Background of the Study
The primary focus of the given chapter is to throw light on the background of the study and lay the research objectives and the questions. The employee turnover is a critical concept within the context of an enterprise and in consideration with this, all enterprises within the enterprise must be retained and their talent must be utilised in a critical manner (Al Khajeh 2018). Hence, the chapter would be outlining the organizational context and critically discuss the background and problem statement. This would then be followed by the discussion of the independent and dependent variables and the research questions. The rationale for carrying out the study would also be outlined.
Mauritius can be identified to be a tourist destination with a large number of small and medium firms which are largely engaged in serving the needs of the tourists. There are several banking, accounting, travel and tourism companies in the country which are focused on contributing to the economy in a systematic manner. However, according to Al Mamun, and Hasan (2017), one of the most critical issues being faced by the different enterprises in Mauritius may be identified as being associated with the employee turnover. The rate of turnover within the context of the enterprise can be identified to very high which has several negative consequences for the enterprise as a whole. In this context, it becomes evidently critical to underline the fact that it is evident to understand what causes the high employee turnover rate within the context of the organisation and what is the key way in which the employee turnover can be reduced to bring about better organizational performance and overall welfare (Al-Mamoori and Ahmad 2015). Hence, the focus of the study lies within the context of the different firms in Malaysia which would lead to better performance and engage in better opportunities for the enterprise at large.
According to Almatrooshi Singh and Farouk (2015), employee turnover or the employee turnover rate may be identified as the measurement of the number of employees who leave an organization within a specified period of time typically over a year. The organization usually engages in measuring this figure and the turnover is often applied to particular groups within a firm such as associated with individual departments and demographic groups. The employee turnover is generally calculated in the context of a specific period of time by the average employees who work within that specific period. This figure is then multiplied by 100 to calculate the rate of turnover (Amankwaa and Anku-Tsede 2015). The rate cannot be including the temporary leave or other such figures. Here it becomes evident to understand that using temporary shift numbers will show the rate to be higher than it is.
According to Ampomah and Cudjor (2015), the employee turnover is of two types. Firstly, voluntary turnover tends to take place in a scenario such that the employee chooses to leave the organization on their own. This may be due to engagements such as better job opportunities, conflicts within the workplace, disengagement and others. However, this shows poor engagement and efforts on the side of the enterprise whereby the employees are unwilling to work for the welfare of the firm. On the other hand, the involuntary turnover refers to a turnover where the employer chooses to terminate a particular employee and remove them from the organization due to several factors such as toxic behaviour, poor performance or other related reasons (Anderson et al. 2015). Here it is evident to consider the fact that turnover may be identified to be natural for any enterprise. While low turnover is the goal for a majority of the firms, the turnover actually depends on the overall nature of the enterprise and the key manner in which the employees are treated, the nature of the firm and the job type, company size and overall region at large. Antwi and Hamza (2015) mentions that there exists a number of reasons in consideration with which the employees leave, however, turnover at an unexpected rate may be toxic for the firm and reflect on its ill performance. When there exists a lack of opportunity for growth or related career or other associated aspects, then in consideration with this, the employees experience poor growth, lack of natural progression, feeling over-worked or burnout. Moreover, there may be negative feelings about the management which may also lead to the turnover. Hence, any sound business would be required to ensure that they are being able to identify the reasons for the turnover and reflect over the same (Anwar and Shukur 2015) Once the key limitations would be identified and applied by the enterprise, better results in terms of the overall employee welfare may be applied and this would lead to better engagements at large.
Organizational Context and Problem Statement
Anwar and Abdullah(2021) mentions that the employee turnover can be considered to be a negative engagement for the enterprise as it leads to several challenges within the context of the enterprise. It brings poor image and operational flaws within the environment of the firm. In this context, it is significant to understand that it is critical to identify the employee turnover which takes place within the context of the enterprise as it would lead to better solutions with the help of which this issue can be resolved.
The key problems being faced by the enterprises may be identified as increased costs due to the turnover. In this context, the symptoms of the issues have been identified in the form of the high costs, regular hiring and related poor image of the firms in Mauritius. It is not viewed as a place where employees would like to work. Hence, pertaining to this, the study is intended to identify and understand the overall manner in which the issue can be resolved.
The evidence of the problems is the employee turnover rate in Mauritius enterprises. The current rate stands at 40% which proves that the turnover is a serious human resource concern within the context of the enterprises in Mauritius (Bilau et al. 2015).
The independent variable which has been engaged in the study may be rightly identified as the Employee turnover. The employee turnover is being considered as an independent variable in the context of the enterprise which can have an impact on the different aspects of the firm. Pertaining to this, the dependent variable can be taken to be the overall organizational performance. In this context, it is critical to underline the fact that the study is mainly focused on assessing the impact of turnover on the overall wellbeing and welfare of the firms in Mauritius.
The conceptual model as prepared for the study can be identified as follows:
Figure 1
The conceptual framework outlines the key factors which generally tend to influence the employee turnover within the context of the enterprise. These factors have been taken as employee retention, productivity and employee engagement. As the employee turnover gives way to better engagements and understanding, the particular variables have been made a critical part of the employee turnover.
The primary aim of the research is to critically analyse the concept and overall context associated with employee turnover in the context of the enterprise. Employee turnover can be considered to be a relatively crucial metric for the firms and hence, keeping a track on it is crucial. Pertaining to this, the primary focus of the study is to critically analyse and understand the Employee turnover in Mauritius. With this, the research would be able to assess the key way in which the overall turnover can be controlled and better employee retention can be ensured.
- To understand the concept of employee turnover within the context of an organization
- To identify the application employee turnover within the context of Mauritius
- To assess the key way in which the enterprises in Mauritius manage the employee turnover.
- To provide recommendations based on which the employee turnover within the Mauritius enterprises can be reduced.
