Evaluation of Employee Retention in the Fast Food Industry - Essay Example

EMPLOYEE RETENTION: EVALUATION OF EMPLOYEE RETENTION IN THE FAST FOOD INDUSTRY: CASE STUDY PRET A MANGER Table of Contents Table of Contents 2 Task 2: 3 Literature Review: 3 Questionnaire framing: 4 Task 3: 5 Data Collection Process: 5 Raw Data, Data Analysis and Interpretation: 7 Task 4: 22 Conclusion: 22 Reference List 23 Task 2: Literature Review: The concern of the fast food firms regarding employee retention strategies has been triggered by the increasing employee turnover rate. The literature review section of the research reflected that employee turnover rate in the fast food industry can increase because of multiple factors such as work pressure, work structure, high demand of quality by consumers and organisation alike, etc. The crucial aspects that were discussed in the research proposal were employee motivation, employee retention and employee turnover issue and the factors influencing it. The literature review of the proposal was mainly designed to shed light on the existing scenario of the employee management aspects in the corporate industry. However, this segment will focus on the overall factors that are closely connected with employee turnover and employee retention process in the fast food firms. The observations presented by Alan, Radzi and Hemdi (2009) show that business growth and development process is supported by the contributions of their employee base however the changes in their workforce are not being considered by the business houses which creates a mystery in the corporate concepts. Moncarz, Zhao and Kay (2009) further added that although business houses are aware of the changes in the situation of the job market and the extensive search for talent in the business, the employee retention process of the first food industry is mainly done by the tangible rewards such as tips received from customers or the incentives paid by the employer. However, the nature of work may be a demoralising factor for long term service in the sector. Rankin (2008) stated that the skills required for working in fast food industry are primarily based on fast and quality service which also serves as a foothold for the employees to curve their passage towards the hospitality industry and big brands in the sector. Chang and Chang (2008) also confirmed to the fact that biog hotels and restaurants are searching for talent in the fast food sector considering their service providing abilities and also the ability to handle pressure during peak seasons. These are some factors which influence the employee turnover rate of the fast food segment. Focusing on the existing employee retention policies being implemented in the fast food segment, it can be stated that their strategies are not significant enough to reduce the overall employee turnover. Ferres, Connell and Traraglione (2004) noticed that the financial standard of the fast food firms in comparison to biog brands in the eatery industry is limited and hence also influences the compensations and remunerations being paid to the customers. However, the reward policies in some of big names such as KFC of YUM and McDonalds have been developed by considering the tangible and intangible factors which can satisfy the needs of the employees as identified in the Maslow’s Hierarchy of Needs (Kacmar et al. 2006). The intangible aspects of the service process mainly reflect aspects such as recognition and belongingness whereas the tangible rewards includes monetary benefits and also career growth opportunities such as promotion. The primary problem of the fast food industry is to reduce the work pressure on the employees and manage the nature of service being demanded by their customers. Although, this can result in the change in customer behaviour or may also create a shortfall of demand in the fast food market but the employees turnover is expected to reduce over time (Westlund and Hannon, 2008). Abraham (2012) considered that initiating changes in the internal management processes of the fast food firms will be a more sustainable process, in context of managing employee retention policies. Questionnaire framing: The questionnaire will be developed in a Likert Scale manner and will be related to the research questions and objectives of the study: Questionnaire Strongly Disagree (1) Disagree (2) Neutral (3) Agree (4) Strongly Agree (5) 1.0 I like working at Pret’s. 2.0 I am satisfied with my work place 3.0 I have a clear understanding of my role 4.0 The communication flow is excellent 5.0 The work culture is supportive and collaborative 6.0 The remuneration given is satisfactory 7.0 The rewards structure is excellent 8.0 I have an opportunity to use my skills and abilities 9.0 Future prospects are excellent 10.0 I am looking for a better opportunity in the industry 11.0 Customer service does a role to play in reflecting my skills 12.0 I appreciate the employee retention policies Task 3: Data