HoctiefImpact of employee turnover on the overall performance of            Hoctief Construction Company Ltd.             ...
HoctiefCONTENTSResearch topic................................................................................................
Hoctief8.1 Analysis of Secondary Data Findings ..............................................................................
HoctiefRESEARCH PROPOSAL1. TITLEImpact of employee turnover on the overall performance of Hoctief Construction CompanyLtd....
Hoctiefdefinitely be high. The health of employees is also at stake and dangerous accidents canhappen if they do not obey ...
Hoctief3.3 Research Aim          To study the impact of employee turnover on the overall performance of the          compa...
HoctiefArgote and Epple (1990), Nelson and Winter(1982), Polanyi(1966) states that turnover canresult in “the loss of an e...
Hoctiefconditional it varies in different conditions but the underlying focus must be that companyperformance must not suf...
HoctiefClosed- ended information that reflects the attitude, behavior or performance instrumentsis included in quantitativ...
Hoctief5.2 Evaluation of MethodologyMix method research is very useful as it can answer a broader and complete range ofque...
HoctiefAlthough mix method has the above listed limitations but still we will select thismethodology to evaluate appropria...
Hoctiefto show their committed with the company that will ultimately be beneficial for increasingthe company’s performance...
Hoctiefperformance. The impact will in return help us to find the level of correlation between thetwo variables.Data colle...
HoctiefThe research shall be focused in order to find specific results and the validity and reliabilityof data will be giv...
Hoctief    2. Computer and particular software required for Gantt Chart preparation    3. Internet for accessing online bo...
Hoctief8. SECONDARY AND PRIMARY DATA ANALYSIS8.1 Analysis of Secondary Data FindingsTheoretical and conceptual frameworks ...
Hoctief Pamela K.Blum and Vanessa Q. Tremarco (2008) conducted a comprehensive research andanalysis on the factors that co...
HoctiefThis theory links the independent variables with the dependant variables. The conceptualframework of human capital ...
Hoctief    Strongly Agree (1)       Agree(2)          Disagree(3)        Strongly Disagree(4)            13%              ...
Hoctiefcompetative strategies for retention in order to control this high percentage ofdissatisfaction.Conclusion:Company’...
HoctiefReason: It is very important to know that to what extent employees are motivated byhealthy work environment, safety...
Hoctief Strongly Agree (1)       Agree(2)         Disagree(3)         Strongly Disagree(4)          42%               28% ...
Hoctief Strongly Agree (1)        Agree(2)         Disagree(3)         Strongly Disagree(4)          17%                23...
Hoctief Strongly Agree (1)        Agree(2)           Disagree(3)          Strongly Disagree(4)          26%               ...
Hoctief Strongly Agree (1)      Agree(2)          Disagree(3)       Strongly Disagree(4)          42%              31%    ...
Hoctief Strongly Agree (1)       Agree(2)         Disagree(3)        Strongly Disagree(4)          39%               27%  ...
Hoctief Strongly Agree (1)        Agree(2)         Disagree(3)         Strongly Disagree(4)          62%                21...
Hoctief“The on-site working conditions are not satisfactory. We work till late hours but there is noencouragement from the...
HoctiefThe three themes illustrates that all the above mentioned factors can help the company tominimize the factor of tur...
Hoctiefde motivated which in turns effect their performance which ultimately effects the overallcompany performance.The re...
Hoctief          31
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Hoctief research

  1. 1. HoctiefImpact of employee turnover on the overall performance of Hoctief Construction Company Ltd. Research By Andy Price 1
  2. 2. HoctiefCONTENTSResearch topic............................................................................................................................ 1Contents ..................................................................................................................................... 21. TITLE ....................................................................................................................................... 42. INTRODUCTION & BACKGROUND .............................................................................................. 43. RESEARCH CONTEXT .............................................................................................................. 43.1 Context and Rational ........................................................................................................... 4 3.1.1 Problems Faced by Hoctief Group ....................................................................... 4 3.1.2 Purpose for the Research...................................................................................... 53.2 Research Question .............................................................................................................. 53.3 Research Aim ......................................................................................................................... 63.4 Research Objectives................................................................................................................ 63.5 Research Hypothesis............................................................................................................... 64. PRELIMINARY LITERATURE REVIEW............................................................................................ 65. METHODOLOGY ....................................................................................................................... 85.1 Chosen Methodology ........................................................................................................... 85.2 Evaluation of Methodology ............................................................................................... 105.3 Limitations of Methodology............................................................................................... 106. APPROACH To CONCLUSIONS ........................................................................................... 116.1 Research Design ................................................................................................................... 126.2 Data Collection ................................................................................................................... 146.2 Data Analysis ...................................................................................................................... 147. RESOURCES AND TIME SCALE ............................................................................................. 147.1 Resources ............................................................................................................................ 127.2 Time Scale ............................................................................................................................ 128. SECONDARY & PRIMARY DATA ANALYSIS........................................................................... 16 2