- What is the concept of employee turnover within the context of an organization?
- What is the application employee turnover within the context of Mauritius?
- What is the key way in which the enterprises in Mauritius manage the employee turnover?
- What recommendations can be provided based on which the employee turnover within the Mauritius enterprises can be reduced?
The hypothesis which has been formulated for this study can be identified as follows:
H1=The employee turnover critically influences organizational performance in Mauritius.
H0=The employee turnover does not influence organizational performance in Mauritius
- Introduction: The introduction is the first chapter of the study and is focused on understanding and highlighting the key way in which the study is based and identify the key research objectives and questions which have been engaged in regards to the study.
- Literature review: The literature review would discuss the employee turnover considerations and related concerns within a particular enterprise and understand and highlight the current literature associated with the topic.
- Research methods: The research methods will highlight the methods applied alongside the related justification.
- Data analysis and discussion: The data analysis and discussion section will present the findings of the study and align it with gaols identified.
- Conclusion: The conclusion would summarize the study findings and provide recommendations.
Independent and Dependent Variables
Employee turnover remains a critical cause of concern for an enterprise due to the fact that it determines the overall manner in which the firm is bound to perform in the long run and summarizes the overall technique and method in association with which the firm would be able to foster an environment which supports growth. The focus of the study is to identify an understand the overall manner in which the employee turnover has a critical influence on the organizational performance(Burch et al. 2015). Although several studies have been undertaken in the domain of employee turnover, the section of the study seeks to identify how turnover influences the overall performance in the firm and brings better results.
Enterprises hires, manages as well as onboards the people and such a step can be taken to be fundamental to its success. These factors are critical because the employees are considered to be the backbone of the firm and give way to excellence (Carnahan, Kryscynski, and Olson 2017). All companies would be required to ensure that they are managing their attrition rates in comparison with the industry specific benchmarks and are holding the managers responsible so that they can perform in line with the overall standards decided. Pertaining to this, the enterprise is also required to manage the career developmental programs and look at the different compensation metrics to identify and assess the way in which the firm is able to function when top performers are replaced. Carroll and White (2017) defines the employee turnover as the total number of workers who leave an enterprise over a specific period of time. This comprises of those employees who exit in a voluntary manner to the employees who are fired or laid off which can be termed as the involuntary turnover. The turnover can be believed to be different from attrition. Cho (2017) states that the turnover measures separations, employees who leave the company within a specific period of time and aims to understand the key reasons based on which the employees would leave their job. Collins et al. (2015) states that some of the key reasons why this may take place is due to better benefits, better career progression, optimum work life balance or an escape from the toxic work environment. The turnover brings poor name to the enterprise and at the same time can be considered to be largely expensive for the firm as it increases the costs for the business to replace a specific employee.
Dani?man et al. (2015) underlines that the voluntary employee impacts the ability of a firm to achieve its overall objectives and appears to be a key concern for the executives. In this context, the reasons might vary, however, the firm needs to look out for the gap where the employee needs are not achieved. De Winne et al. (2019) underlined the fact that the baby boomer retirement hit a record of 28.6 million in the third quarter of 2020 whereas 3.2 million boomers had reared in the third quarter of 2019. In addition to this, millennials make up nearly 40% of the United States workforce and refuse to stay at the same firm as the previous) generations. Ekhsan (2019) also argues that there exists an issue of demand and supply whereby for certain roles and in certain geographies, there are insufficient people with the right kind of skills to fill in the open roles in the context of a firm. There have been a shortage of medical professionals, mathematicians, scientists, skilled tradespeople, engineers and the IT specialities. It has been agreed that several of these shortages continue to grow in consideration with the fact that the unemployment rates increase (Dubey 2016).
Rationale for the Study
Ekhsan (2019) states that another key reason why the turnover has been increasing is because people expect more from their employers which is other than just money. Baby boomers look forward to more than a steady pay check and instead look out for flexibility, mission driven work, corporate social responsibility and a steady advancement. When viewing a turnover rate, the company would be required to see to it that they are maintaining a turnover rate below the ranging rate in the industry. When benchmarking the rates, the company would be able to assess whether they are being able to retain talent or not. High turnover rates signal issues with the recruitment of the firm, its culture, the compensation as well as benefits structure alongside the training and career progression paths.
Gao, Wen, and Zhang (2019) outlines that the employee turnover can be considered to be a critical factor when the rate becomes high as a result of discharge, termination or resignation. For all Human resource management professionals, the issue of employee turnover always remains a concern and therefore, it is integral to identify and understand the factors influencing the same which can thereby help in arriving at a solution regarding the issue. In this concern, the four critical factors influencing the employee turnover can be identified as follows:
When the organization pays its employees less than the industry standards, then in this regard, the employees would be demotivated to give in their best and may look out for better opportunities in the long run. When an employee evaluates their efforts based on the standards set, then in this regard, if they find my pay to be considerably low then they may leave the job in search for better opportunities and pertaining to this, the employee turnover will be quite high (Grissom 2016).
The pay cuts might be identified as another key reason for the high level of employee turnover. In this context, it is evidently critical to identify that when the business due to some reason is unable to pay its employees appropriately and engage in pay cuts, then in such a scenario, there may be possible reasons why the employees may opt out of the job (Hom 2017). In this context, it is significant to note that there may be a lack of motivation to work for lower pays and hence, the turnover may increase.
Although the employers may expect a high level of productivity from the different employees, however, it is significant to understand the fact that setting unrealistic standards causes demotivation to the employees. When the objectives are clarified in advance and the process is followed in an appropriate manner, then in this context, the productivity can be ensured, however, in a scenario such that the employee expectations are set at unrealistic levels, then in this regard, the productivity cannot be achieved critically.
