Executive Summary

This
study evaluated the case of Red Velvet Event Management with the objectives of
identifying different factors that are affecting and aggravating employee’s
turnover. To do this, the research focuses on getting vital insights from past
employees from the company. The decision to settle on this target population
was based on the need to propagate honesty in the responses provided. A mixed
research method was employed to define the situation. With the implementation
of both probability and non-probability sampling used to choose respondents and
data collection was from both the quantitative and qualitative methods. Thus, an
interview, a questionnaire was used to gather the desired data. The findings of
the study show the terms of employments, remunerations and salaries, work
overtime, lack of result focused motivation, workplace settings are factors
affecting employee’s turnover in the company. Hence selecting the right people,
considering more than skills and experiences for any position. Incentivizing effectively
like offering individual bonuses that encourages good work. Open and effective communication
systems that gets regular feedbacks from employees. Provision of personal and
professional growth opportunities. Offer performance feedbacks and praise good
efforts. Encouraging a good work-life balance are among the given
recommendations.

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Keywords:
employees, turnover, motivation, human resource frame.

 

 

 

Chapter One: Introduction

1.1 Background of the study

 With the rapid global changes, there are
change effects in organizations and also the employees in it. The employee
turnover is one of the most constant issues to organizations, and one that
needs special attention. It has some significant effects on organizations; as
new employees must be hired, go through some compulsory training(s),
considering the time be effectively productive. Staffs turnover is a warning
sign of low morale due to lack of motivation i.e. incentives, promotions,
salary increment etc. Motivation on the other hand is a topic that has been
extensively researched since the twentieth century with first motivational
theories, Maslow’s hierarchy of needs (1943), Herzberg’s two-factor theory
(1959) and Vroom’s expectancy theory (1964).

 The
subject is analyzed through my time at a previous work experience. Initially
there was no problem not until time to be paid salaries, then there comes
disappointments, complaints, and slight grudges. Even though the company had a black and white contract on the job and
its rewards i.e. salaries but there were contradictions. Hereafter, this case
will be presented in detail and the impacts of high employee turnovers in the
company will be further elaborated. Finally, the issue will be assessed in
terms of the human resource frame.

 

1.2 Problem Statement

       Porter
and Steers (1973) suggested that the issue of met expectations was essential to
the person’s decisions to leave a company. Each employee has his or her own set
of expectations upon arriving a company. Should these expectations not be met,
the individual will become displeased and consider resignation. However (Mobley
1977) suggested that a negative evaluation of the present job leads to
dissatisfaction, thoughts of quitting, and an evaluation of job seeking
expectation utility and cost of quitting. My previous job made me to understand
how the company managed. There were high employee turnovers in space of 6-10
months of a year and the possibility to seek a replacement on a vacant job
tends to be a protracted and tedious.

      
Instances of understanding your job scope and duties with salary
benefits serves as a motivation to work. In my case, we agreed on increment of
salary after 3 months of probation. On the fourth month, the agreement was
breached, reason been with claims from the employer of unsatisfactory work and
efficiency. Whereas I deal with the client directly (Nestlé Malaysia) and they are absolutely satisfied and pleased with
my work and performances. A big project of the Maggi Media Launching held at CityOne Kuching on 29th
April propelled me to arrive at the office by 6.30am to work on designs for
layout production. I was displeased and after some complaints to fellow
colleagues, they shared similar ordeal experienced.

In addition, the inability to increment on the salary was
not the issue. Almost every month, I’m paid later than my colleagues. There are
constant reminders to make sure there are not any delays on my payment. These
little actions grew over time that I felt unsatisfied with the job, even though
my work was done wholeheartedly. I opt to seek other job opportunities both
locally and overseas, the sense of non-belonging, racial profiling became
noticeable till I decided to leave the company. With reference to employee
turnovers, I observed a total of 5 employees resigned

 

1.3 Main questions:

·              
What are the major factors contributing
for employee turnover in the event company?

·              
What are the effects of
employees turn over on the company?

·              
Does the event company have
any method that moderates staff’s turnover?

1.4 Specific questions:

·        
How does the human resource
frame play a role in the avoidance of employee turnover?

 

1.5 Objectives of the study

The general objective of this paper is to identify
different factors that are affecting and aggravating employees’ turnover in the
company and to suggest diagnostic recommendations.

1.6 Significance of Study

 This
research is of great significance as it will identify the various reasons why
there are high employee turnover rates within the event company. The company can
identify the areas to work on in reducing high employee turnover rate, saving
resources spent in the replacement and employees training. Employees will
benefit as organizations will focus on developing a retention strategy to
encourage employees to stay by various incentives like motivation, empowerment,
bonus programs, training and development etc. The findings will be added to the
the area of employee’s turnover and the application of the reframing
perspective – human resource frame to allay the issue.