Collection Process: The data collection process of the study will be mainly done with the help of a survey process. The survey process will be conducted by Likert Scale and the data will be analysed with the help of SPSS software and descriptive statistics. As mentioned in the sampling process of the study, the sample size consists of all the employees of the Pert a Manger. This will enhance the validity of data and also ensure that the outcome of the research is authentic. On the other hand, the scope of the data set will increase enhancing the ability of the researcher to identify the various cognitive aspects of the respondents. The data collection process will be initially done with the help of face to face survey. However, if it is found that the respondents are finding it difficult to manage their time, then e-mail survey will be opted for. Face-to-face survey also presents an opportunity to assess the behaviour of the participants of the survey. Also face-to-face survey creates an opportunity for the researcher to clear any confusion that may be faced by the participants of the research. However, considering the problem of time management face-to-face survey may not be likely in this scenario. E-mail surveys on the other hand, create the opportunities for the researcher to gather unbiased data with any sort of influence. E-mail survey is also a faster process which will be more comfortable for the respondents to participate in and also allow the researcher to gather the data together. However, e-mail survey can also be attempted by the respondents without fully understanding the questions or may be some answers are left unanswered which will hamper the overall outcome of the survey results. The researcher will use descriptive statistics in order to ensure that all the answers are taken into account and also the frequency of the responses can be analysed. However, descriptive statistics is mostly used in case of qualitative analysis and can formulate biased results which are not appropriate for the study. Raw Data, Data Analysis and Interpretation: Q1.0 I like working at Pret’s. Like Frequency Percent Valid Percent Cumulative Percent Valid 1.00 14 1.8 1.9 1.9 2.00 16 2.1 2.1 4.0 3.00 15 2.0 2.0 6.0 4.00 375 49.3 50.0 56.0 5.00 330 43.4 44.0 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 1: Like working at Pert’s. Figure 1: Like working at Pert’s. In response to the above question, majority of the respondents stated that they like working at the Pert A Manger. Total of 49.3 agreed to this notion and another 43.4% of the respondents strongly agreed to this notion. However, there was also a minimum level of disagreement to the acceptance of the question. 1.8% strongly disagreed, 2.1 disagreed and the remaining 2% opted for the neutral answer. This was the overall data received for this question. All the respondents answered the question reflecting a 100% response rate. The responses show that the employees are happy with the benefits provided to them by their employer. The overall likeness can be generated on a number of factors including the intangible issues such as rewards and work culture of the organisation. Another factor that was reflected in the literature review section by Alan, Radzi and Hemdi (2009) that fast food industry indulges in direct production of services which also puts the employees vulnerable to accidents and thus can hamper the employee loyalty. However, majority of the respondents agreeing to like working for Perts showed a positive reflection of the brand on the internal stakeholders. Q2.0 I am satisfied with my work place. Satisfaction Frequency Percent Valid Percent Cumulative Percent Valid 1.00 18 2.4 2.4 2.4 2.00 14 1.8 1.9 4.3 3.00 13 1.7 1.7 6.0 4.00 382 50.3 50.9 56.9 5.00 323 42.5 43.1 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 2: Satisfaction of Employees Figure 2: Satisfaction of Employees 50% of the respondents agreed that they are satisfied with the work process of Pert. 42.3% strongly agreed to this. Only 2.4% strongly disagreed and 1.8% strongly disagreed with this statement. The remaining 1.7% stayed neutral in response. This question also received 100% response rate. The question was focused on evaluating the satisfaction of the employees working with Pert. The responses showed a clear majority accepting to the given statement. Satisfaction does not only arise from the monetary remunerations provided by the organisation but also includes all the major factors that relate to the needs and expectations of the employees (Dundon, et al. 2004). The employees also consider the present scenario of the work place and evaluate the future scope provided by the organisation in order to assess the level of satisfaction. On the other hand, Thomas (2003) mentioned that utilisation of the skills and the potential talent of the employees also help in formulating the level of satisfaction among the employee base. Q3.0 I have a clear understanding of my