The lack of recognition and growth takes place when the management does not recognize the efforts of the employees and engages in poor growth opportunities. When poor growth opportunities are provided to the employees, then in such a context they will not be able to effectively work towards the goal and this may lead to problems in the long run (Hurduzeu 2015). Pertaining to this, it becomes evident to understand the fact that if not provided with equal opportunities, the employees may not be willing to work for the enterprise at large.
One major theory of employee turnover may be identified as he unfolding theory of turnover. In the unfolding theory of turnover, the employees tend to follow one of the five cognitive parts while making decisions when they plan to quite a particular job. According to Jaggia (2015) cognitive pathway refers to the technique using which the employees interpret their work environment, identify the options and enact responses. Some of the five different pathways can be identified as personal positive and expected, negative organizational event, unexpected job offer, unhappiness in current settings and searching for a new opportunity. An employee passes through all these phases which gives way to better security and understanding.
Khin and Theresa (2018) the organizational performance can be identified as the output of results of a firm when it is measured against the intended outputs or the goals. The performance of an organization is also a result of the related firms financial results such as the profits, return on assets, return on investments or the product market performance which comprises of sales, market share and other aspects. The shareholders return, economic value and related effectiveness also encompasses under the organizational effectiveness (Kim 2017). Hence, specialists in his field are largely concerned with the organizational performance, planning and other legal aspects. An enterprise would be required to see to it that they are successfully being able to tally the overall results to engage in a better future of the enterprise a large (Zimmerman et al. 2019).
Lee (2017) states that there are a large amount of economic and social factors which have a strong influence on the organizational performance. Some of these are the Leadership, Motivation, Knowledge management as well as the organisational culture.
Experts state that the leadership is the prime factor which influences the success of the failure of an enterprise and may be identified as a process where an individual exerts influence over the others. It can be identified as the key process whereby every individual is able to influence the other person and engage in achieving the objectives in a successful manner (Zhu et al. 2018). In this regard, it is critical to underline the fact that the employees generally tend to look forward to the leaders for all the tasks and pertaining to this, during the drastic changes, leadership critically influences organizational performance and lead to employee satisfaction (Li et al. 2019).
Li et al. (2021) mentions that the motivation may be identified as a catalyst which moves an individual towards their goals. It is the process which accounts for the intensity, direction as well as persistence of effort towards attaining a clear goal and may be identified formally as a psychological or internal procedure which is motivated and engaged in formally or as an internal process engaged in by some need. Hence, motivation can be identified to have a critical influence on the organizational performance (Lyons and Bandura 2019). Here it is evident to focus on the fact that when the employees are motivated, they tend to perform in a better manner with respect to the firm’s goals and objectives which ultimately leads to better considerations.
The culture of the firm may be identified to be the other set of factors which influence the performance of a firm (Zhang et al. 2016). When the culture of the enterprise is designed in a manner such that it is supportive of the ethos of the firm and contributes towards better opportunities, then the employees and managers altogether would be motivated to perform well in the context of the firm (Mai 2016). In addition to this, the enterprise would also be able to benefit from innovation and collaboration.
The knowledge management may be identified to be another set of factors which influences the overall performance of the enterprise and gives way to understanding the distribution of the resources in a manner such that the organization benefits in the best possible manner (Malek et al. 2018). Here it is important to consider the fact that the knowledge management seeks to build and exploit the intellectual capital in an effective as well as profitable manner.
Some of the key theories of organizational performance may be identified as the contingency theory and the systems theory (Taheri et al. 2020). The contingency theory focuses on the essence that the organizational effectiveness usually results from the fitting characteristics of the enterprise to the different contingencies such as he organizational size and the strategy (Mathieu et al. 2016). Here several versions of the organizational theory are focused on aspects associated with the task characteristics and its overall programmability to the choice of the control strategy. Here it is relevant to understand that there needs to be a fit between the structure, size and the technology of the firm which deals in better outcomes.
Another critical theory in this domain, can be identified to be the systems theory. The systems theory of the organizational theory can be identified to be a systems theory which comprises of several variations. They are focused on reducing the reductionism and promoting holism (Miller 2016). Hence, rather than reducing a particular entity to the elements, the systems theory focuses on building a relationship between the different parties which enables better engagements for the end results of the firm.
Miller (2017) mentions that employee turnover can be defined as one of the most prevalent problems that the human resource departments tend to face. Several organizations need to spend a large percentage of their resources in order to mitigate the challenge due to its negative influence on the performance of the firm. Some of the key reasons which can contribute to the related understanding may be identified as reduced costs of recruitment, training and the reimbursement planning (Molina-Azorin and Roslyn Cameron 2015). Here the focus of he human resources is to engage in devising a strategy which can lower the rate of employee turnover.
Moderate levels of employee turnover largely refers to the influxion of new people thus contributing to new ideas, creativity and overall innovation within the context of the workplace. In this context, when employees are better trained they work in a better manner and when they are appreciated in return which leads to a creative and innovative environment. According to Osabiya (2015) , several research studies have been engaged in to establish the relationship between the turnover and the organizational performance and several authors like Olubiyi (2019) have argued that the turnover is harmful for the firm and on the other hand, some authors have stated that it has a positive relationship. However, the loss of talent and experienced employees may harm performance and the firm’s problems may be extended.
Hence, although there are several studies which have focused on the relationship between the employee turnover and he organizational performance, it is evident to identify the fact that the given review intended to contribute towards the literature by assessing and analysing the factors which strongly affect the overall relationship between the variables. The study intends to fulfil this gap and analyse whether turnover impacts the performance negatively or positively and also assess the degree of the dependence (Pang, Deniz Kucukusta and Chan 2015).
The chapter outlined the theories present in the domain of the existing literature in relation to the employee turnover and performance. In the next chapter, the methods which will help in finding the answers to the research question have been identified.
The research Onion by Saunders serves as a suitable framework for identifying and understanding the key way in which the data collection and analysis has to be decided upon. It contributes towards assessing the assumptions and approaches essential for ensuring that the research study can be carried out in a successful manner.
