Role Of HR Strategies In Coping With Employee Attrition In Declining Business Conditions

Problem Statement

What Factors Are Responsible For The High Rate Of Attrition Of The Employees?

How Employee Attrition Impacts On The Organizations?

What Is The Role Of Hr Strategies To Cope Up With The Expectation Of Pay Hike Of The Employees Despite Of Low Business Profit Margin?

What Factors Influence Employees To Quit Their Job?

The world economy has undergone an immense growth in the last decade. It has escorted the revolution in the technological era and radical changes in the traditional ways of businesses (Sareen, 2018). The tremendous tendencies of globalization have not only changed the current pattern of business world, but also have made the job of human resource management difficult than it was in earlier days. With increasing competition in the business world, most of the business organizations are facing low profit margin (Huang, 2016). In this way, such organizations are also facing high attrition rate with decreasing business condition. Deutsche Bank is also going through the same issues of business leading to increasing attrition rate. This research proposal will be dealing with the role and strategies of human resource managers for coping up with the pay hike expectations of the employees despite of low profit margin of business.

With increasing competition in the global market, most of the business organizations are facing low profit margin at their businesses. The employers of Deutsche Bank are not being capable of offering attracting benefits to the employees (Wadhwa & Madan, 2017). Such situation is leading to increasing attrition rate in the organizations. Moreover, the employees of this bank are demanding pay hikes despite of low margin of the business. Hence, it is being extremely quite tough for the managers to meet the expectation of pay hikes of the employees with decline profit margin of the business (Hom et al., 2017).

Research Aim

The aim of the research study is to explore the role the role and strategies of human resource managers to cope up with the demands of pay hike of the employees despite of decreasing profit margin of business.

Research Objectives

• To examine the factors those are responsible for the high rate of attrition of the employees
• To determine the impact of employee attrition on the companies
• To identify the role of human resource (HR) strategies to cope up with the expectation of pay hike of the employees despite of low business profit margin
• To examine the factors that influence employees to quit their job

The research proposal is extremely significant for theoretically as well as practically to improve the HR strategies for coping up with the high expectation of salary of the employees in declining business condition. Over the decades, several scholars have conducted research on effective human research strategies for reducing the employee attrition rate. As per most of the scholars, strong collaboration, praise and recognition strategies can help the managers to cope up with the pay hike expectations of the employees in declining business condition (Mehta et al., 2014). Hence, it is expected that the human resource managers of Deutsche Bank can also manage the expectation of pay hike of the employees despite of low business profit margin.

Aims and Objectives

The expectations of the employees are gradually increasing with their changing lifestyle. They are more likely to demand pay hikes for their performance level. However, Mehta et al. (2014) opined that most of the employers are reluctant to agree with their pay hikes, while their businesses are not going well. Such situation makes the employees disappointed with their organization. In competitive business world, it becomes easy for the employees to find other job position that leverage their experience and pay better salary (Gunnuck et al. 2017). Hence, the employees are highly inclined to leave their current job in case of their low salary structure, which ultimately leads to high employee attrition rate. On the other hand, Hsu (2015) stated that slow career growth is one of the most important reasons behind increasing attrition rate in business organizations. Employees with prior experience are extremely precious for the organizations in contemporary fastest growing market. In such situation, the experienced and talented employees from within the organization expect better job position because of their performance. However, the employees often get disappointed with their employers, when they employ any employee externally (Gautam & Jain, 2015). In this way, such employees tend to leave their current job position. Unfair working environment and monotonous working environment can also lead to high rate of employee attrition in business organizations.

High rate of employee turnover leads to dysfunction to the organization through interrupting the overall organizational process. It results in placing of undue responsibilities on the remaining employees (Holland et al., 2015). As per the human capital perspective, high rate employee turnover reduces the firm specific human capital, which leads to declining production process of the organization. Moreover, the organizations face loss of significant skills, organizational memory and skills. According to Jindal and Shaikh (2015), increasing turnover ultimately increases the overall cost and expense of the organization. Moreover, the organizations are to arrange new recruitment process for hiring filling the vacant position resulting from the increasing employee attrition rate. Such arrangement of new recruitment process ultimately increases the overall organizational cost of the business organizations (Mulvaney, 2014). The newly hired employees also require adequate training for being efficient with the specific types of jobs. In this way, such training cost seems to be an extra cost for the organizations.