  3. 3. Hoctief8.1 Analysis of Secondary Data Findings ................................................................................. 168.2 Analysis of Primary Data Findings .................................................................................... 188 8.2.1 Analysis of Quantitative data .............................................................................. 18 8.2.2 Analysis of Qualitative data ................................................................................ 278.3 Evaluation of Methodology ............................................................................................. 2999. CONCLUSION ........................................................................................................................ 2910. RECOMMENDATIONS ........................................................................................................... 30REFERENCES ............................................................................................................................. 31APPENDIX ................................................................................................................................. 34 3
  4. 4. HoctiefRESEARCH PROPOSAL1. TITLEImpact of employee turnover on the overall performance of Hoctief Construction CompanyLtd.By definition (Kevin et al, 2004) Structured organizations maintain and retain employees byinvesting a lot in terms of inducting, developing and training their employees. Therefore,management should control high rates of employee turnover at all costs.There is no particular or specific paradigm for knowing that what actually is the turnoverprocess as a whole rather there are various factors that contribute while understandingemployee turnover. Controlling employee turnover is great challenge for managers of allorganizations therefore, managers must fully be aware of the causes of employee turnoverand should than develop appropriate strategies minimize turnover.2. INTRODUCTION & BACKGROUNDThis report presents the reasons for the employee turnover at Hoctief Group and its effecton the overall performance and productivity of the company.The report initially presents descriptive study and analysis of the reasons and importance ofemployee turnover. Although there are numerous factors that can lead to higher rates ofturnover but our report shall focus on the following research variables includingorganizational commitment, an employee’s satisfaction level with the salary, organizationalworking environment, motivational factors, management’s attitude while dealing withemployee behaviours, workload and stress, and training and development opportunities.Results were analyzed graphically and descriptive analysis was applied.There is a discussion about Hoctief Group that the company is facing difficulty in getting outthe desired level of productivity due to high level of employee turnover. A triangle ofmethods are used in this research. The research adopts the mix-method researchmethodology of both the quantitative and qualitative approaches.In order to minimize employee turnover the data collection & analysis techniques aredesigned accordingly. All findings are well briefed and strategies are recommended with awell defined methodology.3. RESEARCH CONTEXT3.1 Context and Rational3.1.1 Problems Faced by Hoctief GroupAccording to Hoctief, the building and construction is a tough job and it requires expertise,both physical and mental strength and ability to stay focus in their work. Due to high risk ofwork hazards at construction sites the motivational level of individual workers would 4
  5. 5. Hoctiefdefinitely be high. The health of employees is also at stake and dangerous accidents canhappen if they do not obey with company rules and regulations provided by the company.Some of the employees who work on sites have de motivation and having job dissatisfactionas they complain that they work in unhealthy environment considering the heat and rain,dust and other chemical substances that they can inhale, stress and pressure of projectdeadlines, lack of proper accommodation during assignments and insufficient mealsmedicines and first aid on sites.According to employees who work on sites food and allowances for their basic hygiene andnecessity should also be taken in consideration so that they can sleep well during night andso that their conditions for the next day will be reinforced.The company’s strategy and performance in the long term can be affected by persistent de-motivation amongst employees. Employees may seek alternatives and it will increase turnover. This can be worth thinking as company spends lots of time & costs in trainingemployees and it’s really hard to find quality resources in current competitive market.3.1.2 Purpose for the ResearchSome of the staff at Hoctief Group has performance issues as they are de motivated due toa few reasons and it will affect the company’s organizational objectives in the long run. Ourresearch will help the company to achieve its strategic objective and keeping the employeesmorale high, so that they become high performance employees that will ultimately increasethe company’s performance. Reasons for employee turnover affecting company’sperformance from the study of most literatures are as follows: Employee turnover is more likely to be minimized when organizations maintain a conventional work environment (Zuber, 2001). Lower turnover rates of staff are enjoyed by organizations with strong communication systems (Labov, 1997). Job performance increases with an employee’s high morale which eventually increases company performance (Bowles and Cooper, 2009). If higher turnover rates are not managed and controlled appropriately than the organizations profitability can be seriously affected. (Hogan, 1992; Wasmuth and Davis, 1993; Barrows, 1990). As per expectancy theory the impact of monetary incentives to decrease turnover (Armstrong, 2009).3.2 Research QuestionWhat is the impact of employee turnover on the overall performance of the company? 5
  6. 6. Hoctief3.3 Research Aim To study the impact of employee turnover on the overall performance of the company.3.4 Research Objectives To determine the current causes of employee turnover. To measure the effects of employee turnover on company’s performance. To investigate the measure’s to minimize employee turnover in order to increase the company’s performance.3.5 Research HypothesisIf turnover is related to the overall performance of the company, then minimizing theemployee turnover will increase the performance of the company.4. PRELIMINARY LITERATURE REVIEWWhen an employer loses employees it is termed as employee turnover. Turnover can bevoluntary and involuntary.Price(1977), Mobley(1982) and Reggio(2003) states that “Turnover is defined as thecessation of membership in an organization by an individual and their movement out of anorganization. Voluntary and involuntary turnover are commonly distinguished”.According to them if an employee is asked to leave the company by the employer it istermed as involuntary turnover in which the employee himself is not desirable to quit thecompany, whereas when an employee