The research philosophy refers to the set of assumptions, principles and beliefs which are carried out in regards to the research study and are focused on identifying and assessing the key way in which the data needs to be collected in regards to the research work (Bell et al. 2022). Here it is critical to understand the fact that as the study is focused on assessing how the employee turnover influences the overall performance of an enterprise and a hypothesis has to be tested, then in this regard, the positivist research philosophy is the best suited research philosophy which gives away to ensuring that fact based and scientific data can be collected. In this regard, this philosophy is best suited when a philosophy has to be opted for (Black 2019). Therefore, by adopting the positivist research philosophy, the research would successfully be able to engage in ensuring the collection of appropriate data.
The research approach may be identified as the overall research plan prepared in order to analyse and interpret the data which is collected in regards to the given study. The research approach which best aligns with the given study and the positivist philosophy as chosen can be identified as the deductive research approach. Here the researcher would be able to deduce the critical information out of the data collected for the research and ensure that the findings associated with turnover and its association with the employee performance can be figured out well (Easterby-Smith 2021).
The research strategy can be identified as the entire data collection and analysis procedure decided in relation to the study. This helps in determining and identifying the key way in which the study is being able to ensure better engagements. Pertaining to this, the research strategy which is best suited for the study can be identified as the primary quantitative research strategy. In the given context, the research strategy which has been opted for can be identified as the primary quantitative research strategy (Eriksson and Kovalainen 2021). In the primary quantitative research strategy, the focus lies on collecting the data for the study using primary techniques and analysing the findings of the study by applying the quantitative techniques in the form of the statistical analysis. This way the hypothesis as present for the study can be resolved well.
The research methods being opted for the study are the primary data and quantitative analysis technique. In this context, it is relevant to identify the fact that by gathering primary data, the opinions of the firms in Mauritius can be undertaken. The quantitative data facilitated through the research questionnaire would help in proving the hypothesis of the study by applying quantitative techniques (Eriksson and Kovalainen 2020).
The research refers to the overall technique using which the findings of the study would be reflected to the different readers (Hongvichit 2015). As the study proves a hypothesis and ends to reflect on a relationship between the employee turnover and the related organizational performance, the descriptive research design is the best suited design for the study as it would bring about better results in explaining this association.
The time horizons used for the study can be identified to be as follows:
Components |
M1 |
M2 |
M3 |
M4 |
M5 |
M6 |
M7 |
Data design |
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Survey questionnaire |
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Data collect |
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Data sorting |
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Data analysis |
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Data representation |
The procedures being adopted are rather comprehensive in nature in the form of the data collection. The medium of a survey questionnaire is being applied to collect the data for the study and this survey questionnaire would be distributed by a social media platform to the different businesses in Mauritius to identify how the unrove within the context of the enterprise would critically influence the performance of the firm at large and lead to better engagements (Jaggia 2016). The questionnaire is close ended and seeks to collect quantitative data with the assistance of which the data can be collected in the right manner.
Figure 2
- What is the concept of employee turnover within the context of an organization?
- What is the application employee turnover within the context of Mauritius?
- What is the key way in which the enterprises in Mauritius manage the employee turnover?
- What recommendations can be provided based on which the employee turnover within the Mauritius enterprises can be reduced?
As each of these research questions intend to understand the context of the employee turnover in Mauritius and how it influences the enterprise at large, the research method of the survey questionnaire may be identified to be the best suited for the research study. In consideration with this, by using nominal, ordinal, interval and ratio scales, the right response can be gained which will give way to better understanding of the relationship between the two variables.
Once the responses have been collected the data would be screened and any data missing would be erased to ensure parity in the dataset which will improve the quality of the data (Saridakis and Cooper 2016). The survey questionnaire has been prepared using the findings of the review to assess the factors affecting the employee turnover and the organizational performance at large.
The research instrument as adopted for the study can be identified as the medium using which the data is collected for the study. In this regard, the research instrument which has been opted for the given study can be identified as the survey questionnaire whereby the close ended questions have been included regarding the variables and other demographic and generic questions have also been asked. The research questionnaire as present in regards to the study is as follows.
- Between 18-25 years
- 26-32 years
- 33-40 years
- 41-50 years
- Above 50 years
- Male
- Female
- Others
- Prefer not to say
- Less than 3 years
- Between 3 to 5
- More than 5 years
- High school
- Masters
- Bachelors
- Diploma
- Finance
- Operations
- Marketing
- HR
- others
- Manager
- Employee
- Less than 7%
- Between 7-10%
- More than 10%
How would you describe the performance in your enterprise?
- Good
- Poor
- Satisfactory
- Yes
- No
- Maybe
The pay made to the employees affects the employee turnover of the firm
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
The pay cuts affect the employee turnover
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
The leadership of the enterprise determines the performance of the firm
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Strongly Agree |
Agree |
Neural |
Disagree |
Strongly Disagree |
1 |
2 |
3 |
4 |
5 |
Questions |
Scale used |
Validity and reliability |
General questions |
Nominal |
Not engaged in |
Employee turnover |
Interval |
Reliability and validity analysis |
Organizational performance |
Interval |
Reliability and validity analysis |
The study is based in Mauritius whereby the firms in Mauritius have been targeted to answer the questions pertaining to the study.
The population which has been targeted for the study can be identified as the different managers and employees of the firms in Mauritius. As the focus of the study is to understand the employee turnover in Mauritius, it is due to this reason that the study is focused on the same so as to assist and identify the key way in which the study would be successfully able to engage in identifying the employee turnover aspects in the country (Sekaran and Roger Bougie 2016).
The sampling design which has been followed for the study can be identified as the simple random probability sampling. In this context, the participants have been targeted randomly without any bias towards a particular participant as present. Moreover, the simple random probability sampling has also allowed gaining an understanding of the perspectives of all employees together (Siegel et al. 2016).