 

 

 

1.7 Limitation of the Study

The study is only limited to my experience working at Red
Velvet Event Management and that it did not present similar case for other
event firms. Existing employees were selected as respondents and key informant
interviews inclusive of employees who has left the organization as this would
give more exposition on their motive to leave the company. Also, to fill the
gap of secondary data which they have filled on permission were referred.

1.8 Organization of the Research Paper

Due to the limitation in the word counts for this report,
this paper is organized into five brief chapters. The first chapter -introduction presents the background, problem
statement, objectives, limitations of the study. The second chapter -literature review addresses both
empirical and theoretical facts. The third chapter discussed methodology employed and embraces data
collection methods, sampling frame and techniques. Chapter four gives the
findings and discussions. Finally, chapter five shows conclusion and
recommendations.

 

Chapter Two: Literature Review

2.1 Human Resource Management

According to (Storey, 2001), human
resource management is an idiosyncratic method to employment administration
which seeks to achieve viable gain through the tactical disposition of an exceedingly
dedicated and capable work force, using an integrated array of cultural,
structural and personal techniques. This paper explores the use of reframing,
the perspective that organization can be viewed using the Human Resource Frame.

 

 

2.2 The Human Resource Frame

(Bolman & Deal 2013, p.101) states that the human resource
frame focuses on people. This method accentuates support, empowerment (conceivably
over dispersed leadership system), employee personal and professional
development, and responsiveness to employee needs. A focus on people works well
when employee morale is in consideration and when it is relatively at little
conflict.

2.2 Employee Turnover: Definition

Employee turnover refers to the movement of employees in
and out of a business. However, the term is commonly used to refer to wastage
or the number of employees leaving. It refers to the number of persons leaving
and the ones retained within the organization. 
Employee turnover is measured to be one of the persevering hitches in
organizations (Armstrong, 2004). In most formal organizations, employee
turnover is inevitable. Based on this issue, employee turnover can be
classified into five categories: Functional
and Dysfunctional, avoidable and unavoidable, voluntary and involuntary,
internal and external, skilled and unskilled turnover.

2.3 Causes and inducing factors for
turnover

Turnover arises from the discontent of job place for any
employee. Being dissatisfied in a job is not the only reason why people leave
one company for another. If the skills that they possess are in demand, they
may be lured away by higher wages, bonuses and better benefits and or better personal
and professional growth potential. That’s why it is important to know and
recognize the difference between employees who leave the job because they are
unhappy and those who leave for other reasons. There are number of factors that
contribute to employee turnover. I shall explore only three factors in brief details:

               
i.       
Unequal
or deficient wage arrangements – inequality in wages
plan is a major cause of discontent and can drive the notion to quit. Since
money is an asset, a need, sensitive and mode of motivation it can be a means
to an end of a job. This was a case I experienced as the proposed wage
increment after three months of probation wasn’t attained. Rather was prolonged
to couple more months which lead to my resignation.

             
ii.       
Feeling
unacknowledged ? since employees are willing to do a good
job, it follows that they also want to be appreciated and validated for their
works. There were cases where I wasn’t appreciated for my designs and inputs
for the project layouts and production rather it was overlook regardless of the
extra unpaid hours.

            
iii.       
Incongruity
between the employee’s skills and the job scope?
Employees who are placed in jobs that are too challenging or whose skills are
under-utilized may become dispirited and resign. Since the event industry is a
tactical one and things are done in briskness and dash; there was an instance
whereby I did designs jobs that wasn’t inclusive to my job scope as initially
stated.

 

Chapter Three: Methodology

The
approach employed will be the mixed research to generate rich data from
multiple sources, which are both quantitative (primary data from survey
questions) and qualitative (secondary data from interview). I am interested to
present the employees view towards the motive for turnovers in the event
company. In addition to this, the paper will offer ingenious acumen into what
actions companies in the event industry should take to improve their employee
retention rate.

3.1 Data Collection Method

Required data were collected from both primary and
secondary sources, which supplement each other. Gather primary data; survey
questionnaire was used. Thus, interview of key informant like the execs, who
are working directly with the management of the company was conducted. To gain a broader audience, an online
questionnaire was considered as an appropriate data collection process.  This was made accessible to participants who
had previously worked in the event company for a year. The major benefit of
using questionnaires to collect information is that feedbacks are given on questions
asked. The information is precise, thereby refining its efficiency in the
research process. In addition, it is a rational way of collecting information compared
to other approaches like interviews, whereby a lot of expenditures may have to
be incurred (Johnson and Turner, 2003).