leaves a company by his own desire it is calledvoluntary turnover. Voluntary turnover can impose financial burdens to the employer notjust be losing a valuable employee but also increasing the recruitment and training cost ofanother new hire. Companies who develop policies and strategies to cope up with employeeturnover can excel financially and can increase their performance by retaining bestemployees with the company for a longer time. Job dissatisfaction is considered as theprimary factor of voluntary turnover.Dalton and Todor(1979) and Bluedorn(1982) have convincingly stated that turnover caneffect the performance of an employee in a negative way . According to Dalton andTodor(1979) “Turnover is referred to as a clear cut act of behavior that has potentiallycritical consequences for both the organization and the person”.Nevertheless, “turnover of employees disrupts teams, raises costs, reduces production, andresults in lost knowledge” as according to Mustapha and Mourad (2007). They stated that amajor problem company’s face as a result of higher turnover rates is increase in training andrecruitment of newly hired employees which give rise to a lot of work place problems whichmay disturb the ongoing key activities and projects 6
  7. 7. HoctiefArgote and Epple (1990), Nelson and Winter(1982), Polanyi(1966) states that turnover canresult in “the loss of an employee’s accumulated experience”. According to their researchwhen an employee initiates to leave, the company might not suffer economically that muchbut may lack an employee who can add a lot to the overall productivity and performance ofthe organization.In contrast to the above views, Roseman (1981) has given positive point of view aboutemployee turnover. He is of the view that turnover gives rise to a change process which isbeneficial for the organization in the terms that new people bring in fresh and innovativeideas along with them that can lead a company to a different dimension.In his study Roseman(1981) stated that” The movement of employees in and out of anorganization is however able to revitalize an organization”. According to him when oldemployees leave the company, they are replaced by employees with enhanced andimproved skills and knowledge, bringing in new and innovative ideas. The most obviouspositive consequence is replacement of better performers in the organizations. Turnovermay also be able to reduce cost by eliminating or merging vacant positions as high-pricedtalent may be traded for lower-priced talent with equal capabilities”.After reviewing different literatures, the arguments presented by Dalton and Todor(1979)and Bluedorn(1982) can be agreed. In my opinion employee turnover can impose seriousimpacts on the workplace environment and employee relationships.Another research conducted by McGarvey(1997) states “Turnover also helps to clear out thedeadwood”. Besides only imposing negative effects turnover can also be helpful in gettingrid of employees who are not adding any value to the company productivity and are justthere in the company to add to its financial burden.Abelson and Baysinger (1984), Mowday(1982) and Staw(1980) also present their views infavor of employee turnover. They have suggested that organizations can actually benefitfrom the innovative thinking and increased motivation and zeal that new employees bringalong with them to perform any particular job that can ultimately add to the overallperformance of any organization.Similarly Staw (1980) also claims that turnover can be used as a tool for conflict resolution, itcan actually help to resolve various tough conflicts amongst employees which otherwise cancause serious problems for employers.I also favor Abelson and Baysinger (1984) point of view that newer employees bring inenergy and zeal to boost up company performance.“These conflicting views concerning the effects of turnover suggest that one must not viewturnover as a monolithic concept, but rather as a contingent phenomenon. The relevantquestion thus becomes not whether turnover has positive or negative effects onperformance, but rather under what conditions it is more harmful or beneficial to the firm”states Osterman (1987). I am also convinced by Osterman’s point of view that turnover is 7
  8. 8. Hoctiefconditional it varies in different conditions but the underlying focus must be that companyperformance must not suffer.I favor for Argote and Epple (1990), Nelson and Winter(1982), Polanyi(1966) that everyemployee is somehow adding value to the company and when an employee leaves acompany it is a loss for the company as a new employee can be motivated and innovativebut can lack the specialized experience as already gained by the departing employee.‘Various studies have found out that the dimensions along which employee turnover’simpacts the company performance are as follows: The organizational structure Level of turnover The departing employee’s tenure with the firm The degree to which turnover is voluntary for the worker Turnover predictability The degree to which the departing employee is respected by his colleagues who remain with the firm’.According to these research’s employee turnover has always been given great attention bymanagers and various researches have been conducted to find out the main causes ofemployee turnover, factors that lead to higher rates of employee turnover and strategiesand measures required to minimize turnover in organizations. Many research’s have provedthis that employee turnover can be a result of certain individual characteristics ofemployees, their jobs, market conditions, company policies or supervisor attitude etc.Policies and strategies have been developed by companied in order to minimize higher ratesof turnover considering these individual characteristics.These studies recommend that organizations must develop clear strategies in order toretain employees who are actually adding value to the company productivity.All the literature reviews gives a clear understanding that turnover is a dependent behaviouron various environmental and organizational factors that shall be discussed in detail in ourstudy. Some factors are directly associated with performance of the company. In this rapidlygrowing building industry in which Hoctief Group is operating, it is very essential that thecompany should retain employees as these are value addable resources for the company.5. Methodology5.1 Chosen MethodologyIn a study conducted by Hopkins (2000) he stated that quantitative research is all aboutmeasuring relationships between variables. Variables can be weight, performance, time etc.These designs are mostly used with the nature of the data is either descriptive orexperimental. 8