The sample size which has been targeted for the study can be stated to be 100 participants. As all firms across the Mauritius had to be focused on with a special focus on the managers who can opine well in the context of the turnover issues, selecting 100 participants represents the population adequately.
To ensure that the study is engaged in a systematic manner and that the questionnaire and the data is focused on achieving the answers to the research questions, the validity and reliability test has been engaged in to identify and understand whether the data meets the requisite standards for the study to be useful.
The data collection technique may be identified to be a technique using which the information in regards to the study is engaged in. Here it is critical to note the fact that there are two main techniques of data collection which are generally used in the context of research studies which may be identified as the primary data collection technique and the secondary data collection technique. In the primary data collection technique, the information is sourced first hand from mediums like survey, observation and or interview (Singh et al. 2016). The medium of survey has been engaged in regards to the study whereby the responses of the participants have been collected via the means of a close ended questionnaire which covers question items for the employee turnover and the organizational performance. The use of the survey has given the study a unique finding.
The data analysis can be rightly identified as a technique using which the data collected with respect to the study is analysed critically. In this regard, it is critical to note that there are two key methods of data analysis which may be identified as quantitative data analysis technique and the qualitative data analysis technique. In the quantitative data analysis technique, the use of statistical tools and procedures are made to find the results whereas in the qualitative data analysis techniques, the mediums such as the thematic analysis are applied (Siegel et al. 2016) . As the study intends to find the relationship which exists between the employee turnover and the overall organizational performance, the application of the quantitative data analysis technique has been engaged in whereby techniques such as the correlation analysis, regression analysis and the descriptive analysis has been engaged in for the findings of the study and to identify how the turnover influences the different facets of the enterprise at large.
As the study involves human participants, engaging in the adoption of the right ethical principles is critical. Hence, in regards to the study, the consent of the participants has been engaged in and the participants have been provided with the complete information about the study before proceeding with the same. In the same context, no personal questions have been asked to the participants and all responses shared in regard to their enterprise has been secured. Moreover, the data has been stored in a suitable manner to ensure better protection of information.
The chapter outlined the data collection and analysis techniques which have been applied in regards to the given study. Pertaining to this, the survey questionnaire method of data collection has been opted for the study and the quantitative analysis technique has been opted for.
The purpose of the chapter is to critically analyse and understand the key impact of the employee turnover on the overall organizational performance. In relation to this, the chapter is divided into a systematic format whereby the first section of the study has engaged in the reliability and validity analysis to determine whether the data set and the questionnaire as opted for the study is analysed. This is then followed by the descriptive analysis and the inferential analysis to study the test results.
The reliability and validity analysis is generally tested with the assistance of the Cronbach alpha value and the substandard accepted value may be identified as 0.7. Hence, from the given value, it can be rightly assessed that the dataset can be taken to be highly reliable in nature with a Cronbach alpha value of 0.854.
Reliability Statistics |
|
Cronbach’s Alpha |
N of Items |
.854 |
12 |
From the given table, the items which lead to a lower value of the Cronbach alpha have been identified. Pertaining to this, it can be assessed that all items fairly contribute towards the extended value of Cronbach alpha and has the results are stable.
Item-Total Statistics |
||||
Scale Mean if Item Deleted |
Scale Variance if Item Deleted |
Corrected Item-Total Correlation |
Cronbach’s Alpha if Item Deleted |
|
The pay made to the employees affects the employee turnover of the firm |
22.4000 |
49.535 |
.648 |
.834 |
The pay cuts affect the employee turnover |
22.5800 |
52.872 |
.462 |
.848 |
Lack of recognition and growth opportunities affects the employee turnover |
22.5300 |
51.848 |
.521 |
.844 |
Impractical expectations affects the employee turnover |
22.5200 |
53.686 |
.368 |
.855 |
The training and support provided impacts the employee turnover |
22.7700 |
52.058 |
.526 |
.843 |
The leadership of the enterprise determines the performance of the firm |
22.5800 |
51.175 |
.558 |
.841 |
The motivation of employees determines the performance of the firm |
22.4700 |
52.272 |
.513 |
.844 |
The knowledge management within the context of the enterprise decides the performance of the firm |
22.5400 |
55.140 |
.297 |
.859 |
The culture of the firm decides the performance of the firm |
22.6700 |
51.153 |
.534 |
.843 |
The finances of the firm would affect the performance of the firm |
22.4700 |
52.110 |
.468 |
.848 |
Turnover |
22.5400 |
49.604 |
.774 |
.827 |
Performance |
22.5300 |
50.635 |
.736 |
.831 |
The validity analysis intends to determine the overall manner in which the sampling as opted for the study is adequate in nature. The substandard accepted value may be identified as 0.651. In this concern, it can be identified that the accepted value is 0.7. In this regard, the achieved value is 0.651 which represents the fact that the sampling is close to be adequate.
KMO and Bartlett’s Test |
||
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.651 |
|
Bartlett’s Test of Sphericity |
Approx. Chi-Square |
575.713 |
df |
66 |
|
Sig. |
.000 |
The demographic analysis measures the basic demographics of the target sample and to identify their age group, gender, post and other details like the work experience.
Age |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
26-32 years |
5 |
5.0 |
5.0 |
33-40 years |
45 |
45.0 |
50.0 |
|
41-50 years |
43 |
43.0 |
93.0 |
|
Above 50 years |
5 |
5.0 |
98.0 |
|
Between 18-25 years |
2 |
2.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 3
It can be identified that a majority of the respondents belong to the age group of 33-40 years of age. In line with this, 43% of the participants belong to the group 41-50 years. In consideration with this, as a large number of managers have been focused upon, the age group median is relatively higher.
