• With the increase in the market competition, every organisation wants to retain skilled and efficient employees for the sustainability of the business.
• The purpose of the study is to determine the causes and impacts of employee turnover at CyberCom Global situated at Auckland, New Zealand.
• In literature review section, the detailed information will be provided regarding the previous researches have been done by different researchers.
• The study will utilize the qualitative methods to describe the data.
• Data will be obtaining from 10 employees through semi-structured interviews
• All the primary data will be analysed by using NVIVO.
• Employees are known as the primary internal stakeholders, which play a critical role in the growth, success, and effectiveness of the organisations. The HR management is involved in attracting and retaining skilled, talented, and qualified employees that add value to the business. To remain competitive and ensure growth and success, it is vital to build and manage long-term and sustainable relationships with the employees. A motivating, challenging, and learning environment along with attractive packages can help in ensuring the satisfaction of employees, which leads to retention and helps in decreasing the employee turnover rate. In this study, the case of Cybercom Global is under review. It has been seen that the employee turnover rate of the company is high, which has become a major concern. Hence, the study is based on exploring the causes and impacts of employee turnover. The findings of the study will help in recommending strategies and approaches that can be used to deal with the increased employee turnover.
1.0 Introduction 3
1.1 Background of the Organisation 4
1.2 Internal and External Stakeholders 4
1.3 Research Problem: 4
2.1 Research Aim 4
2.2 Research Objectives 4
2.3 Research Questions 5
3.0 Literature Review 5
3.1 Employees and employee’s turnover 5
3.1.1 Causes of Employee Turnover 6
3.1.2 Impacts of employee turnover 8
3.2 Gaps Existing in the Literature 8
3.0 Methodology 9
5.0 Research Design and Methods 10
5.1 Research Design 10
5.2 Research Approach 10
5.3 Data Collection Methods 10
5.4 Sampling Technique and Sample Size 11
5.5 Data Analysis Technique 11
6.0 Ethical Considerations 11
7.0 Significance of the Research 12
8.0 Project Plan 12
8.1 Research Milestones 12
8.2 Resources 13
9.0 Appendix 18
Ethics Application Form 18
1.1 Background of the Organisation
Cybercom Global is an internet service provider in New Zealand, which serves the hospitality businesses in the country. The primary aim of the company is to boost the revenues of the hospitality businesses by offering them with high-quality and efficient Wi-Fi facilities, which can help in serving the customers. Cybercom is the only company, which is providing both unlimited data and Wi-Fi access with time limits. For years, the company is serving different hotels, bars, restaurants, cafes, motels, and serviced apartments throughout the country. From the installation of the internet connection to the Wi-Fi stickers placed at different places for signage, Cybercom manages everything (Cybercom, 2017). Cybercom Global is an IT consulting company, which is benefiting from the increase in the use of the internet. It has provided hospitality businesses with the opportunity to connect with the world and increase competitiveness. The company has achieved a strong position in the IT industry as it provides technical edge along with innovative and sustainable solutions (Hospitality New Zealand, 2017).
1.2 Internal and External Stakeholders
Stakeholders are one of the most important aspects of an organisation. Any decision or action taken by the business has an impact on the stakeholders. Hence, it is important for the organisations to assess and evaluate the needs and demands of their internal and external stakeholders so that they can take decisions accordingly (Prause, 2015). In the case of Cybercom Global, the internal stakeholders are the individuals and groups that are committed to serving the business. The internal stakeholders include the employees, board members, and the shareholders. The external stakeholders include the public, clients, customer, and the competitors (Cybercom, 2017).
1.3 Research Problem:
Cybercom Global is currently experiencing increasing employee turnover ratio, having no idea about the reasons and factors behind this issue. The increasing employee turnover ratio is affecting the company’s operational activities, thus effecting its strategic objectives. The following research study is therefore designed to focus on issue i.e. increasing employee turnover ratio. 2.0 Research Aim, Objectives, And Questions
2.1 Research Aim
The research aims to investigate the causes and impacts of employee turnover within Cybercom Global.
2.2 Research Objectives
The objectives of the study include the following:
1. To investigate the employee turnover rate at Cybercom Global
2. To investigate various factors that lead to high employee turnover at Cybercom Global
3. To investigate the impact of employee turnover on the performance and productivity of Cybercom Global.
2.3 Research Questions
The research questions of the study are presented as follows: –
1. What is the rate of employee turnover at Cybercom Global?
2. What are the perceptions of the participants about the causes of high turnover at Cybercom Global?
3. What are the perceptions of the participants about the impacts of high turnover at Cybercom Global?
3.0 LITERATURE REVIEW
This section provides the overview of the meaning of employee turnover, discuss the job-related and organisational factors that results to employee turnover and the impact of high employee turnover on the organisation.
