistent results of the correlations between retail employees age and the most appropriate and effective retention methods. The second key finding also answers the research question as it illustrates that employees working in retail strongly prefer and are highly satisfied and encouraged to remain working where good relationships based on trust, support and respect is formed between the retail employee and their co-workers which ultimately reflect a friendly and family orientated work environment. Such an environment is also highlighted in the literature as a highly effective method of retention for the retail industry (Broadbridges et al, 2000; Lee and Gao, 2005). Finally the third key findings along with the literature, both illustrate that young students working part-time in retail, plan to eventually leave their current retail jobs as well as the retail industry for a career more related to their studies and degree. This is identified as a key contributor towards the retail industries highest turnover rates (Hurst and Good, 2009). Since for graduate employees, a career in the retail industry is perceived as least attractive compared to other industries due to its poor working hours, poor pay and poor career-development-opportunities (Broadbridge et al, 2009, Broadbridge et al, 2007). Therefore to counter act such perceptions and prevent turnover, retail employers are encouraged to attain a strong focus on retention by providing a pleasant work experience for their young part-time employees in education, whereby their needs associated with working hours, pay and career-development-opportunities are satisfied. Ultimately this management research has helped identify many effective retention methods for reducing staff turnover in the retail industry.

5.5 Limitations of the Study

It is acknowledged that the study consists of obvious limitations. The main limitation of the study is attributed towards the sample of the management research. Since, the sample is based only on one retail organisation in which only thirty retail employees and two managers participated in the research. Therefore, it is clear that the sample size is too small to thoroughly investigate the most effective retention methods in retail, which also limits the generalisability of the study.

5.6 Future Research

Due to the limitations of the research, a direction for future research is identified. To enhance the genralisability of this study and to further analyse and gain a more in-depth understanding of effective retention methods in the retail industry, future research with a Page | 42

much larger sample consisting of both retail employees and employers must be conducted. Additionally, by identifying the correlation between retail employees age and the most appropriate and effective retention methods, a further research would be beneficial to review and validate the correlations. Furthermore a longitudinal study for future research would also be beneficial to investigate whether a positive part-time retail work experience suggested in this research, successfully retains young part-time retail employees after they had finished their education.

5.7 Conclusion
Overall, by addressing the research question What are the most effective retention methods in reducing staff turnover in the retail industry? The management research illustrated a variety of effective and appropriate retention methods that can potentially reduce the retail industrys problematic issue of extremely high staff turnover rates. The main implications of this research is that the effectiveness and appropriateness of retention methods are hugely dependant on the retail employees age, as the most important factors which influences younger employees to remain working in retail, were pay, bonus payment and career-development-opportunities, whilst for the older retail employees it was employee recognition and a supportive-work-environment. Furthermore the research emphasises that good relationships between retail employees which reflect a friendly and family orientated work environment is another highly effective retention method in reducing staff turnover in the retail industry. The research further highlighted a potential key contributor towards the high rates of turnover in the retail industry, which were the young part-time retail employees in education who plan on eventually leaving their retail jobs for a career more related to their studies and degree. However the research also identifies and suggests retention methods that can help prevent such situations from occurring. In conclusion, the management research has provided a deeper understanding of the most effective retention methods that are most appropriate for the retail environment by examining the perceptions of both retail employees and managers. Additionally, the research has highlighted various key retention methods, which retail organisation should focus on implementing in order to reduce staff turnover and increase organisational efficiency and a competitive advantage.

Page | 43

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APPENDIX 1

13 December 2010 Contact Title Department Andy Falkuner Store Manager Cashier

Organisation Supermarket Waitrose Address Cherry Tree Walk Centre Whitecross Street Barbican London EC1Y 8NX Najmin Sultana 000498797 Student of Greenwich University Old Royal Naval College Park Row London SE10 9LS

Dear Mr Wergin

Please note that we have given permission to the following student to undertake their individual project in our organisation as part of their assessment for the Dissertation / Management Report program conducted at the University of Greenwich: Page | 51