Chahal and Poonam (2017) stated that limited numbers of employees resulting from the employee turnover hamper the quality, consistency and output level and customer service of business organizations. In this way, such ineffective customer satisfaction significantly hampers the overall business condition of the organization. Furthermore, Gunnuck et al., (2017) mentioned that increasing employee turnover rate results in a lack of job insecurity among the remaining employees. Hence, the remaining employees become less productive and efficient leading to declining and ineffective organizational production. The remaining employees become less dedicated and committed for their own job responsibility (Holland et al., 2015). Hence, such employees become less efficient in their own job role leading to inefficient organizational performance. Apart from that, increasing employee attrition leads to increasing confliction between the employers and employees (Jaskiewicz et al. 2016). Moreover, in such condition, most of the employees build negative perception regarding their employers. In this way, such situation results in conflicting organizational condition in business organizations.

Justification and Potential Output of the Research

Most of the employees are inclined to leave their current jobs due to non-fulfillment of their expectation of pay hikes. However, the employers are often reluctant to give the employees any pay hike, while they go through a declining profit margin in their business condition (Hirsch et al., 2015). Hence, the employers must be highly concerned about the way of dealing with the increasing expectation of the employees for pay hikes even in the declining business condition. According to Premalatha (2016), instead of responding to request of pay hike in strict way, the managers should take the request seriously. It will show adequate concern for the employees. Moreover, Hirsch et al. (2015) opined that in such situation, the human resource managers of organizations should transparently communicate with the employees regarding the business condition. In this way, the employees would properly understand the declining business condition, which will encourage them to cooperate with the employers by taking back their pay hike request.

Often, the employees ask for pay hike to get recognition for their high level of performance. In such situation, such employees can be managed with alternative ways of providing recognition instead of monetary rewards. Moreover, Michael et al. (2016) opined that the human resource managers of organizations can also offer promotional scope for the talented employees as the alteration of their pay hike. In this way, the human resource managers can somewhat cope up with the expectation of pay hikes of the employees, while business is not going good. On the other hand, Gunnuck et al. (2017) pointed out that positive negotiation with the employees can also help the HR managers to cope up with the expectation of pay hikes of the employees. Moreover, the HR managers should consult a salary guide with the employees through giving them a clear picture of business condition (Jaskiewicz et al., 2016). In this way, the employees will feel valued at their workplace and be willing to reduce their expectation of pay hikes.

Research approach is highly valuable for collecting most significant data regarding the research topic. However, the choice of research approach must have to be dependent on the types of research variables (Lewis, 2015). Two types of research approach are mostly applied in conducting the research study, which are namely inductive and deductive approach. In case of inductive approach, it is required to frame new and relevant research theories and models (Choy, 2014). On the other hand, deductive approach allows in application of previously established theories and models in collecting the most significant research information. Unlike the inductive approach, deductive approach generalizes the information from general to specific (Dumay & Cai, 2015). Moreover, the framing of new theories and models in inductive approach require lot of time and budget. On the other hand, deductive approach saves the time and budget of the research, as it allows application of earlier models and theories for collecting significant information. Hence, deductive approach has been chosen for collecting the useful and relevant research information.

Employee Attrition in Declining Business Condition

The research purpose chosen for this research paper will be descriptive research purpose. Such research purpose will help in gaining and understanding the actual purpose of the research study. Hence, this purpose will definitely help in assessing the research study from its core perspective. In this way, it will be easier to formulate effective research objective and questions for assembling the most relevant research information. Two types of sources of data can be uses to gather more relevant research information, which are like primary and secondary source of data. This research will use secondary source for establishing the literature review section. However, the research will primary be based on primary source of data for reaching at accurate research result.

Proposed Data Collection Method

Data collection is the most valuable method of gathering useful data regarding the research topic (McCusker & Gunaydin, 2015). This research will use both primary and secondary method for collecting most noteworthy and significant research information. Secondary method will be used for collecting useful information, which will in turn be used in framing effective literature review sections with lot of scholarly information. Such data will mostly be collected through authentic books, journals and websites. However, the whole research paper will mostly be base on primary method of data collection. It will collect the most accurate authentic information based on the research study.

In primary method of data collection, this research paper will use both quantitative as well as qualitative technique to collect data. In case of quantitative technique, this research paper will use survey method to collect objective and quantified primary data regarding the research topic. Moreover, the survey questionnaires will be distributed among 100 employees of Deutsche Bank, who will be asked to answer to the questionnaires from their own point of view in regards to the research topic. On the other hand, in case of qualitative research, an effective interview session will be arranged with 5 managers of Deutsche Bank for collecting core organizational specific information regarding their HR strategies to manage expectations of pay hikes.