3.1 Employees and employee’s turnover
The employees are a vital part of the organisation as they possess the skills and capabilities that contribute to the effectiveness and competence of the business (Devi, 2017). According to Sudhakar (2015), the needs and demands of the employees all over the world have changed with the passage of time. As the level of competition is increasing in the industries, it has become critically important to strengthen the business internally. Employees are the primary internal stakeholders that are influenced by the decisions and actions taken by the business. There are several factors that lead to satisfaction and dissatisfaction of the employees. Satisfied employees can be retained, and their efficiency and performance can also be measured accordingly. On the other hand, retaining the dissatisfied employees is a challenge as the level of performance of the dissatisfied employees is poor (Baldoni, 2013). The decrease in the level of job satisfaction results to increase in absenteeism as well as high level of employee turnover.
According to Abassi et al. (2000), employee turnover means the replacement of the workforce between the firms and the occupations with in the labour market. In simple terms, Price (1997) stated that the turnover is the ratio of total number of employees who left the organisation divided by the total number of employees of the organisation during that specific period. Cheche, Muathe and Maina (2017), employee turnover refers to the proportion of the employees that are leaving the organisation in a given period. It can be disruptive and costly to the organisation. The employee turnover is categorised into three dimensions, which include voluntary, involuntary, and dysfunctional. Dajani (2015) claimed that voluntary turnover is planned and initiated by the employees. On the other hand, the involuntary is planned by the organisation depending on the poor performance of the employees. While on the contrary, the dysfunctional turnover is based on high performance employees leaving the organisation as replacing them is very challenging. It is important for the management to categorise the turnover so that they can develop and integrate strategies accordingly.
In the organisations, the HR management is specifically involved in dealing with the employees and their issues. Developing sustainable and long-term relationships with the employees and ensuring their retention is critical for the HR managers. The HR managers realise that a high employee turnover can lead to affecting the performance and productivity of the organisation negatively (Alshammari,2015). Generally, managers of the various organisations define turnover is a process of replacement cycle starts from a position vacated either voluntary or involuntary to a new employee gets hired and trained (Woods, 1995). Dajani (2015) pointed out that the employee turnover leads to increasing the overall costs of the organisation. Hence, it is essential for the HR management to predict the turnover so that they can develop and integrate strategies and approaches accordingly.
Although, employee turnover term is frequently used to find out the relationships between the employees within the organisation when they leave without taking into consideration the reason behind it. Griffeth, Hom and Gaertner (2000), “Unfolding model” shows different point of view from traditional thinking by focusing on decisional aspect of the turnover. This model is based on decision making theory or image theory (Beach, 1990). Image theory means that how the people of the organisation process information while taking decision. Therefore, this model helps the employees to analyse the various reason before leaving the organisation.
3.1.1 Causes of Employee Turnover
Some researchers stated that there are numerous reasons for the high employee turnover in an organisation. These can be divided into two parts, that is; job related factors and organisational factors.
126.96.36.199 Job Related Factors
Some researchers tried to determine the various components behind the intention of employee’s lead to resignation, through scrutinizing possible previous experiences of employee’s intention to quit the job (Bluedorn, 1982; Kalliath and Beck, 2001; Kramer et al., 1995; Peters et al., 1981; ; Saks, 1996). Firth et al. (2007) explains job related stress is one the factors which results to employee turnover and there are various reasons for stress, such as; lack of commitment, and low level of job satisfaction. There are some other personal factors such as; sense of powerlessness, locus of control and personal control. Where, locus of control means that when employees of the organisation believes that they have control over outcomes of the event which have impact on their lives (Firth et al., 2007).
Furthermore, there may be economic reasons behind the high employee turnover (Mano ; Shay, 2004). Idson and Feaster (1990) stated that if large organisations did not provide chances of development and did not offer competitive wages or salaries to its employees, then there will be low level of organisational attachment and results to employee turnover. On the other hand, role stressors also result in employee’s resigning the job. Muchinsky (1990 as cited in Ongori,2007) describes, role ambiguity means the variance between the people expectation from the employees during the job and what employee’s feels that they should do within the organisation. In the absence of sufficient information, such as; how to accomplish the job efficiently, expectations of supervisors and managers, performance evaluation techniques, high level of work pressures, and lack of consensus while on work, may result in high tendency of turnover due to employees might feel low level of engagement, job dis-satisfaction, less commitment within the organisation (Tor et al., 1997).
