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

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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

mo st effect ive retent ion method s in reducing staff turnov er in theretail 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-to-

face interviews were conducted with two retail managers to attain a managerial perspectiveon 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-work-

environment.

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


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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 examiningthe 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 ......................................................... 102.3 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 OneCorrelation Between Employees Age and Effective RetentionMethods .............................................................................................................................. 28

4.3 Key Findings Two Good Relationships Between Employees in a Friendly and FamilyOrientated Work Environment ............................................................................................. 34

4.4 Key Findings Three Students Working Part-time with Different Career Aspirations otherthan 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 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


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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 considerimplementing 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


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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


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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


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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


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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


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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 retentionmethod. 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 career-

development-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


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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-development-

opportunities 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


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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 career-

development-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-development-

opportunities in retail. Therefore this reinforces the importance and effectiveness of career-

development-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 career-

development-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

retent ion method in reducin g staff turnover in the retai l industr y?

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 supportive-

work 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 retailemployees 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 mo st effect ive retent ion

methodsin 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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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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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 semi-

structured face-to-face interviews were adopted as the most appropriate methods of data

collection.

Quest ionnaire

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


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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-Struc tured Face-to-Face Interv iew

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.


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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-to-

face 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


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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 accuracyof 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 datawas 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 OneCorrelation 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-work-

environment, 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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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

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

0

2

4

6

8

10

12

Pay Supportive

Work

Environment

Career

Development

Employee

Recognition

Bonus Pay

How important is it in influencing & encouraging you

to stay working in the Retail Company

Very Important

0

2

4

6

8

10

12

Pay Supportive

Work

Environment

Career

Development

Employee

Recognition

Bonus Pay

How Important is it in influencing & encouraging you to

stay working in the Retail Company?

Very Important


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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

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

0

1

2

3

4

5

6

7

Pay SupportiveWork

Environment

CareerDevelopment

EmployeeRecognition

Bonus Pay

How important is it in influencing & encouraging you to

stay working in the Retail Company

Very Important


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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 mostappropriate 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 employeesrevealed, 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


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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 andappropriate 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 retent ion

definitely! Surely, if we were paying less, that could you know, definitely sway a lot

of ou r people to our c omp eti tors (Interviewee 1). Similarly, the HR Manager argues I

defini tely think pay is an incentive for p eople. I think peoples pay is always the thing

that keeps th em here (Interv iewee 2). Both managers are also assertive in thinking that A

lot of peop le, they stay or th ey l ike working h ere because of the bon us (Interviewee

1). People stay in the company because weve got the bonus scheme (Interviewee

2). Both retail Managers also agree thatcareer development opportunities are essential

retention strategies that entices people to stay in this company (Interviewee 1). The

managers responsesindicate 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 Sucharskisand Rhoadess research (2002) with 493

retail employees highlight a supportive-work-environment as a highly effective retentionmethod 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


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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 employeerecognition 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 gett ing the sup port or s tay 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

thing s that are least effect ive. I think th at unti l you need it , you are unaware of i t . Unti l

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 supportive-

work-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 statesthat just the simple well done, you done it well. I think if someones recognised, it

defini tely makes them feel better, defini tely makes th em feel valued. The rewards th at

make them stay are payand 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


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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, sinceprior 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 TwoGood Relationships between Employees in a Friendlyand 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

wo rk around princip les that are set, whic h we al l agree on and w e treat each oth er

with respect, were honest. So its kind of like a family thing. I mean you can go

around and ask people who work here; i t feels more l ike a family environm ent


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(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 open-

ended 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 ofgood w ork ing relat ionships

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 effectiveretention 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


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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 ThreeStudents 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 employeesif 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.

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

0

2

4

6

8

10

12

Part Time Employees Full Time Employees

Employees planning on leaving due to

different Career Aspirations

Employees planning on

leaving due to different CareerAspirations


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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 mo st effect ive retent ion 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 emp loyees 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 expressconflicting views regarding the effectiveness of employee recognition and a supportive-work-

environment, 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.


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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


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experience, young part-time retail employees in education are more likely to be persuaded in

adhering and co

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