Staff motivation and retention in Tesco

Staff Motivation and Retention at Tesco

The proposed study is both relevant and timely to the needs of major multinational corporations such as Tesco because the inordinately high costs associated with unplanned employee turnover have been documented time and again. Although some organizations such as those competing in the fast-food industry tend to experience high levels of turnover, these costs are considered part of doing business given the lower wages and smaller or nonexistent benefit packages that typically accrue to lower-level fast-food employees. For other corporations, though, acceptable staff retention levels are absolutely essential and can make the difference between organizational success and failure. Furthermore, studies have also shown time and again that there is a clear correlation between staff motivation and productivity. In reality, it just makes good business sense that staff members who are satisfied with their jobs will work harder and remain loyal to the enterprise while their dissatisfied counterparts will tend to experience higher levels of absenteeism, on-the-job injuries and workers compensation claims, and will likely be less effective overall. As the United Kingdom's largest retailer, Tesco represents a good choice for the proposed study because of the significant numbers of staff members employed by the company. It is reasonable to suggest that some employees at Tesco quit their jobs unexpectedly while others remain at work in a highly motivated state until they retire. Therefore, the proposed study can help illuminate current reasons for whatever staff retention rate is being experienced by Tesco and can serve to identify opportunities for improvement by human resource professionals at this company and other similarly situated organizations where enhancing staff motivation and reducing unplanned turnover represent important goals.

Aim and Objectives

The overall aim of the proposed study is to identify current turnover rates at Tesco and to determine the primary reasons for them as well as a relationship, to the extent that one exists, between staff motivation and retention. Pursuant to this overall aim, the proposed study will be guided by the following research objectives:

1. Determine the current as well as the historical turnover rates at Tesco by country, region and even by individual Tesco store in selected cases;

2. Given the organization's increasing expansion into foreign markets as well as its ongoing growth in the United Kingdom, the proposed study will seek to identify any cross-cultural factors that might affect the turnover rate at Tesco;

3. Identify current staff motivational techniques at Tesco and assess their effectiveness in managing the turnover rate and improving staff productivity; and,

4. Identify the best and worst case instances of employee turnover at Tesco stores to determine the extent and role that leadership style plays in affecting staff motivation and unplanned turnover at these stores.

Identification and Initial Review of Key Literature

The proposed study intends to use the following peer-reviewed and scholarly sources described in Table 1 below as a starting point for its literature review.

Table 1

Sources to be Used in Proposed Study

Author/Date/Title/Publication

Value of Source to Proposed Study's Aims and Objectives

Neff, T.M. (2002), "What Successful Companies Know That Law Firms Need to Know: The Importance of Employee Motivation and Job Satisfaction to Increased Productivity and Stronger Client Relationships," Journal of Law and Health, 17(2): 385-386.

Author emphasizes that motivating employees and understanding the reasons behind employee motivation represent essential elements in any successful organization. Author also notes that the most productive companies in the world assign a high priority to employee motivation and job satisfaction a top priority because satisfied employees are more productive, work harder, longer, and more efficiently because they know they are critical to the success of the organization.

Roberts, Y. (2003, February 10). "A Question of Leadership," New Statesman, 132(4624): 16-17.

Author examines how different leadership styles affect staff motivation, customer satisfaction, organizational performance and profits in a transcultural corporation.

Harrison, A., Wheeler, P. & Whitehead, C. (2003). The Distributed Workplace: Sustainable Work Environments. New York: Routledge.

Authors provide several chapters on issues relevant to the proposed study's including the relationship between staff turnover, motivation and productivity.

Zauderer, D.G. (2005). "Leading with Character," The Public Manager, 34(1): 44-45.

Author examines relationship between the leadership style used in various organizations and its impact on staff motivation, organizational productivity and turnover.

Hillmer, S., Hillmer, B. & Mcroberts, G. (2004). "The Real Costs of Turnover: Lessons from a Call Center," Human Resource Planning, 27(3): 34-35.

Authors provide comprehensive analysis of the costs associated with low employee motivation and high turnover rates, some of which may not be readily apparent.

Kimball, L.S. & Nink, C.E. (2006, June). "How to Improve Employee Motivation, Commitment Productivity, Well-Being and Safety," Corrections Today, 68(3): 66-67.

Authors emphasize that staff members are any organization's most valuable resource and examine ways in which motivation and productivity can be managed and sustained in any working environment.

Morrison, R. (2004). "Informal Relationships in the Workplace: Associations with Job Satisfaction, Organisational Commitment and Turnover Intentions," New Zealand Journal of Psychology, 33(3): 114-116.

Author examines how information relationships and other factors in the workplace can affect job satisfaction, loyalty and turnover rates in various types of organizations.

Frank, F.D., Finnegan, R.P. & Taylor, C.R. (2004). "The Race for Talent: Retaining and Engaging Workers in the 21st Century," Human Resource Planning, 27(3): 12-13.

Authors examine how different types of organizations are taking steps to reduce their employee turnover rates and improve staff motivation in the process.

Ayers, D.F., Miller-Dyce, C. & Carlone, D. (2008). "Security, Dignity, Caring Relationships, and Meaningful Work: Needs Motivating Participation in a Job-Training Program," Community College Review, 35(4): 257-258.

Authors investigate the effectiveness of various job training programs on improving staff motivation and reducing the incidence of turnover in different types of organizational settings.

Luthans, K.W. & Sommer, S.M. (2005). "The Impact of High Performance Work on Industry-Level Outcomes," Journal of Managerial Issues, 17(3): 327-328.

Authors examine how strategic human resource management techniques can improve staff motivation, reduce turnover and improve employee productivity.

Research Design (around 500 words)

The research approach selected for the proposed study is a qualitative case study methodology based on its perceived superiority compared to other available research methods. According to Zikmund (2000), the case study method is "an exploratory research technique that intensively investigates one or a few situations similar to the researcher's problem situation" (722). The main advantage of this research approach to achieving the above-stated research aim and objectives is that a subject area can be investigated in depth and with great attention to detail (Leedy, 1997). The case studies to be used in the proposed study will focus on Tesco as well as other comparable major multinational retailers such as Walmart. Although the proposed study intends to employ a qualitative analytical approach, there will be some quantitative analysis involved such as the current and historic turnover rates at the companies used in the case studies as well as the impact of such turnover rates on economic performance. This approach is congruent with social researchers such as Neuman (2003) who points out that, "Both qualitative and quantitative research use several specific research techniques (e.g., survey, interview, and historical analysis), yet there is much overlap between the type of data and the style of research. Most qualitative-style researchers examine qualitative data and vice versa" (16). There are some inherent strengths and weaknesses associated with the case study approach, though, that must also be taken into account which are described further in Table 2 below.

Table 2

Strengths and Weaknesses of Qualitative vs. Quantitative Research

Qualitative Research

Quantitative Research

Qualitative research involves words, images and processes data as words, emotions, feelings, emotions, color, and music.

Quantitative research is concerned with numbers, logic and the objective, focusing on logic, numbers, and unchanging static data and detailed, convergent reasoning rather than divergent reasoning.