188.8.131.52 Organisational Factors
Ongori (2007) opines that organisational instability is one of the major reason for high employee turnover. Alexander et al. (1994) also supports that there is positive relationship between the level of inefficiency and the level of staff turnover. There are other organisational factors such as; lack of employee empowerment and absence of sharing information (Magner et al., 1996), lack of communication systems (Labov, 1997) adversely affect the employee continuity in an organisation. Moreover, Costly et al. (1987 cited in Ongori, 2007) argue that poor implementation of various organisational strategies such as; personnel policies, recruitment strategies, talent management strategies, and grievance procedures, lack of competitive compensation and lack of recognition (Abassi et al., 2000) which results to high labour turnover rate. On the flip side, pay and pay-related variables have modest effect on labour turnover (Griffeth et al., 2000). Some researchers studied the relation between the remuneration, employee’s performance and turnover. It has been found that if the company offers or pay high wages and incentives to its employees then employee retention rate will be comparative high.
3.1.2 Impacts of employee turnover
Some researchers argue that labour turnover have negative impact on the efficiency and profitability of the organisation due to mismanagement (Hogan, 1992; Wasmuth and Davis, 1993; Barrows, 1990). Organisation invested huge amount in the workforce, thus voluntary turnover is expensive from business view point (Ongori, 2007). Moreover, companies should follow replacement cycle which starts from recruitment, selection, induction, training and development to find out the suitable employee to fill the vacancy and involves replacement costs which equals to 50% of the employee’s annual salary (Sutherland, 2002). Employee turnover costs includes hidden costs which company must incur due to relationship between co-workers with the new employees and with the departing employees. It also includes other costs, for example; decrease in productivity, decline in sales and management’s time (Catherine, 2002).
In this research, the case of Cybercom Global has been taken under review. In 2014, it was reported that the employee turnover has significantly decreased. However, from 2015 onwards the turnover rate increased again. It resulted in affecting the organisation’s capability to pay attention to the needs of their clients and manage their costs and expenses. The HR management knows that hiring and recruiting are costly functions and once the new employees are hired, they must be trained, which also increase the costs (Cybercom, 2017). Hence, the need for employee retention has been realised by the business. The increasing turnover is a major concern for the business, which requires the implementation of unique approaches and strategies that can help in overcoming the issue. If the management fails to pay attention to the increasing employee turnover, which is influenced by different factors, it can negatively affect the overall capability and efficiency of the business (Fuller ; Shikaoff, 2017).
This study will help Cybercom Global to find out the reasons of high labour turnover, what will be their impacts and how to tackle that problems.
3.2 Gaps Existing in the Literature
High employee turnover is a major issue all over the world presently. Different researchers have presented theories and models that indicate and highlight the factors that lead to employee turnover. Many researches have been done to tackle this problem in various parts of the world such as; Taiwan, Malaysia, China, USA, South Florida, Ghana, Britain, India, Australia and New Zealand. According to Bonenberger, Aikins, Akweongo and Wyss (2014), motivation and job satisfaction are two main factors which impacts employee turnover and retention in low and middle-income countries. A research has been done in Taiwan to explore the determinants of employee turnover at management-level and to determine employee retention strategies in practice (Yang, Wan, ; Fu, 2011). Additionally, a research has also been done in Malaysia to ascertain the causes and effects of employee turnover in private sector (Arokiasamy, 2013). In this study it was found that there are numerous reasons behind the increase in the rate of employee turnover within the organization such as; job dissatisfaction, pay, career promotion, fringe benefits, managers and employees relation, job fit, alternative employment opportunities, co-workers influence. Further, researcher also stated that managers should implement various strategies such as; recruitment of efficient employees, retention of valuable employees, training and development programs, effective leadership, and, balancing employees work and family life which results to decrease in employee turnover.
First time a study has been done in India in 2012, researcher tried to find the link between family-related reasons and employee turnover for IT/BPO employees. The purpose of the study was whether high-level of family financial obligations related to family-related turnover reasons and low-level of family financial obligations related to job-related turnover (Boyar et al., 2012). The results of this study show that both individual and organisational factors such as; managerial support, job content and work-related stress are responsible for high turnover. Although, it is found that in New Zealand numerous researches have been done to investigate the reasons behind the increase in employee turnover. Some researchers explained that extrinsic rewards such as; pay, promotion, security plays vital role while taking decision of whether to stay or leave the organisation and provide suggestions to increase the level of retention in the firms (Boxall, Macky, ; Rasmussen, 2013). Different studies have been conducted within the New Zealand in different sectors of industry such as; health care, hospitality, manufacturing firms, IT firms and educational institutions to find out the causes that why people leave the organisation and how to retain valuable and efficient employees.
Analysing the literature, it has been found that the literature does not provide the impact of employee turnover on specific businesses operating in the industries. It is found that most of the researches has been done in relation to the employees of hotel, nurses, teachers and hospitals. However, no research has been done to determine the causes of workforce turnover in internet service provider company. Therefore, with the help of the previous researches, researcher will be able to ascertain the various factors behind the high employee turnover and its impact on the organisation specifically in case of Cybercom Global.