  9. 9. HoctiefClosed- ended information that reflects the attitude, behavior or performance instrumentsis included in quantitative data.In contrast, qualitative data consists of open-ended information that is gathered throughinterviewing some number of participants which answer these questions in their ownparticular way. Qualitative data may also be collected by observing participants or sites ofresearch, gathering documents from any public or private source.Denzin and Lincoln (1994) provided a generic definition of qualitative research, that is,"Qualitative research is multi method in focus, involving an interpretive, naturalist approachto its subject matter”.Creswell (1998) stated that dissimilar procedural inquires and queries of various social andhuman problems can be investigated by qualitative research. This type of study is conductedin a natural setting by reporting the views of various participants, builds multifaceted,holistic pictures, and analyzes words.Whereas mix method methodology is a wide-range approach which combines the strengthsof both quantitative and qualitative methods and evades their weaknesses.This methodology can provide more broad ranged answers to research questions, goingbeyond the limitations of quantitative and qualitative methods.According to Caracelli and Greene (1997) “The mixing may be nothing more than a side-byside or sequential use of different methods, or it may be that different methods are beingfully integrated in a single analysis”.More pertinent and absolute results can be derived for our research questions by using asingle methodology i.e. Mix method. But a disadvantage is that many complex and openended questions cannot be answered easily.According to Tashakkori and Teddlie(2001) that quantitative and qualitative methods havetheir own advantages and disadvantages and they being the first two paradigms had givenrise to mix method paradigm which provides more relevant and clear answers to theresearches. “They see this ‘third paradigm’ as being distinct from the positivist perspective ofquantitative research, on the one hand, and the constructivist perspective of qualitativeresearch on the other”.Hence mix method methodology shall be used integrating both qualitative and quantitativeresearch findings and recommendations shall be based on the triangulation of theseresearch methods. As Hammersley(2000) sensibly points out ‘these (different forms oftriangulation) are investigative strategies that offer evidence to inform judgements, nottechniques that provide guaranteed truth or completeness.’ 9
  10. 10. Hoctief5.2 Evaluation of MethodologyMix method research is very useful as it can answer a broader and complete range ofquestions as the researcher is not just confined to a singular method of research. In thismethod a researcher can use the strengths of one method to overcome the weaknesses ofthe other method by using both in the study.The problem faced by Hoctief group can best be described by this methodology as it willprovide stronger evidence for a conclusion by substantiation of findings. Mixture ofinductive and descriptive methods provides researcher an opportunity to produce completeknowledge and to even include understanding of the missed data which is essential toinform theory and practice.In case of Hoctief Group mix method shall help us to find appropriate answers to ourquestions as to “what” impacts does turnover have on the overall performance of thecompany by adopting quantitative measures i.e. use of a measurable questionnaire and“Why” turnover is impacting the performance can be analyzed by qualitative measures byconducting focus group interviews. By integrating the findings of both the researches wecan get more generalized results.5.3 Limitations of MethodologyThere are demonstrated benefits of using mixed method but it has several limitations andchallenges as well. A disadvantage commonly expressed is the loss of profundity andflexibility that occurs when qualitative data are quantified.It can be a little time consuming method as the diagnostic process of combining qualitativeand quantitative data is prolonged and a need to be done with a little more care thanindividual methods.The mix method methodology requires training in both the qualitative and quantitativemethods, so it can be expensive.Problems can occur while integrating the results of qualitative and quantitative methodsand researchers are often unclear how to link both the results to present one clearperspective. (Creswell and Tashakkori, 2007)Use of this methodology might require a research team as for large pool of data it might notbe possible for a single researcher to carry out both qualitative and quantitative researchesconcurrently.As according to Sechrest and Sidana (1995), mixed method has the potential to reduce mostof the problems associated with singular methods, by utilizing qualitative and quantitativemethods at the same time within the same framework can really provide constructivefindings and recommendations for Hoctief Group. 10
  11. 11. HoctiefAlthough mix method has the above listed limitations but still we will select thismethodology to evaluate appropriate findings for Hoctief Group as this method of researchwill help to bridge the quantitative and qualitative research (Onwuegbuzie and Leech,2004).6. APPROACH TO CONCLUSION6.1 Research Design Stage1: Studying Correlation Statistically Stage2: Develop a formalised Questionnaire Stage3: Distribution of questionnaire amongst the selected sample of employees Stage4: Focus Group Interviews conducted with the selected sample of employees Stage5: Collecting and analyzing quantitative data Stage6: Collection and analyzing qualitative data Stage7: Data Interpretation and RecommendationsStage 1: Studying correlation statisticallyIt is believed in our research that employee turnover and overall company performance arestatistically correlated, so a detailed study shall be conducted in order to find the correlationlevel between the two variables.Stage 2: Develop a formalised questionnaireThe questionnaire will be developed keeping in view the factors that lead to employeeturnover and the factors that can motivate employees which can help them to be convinced 11
  12. 12. Hoctiefto show their committed with the company that will ultimately be beneficial for increasingthe company’s performance.Stage3: Distribution of questionnaire amongst the selected sample of employeesThe questionnaire shall be distributed amongst the selected sample of onsite employeesand they shall be given 3 days to return the completed questionnaire.Stage4: Focus Group Interviews conducted with the selected sample of employeesFocus group interviews shall be conducted at this stage of research with a selected sampleof onsite company employees. A set of specific questions shall be designed and will be askedto the sample group in order to gauge their respective and individual perception about theresearch topic.Stage5: Collecting and analyzing quantitative dataAt this stage of research questionnaire shall be collected back from the sampled employeesand quantitative data will be analysed using statistical tools which will help us to concludeour findings and to present our recommendations based on those findings.Stage6: Collection and analyzing qualitative dataDescriptive analyses shall be conducted at this stage from the findings of the focus groupinterviews performed with a sample of employees. Qualitative data will be analyzed at thisstage in order find the impact of turnover on company performance.Stage7: Data Interpretation and RecommendationsData collected from quantitative and qualitative researches shall be integrated to drawinterpretations and based on the conclusions from the integrated data recommendationsshall be given in order to benefit the company in the longer run.6.2 Data CollectionSources of dataFor quantitative research we have selected a sample size of 35 on site employees andanother sample size of 30 on site employees have been selected for qualitative research.We had chosen simple random sampling because every element in the population has anequal chance of being selected as a subject.Co-relational study of statisticsOur assumption is that employee turnover and overall company’s performance are relatedvariables. The results from both, the completed questionnaires and the focus groupinterviews shall be analyzed to find out the impact of employee turnover and company’s 12
