A High Employee Turnover in Paper Round Company - Research Proposal Example

Investigating the reasons of high employee turnover at Paper Round Company 0 INTRODUCTION Apparently, high employee turnover as a result of poor management and low wages is an issue that has continuously been witnessed in the business world. Numerous companies both big and small have at least experienced issues related to employees since they form the most important part of companies. For instance, Paper Round company that is based in the United Kingdom had in their recent past experienced a high turnover rate as a result of bad management and low wages. According to Thomas (2003) high employee turnover rates denotes the level at which employees at Paper Round leave their job. Employee turnover could be as a result to employees making decisions to quit or the company been compelled to make them leave due to poor performance among other issues (Zajkowska 2012). In reference to Paper Round, it is evident that the company has bad management and low wages. On one hand, bad management revolves around the employers who are not able to retain the employees simply because they have poor management skills such as employers or managers telling the employees what to do rather than explaining why the employees need to do certain things. On the other hand, low wages revolves around employees who feel that they are subject to excessive work but receive minimal compensation in terms of low wages. As such, it important that Paper Round Company comes up with ways that could lead to reduction of high turnover of employees through employees’ retention mechanisms. According to Soni (2013), it is worth noting that the cost of hiring and training them so as to substitute those employees who have left the organisation is quite high and as such should be avoided at all cost. 1.1 Research Questions Why has Paper Round Company experienced a high employee turnover in the recent past? What are culminated to bad management and low wages at the recycling company? What are the general ratings for employee retention in major companies across the United Kingdom? 1.2 Aims Analyze the effects of high staff turnover to the company. Examine employee - employer relationship in the company and recognize the problems which lead to termination of employment. 1.3 Objectives of the study General Objective Investigate and establish why Paper Round Company is experiencing a high employee turnover in the recent past Specific Objectives Investigate and analyse factors affecting high employee turnover at Paper Round Assess and determine factors necessary for the reduction of employee turnover Create avenues and practices that are likely to influence employee retention at Paper Round Unearth the root causes of bad management and low wages at Paper Round 2.0 LITERATURE REVIEW According to Abraham (2012) the concept of employee retention has become a growing challenge to many companies around the world. As such, managers and employers have continuously struggled to ensure that the company’s costs are minimal while the profits are maximal. Nevertheless, the concept of employee turnover and the increased employment is very crucial. Generally, there are three main issues that are associated with high employee retention namely; lost productivity costs, lost sales cost and lost reputation costs. Firstly, the lost productivity costs denotes that it is extremely challenging to find an employee replacement who is capable of delivering in a short period of time. Thus, the employee might receive a compensation of 100 percent when he or she is worth 25 per cent of the compensation resulting to lost production costs since the company has lost a key member in the Company , and is also spending time to train a replacement. Secondly, lost sales costs demonstrate that once a company has experienced some employees exist, then the replacement is not able to fill the existing gap immediately. As such, the company might experience reduced sales for a substantial period of time. For instance, new employees might not be able to produce great service at a go and this might cause customer dissatisfaction leading to overall reduction of sales. Finally, lost reputation costs revolve around the disruption and disheartening of the existing employees as a result of dissatisfaction pertaining to working conditions. Basically, high employee turnover leads to additional work load for the employees who have been left behind in the company. Moreover, some employees might be influenced to speak ill of Paper Round especially when they are disheartened. As a result, the image of the company is dented and ends up making the Company’s reputation suffer (Bhatla 2011). Bad Management According to Dundon et al (2004) bad management is the major cause of high turnover rates. As such, managers could be capable of spoiling a high performing team of employees due to poor management skills such overloading employees. Of importance to note is that bad management is capable of spreading to all parts of the company and affecting employee morale and loyalty from customers. Furthermore, Dunlop and Lee (2014) argue that in business, bad management could be described as a cause of company downfall and the shortfall of the expected workforce. In light of this, it is important to reduce turnover rate at Paper round by improving management. Basically, there ought to be a thorough training to the management team. Some of the skills necessary during the training include; the use of positive language to the employees, practicing keen and active listening skills when communicating with the employees, giving appraisal where it is appropriate and ensuring that employees are empowered through interaction. Low Wages Apparently, low wages has been rated as the second important issue that could lead to high levels of turnover. Essentially, employees move jobs through turnover once they realize that their labor is not been compensate effectively. In most cases, employees expect wages that are capable of catering for their basic needs and other necessities. As such, lack of adequate wages compels the employees to seek for greener pastures in other companies. In reference