Data Analysis Technique

Selection of effective data analysis technique is extremely significant for extracting the actual meaning and significance of the collected data from the selected research participants (Dumay & Cai, 2015). In case of quantitative data, the research paper will mostly use SPSS tool for analyzing the collected data. Chi-Square method will be uses in the research for data analysis purpose. In such method, the observed data will be compared with the theoretical data leading to authentic research result. However, for qualitative data, the research study will actually use narrative analysis for extracting the right information from the interview transcripts.

Impact of Employee Attrition on Organizational Performance

Chapter 1: Introduction: The interview section will be associated with the background and problem statement of the research study. The overall research will be based on such highlighted problem statement in this section. This section will also establish the most relevant and effective research objectives and questions. Such objectives and question will gather highly valuable and authentic research information.

Chapter 2: Literature Review: In chapter is extremely important for the overall quality of the research result.  This section will gather the more authentic and useful scholarly information based on the research topic. Moreover, this chapter will basically be based on the theoretical explanation of the research topic. Furthermore, the chapter will also collect some authentic empirical data for proving the accuracy and authenticity of the research result.

Chapter 3: Research Methodology: This section will be extremely significant for collecting the most suitable and appropriate research methods to collect authentic research information. Moreover, this chapter will chose appropriate research purpose, approach, data collection and data analysis method to be applied in the overall research study. The quality of the ultimate research result will be based on selection of most right research methods.

Chapter 4: Findings and Data Analysis: In this section, the data regarding the research study will actually be collected from the selection respondents. This section will use most suitable data analysis model for getting the accurate meaning of data leading to effective research result. ]

Chapter 5: Conclusion and Recommendation: This section will effective establish the summary of overall research paper. Moreover, the section will also provide effective recommendation for resolving the issues heighted in the previous chapter. Hence, this chapter will enhance the quality of the research study.

Budget of the Research

Figure 1: Research Budget

(Source: Created by Author)

The Data collection and Hardware equipment will be highly expensive for the research. Furthermore, access of authentic data from authentic data source will also be costly for the research. The total cost for the overall research study will be $25606

Table 1: Project Activity

(Source: Created by Author)

Figure 2: Project Budget

(Source: Created by Author)

References

Chahal, H. S., & Poonam. (2017). Study of Organisational Culture, Employee Turnover and Employees’ Retention in hospitality sector. Pacific Business Review International, 9(11), 119-125.

Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities and Social Science, 19(4), 99-104.

Dumay, J., & Cai, L. (2015). Using content analysis as a research methodology for investigating intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1), 121-155.

Gautam, A., & Jain, S. (2015). Factors essential for an effective performance management system: A literature review. Vidya International Journal of Management Research, 3(1-2), 47-72.

Gunnuck, S., Gunputh, R. P., & Pudaruth, S. (2017). The Relationship Between a Performance Management System and the Motivational Level of Employees: A Case Study at the Ministry of Finance and Economic Development of the Republic of Mauritius. Theory, Methodology, Practice, 13(2), 25.

Hirsch, B. T., Kaufman, B. E., & Zelenska, T. (2015). Minimum wage channels of adjustment. Industrial Relations: A Journal of Economy and Society, 54(2), 199-239.

Holland, P. J., Cooper, B., & Hecker, R. (2015). Electronic monitoring and surveillance in the workplace: The effects on trust in management, and the moderating role of occupational type. Personnel Review, 44(1), 161-175.

Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of employee turnover theory and research. Journal of Applied Psychology, 102(3), 530.

Hsu, Y. L. (2015). The review of human resource strategies applying in hospitality industry in South California. International Business Research, 8(3), 133.

Huang, W. (2016). Responsible pay: managing compliance, organizational efficiency and fairness in the choice of pay systems in China’s automotive companies. The International Journal of Human Resource Management, 27(18), pp.2161-2181.

Jaskiewicz, P., Luchak, A. A., Oh, I. S., & Chlosta, S. (2016). Paid employee or entrepreneur? How approach and avoidance career goal orientations motivate individual career choice decisions. Journal of Career Development, 43(4), 349-367.

Jindal, P., & Shaikh, M. (2015). A Study of Behavioral Training as Talent Management Strategy in Organisations. Universal Journal of Management, 3(1), 1-6.

Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), 473-475.

McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30(7), 537-542.

Mehta, M., Kurbetti, A., & Dhankhar, R. (2014). Review Paper–Study on Employee Retention and Commitment. International Journal, 2(2), 15-26.

Michael, B., Prince, A. F., & Chacko, A. (2016). Impact Of Compensation Package On Employee Retention. Clear International Journal of Research in Commerce & Management, 7(10).

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