  13. 13. Hoctiefperformance. The impact will in return help us to find the level of correlation between thetwo variables.Data collection for Quantitative dataA formalised questionnaire is used as a means of quantitative data collection. Questionnaireis a standardised way of gathering data and data collected by this source is measurable,quantifiable and unbiased. Questionnaire shall be distributed to the selected samplepopulation based on demographics, the filled questionnaire shall be collected after threeworking days. A sample size of 35 on site employees has been selected. Employees shall berandomly selected for the quantitative analysis. The results collected for questionnaire shallbe statistically analyzed. The questionnaire used is attached in Appendix.Data collection for Qualitative dataFocus group interviews shall be used as a means of qualitative data collection. This source ofdata collection shall help us to understand and explain the meanings and beliefs ofindividual employees. This method is really suitable when the sample size is small and theresearcher is able to capture the opinions of all the individuals who are part of focus groupinterviews. Thorough focus group interviews the selected employees will have theopportunity to explain better that what are reasons that lead them to decide to leave andcompany and what are the common factors that de motivate them. A sample size of 30 onsite employees shall be selected. On average 3-4employees from each department shall beselected. Two focus group sessions shall be conducted with 15 employees in each session.This focus group interview sessions are scheduled for October 21st and 22nd, 2011 at 5.30pm. Thematic analysis shall be used to further analyze the results of focus groups. Threethematic themes shall be made based on the most common and linked answers extractedfrom the questions asked in both the focus groups. The following questions shall be asked toemployees:1. What are employee’s characteristics, which help them, develop organizational commitment?2. What is the perception of employees about their psychological contract with the organization?3. How does employee perceive the onsite working conditions in the organization as satisfying or dissatisfying? Are they able to maintain work life balance?4. How does retention policy of the organization affect employee turnover?5. How does effective training, retention and career development projects help to reduce turnover?6. What are the common motivation factors that can help the employees to stay with the company?Data validity and reliability 13
  14. 14. HoctiefThe research shall be focused in order to find specific results and the validity and reliabilityof data will be given preference as we are using the best suited methodology for theresearch and the sources for data collection are the most appropriate for the study.Data fairnessThe data shall be collected and represented fairly without any partiality to any unnecessaryfactor.Ethical concerns regarding researchIn the process of conducting this study the respondents were assured for their secrecy andthe confidentiality of the data. The name/designation and other confidential data shall beprotected.6.3 Data AnalysisThe objective and aim of the research is to find that how employee turnover and companyperformance are related to each other and if turnover is assumed to be related to theoverall performance of the company, then minimizing the employee turnover will increasethe performance of the company.The quantitative data collected from questionnaires will be statistically analysed by usingPie-Charts representation. Research Questionnaire was our tool to collect the data used forquantitative method so a closed ended questionnaire had been developed for collecting thedata. A closed ended questionnaire was developed at four point Likert scale for thispurpose. We used percentage analysis for the primary analysis of the data.Scoring SchemeThe responses from the questionnaire were analyzed by using an appropriate scoringprocess that was given in questionnaire as follows: Strongly Agree: 4, Agree: 3, Disagree: 2,Strongly Disagree: 1.Special questions shall be formulated for the focus group interviews that will help us toprovide the employees perception about our research. Thematic analysis is used to assessqualitative data. According to Braun and Clarke (2006) “Data analyzed using thematicanalysis for identifying, analyzing and reporting patterns (themes) within data. It minimallyorganizes and describes your data set in (rich) detail. However, frequently it goes furtherthan this, and interprets various aspects of the research topic”.Resources & Time Scale7.1 ResourcesResources needed in this research are 1. Library access for literature search 14
  15. 15. Hoctief 2. Computer and particular software required for Gantt Chart preparation 3. Internet for accessing online books, journals and articles 4. Computer package for data analysis 5. Printer and A4 papers required for the printing of questionnaires. 6. Computer and particular software required for graphical representation of our findings for Hoctief Group.7.2 Time Scale SeptembeI October November rD Sept 26 Oct 3 Oct 10 Oct 17 Oct 24 Oct 31 Nov 6 Selection Of Topic1 Literature Review2 Research Methodology3 Data Collection4 Data Analysis5 Conclusion & Recommendations6 Figure 7.2.1 Gantt chart showing activities and time lines 15
  16. 16. Hoctief8. SECONDARY AND PRIMARY DATA ANALYSIS8.1 Analysis of Secondary Data FindingsTheoretical and conceptual frameworks for measuring various aspects of employee turnoverhave been developed.Firstly the General Systems theory demonstrates that turnover can spread in theorganization like feral fire and then can ruin the company productivity and effects companyperformance. It provides various facts determining that how and why turnover cannegatively affect the company performance. In this theory organizations are considered ashuman beings with various components and parts and none of the components can workindependently they all are interlinked and dependant on each other. This theory is based onthe fact that if the components are not unified and effected by some external or internalfactors that results in higher rates of turnover which can disturb the entire organization asall departments and sub departments are interlinked, which can disturb the environment ofthe overall system and can pose serious performance issues for the company.Secondly the Deming System of Profound Knowledge theory by Dr. W. Edwards