role. Communication Frequency Percent Valid Percent Cumulative Percent Valid 1.00 6 .8 .8 .8 2.00 10 1.3 1.3 2.1 3.00 10 1.3 1.3 3.5 4.00 348 45.8 46.4 49.9 5.00 376 49.5 50.1 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 3: Understanding of role Figure 3: Understanding of role Most of the respondents consider that they are aware of their roles and responsibilities in Pert. This can be gathered from the fact that 45.8% strongly agreed and another 49.1% agreed with this sentiment. The number of respondents disagreeing and strongly disagreeing to this notion was .5% and 2.4% respectively. .9 employees chose to select the option of staying neutral. This question was asked to the respondents for supporting the previous two questions. The clarity of roles and responsibilities among the employees also highlights the appropriateness of the work culture of the organisation. Clear set of rules, regulations and instructions are developed when the communication base of the work place is strong. Moreover, this also helps the employees to perform better and develops job satisfaction. In turn the employee retention process is automatically managed by the company. Q4.0 The communication flow is excellent. Communication Frequency Percent Valid Percent Cumulative Percent Valid 1.00 6 .8 .8 .8 2.00 10 1.3 1.3 2.1 3.00 10 1.3 1.3 3.5 4.00 348 45.8 46.4 49.9 5.00 376 49.5 50.1 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 1: Communication flow in work place Figure 1: Communication flow in work place The table reflects that 49.5% of the participants appreciate the communication process and strongly agree to the statement while 45.8% also agree to the notion. The negative response came from .8% strongly disagreeing and another 1.3% disagreeing with the notion. 1.3% of the respondents also chose to stay neutral. As was presumed in the previous question and in the literature review of the study that the communication flow of the work place needs to be well established for developing clear understanding of the roles of the employees, this question proves the presumption to be true. Apart from creating a proper job description process, communication also creates a network for the entire work process to understand and align with the objectives of the organisation. It was mentioned in the literature review section that communication highlights the consideration of the top management of the company towards the employee needs and requirements. Q5.0 The work culture is supportive and collaborative. Supportiveandcollaborative Frequency Percent Valid Percent Cumulative Percent Valid 1.00 4 .5 .5 .5 2.00 11 1.4 1.5 2.0 3.00 3 .4 .4 2.4 4.00 266 35.0 35.5 37.9 5.00 466 61.3 62.1 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 5: Supportive and Collaborative work Environment Figure 5: Supportive and Collaborative work Environment Most of the respondents agreed that the work culture of Pert was supportive and collaborative in nature. With 61.3% strongly agreeing and 35% agreeing to this notion, the appreciation for the work process can be noticed in the responses of the participants. Only .5% strongly disagreed and 1.4% disagreed to this statement while the remaining .4% remained neutral. The analysis reflects that the support provided to the employees from the management of Pert has helped them generate employee loyalty and also provide them job satisfaction. These factors have high influence over the employee turnover rate. Thomas (2003) also mentioned that employee loyalty is based on the relation of the employees with their managers and employer, the treatment of the problems of the employees by the organisation lays down the foundation for a loyal employee base. Q6.0 The remuneration given is satisfactory Remuneration Frequency Percent Valid Percent Cumulative Percent Valid 1.00 17 2.2 2.3 2.3 2.00 21 2.8 2.8 5.1 3.00 15 2.0 2.0 7.1 4.00 361 47.5 48.1 55.2 5.00 336 44.2 44.8 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 6: Satisfactory Remuneration Figure 6: Satisfactory Remuneration The responses reflected little dissimilarity from the previous questions. 47.5% agreed and 44.2% strongly disagreed to the notion. The percentage of respondents staying neutral was only 2%, 2.2% strongly disagreed and another 2.8% disagreed with the notion. The strong support being received by Pert from the employees also solves the mystery regarding their employee retention process and low employee turnover rate. Apart from the intangible benefits being provided to the employees, the materialistic considerations of the company was also developed in a manner which would relate to the needs of the employees. Thus, they are offering an attractive package which reduces the ability of their competitors to retain their employees and urges trained and talented employees to join Pert. Q7.0 The rewards structure is excellent Reward Frequency Percent Valid Percent Cumulative Percent Valid 1.00 12 1.6 1.6 1.6 2.00 9 1.2 1.2 2.8 3.00 11 1.4 1.5 