to Paper Round, it is important to ensure that employees receive an equal amount of payment as per the work that they have engaged in. According to Kumar and Swetha (2011) employees who are said to receive the right wages remain motivated throughout their working period and have reduced level of turnover. It is worth noting that companies that have satisfied employees are likely to experience high levels of customer satisfaction, which further leads to maximal profit. *Factors that influence employee retention Having ascertained that Paper Round has experienced high employee turnover to be cause by bad management and low wages, it is imperative to utilise the factors that influence employee retention in companies such as Paper Round. According y to Macey and Schneider (2008), several factors contribute to employee retention. Training and career development Saks (2011) argues that companies have the responsibility of ensuring that employees go through special training and career development courses. Research studies have confirmed that companies take long to initiate such training in order to determine if the personal values of the employees match with those of the company. Once the company ascertains that the employees’ personal value matches those of the company then, the training is expected to take place. Importantly, training provides special techniques and skill to employees thus rectifying the challenge of performance that might be present. Work Environment According to Ram and Prabhakar (2011) work environment is the main cause of employee retention. As such, Manonmani et al., (2013) argue that companies should ensure that employees have a good working environment that is free from distraction such as noise, toxic substances among other factors. Besides working environment consists of both physical and psychological environment, where physical environment revolves around contact with the customers while psychological work environment revolves around work load, support decision making among other factors (Singh and Panda 2010). 3.0 METHODOLOGY 3.1 Research design This research will utilise the cross-sectional survey that used to collect data from a sample of participants who through sampling will represent employees who have taken part in turnover at the Paper Round company. Moreover, the study will incorporate questionnaires and interviews from the sample population (Sounders, Lewis, and Thornhill 2009). Importantly, the research design is important as it deals with various issues from the target population. Furthermore, it is aimed at allowing in depth scrutiny on the issue being investigated through facts and figures (Bryman and Bell 2003) 3.2 Sample Size and Method Sample Method Apparently, sampling revolves around selecting a sample population from an entire population that is further used to investigate on a certain issue. Additionally, there will be stratified random sampling which will involve the identification of employees who have participated in high turnover. Sample Size The researcher will use a sample of 50 employees who have been involved in high turnover and 10 employees who have not been involved in high turnover. Each sample group will utilise stratified sampling that will represent both male and female. 3.3 Data Collection instruments In order to understand why Paper Round is experiencing a high turnover facilitated by bad management and low wages, the researcher finds it necessary to use the firsthand information from the selected participants. Questionnaires In the study, the researcher will utilise the questionnaire as one of the main data collection methods. Through the instrument, employees will be given some questions intended to bring out adequate results for the phenomenon at hand. Additionally, the instrument will consist of two parts, the first part will contain close ended questions which is mainly used to gather demographic information and other statistical data. The second part will be used in seeking opinions from participants and additional qualitative data. Interviews This instrument will be utilised to collect data from those employees who have not participated in the high turnover at Paper Round. Basically, the instrument is useful in asking questions with a hope of receiving answers from the selected participants in order to draw conclusion from the subject that is under research. Of importance to note is that the instrument will have both structured and semi structured questions. 3.4 Validity and Reliability Apparently, every research must be guided by validity and reliability. As such, the instruments used in the study must be reliable through testing and retesting that should be done by the researcher. Nevertheless, this can only be achievable through piloting the instruments that will be utilised in the study. Consequently, seeking assistance from the supervisor could also be considered as a good idea in assessing the relevance of the measurements of the instruments to be used (Cozby and Bates 2012) 3.5 Data Analysis In regard to coming up with the final conclusion on the current research, the researcher is expected to edit the information that has already been gathered, code similar themes and final classify the data. The importance of this process is that it allows for detection of errors and omissions and further reducing data into homogenous categories that can be used to come up with meaningful relationships. Moreover, there will be descriptive and inferential analysis utilisation in order to measure and determine the relationship that exists in the information gathered. There will be use of SPSS package to provide analysis on the correlation between variables (Sounders, Lewis and Thornhill 2009). 3.6 Ethical Considerations In any research, it is crucial for the researcher to ensure that ethical issues are observed to avoid the rise of any ethical dilemma especially in physical or psychological aspects to the participants. Basically, these two aspects can be controlled by ensuring that irrelevant and embarrassing questions are avoided. In addition, the researcher is expected to avoid questions that could be a threat in nature. 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