Najmin Sultana The student will be investigating the following topic within our organisation in order to provide us with some feedback on the research outcomes in the area of: Effective Retention Methods in Retail We understand that as part of the project, the student will be interviewing one store manager and the Human Resource Manager for approximately 20 minutes as well as conducting questionnaires with approximately 30 employees to elicit information about the employee perspective on effective retention methods in the retail environment. Kind regards, Andy Faulkner

APPENDIX 2

13 December 2010

Contact Title Department Organisation Address

Andy Falkuner Store Manager Checkouts Waitrose Cherry Tree Walk Centre Whitecross Street Barbican London EC1Y 8NX

Najmin Sultana 000498797 Student of Greenwich University Old Royal Naval College Park Row London SE10 9LS

Dear Mr Falkuner My name is Najmin Sultana and I am a third year student studying my Bachelor of Hon specialising in Human Resource Management. As this is my final year I am currently commencing my research for st my 10,000 word dissertation / management report due on the 21 March 2011. For this project we need to conduct a Management Research process within an organisation.

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Therefore, I am writing to seek permission to potentially undertake my individual project investigating your organisation as part of my assessment for the Dissertation program conducted at the University of Greenwich. For my dissertation I am interested in investigating the topic of effective retention methods within your organisation. The aim of this project is not just to complete my assessment item but also to provide the business with any feedback and recommendations for the research outcomes. If possible as part of my project, I would like to conduct 20 mintues interview with a store manager and the Human Resource Manager, as well as conducting questionnaires, with approximately 30 employers to elicit information about the employee perspective on effective retention methods within the retail environment. I understand that the time you are able to provide, in order to assist with the research maybe be limited. However, I am aim to hopefully only require approximately 2 hours of your input in order to complete my project. Feel free to contact me via email (najmin-sultana@hotmail.com) or call me on the following number: 079 393 674 112 when you are free to discuss the potential requirements of the project and how it may benefit your organisation. Kind regards, Najmin Sultana University of Greenwich 3 Year BA HRM Student
rd

APPENDIX 3
Hi my name is Najmin Sultana and I am currently in my final year studying Human Resources Management at University of Greenwich, where I am currently carrying out my independent research for my dissertation into finding out What is the most Effective Retention Method in reducing staff turnover in the Retail Industry?.

Therefore I would really appreciate if you can kindly answer the following questions in this questionnaire. I would also like to emphasise that the information given by you will be kept strictly confidential and anonymous and will only be used for research purposes.

Demographic Information

Q.1. Age

Which of the following best describes your age? Page | 53

16-25

26-35

36-45

46-55

56-65

Q.2. Gender

Male

Female

Q.3. Employment

Full time

Part time

Q.4. Ethnicity

Which of the following best describes your ethnicity?

White: British

White: Irish

Other White background

Black: British

Black: African

Other Black background

Indian

Pakistani

Bengali

Somali

Chinese

Korean

Japanese

Other Asian Background

Other mixed background

Other ethnic origin (Please specify)

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Prefer not to say

Q.5. For the following questions on the left, please give your answer by ticking a box from the 5 options below.

Very Important

Slightly Important

Neither Important or Unimportant

Slightly Unimportant

Very Unimportant

How important is pay in influencing and encouraging you to stay working in the company?

How important is a Supportive Work environment (e.g. getting support, help and advice from managers, supervisors, colleagues) in influencing and encouraging you to stay working in the company?

How important are career development opportunities in influencing and encouraging you to stay working in

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the company?

How important is employee recognition (e.g. being recognized and appreciated for your work) in influencing and encouraging you to stay working in the company?

How important is the bonus payment in influencing and encouraging you to stay working in the company?

Q.6. What other important factors influences and encourages you to stay working in the company?

Q.7. Please give a score to the factors listed below in order of importance and value to you in the workplace. 1 being most important, 2 being second most important and so on.

Career Development Opportunities

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Pay

Bonus payment

Employee recognition (e.g. being recognized and appreciated for your work)

Supportive work environment (e.g. getting support, help and advice from Managers, supervisors, colleagues etc)

Other (please specify below)

Q.8. For the following statements on the left, please show how much you agree or disagree with each statement by ticking a box from the 5 options below.