Demingpromotes the term ”joy at work” among the employees. Employees who are satisfied andmotivated with their jobs and work conditions wish to stay with the company for longertenure rather than the ones who are dissatisfied. The theory focuses on the fact thatemployees are mostly motivated by intrinsic and extrinsic rewards. Organizations canincrease performance and decrease costs by developing formalised systems of managementand it’s the duty of the manager to foster a stress free environment where employeesperform better. Deming also believed in the idea that continuous feedback from theemployees can really help the management to make better policies and strategies to excel,actually he is emphasising that company’s should encourage an environment where twoway communication is appreciated.Thirdly the Gruning and Hunt Two-Way Symmetric Model can be used as a foundation fordeveloping finest practices to get know how about the factors that add to turnover in anorganization, and to minimize turnover. According to this theory the management mustunderstand the needs and point of views of the employees and the employees must notforget the company policies and strategies in order to create a friendly environment forwork and to create an environment where two way feedback is welcomed. The two wayfeedback can be put in place by conference meetings, employee surveys, questionnaires etc.This model emphasizes the significance of developing a common ground and sense ofunderstanding, the two-way flow must be between employee and his manager in case ofemployee turnover. 16
  17. 17. Hoctief Pamela K.Blum and Vanessa Q. Tremarco (2008) conducted a comprehensive research andanalysis on the factors that contribute to the employee turnover and suggested the bestpractices for preventing the loss of key talent that can be an asset for the company. Asurvey was conducted to identify the largest obstacles that company’s face in the search ofgrowth. Factors Rating Difficulty of recruiting top talent 67.8% Short term thinking of clients 21.2% Difficulty of retaining top talent 18.7%Source: The Holmes Report: September 2007 Electronic RoundtableAccording to the research conducted retention factors include market competitive salaries,appropriate work-life balance, and room for personal development, commitment from thecompany, empowerment and flexible work options. Below is the graphical representation ofthe factors that can affect the motivational level of the employees which in turn willenhance their job performance.Another study conducted by Becker, DeGroot and Marschak (1964) is the human capitaltheory. A graphical representation of which is: HRM Practice Supervision Job Training Job Satisfaction Turnover Pay Practices 17
  18. 18. HoctiefThis theory links the independent variables with the dependant variables. The conceptualframework of human capital theory states that organizations develop resources internallyand invests in human capital only if it claims to increase company productivity. HRMpractices and Job satisfaction are negatively correlated with turnover, it means turnover canbe minimized by increasing the impact of these variables. In order to meet employees jobsatisfaction the organizations need to put in place the HRM practices.According to the above mentioned theories it’s hence concluded that HR practices thusinfluences employees commitment and his satisfaction to perform well. Thus organizationsshould focus on determining strategies to put HR practices in place.8.2 Analysis of Primary Data Findings8.2.1 Analysis of Quantitative DataThe questionnaire used in our study consists of 15 questions. The questionnaire focuses onthe factors that can lead to turnover and how does this effect company performance.Q1. I feel I am committed with Hoctief GroupStrongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 13% 27% 27% 33% Reas on:The first question is designed to measure the employee’s level of commitment with thecompany. The responses from the employees are shown below. Figure 8.2.1.1 Pie-Chart Q1 Table 8.2.1.2 Table showing responses for Q1 18
  19. 19. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 13% 27% 27% 33%Majority Answers: 33% of the employees strongly disagree that they are committed to theorganization and are willing to leave the company. This percentage is an alarm for Hoctiefgroup as the employees are really demotivated and want to quit the company.Conclusion: According to researches organizational commitment is a better predicator ofemployee turnover than job satisfaction. So Hoctief group should really take intoconsideration the problems being faced by employees working on sites.Q2. I feel satisfied with the retention policy of the companyReason: The second question identifies that how many employees are satisfied with thecurrent retention policy of the company. The responses from the employees are shownbelow. Figure 8.2.1.3 Pie-Chart Q2 Table 8.2.1.4 Table showing responses for Q2 Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 16% 26% 37% 21%Majority Answers: Only 16% of the employees strongly agree that the the retention policyof the company is satisfying.Hoctief group should take into consideration market 19
  20. 20. Hoctiefcompetative strategies for retention in order to control this high percentage ofdissatisfaction.Conclusion:Company’s retention policy is a broader aspect including competativecompensation and benefits, pleasant working environment, employee development etc.This high percentage of dissatifaction amongst the employees regarding retention policyneeds immediate attention from Hoctief’s management.Q3. I feel that the Hoctief Group is providing Development opportunities.Reason: The third question was designed in order to identify that how employees relatedevelopmental opportunities with their job performance. The responses from theemployees are shown. Figure 8.2.1.5 Pie-Chart Q3 Table 8.2.1.6 Table showing responses for Q3 Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 41% 29% 19% 11%Majority Answers: 41% of the employees strongly agree that the company is providingeffective employee developmental opportunties.Conclusion: Developmental opportunities includes appropriate on job trainings, definedcareer paths and defined job descriptions etc. So this satisfactory percentage shows thatemployees are quiet satisfied with developmental opportunities.Q4. Does the company provide proper safety, first aid and health guidelines and facilitiesto employees? 20
  21. 21. HoctiefReason: It is very important to know that to what extent employees are motivated byhealthy work environment, safety measures and first aid facilities provided by the company.The responses from the employees are shown. Figure 8.2.1.7 Pie-Chart Q4 Table 8.2.1.8 Table showing responses for Q4Majority Answers: 34% of the employees dis agree that they are not happy with the work Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 27% 13% 34% 26%environment, safety measures and first aid facilities provided by the company.Conclusion: Providing healthy work environment with proper safety , first aid and healthfacilties is the primary concern of onsite employees. Hoctief group should take immediatesteps to provide employees with suitable work environment.Q5. Are the deadlines provided for any particular project stressful for the employees?Reason: The next question identifies the effect of stressful project deadlines on employeeperformance. The responses from the employees are shown. Figure 8.2.1.9 Pie-Chart Q5 21