Gender |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Female |
39 |
39.0 |
39.0 |
Male |
44 |
44.0 |
83.0 |
|
Others |
9 |
9.0 |
92.0 |
|
Prefer not to say |
8 |
8.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 4
From the given participant set, it can be assessed that 39% of the participants are females whereas 44% of them are male. Pertaining to this, the opinions of both the genders have been inculcated in the context of the study.
Work experience |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Between 3 to 5 |
54 |
54.0 |
54.0 |
Less than 3 years |
45 |
45.0 |
99.0 |
|
More than 5 years |
1 |
1.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 5
54% of the participants had a work experience between 3 to 5 years whereas 45% of the respondents have a work experience of less than 3 years. This simply denotes the fact that a majority of employees have a work experience of up to 5 years
Education |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Bachelors |
40 |
40.0 |
40.0 |
Diploma |
12 |
12.0 |
52.0 |
|
High school |
12 |
12.0 |
64.0 |
|
Masters |
36 |
36.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 6
After assessing the graph, it can be assessed that 36% of the participants were masters whereas 40% of them were bachelors. Pertaining to this, 12% of them had a diploma and the rest were high school educated.
Department |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Finance |
23 |
23.0 |
23.0 |
HR |
20 |
20.0 |
43.0 |
|
Marketing |
24 |
24.0 |
67.0 |
|
Operations |
24 |
24.0 |
91.0 |
|
others |
9 |
9.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 7
23% of the participants belonged to the Finance department whereas 24% of the participants were in the Marketing department. The rest 20% were in the Human resource department and lastly in the Operations department. Hence, the study has inculcated
Post in the firm |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Employee |
45 |
45.0 |
45.0 |
Manager |
55 |
55.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 8
From the given graph, it can be assessed that 55% of the respondent were managers whereas the rest 45% of the respondents were the employees working in different departments of the firm.
What is the current employee turnover within the firm? |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Between 7-10% |
64 |
64.0 |
64.0 |
Less than 7% |
2 |
2.0 |
66.0 |
|
More than 10% |
34 |
34.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 9
When asked about the current employee turnover, then the different respondents mentioned that 64% of the participants mentioned that it was between 7 to 10%. On the other hand, 34% of the participants believed that the inflation rate was more than 10%.
How would you describe the performance in your enterprise? |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Good |
36 |
36.0 |
36.0 |
Poor |
36 |
36.0 |
72.0 |
|
Satisfactory |
28 |
28.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 10
A majority of the participants believed that the performance in the context of the enterprise was good. In this regard, 36% believed it to be poor.
Do you think that the employees are satisfied in your workplace? |
||||
Frequency |
Percent |
Cumulative Percent |
||
Valid |
Maybe |
25 |
25.0 |
25.0 |
No |
9 |
9.0 |
34.0 |
|
Yes |
66 |
66.0 |
100.0 |
|
Total |
100 |
100.0 |
Figure 11
It can be assessed from the graph that 66% of the respondents believed that the employees were satisfied within the context of the workplace whereas the rest 25% were not sue about the same. Pertaining to this, it becomes evidently critical to note that a satisfied workplace brings about better prospective.
The descriptive statistics tends to measure the overall dispersal and distribution of the data collected with respect to the research study. In this context, the mean value is 2 which denotes that a majority of the respondents mentioned that they agreed with a majority of the statements given. In this regard, the value of the standard deviation being close to 1 represents the data being dispersed closely. The kurtosis and skewness values lie between -3 to 3. In this regard, it is evident to consider the fact that the data is distributed normally.
Descriptive Statistics |
|||||
N |
Minimum |
Maximum |
Mean |
Std. Deviation |
|
Statistic |
Statistic |
Statistic |
Statistic |
Statistic |
|
The pay made to the employees affects the employee turnover of the firm |
100 |
1 |
5 |
2.20 |
1.110 |
The pay cuts affect the employee turnover |
100 |
1 |
5 |
2.02 |
1.035 |
Lack of recognition and growth opportunities affects the employee turnover |
100 |
1 |
5 |
2.07 |
1.057 |
Impractical expectations affects the employee turnover |
100 |
1 |
5 |
2.08 |
1.107 |
The training and support provided impacts the employee turnover |
100 |
1 |
5 |
1.83 |
1.025 |
The leadership of the enterprise determines the performance of the firm |
100 |
1 |
5 |
2.02 |
1.073 |
The motivation of employees determines the performance of the firm |
100 |
1 |
5 |
2.13 |
1.022 |
The knowledge management within the context of the enterprise decides the performance of the firm |
100 |
1 |
5 |
2.06 |
1.052 |
The culture of the firm decides the performance of the firm |
100 |
1 |
5 |
1.93 |
1.112 |
The finances of the firm would affect the performance of the firm |
100 |
1 |
5 |
2.13 |
1.116 |
Valid N (listwise) |
100 |
Descriptive Statistics |
|||||
Variance |
Skewness |
Kurtosis |
|||
Statistic |
Statistic |
Std. Error |
Statistic |
Std. Error |
|
The pay made to the employees affects the employee turnover of the firm |
1.232 |
.949 |
.241 |
.439 |
.478 |
The pay cuts affect the employee turnover |
1.070 |
.853 |
.241 |
-.147 |
.478 |
Lack of recognition and growth opportunities affects the employee turnover |
1.116 |
.802 |
.241 |
-.113 |
.478 |
Impractical expectations affects the employee turnover |
1.226 |
.978 |
.241 |
.279 |
.478 |
The training and support provided impacts the employee turnover |
1.052 |
1.153 |
.241 |
.661 |
.478 |
The leadership of the enterprise determines the performance of the firm |
1.151 |
1.161 |
.241 |
1.042 |
.478 |
The motivation of employees determines the performance of the firm |
1.044 |
.836 |
.241 |
.115 |
.478 |
The knowledge management within the context of the enterprise decides the performance of the firm |
1.107 |
.887 |
.241 |
.263 |
.478 |
The culture of the firm decides the performance of the firm |
1.237 |
1.174 |
.241 |
.490 |
.478 |
The finances of the firm would affect the performance of the firm |
1.246 |
.806 |
.241 |
-.050 |
.478 |
Valid N (listwise) |
The correlation analysis helps in analysing and understanding the association between the different variables (Singh et al. 2016). In the given section, the correlation analysis between the dependent and the independent variable has been assessed.