Strongly Agree

Agree

Neither Agree or Disagree

Disagree

Strongly Disagree

I am likely to leave my job if I am not happy with the rate of my pay.

I am likely to leave my job if there are no opportunities to

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develop my career.

I am likely to leave my job if there are no bonus payment.

I am likely to leave my job if it doesnt have a supportive work environment.

I am likely to leave my job if I am not being recognized and appreciated for the work I do.

I am likely to leave my job if I get bullied/harassed at work

Q.9. What other reasons would make you decide to leave your job?

Q.10. For the following questions on the left, please give your answer by ticking a box from the 5 options.
Very Satisfied Satisfied Neither satisfied or unsatisfied Unsatisfied Very unsatisfied

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How satisfied are you with your rate of pay?

How satisfied are you with the career development opportunities the company has to offer?

How satisfied are you with the support, help and advice you get from your managers, supervisors and colleagues?

How satisfied are you with your bonus payment?

How satisfied are you with the recognition and appreciation you receive for your work from your managers and/or supervisors?

Q.11. If you are planning to still stay working in Waitrose in the future, please give reasons to why you are happy to stay working in Waitrose? OR If you are planning to leave your current job in the future, please give your reasons for why you would want to leave?

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APPENDIX 4

Interview Questions for Managers

1. What types of retention strategies implemented in the organisation do you think is most effective in retaining employees and reducing staff turnover? 2. What retention strategies implemented in the company do you think is the least effective in retaining employees and reducing staff turnover? 3. What are your views on pay as a retention method; do you think it is an effective tool in reducing staff turnover in retail? 4. What are your views on employee recognition as a retention method, do you think it is an effective tool in reducing staff turnover in retail? 5. What are your views on a supportive work environment as a retention method, do you think it is an effective tool in reducing staff turnover in retail? 6. What are your views on career development opportunities as a retention method, do you think it is an effective retention method in reducing staff turnover in retail? 7. What factors do you think are most valued by your employees, which helps keep them satisfied and committed to stay with the organisation?

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APPENDIX 5
Overview of the Managers Responses Perceptions Question Summary Interviewee 1 Deputy Store Manager Interviewee 2- HR Manager

Most effective retention strategies implemented in the organisation

First and foremost its the career opportunities that we have. Which for me you know entices people to stay in this company

Mainly probably because of the bonus scheme, if Im honest. People stay in the company because weve got the bonus scheme

And you know the career Also the benefits that we have, progression, because you know, you its very, very generous. Like can progress here definitely the pension schemes The ethos with which we work. We work around principles that are set, which we all agree on and we treat each other with respect, were honest. So its kind of like a family thing.

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Least effective retention methods implemented in the organisation

Least effective wow, hmm cant think of any at the moment, because all the strategies are quite good

I would say the pension is probably the one, because people dont think about the future

Effectiveness of pay as a retention method in retail

pay is a tool for retention definitely! Surely, if we were paying less, that could you know, definitely sway a lot of our people to our competitors

I definitely think pay is an incentive for people.

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Effectiveness of employee recognition as a retention method in retail

Whether its an effective tool, Im yet to see that. You know people dont sit and expect to have it. They dont even know, they think theyre doing their job. It (employee recognition) is a good to have, but it doesnt affect turnover in any way shape or form, not in my opinion

Just the simple well done, you done it well. I think if someones recognised, it definitely makes them feel better, definitely makes them feel valued. The rewards that make them stay are pay and definitely recognition

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Effectiveness of a supportive work environment as a retention method in retail

Its one of the reasons why most people join the partnership (the retail store). So yes its definitely a tool you know, either people might leave because they are not getting the support or stay because they are getting it

Probably one of the things that are least effective. I think that until you need it, you are unaware of it. Until you need the support of your business, umm you dont even think about it

Effectiveness of Career Development Opportunities as a retention method in retail

PLEASE LOOK AT THE FIRST RESPONSE BOX

PLEASE LOOK AT THE FIRST RESPONSE BOX

Factors most valued by employees that makes them stay with the organisation

A lot of people, they stay or they like working here because of the bonus

The rewards that makes them stay are pay and definitely recognition

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