  22. 22. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 42% 28% 17% 13% Table 8.2.1.10 Table showing responses for Q5Majority Answers: 42% of the employees strongly agree that the project deadlines set forthe employees are unrealistic and employees feel pressurized and stressed whileperforming their jobs. Conclusion: Working under stress and pressure can be a major reason for employeeturnover. Relaxed work conditions and realistic project deadlines must be worked out soemployees enjoy their work.Q6. Does my manager appreciates and gives recognition for my work.Reason: In this question the employee recognition and appreciation for their job duties hasbeen analysed. Employee recognition is an important indicator for employee motivation. Ifthe employees are admired and recognized for the work they perform creates a feeling ofzeal and enthusiasm within them to perform better. The responses from the employees areshown. Figure 8.2.1.11 Pie-Chart Q6 22
  23. 23. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 17% 23% 27% 33% Table 8.2.1.12 Table showing responses for Q6Majority Answers:33% of the employees strongly disagree to the fact that supervisors andmanagers recognize and appreciate them for their job duites. This is fairly a largepercentage so managers should really think to encourage their employees for their ruotinetasks.Conclusion: The management of the Hoctief group need to focus on this issue and address itas soon as possible as this can be really be a demotivating factor for the employees who canthen think of leaving the company.Q7. Am I rewarded for my work?Reason: An employee should have a clear understanding of how their rewards arecalculated so they can align their jobs accordingly. The seventh question is designed to knowthat are the employees happy with the current reward schemes, level of empowerment andrecognition by the company management. The results are shown in the figure below. Figure 8.2.1.13 Pie-Chart Q7 23
  24. 24. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 26% 29% 31% 14% Table 8.2.1.14 Table showing responses for Q7Majority Answers: 31% of employees completely disagree they receive appropriateencouragement for their work. The employees are quite unsatisfied with the currentrewarding system of the company as according to them the rewards and allowances are nottimely and appropriate.Conclusion: Company management needs to revise the empowerment strategies andshould focus on devising such situations where the employees feel that they areempowered and recognized for their work. Benefits provided to the employee should becategorized properly and should be given timely as this is a great motivating factor oneemployee always compare what he is getting with the other employee and lack ofencouragement benefits can really effect his job performance.Q8. The training provided was in the area/skills I felt lacking.Reason: Companies who invest in developing and grooming the skills of their workers tendto encounter lower rates of turnover. The eighth question was designed to get ideas thatare the employees satisfied by the training procedures of the company. The results areshown in the figure below. Figure 8.2.1.15 Pie-Chart Q8 24
  25. 25. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 42% 31% 17% 10% Table 8.2.1.16 Table showing responses for Q8Majority Answers: 41% of the employees feel that the on job training provided to themmatch their area of work.Conclusion: Hoctief group needs to devise a standardized and formalised policy andprocedure to provide on job training to employees at all levels.Q9. I am satisfied by the compensation policy of the company and I feel secure about myjob.Reason: Monetary factors can impose massive effect on increasing the turnover rates. Thisquestion identifies that the whether the employees feel that they are being payed andbenefited according to the market and whether taking this factor into consideration theyfeel secure about their jobs. The results are shown in the figure below. Figure 8.2.1.17 Pie-Chart Q9 25
  26. 26. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 39% 27% 21% 13% Table 8.2.1.18 Table showing responses for Q9Majority Answers: 39%of the employees strongly agree that the current compensationpolicy is market competitive and they have lesser number of employees have issuesregarding their pay matters. Competitive salaries give an employee a sense of security.Conclusion: Sense of security can really help the employees to increase their jobperformance which ultimately helps to add more to the company’s productivity.Q10. Am I adding value to the company in order to increase company’s productivity andperformance?Reason: Value addition is an important aspect while measuring the company’s productivityand performance. Company management have to take into considerations who are the keyplayers for the company performance. This question was designed to know employeeperspective that are they satisfied with what they are doing and are they adding any valueto company’s productivity. The results are shown in the figure below. Figure 8.2.1.19 Pie-Chart Q10 26
  27. 27. Hoctief Strongly Agree (1) Agree(2) Disagree(3) Strongly Disagree(4) 62% 21% 11% 3% Table 8.2.1.20 Table showing responses for Q10Majority Answers: Only 3%of the employees think that they are not adding any value to thecompany, the major reason for this might be that they think they are doing repetitive work.Otherwise 62% of the employee’s rate motivated in this aspect that the tasks that theyperform is increasing the company’s performance directly or indirectly.Conclusion: Increasing company’s performance and productivity is the main aim of anycompany’s management. If the management will make sure to keep the employeesmotivated they will not face problems of turnover or declining company performanceissues.8.2.2 Analysis of Qualitative DataThe impact of employee turnover is one of the most costly and difficult challenges thatHoctief group is facing. “The organizations that consistently invest in people are the onesthat will enjoy ongoing success” (Galloway, 2007).Thematic analysis is used to assess qualitative data in our study with the help of themes andpatterns. The purpose of focus group interview was to identify the factors that lead towardsincreased employee turnover, and a high turnover rate means that there are someunderlying issues with the company. The following themes were used in focus group study:8.2.2.1 Theme1: Working conditions/ work life balance a factor to turnoverThis theme was one of the factors that shall highlight the reasons of employee motivation orde motivation.Some of the responses are listed below which are relevant to this theme: 27