3.2 Sampling Frame

Sampling is the act, process, or technique of choosing suitable
sample, or a representative part of a statistical population consisting of
research respondents for the purpose of determining parameters or
characteristics of the respondents. (Mugo F, W. n.d.a).  The sampling for this study will be the past and
reachable employees from Red event management company.

3.3 Sampling Technique

This study employs both probability and non-probability
sampling is used to select study respondent. It is purely voluntary. The study
respondents with different positions of the company were selected on purpose.

 

Chapter Four: Findings and discussion

This
chapter focuses on critically analyzing the results obtained in this research.
It will present the results in a systematic manner, making it easier to gather
conclusive and informed conclusions pertaining to the issue of high employee
turnover rates within Red Velvet Event company. Vital primary data were
collected from the 8 participants who volunteered to participate in the
research. The questionnaires did an excellent job in sourcing this data from
the participants and thus enabling the use in determining the underlying
factors behind the high employee turnover rates. Below is a brief presentation
of the results obtained from each question after the participants offered their
insights through the questionnaires. There was a total of 6 respondents in the
research all of whom were previous employees within the company of whom I was
able to get.

Most
of the respondents are male with a 2:1 ratio as compared to the female respondents
and the dominant age group is from 23-30 years. Most of the employees are young
adults and even the CEO is just 28years. The monthly income categorizes from
RM800-RM3000 exclusive of the interns who gets RM400. One
of the key informant shared he works closely (mediator) with the CEO and the
client. There was an agreement on getting new clients and sharing the profits
but this was breached after couple months even after constants and reminders
but no avail. He has attracted a lot of big clients to the company and the CEO
didn’t keep to the part of the deal, resulting to his resignation and joining a
better event company and now they are rivals.

Moreover,
of the participants, some stated that an increase in pay would have definitely
made them stay in the company. This indicated that there were major issues with
level of pay these respondents received and in some cases, there were
deductions where necessary. Others stated career advancement would have made
them stay as this shows barriers to their career goals. They just did the job
for the money in mind and therefore waiting for perfect time to resign. Lastly,
few mentioned more flexible hours as they have to work everyday including
weekends without any incentives as motivation.

 

Chapter Five: Conclusion and
Recommendations

5.1 Conclusion

This paper has pointed out to the
existence of factors that contribute to the high employee turnover rate in the
event company. The business of the event company is solely based on the human
resources, but still the turnover is high. This study shows that the factors
affecting employee’s stabilities are internal. Firstly, there was the lack of
motivation from the chosen respondents. Motivation is needed to improve their
performances as well as instill some vital skills that comes conveniently in
their task executions. There is lack of equality amongst staffs; as some get
special treatments, improper arrangement of logistics for staff, paucity of recognition
and encouragement for good job performances and or poor communication internal
factors whereby information isn’t properly shared. Remunerations such as bonuses,
incentives, incomes etc in some cases weren’t met. There are concerns over
salary they received and manner in which they received it. This applies in my
case of late disbursement of salary. It negatively impacted on my dedication to
my job. The company should revisit the employee remuneration packages offered.
An adequate pay should be awarded according to their work input.

5.2 Recommendations

It is important to implement practicable strategies at
least to reduce observed problems. Although the information retrieved was quite
useful, it was based on accounts given by past employees. Efforts started by
the company isn’t enough to curb turnovers. Hence, special attention should be
given to human resource development and staff benefits through revising
benefits packages. Here are some recommendations for the company to better
prevent employee turnovers:

·        
Selecting the right people at
the initial place via behavioral testing and competency screening. With consideration
of more than just skills and experiences for any positions.

·        
Effective incentivizing
employees that encourages good work like rewards, individual bonuses etc.

·        
Creation of open and effective
communication by providing ways for employees to give feedbacks, pulsing
surveys as it can point problems as it is and immediate response is delivered. This
shows that they are valued and their voices are heard

·        
Provision of personal and
professional growth opportunities through trainings and education, challenging work
and responsibility. This could motivate employees which may lead to good
business outcome.

·        
Offer performance feedbacks and
praise good efforts. People want to know their work makes a difference. This is
a great form of employee fortification and retention.

·        
Encouraging a good work-life
balance. Most companies expect staffs to be available 24-7 regardless of the
allocated work times due the incredible connectivity to the internet. This isn’t
ethical and sustainable but should encourage disconnection from work regularly.

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