Employee Turnover in A Fast Food Chain of Restaurants Analysis Paper can you fill out the form for me to the best of your knowledge and I am attaching my p

Employee Turnover in A Fast Food Chain of Restaurants Analysis Paper can you fill out the form for me to the best of your knowledge and I am attaching my proposal so if you need to follow from it. If you are not sure about some of the slots on the form then leave them blank for me. Running head: EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS 1
Title page
Title of the project:
Employee turnover in A Fast Food Chain of Restaurants
By
Karessa Kimberley George
Master’s Project Submitted in Partial Fulfilment
of the Requirements for the Degree of
Master of Business Administration
Human Resource Management
7th April 2020
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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Table of Contents
Table of Contents ……………………………………………………………………………………………………………. 2
OVERVIEW ………………………………………………………………………………………………………………….. 3
Research Question ………………………………………………………………………………………………………….. 3
Objectives ……………………………………………………………………………………………………………………… 4
INTRODUCTION ………………………………………………………………………………………………………….. 5
LITERATURE REVIEW ………………………………………………………………………………………………… 9
METHODOLOGY ……………………………………………………………………………………………………….. 11
References ……………………………………………………………………………………………………………………. 13
Appendix ……………………………………………………………………………………………………………………… 15
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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OVERVIEW
Employee turnover has always been one of the provocations facing human resource
managers as well as employers in some rapidly growing firms, including Fast Food Chain
Restaurants. Most firms and employers are bereft of the knowledge as to why employees choose
to leave their organizations as well as the reasons why they stay. Employees leaving
organization’s decisions as well as those leaving on their own initiative, can cause operational
disruption, the dynamics of the work teams and the performance of the units (Wangangi, 2014).
All forms of turnover contribute to total organizational costs. To keep their best employees
however, managers must ensure that their firms clearly communicate expectations about
benefits, working environment and standards of efficiency and then deliver on the promise.
Premack (2018) mentioned that the fast food industry in the US experienced 150% employee
turnover rate which is the highest of record since 1995. In other words, the employee turnover
issue has continuously added to the looming problem of labor shortage in the industry. This
paper examines the causes of employee turnover, impact in contexts of Fast Food Chain
Restaurants. Moreover, this paper also suggests some strategies for reducing employee turnover
in the context of Fast Food Chain Restaurants.
Research Question
1.
What is the employee turnover rate at Fast Food Chain Restaurants?
2.
What factors have contributed to the employee turnover rate at Fast Food Chain
Restaurants?
3.
What recommendations can enhance employee retention at Fast Food Chain Restaurants?
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
Objectives
1.
As employee turnover rate is a serious issue, the study aims to find out the employee
turnover rate among Fast Food Chain Restaurants.
2.
The study intends to establish the factors that has contributed to the employee turnover
rate among Fast Food Chain Restaurants.
3.
The study also intends to provide recommendations that enhances employee retention
among Fast Food Chain Restaurants.
4
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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INTRODUCTION
1.1 Background of the Study
The fast-food industry has contributed to U.S. economic growth. However, increasing
rates of employee turnover have become the main concern of many fast-food managers (Batt,
2014). The fast-food industry employee turnover is high when compared to other industries
(Dike, 2012). Ryan (2011) indicated that the voluntary withdrawal of an employee from a work
domain is due to low income and remunerations, shortage of training, job opportunities and
unfavorable working conditions. The turnover in the fast food industry is high compared to other
industries (Mirabella, 2013) The voluntary withdrawal is triggered by (a) low pay and benefits,
(b) lack of preparation, (c) self-employment, (d), management support and (f) unfavorable
working conditions. (b) Voluntary withdrawal from work (Batt et al., 2014). Fast food
restaurants usually employ less experienced students or persons with no experience which means
highly skilled workers are over trained. Employee turnover affects employee productivity, which
affects the financial performance of the company in an unfavorable direction (Kacmar et.al,
2006). Lack of organizational support, socialization of work, and participation of employees
generate alienation among employees, resulting in lower productivity and effectiveness (Mathe
& Slevitch, 2013). Perez & Mirabella (2013) pointed to employee turnover being caused by a
lack of training for employees which affects employee skills. Employee incompetence affects the
quality of service offered by fast-food restaurants and therefore the rate of occurrence of
customer experiences reduces (Harrington, Ottenbacher, Staggs, & Powell, 2012).
Prestige Holdings Limited is the largest restaurant-management firm, currently operates
128 restaurants with a professional team of over 3,000 employees around the globe, focused on
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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customer service, production of human resources, quality assurance, logistics, infrastructure,
finance, and marketing (PHL, 2020). It provides services on Pizza Hut, KFC, Starbucks, as well
as TGI Fridays and many more others.
1.2 Statement of the Problem
The U.S. fast-food industry employee turnover rate is high at about 150 percent per
annum (Dike, 2012; Perez & Mirabella, 2013). Therefore, due to high employee turnover rate,
the organization has had a negative impact on its efficiency, profitability and customer
satisfaction. In some fast food outlets, turnover is as high as 300 percent per year for the lowestlevel hourly-paid workers (Royle, 2010; Ryan et al., 2011). The main problem is that the overall
operations become expensive and disruptive because of high turnover for many organizational
managers (Bebe, 2011). The specific problem is that a number of fast-food industry supervisors
do not understand the relationship between the job dissatisfaction of the employee and the
intentions of employee turnover.