4.3 4.00 457 60.1 60.9 65.2 5.00 261 34.3 34.8 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 7: Reward structure of Pert Figure 7: Reward structure of Pert The respondents were also enthusiastic regarding the rewards being provided by Pert. 60.1 % agreed and 34.3% strongly agreed to this notion whereas 1.4% remained neutral and the remaining 2.8% were divided between strongly disagreed (1.6%) and disagree (1.2%). The aspects that build job satisfaction and loyalty towards the employer were considered in developing this questionnaire which has also helped in assessing the strategies made by Pert for improving their employee retention process. The importance of rewards in this regard has been directly linked with the employee motives and the organisational strategy for motivating the employee to enhance their productivity and performance (Alan, Radzi and Hemdi, 2009). The rewards provided by Pert include both monetary and non-monetary rewards which are aimed at fulfilling the needs of the employees as provide in the Maslow’s Hierarchy of Needs. Q8.0 I have an opportunity to use my skills and abilities. Opportunity Frequency Percent Valid Percent Cumulative Percent Valid 1.00 7 .9 .9 .9 2.00 19 2.5 2.5 3.5 3.00 10 1.3 1.3 4.8 4.00 392 51.6 52.3 57.1 5.00 322 42.4 42.9 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 8: Opportunity for using skills and abilities Figure 8: Opportunity for using skills and abilities 42.4% of the participants strongly agreed that the work culture of Pert allows them to utilise their potential skills and talents while another 51.6% also agreed to this statement. However, 2.5% of the respondents were disapproving this fact and selected disagree option while .9% only strongly disagreed with the notion. The remaining 1.6% was neutral in their response. The development of the work structure of a company dominates the ability of the employees to perform (Rankin, 2008). The agreement of the participants that the work structure and culture of Pert helps them in utilising their skills is a positive factor which contributes in enhancing the job satisfaction of the employees. On the other hand, associating factors such as the developing a chain of successors for the managerial position of the organisation is also being fulfilled by the open work culture. Pert can recognise the skills and abilities of their employees and design their organisational objectives. This, an open work space is beneficial to both employees as well as the employers. Q9.0 Future prospects are excellent FutureProspects Frequency Percent Valid Percent Cumulative Percent Valid 1.00 8 1.1 1.1 1.1 2.00 15 2.0 2.0 3.1 3.00 116 15.3 15.5 18.5 4.00 332 43.7 44.3 62.8 5.00 279 36.7 37.2 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 9: Future Prospects Figure 9: Future Prospects The responses gathered are in favour of Pert. 36.7% strongly agreed and 43.7% agreed that Pert offers high prospects for their future stability. However, the number of respondents staying neutral (15.3%) is more in comparison to other questions. 1% strongly disagreed and 2% disagreed to the given notion. The ability to manage the organisation and develop a suitable future for the firm as well as its stakeholders defines the managerial strengths of an organisation (Ferres, Connell and Traraglione, 2004). Relating to this sentiment, it can be considered that Pert not only tries to achieve a better performance from their employees but also urges on increasing the sustainable practices in the business to ensure a better future. Only considering the fact that the work culture is open in Pert which allows the employees to evaluate their skills and knowledge helps the employees in positioning themselves in comparison with the industry standards. Q 10.0 I am looking for a better opportunity in the industry Betteropprotunity Frequency Percent Valid Percent Cumulative Percent Valid 1.00 150 19.7 20.0 20.0 2.00 404 53.2 53.9 73.9 3.00 166 21.8 22.1 96.0 4.00 13 1.7 1.7 97.7 5.00 17 2.2 2.3 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 10: Looking for better opportunity Figure 10: Looking for better opportunity Most of the respondents disagreed (53.2%) that they are looking for a better opportunity outside the organisation. 19.7% also disagreed to this notion whereas 21.8% were neutral. Only 1.7% agreed that they were looking for opportunities outside the industry and 2.2% strongly agreed to the statement. This question was directly aimed at evaluating the response of the participants towards the industry opportunities and the turnover ratio. The responses gathered shows that most of the participants are not willing to leave their current job at the moment. However, quite a good chunk of the respondents have also given neutral response which reduces the validity of the employee retention process of the business. On the other hand, the nature of the question was risky for the employees and may not have provided the right answers. But despite the efforts of Pert the hesitancy among the respondents also reflect that fast food industry is not able to retain its workforce. Q11.0 I appreciate the employee retention policies Employeeretention Frequency Percent Valid Percent Cumulative Percent Valid 1.00 9 1.2 1.2 1.2 2.00 11 1.4 1.5 2.7 3.00 38 5.0 5.1 7.7 4.00 451 59.3 60.1 67.9 5.00 241 31.7 32.1 100.0 Total 750 98.7 100.0 Missing System 10 1.3 Total 760 100.0 Table 11: Employee retention of Pert Figure 11: Employee retention of Pert 59.3% of the respondents stated that they were satisfied by the employee retention polices of the company and selected agree. 