Correlations |
||||
The pay made to the employees affects the employee turnover of the firm |
The pay cuts affect the employee turnover |
Lack of recognition and growth opportunities affects the employee turnover |
||
The pay made to the employees affects the employee turnover of the firm |
Pearson Correlation |
1 |
.348** |
.324** |
Sig. (2-tailed) |
.000 |
.001 |
||
N |
100 |
100 |
100 |
|
The pay cuts affect the employee turnover |
Pearson Correlation |
.348** |
1 |
.331** |
Sig. (2-tailed) |
.000 |
.001 |
||
N |
100 |
100 |
100 |
|
Lack of recognition and growth opportunities affects the employee turnover |
Pearson Correlation |
.324** |
.331** |
1 |
Sig. (2-tailed) |
.001 |
.001 |
||
N |
100 |
100 |
100 |
|
Impractical expectations affects the employee turnover |
Pearson Correlation |
.332** |
.122 |
.142 |
Sig. (2-tailed) |
.001 |
.226 |
.159 |
|
N |
100 |
100 |
100 |
|
The training and support provided impacts the employee turnover |
Pearson Correlation |
.421** |
.508** |
.235* |
Sig. (2-tailed) |
.000 |
.000 |
.019 |
|
N |
100 |
100 |
100 |
Correlations |
|||
Impractical expectations affects the employee turnover |
The training and support provided impacts the employee turnover |
||
The pay made to the employees affects the employee turnover of the firm |
Pearson Correlation |
.332** |
.421** |
Sig. (2-tailed) |
.001 |
.000 |
|
N |
100 |
100 |
|
The pay cuts affect the employee turnover |
Pearson Correlation |
.122 |
.508** |
Sig. (2-tailed) |
.226 |
.000 |
|
N |
100 |
100 |
|
Lack of recognition and growth opportunities affects the employee turnover |
Pearson Correlation |
.142 |
.235* |
Sig. (2-tailed) |
.159 |
.019 |
|
N |
100 |
100 |
|
Impractical expectations affects the employee turnover |
Pearson Correlation |
1 |
.199* |
Sig. (2-tailed) |
.047 |
||
N |
100 |
100 |
|
The training and support provided impacts the employee turnover |
Pearson Correlation |
.199* |
1 |
Sig. (2-tailed) |
.047 |
||
N |
100 |
100 |
**. Correlation is significant at the 0.01 level (2-tailed). |
*. Correlation is significant at the 0.05 level (2-tailed). |
With respect to the employee turnover variables, it can be examined that the different components mentioned that there exists a moderate yet positive association between the variables.
Correlations |
||||
The leadership of the enterprise determines the performance of the firm |
The motivation of employees determines the performance of the firm |
The knowledge management within the context of the enterprise decides the performance of the firm |
||
The leadership of the enterprise determines the performance of the firm |
Pearson Correlation |
1 |
.339** |
.294** |
Sig. (2-tailed) |
.001 |
.003 |
||
N |
100 |
100 |
100 |
|
The motivation of employees determines the performance of the firm |
Pearson Correlation |
.339** |
1 |
.171 |
Sig. (2-tailed) |
.001 |
.089 |
||
N |
100 |
100 |
100 |
|
The knowledge management within the context of the enterprise decides the performance of the firm |
Pearson Correlation |
.294** |
.171 |
1 |
Sig. (2-tailed) |
.003 |
.089 |
||
N |
100 |
100 |
100 |
|
The culture of the firm decides the performance of the firm |
Pearson Correlation |
.280** |
.221* |
.237* |
Sig. (2-tailed) |
.005 |
.027 |
.018 |
|
N |
100 |
100 |
100 |
|
The finances of the firm would affect the performance of the firm |
Pearson Correlation |
.268** |
.366** |
.148 |
Sig. (2-tailed) |
.007 |
.000 |
.141 |
|
N |
100 |
100 |
100 |
Correlations |
|||
The culture of the firm decides the performance of the firm |
The finances of the firm would affect the performance of the firm |
||
The leadership of the enterprise determines the performance of the firm |
Pearson Correlation |
.280** |
.268** |
Sig. (2-tailed) |
.005 |
.007 |
|
N |
100 |
100 |
|
The motivation of employees determines the performance of the firm |
Pearson Correlation |
.221* |
.366** |
Sig. (2-tailed) |
.027 |
.000 |
|
N |
100 |
100 |
|
The knowledge management within the context of the enterprise decides the performance of the firm |
Pearson Correlation |
.237* |
.148 |
Sig. (2-tailed) |
.018 |
.141 |
|
N |
100 |
100 |
|
The culture of the firm decides the performance of the firm |
Pearson Correlation |
1 |
.227* |
Sig. (2-tailed) |
.023 |
||
N |
100 |
100 |
|
The finances of the firm would affect the performance of the firm |
Pearson Correlation |
.227* |
1 |
Sig. (2-tailed) |
.023 |
||
N |
100 |
100 |
**. Correlation is significant at the 0.01 level (2-tailed). |
*. Correlation is significant at the 0.05 level (2-tailed). |
In regards to the organizational performance , it can be assessed that the variables are associated with one another in a positive and moderate manner.
The regression analysis seeks to measure the key way in which the independent variable has a positive influence on the dependent variable. Pertaining to this, it can be rightly identified that the value of the significant is used to measure the relationship between the variables and the hypothesis.