  28. 28. Hoctief“The on-site working conditions are not satisfactory. We work till late hours but there is noencouragement from the management for this”.“We work all day in stress and pressure but are no rewards for us hard work”.“Employees in our main offices work in excellent working conditions but we are deprived ofhealthy working environment, health and accommodation facilities on sites”.“We work on fortnightly basis so our work life balance is effected badly”.“Although it is the demand of our work that we stay on sites but certain controllableworking conditions needs immediate attention of the management”.The responses illustrates that employees really feel motivated if they get a satisfactoryworking environment and a proper work life balance. So in order to minimize turnover andincrease company performance the working conditions whether on site or off site must beimproved.8.2.2.2 Theme 2: Effect of recognition, empowerment and reward system factors ofemployee retentionThe second theme was to analyze the effect of employee recognition, empowerment andreward system on retaining an employee. The major problem that Hoctief group is facing isdue to either of these factors. Some employee responses are as follows:“Money is the striving factor for all employees here but the company’s reward system is notwell designed.”“Our project deadlines are unrealistic but even if I and my team members are able tocomplete a project on time we are not recognized for this, and it’s really de motivating.”“For little issues I have to get back every time to my team leader and get his approval whichconsumes a lot of time....we lack empowerment”.The responses illustrates that Hoctief group needs to make rewards more timely andappropriate and need to focus on employee empowerment and recognition in order toreduce the turnover rates. Murray (2007) stated “People dont quit jobs, they quitrelationships”.8.2.2.3 Theme 3: Professional development a key to employee satisfactionMany employees like to stay with their current employers as they are keen and committedto the jobs that they are performing. “A lack of opportunities to learn and grow often leadsworkers to move on to other employment” (Withers, 2002).In this theme we will illustrate that how professional development can lead to employeesatisfaction which in turn increases employee job performance.“Company has always given me on job training specific to my job.”“Our job descriptions are clearly and well defined by the management, I am happy for this”. 28
  29. 29. HoctiefThe three themes illustrates that all the above mentioned factors can help the company tominimize the factor of turnover from the company in order to strive for greater and increasework performance.8.3 Evaluation of MethodologyThe mix-method research methodology was chosen for this research. The methodology wasbest suited for this research as we have analyzed both quantitative and qualitative data, toget the best appropriate findings and results to make this research productive. A detailedanalysis of both quantitative and qualitative data’s was performed to get the insights and indepth knowledge of the impact on the company’s performance. The triangulation gave usaccurate results.In order to further improve the findings and results of this research we can adopt thesequential mix method form which involves collecting data in an iterative process andwhereby the data collected in one phase contribute to the data collected in the next phasewhich can help the researcher to reduce the time consumed earlier and to provide betterand more accurate in depth insights to the research.9. CONCLUSIONThe results indicate that there is general dissatisfaction with the job which results into highturnover which in turn impacts the company’s overall performance. The aim of this researchwas to measure the impact of employee turnover on company’s performance. The results ofquantitative method i.e. questionnaire proved that the employees working on site aregenerally committed to the company but have problems regarding the work environmentwhich is not up to their standard i.e. health and safety issues. There are minimalopportunities for training and the training provided is not effective denying further careerdevelopment or growth and stress during the work , these factors leads to turnover. Theemployees are confident of the fact that each one of them is individually adding value to thecompany’s performance but yet they are not rewarded for their work due to which they feel 29
  30. 30. Hoctiefde motivated which in turns effect their performance which ultimately effects the overallcompany performance.The results of qualitative study i.e. focus group interview reflected that employees are thekey strength of the company if they are de motivated this can effect their job performancewhich ultimately decreases company performance. The questions asked during focus groupsession clearly reflected that lack of organizational commitment of employees leads toturnover. The dissatisfaction with the job and the poorer the psychological contract with theemployees is all factors of higher turnover. The employees are de motivated due to lack ofproper motivational and empowerment strategies, employee developmental programmesand a need to improve the working conditions for onsite employees.Thus it can clearly be concluded by the above mentioned findings that management ofHoctief group need to focus on issues of employee working on sites. They need to take intoconsideration that in order to maintain and improve their company performance they needto keep their employees motivated by listening to their problems and finding solutions tothese problems in order to keep them motivated. Motivated employees will remain with thecompany and will strive to add value to company performance.10. RECOMMENDATIONSAs mix method approach is time consuming, collection of data from quantitative andqualitative approaches takes a little longer, but our research has a constraint of time so itwas completed in a short period of time. Due to time constraint a smaller sample size wasselected and the sample size was only limited to the onsite employees so it is recommendedto conduct a further in-depth analysis for this research by increasing the sample size andalso including employees who are on desk jobs in order to get a broader perspective of howturnover impacts the company’s performance and what according to them are the factorsthat can motivate them. The effects of intrinsic as well as extrinsic motivation needs to beexplored further in order to study in detail that how retention policy of the company can beimproved in order to minimize turnover and benefit the company’s performance for alonger run. An important aspect of stress management should also be taken intoconsideration in case of a further analysis as stress management concept is really gainingmomentum and for employees it’s a non- monetary motivator.Formalised exit interview system should be put in place immediately in order to know theexact factors leading to higher rates of turnover.Various internal and external surveys related to compensation and benefits should beconducted in order to gauge the market competitiveness.By understanding the nature of the turnover problem targeted retention initiatives shouldbe adopted, for example at particular sites or groups of employees, or to manage overalllevels so that there is sufficient labour. 30
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