31.7% of the respondents also strongly agreed to this notion. The remaining 8% were divided in neutral 5%, disagree 1.4% and strongly disagree 1.2%. The responses gathered in this question showed that employees appreciate the policies and strategies implemented by the company for employee retention. On the other hand, it also signifies that efforts made by the company are being reflected to the workforce which works as a motivating factor and provides the employees a secure feeling. As observed in the literature review, Rankin (2008) stated that employees having a secure environment to work also are more productive. This can also be considered in case of Pert as their employees are loyal and also contribute towards the growth of the firm. Apart from this the other questions developed in this questionnaire also reflect the work structure of Pert has a strong support for the employees. Task 4: Task 4: Conclusion: The data analysis process of the research helped the researcher in evaluating the research objectives and answering the research questions of the study. The researcher conducted a survey process including all the employees of the company as the sample population. The questions were set in alignment with the objectives of the study. The questions were developed in a statement format and were specifically aimed towards the employee loyalty and employee retention process of Pert a Manger. It has been observed that all the employees are quite fond of the managerial aspects of Pert and also support the organisational goals. The work culture has been developed in a manner which supports the needs and expectations of the employees so that the employee can be loyal towards organisational causes. On the other hand, the appreciation of the employees towards the retention polices of Pert reflect that the company has taken sufficient measures for reducing employee turnover. However, the size and the work structure of the fast food industry can be a factor which is urging the employees to look for a more relaxing nature of work such as in the hotels or in the luxury segment. The limitations of the study mainly relates to the data survey process and the analysis process. The sample population of the study was huge which would have required a more detailed statistical analysis of the data collected. On the other hand, the researcher being a student had to conduct the survey on e-mail which could have reduced the authenticity and relevancy of the survey. Furthermore, monetary constraints have also limited the quality of the secondary research. Reference List Abraham, S., 2012. Development of Employee Engagement Programme on the basis of Employee Satisfaction Survey. Journal of Economic Development, Management, IT, Finance and Marketing, 4(1), 27-37. Alan, S.Z.R, Radzi, M.S and Hemdi, M.A, 2009. An empirical assessment of hotel managers turnover intentions: The impact of organizational justice. Journal of Tourism, Hospitality & Culinary Arts, pp.1-29 Chang, C.P and Chang, W.C., 2008. Internal marketing practices and employees’ turnover intentions in tourism and leisure hotels The Journal of Human Resource and Adult Learning, 4(2), pp. 161-172 Dundon, et al., 2004. The meanings and purpose of employee voice. International Journal of Human Resource Management, 15, 6, 1149–1170. Ferres, N., Connell J., and Traraglione, A., 2004. Co-worker Trust as a Social Catalyst for Constructive Employee Attitude, Journal of Managerial Psychology, 19(6), pp. 608-622 Kacmar, K.M., Andrews, M.C., Roy, V.D.L., Steilbergand, R.C and Cerrone, S., 2006. Sure everyone one can be replaced but at what cost? Turnover as a predictor of unit level performance Academy of Management Journal, 49, pp. 133-142 Moncarz, E., Zhao, J and Kay, C., 2009. An exploratory study of US lodging properties organizational practices on employee turnover and retention. International Journal of Contemporary Hospitality Management, 21(4), pp.437-458 Rankin, N., 2008. The drivers of staff retention and employee engagement. IRS Employment Review. 901, 13pp Thomas, A., 2003. Leading and Inspiring Teams. London, UK: Heinemann. Westlund, S.G and Hannon, J.C., 2008. Retaining talent: Assessing job satisfaction facets most significantly related to software developer turnover intentions. Journal of Information Technology Management, 19(4), pp. 1-15 Read More