Descriptive Statistics |
|||
Mean |
Std. Deviation |
N |
|
Performance |
2.0700 |
.90179 |
100 |
Turnover |
2.0600 |
.95155 |
100 |
The descriptive analysis represents a close dispersal in relation to the mean value.
Correlations |
|||
Performance |
Turnover |
||
Pearson Correlation |
Performance |
1.000 |
.454 |
Turnover |
.454 |
1.000 |
|
Sig. (1-tailed) |
Performance |
. |
.000 |
Turnover |
.000 |
. |
|
N |
Performance |
100 |
100 |
Turnover |
100 |
100 |
The correlation coefficient represents that a moderate and positive association exists between the different variables.
Model Summaryb |
|||||
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
Durbin-Watson |
1 |
.454a |
.206 |
.198 |
.80753 |
1.573 |
a. Predictors: (Constant), Turnover |
b. Dependent Variable: Performance |
The adjusted r square value denotes that the employee turnover influences the organizational performance by 20%.
ANOVAa |
||||||
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
1 |
Regression |
16.604 |
1 |
16.604 |
25.463 |
.000b |
Residual |
63.906 |
98 |
.652 |
|||
Total |
80.510 |
99 |
a. Dependent Variable: Performance |
b. Predictors: (Constant), Turnover |
The value of the significant at less than 0.05 which establishes a relationship between the dependent and the independent variable.
Coefficientsa |
||||||
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
||
B |
Std. Error |
Beta |
||||
1 |
(Constant) |
1.183 |
.193 |
6.120 |
.000 |
|
Turnover |
.430 |
.085 |
.454 |
5.046 |
.000 |
Coefficientsa |
|||
Model |
95.0% Confidence Interval for B |
||
Lower Bound |
Upper Bound |
||
1 |
(Constant) |
.800 |
1.567 |
Turnover |
.261 |
.600 |
a. Dependent Variable: Performance |
The coefficient and residual values have been given in the tables as given.
Residuals Statisticsa |
|||||
Minimum |
Maximum |
Mean |
Std. Deviation |
N |
|
Predicted Value |
1.6138 |
3.3353 |
2.0700 |
.40954 |
100 |
Residual |
-1.90495 |
1.95582 |
.00000 |
.80344 |
100 |
Std. Predicted Value |
-1.114 |
3.090 |
.000 |
1.000 |
100 |
Std. Residual |
-2.359 |
2.422 |
.000 |
.995 |
100 |
a. Dependent Variable: Performance |
In regards to the hypothesis testing it can be established that as the p value is less than 0.05, it represents that the null hypothesis is rejected and the alternate hypothesis is accepted.
Therefore, from the findings it can be rightly represented that there exists a strong relationship between employee turnover and organizational performance. Here it can be identified that when the employee turnover is high, it leads to poor performance from the perspective of the firm due to the fact that a high turnover represents that a higher number of employees leaving the organization at large (Pang, Kucukusta and Chan 2015). In this context, it is significant to underline the fact that when the employee turnover is comparatively low, then in such a context, the older employees have been working for the firm and as they are highly skilled and experienced, it would lead to better results for the enterprise at large (Santhanam et al. 2017). In addition to this, it is significant to assess the fact that when the employees remain in the firm, it denotes that they are satisfied with the facilities which have been provided to them and in this regard, the firm is believed to be performing well (Parmenter 2015). In the available literature, the relationship between the employee turnover and organizational performance is rather unbalanced in nature and can be utilised to explore both the negative and the positive aspects. Here it is critical to identify the fact that the turnover is based on the idea that it is negative as it brings about negative results for the enterprise. There are certain researchers who have offered theoretical challenges to the belief that the employee turnover is rather dysfunctional in nature (Singh et al. 2016). Hence, Pierce and Snyder (2015) has argued that the turnover needs to be evaluated on the basis of the costs incurred and the benefits gained. Organizations often tend to dismiss the poor performing employee because they tend to replace it with talented and high performing individuals (Puni et al. (2016). On the other hand, the costs of recruiting and training are compensated by the higher performance which is essentially exhibited by the new recruits. In this regard, the benefits are achieved in two main ways which can be recognized as the replacement of the low performer works as a source of motivation for the employees and by recruiting new employees who act as the new source of ideas as well as the information.
Therefore, the chapter has followed a systematic format whereby the findings of the study have been reflected which is followed by a brief discussion and the hypothesis testing.
Chapter 5:Conclusion and recommendations
The key problem which the study intended to resolve could be identified as the understanding of the overall employee turnover in Mauritius. Here it is critically important to underline the fact that employee turnover can be identified to be a key cause of concern and hence, the study intended to identify the overall way in which the employee turnover existed in Mauritius. Hence, a primary quantitative research strategy has been engaged in whereby the opinions of the different participants who were managers and employees of firms in Mauritius have been engaged in. Pertaining to this, through the findings of the study it has been identified that the employee turnover is a regular issue in the different enterprises within the country and the organizational performance is greatly affected by it. In regards to this the alternate hypothesis has been accepted thus establishing the fact that the employee turnover has a critical influence on the overall performance of the firm.
The key contributions as made by the study may be identified as follows:
- It has helped in the domain of academics by providing a primary content regarding the employee turnover in Mauritius and identified the key way in which it critically influences the overall organizational performance at large.
- Secondly, the findings of the study would be largely effective to the different enterprises who would be able to apply the findings and find the key techniques using which they can improve the turnover as present and the ill effects it has been having on the overall enterprise a large.
The key limitations of the study may be identified as follows:
1.Firstly only 100 participants had been opted for the study. This is due to the limited time frame and the limited number of firms present in the country.
2.Secondly, the mono method of study has been applied in the context of the research.
In the future, to improve the findings, a qualitative analysis technique may also be adopted for the study pertaining to which a deeper understanding of the findings may be engaged in.
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