Choy (2014) revealed that a research paradigm is based on the set of common beliefs shared by the theorists related to how an issue must be addressed and evaluated. It is important to find out that which paradigm the study belongs to, positivism, interpretivism, or realism, pragmatism. In this study, interpretivism paradigm will be entailed, which is believed on the concept that there is no single reality or truth. It is important to interpret the data and reality to achieve the purpose of the study. As the study is based on investigating the causes and impact of employee turnover within Cybercom Global, the study will focus on interpreting the qualitative data gathered during the study. The paradigm is based on the discovering the underlying meanings of the activities. Using the interpretivism paradigm, it has been understood that the human behaviour is multi-layered. As the study is based on examining the behaviour of employees within an organisation, the study will be carried out with the aim of unfolding information while studying the human behaviour.
5.0 RESEARCH DESIGN AND METHODS
5.1 Research Design
A research is designed specifically keeping in mind the aim and objectives. Mainly, there are three types of research designs qualitative, quantitative, and mixed. In this study, the qualitative approach has been selected as the study aims to investigate the causes and impact of employee turnover within Cybercom Global. The data will be collected via structured interviews targeting 4 to 6 employees of the company. The research design is the arrangement of conditions that are set to collect and analyse data. A case study design will be selected, which is a popular form of qualitative analysis, which depends on the careful observations of the selected group. In this study, the case of Cybercom Global is under review. In this case, a snapshot case study will be used, which is based on describing and observing a single organisation or an entity (Fox, 2015).
5.2 Research Approach
A research approach ensures that the study is carried out in a logical flow to achieve the planned objectives. As the objectives and hypotheses are well-defined, the study will be based on a deductive approach. The approach will be selected as it is influenced by the aims and focuses on testing the theory and hypotheses. Deductive reasoning is logical way of presenting the processes and information. In this research, a descriptive case study approach will be used to explore the causes and impact of employee turnover. The descriptive case study approach is selected as it helps in describing the interventions and processes in the real-life context (Irwin, 2013).
5.3 Data Collection Methods
Data collection is an important aspect of research, which can be carried out by focusing on primary data collection methods or secondary data collection methods (Johnston, 2014). In this study, both primary and secondary data will be gathered to achieve the predefined objectives of the study. Firstly, the literature will be explored to find out the secondary information that forms the basis of the study and will support the findings. Secondly, the interviews will be conducted to gather primary data. The interview is selected as a data collection instrument, which helps in gathering authentic and relevant data. The structured interview technique will be adopted in which all the employees will be responding to the same series of questions while all the managers will be responding to the same series of questions. The target audience of the study is the employees of Cybercom Global.
5.4 Sampling Technique and Sample Size
Doiron and Asselin (2015) indicated that sampling is based on selecting the right sample from the population to target during the study. In this study, a non-probability technique will be employed, and purposive sampling technique will be adopted. As the study aims to investigate the causes and impact of employee turnover within Cybercom Global, the employees and management of the company will be interviewed. 4-6 employees of the company will be interviewed to find out their views and opinions related to the causes and impact of employee turnover with Cybercom Global so that the hypotheses can be tested and verified.
5.5 Data Analysis Technique
In this study, the qualitative data will be analysed using the thematic analysis technique. From the responses of interview, emerging themes will be identified and analysed. The findings will be compared with the literature findings to achieve the planned aims and objectives of the study. Moreover, when analysing the data, researcher plans to use coding technique to refer respondents and key findings in accordance with research themes. Once all the findings and analysis are presented, a summary table shall be presented in accordance with research themes. This shall also assist readers to easily understand the findings.
6.0 ETHICAL CONSIDERATIONS
Zivkovic (2014) stated that ethics is one of the critical aspects of research, which ensures that the study is carried out ethically following the right ways. During this study, all the measures would be taken to promote ethical behaviour while carrying out all the activities and tasks. Firstly, it would be ensured that there are no biases in the selection procedure of the respondents for the interviews. It will help in ensuring the reliability and validity of the data. Secondly, the respondents would be ensured that their data will be protected and will not be shared with anyone. Their privacy will be given priority throughout the research. Thirdly, it was guaranteed that there is no discrimination among the respondents based on race, colour, religion, or nationality. The employees and management of the company were randomly selected, and it was ensured that every respondent had the equal opportunity to be selected.
7.0 SIGNIFICANCE OF THE RESEARCH
The study would significantly focus on emphasising the importance of attracting and retaining talented and skilled employees. The research would focus on identifying and highlighting the factors that lead to employee turnover so that strategies can be recommended to the management to retain employees. The study will be carried out in the context of New Zealand and would specifically pay attention to the Cybercom Global operating in the IT industry. It will highlight the consequences of employee turnover and will provide recommendations on the strategies and approaches that can be used to retain employees and reduce the employee turnover rate.