1.3 Research Questions
1. What is the employee turnover rate at Fast Food Chain Restaurants?
2. What factors have contributed to the employee turnover rate at Fast Food Chain
Restaurants?
3. What recommendations can enhance employee retention at Fast Food Chain Restaurants?
1.4 Research Objectives
As employee turnover rate is a serious issue, the study aims to achieve the following objectives:
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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1. Find out the employee turnover rate among Fast Food Chain Restaurants;
2. Establish the factors that has contributed to the employee turnover rate among
Fast Food Chain Restaurants; and
3. Provide recommendations that enhances employee retention among Fast Food
Chain Restaurants.
1.5 The rationale of the Study
Service quality in fast food restaurants can be difficult to maintain if the turnover rate is
high, as there is a higher demand for skills and knowledge in this particular segment. Restaurant
managers understand the importance of keeping the current team of employees, and they try hard
to determine when people decide to leave. Most restaurants put a lot of organizational resources
in the form of time, energy, and money to train their employees to meet the above criteria, but
turnover can threaten these investments.
1.6 Nature of Study
The nature of the research in the present study is quantitative with a descriptive research
design. The study intends to quantify employee turnover rates, determine the factors causing this
employee turnover rate, and formulate recommendations to mitigate the effects of employee
turnover, if not totally avoid it.
1.7 Significance of the Study
Employees of fast food restaurants in the Caribbean have been exhibiting a growing trend
on turnover rates. Employers, on the other hand, begin to face serious operational issues because
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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of this. The current study is significant because its purpose is to determine employee turnover
rate in the industry, the reasons behind high turnover rates, and forward integrated solutions to
mitigate the effects of employee turnover, if not totally avoid it. The recommendations that this
study intends to supply can be applied by organizations that have similar human resource issues.
1.8 Contribution of Study to Improvements in Business Practice
The business economy has declined due to the issue of employee turnover. New models
have been suggested by different authors explaining excellent strategies of engaging employees
and keeping them motivated and committed. However, although there has been a replacement of
employees due to technological advancements, there is a need to enhance commitment to the
jobs that cannot be operated without employees. Thus, this study will provide methods that can
be applied to business practice. It will also provide support to necessary and applicable business
models and theories that can be used to enhance employee retention.
1.9 Delimitations
The study is focused on determining the employee turnover rate among Fast Food
Restaurants managed by Prestige Holdings Limited. Responses from fast food restaurant
employees are obtained through the use of a questionnaire comprising of 17 indicators. The
study utilizes random sampling to seek responses from employees of randomly selected fast food
restaurants. The study does not integrate responses from managers of Prestige Holding Limited.
Descriptive research is used in analyzing the responses of the respondents.
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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CHAPTER TWO
LITERATURE REVIEW
2.1 Review of Literature
In a study carried out by DiPietro & Bufquin (2018), they indicated that a high employee
turnover rate affects the economic situations of the restaurant industry in the United States. They
further pointed out that owners and managers of fast-casual restaurant chains have a high impact
on the intention of hourly employees to leave the company. Several causes of employee turnover
have been highlighted such as employees’ perception of managerial concern of them, employee
commitment, work status congruence, as well as job satisfaction. Wilfred and Nnenna (2014)
have conducted empirical analyses to explore the connection between job performance and
employee level satisfaction at various fast food restaurants in US countries. It was shown that the
lower satisfaction of the workers is seen in a number of negative working behaviors,
dissatisfaction and higher sales intention. Investigations focused on the motivation factors which
have an effect on fast food industry results. Research shows that KFC’s workers are very
financially driven by how employees view gender inequality. The concept of turnover intention
between employee’s employment in PHL companies of USA has been studied and it is found
that there is significant relationship between job satisfaction and turnover intention (Beb, 2016).
The turnover intention between workers contributes to an especially low level of employment,
counterwork behavior, employee dissatisfaction, and so research suggested by means of an
effective training and development plan can increase motivational rates, which can reduce the
intention for fast-food workers to return to work (Alkahtani, 2015). As such, with these factors
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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influencing the rate of employee turnover in the United States, this study will expand on any
other factor that may be affecting the situation across the Caribbean.
Additionally, Smith (2018) argues that not all restaurants are able to solve the issue of
employee turnover. Many other restaurants such as Pizza Hut, TGI Fridays, subways tend to
experience more difficulties such as lowered profit margins. This shows that employees are
significant within a restaurant and managers should make all ways possible in order to retain
them. Jang & Kandampully (2018) also indicated that there is a great impact on the profitability
of a restaurant by the commitment of employees. This study showed that servant leadership has
the impact of reducing employee turnover. This is possible because organizational leaders have
the impact of developing an affective organizational commitment among the employees. In
essence, Jang & Kandampully (2018) indicate that, in order to reduce the rate of employee
turnover, organizational leaders should create an affective commitment among them. This means
enhancing the relationship between the management and the employees.
Adnan, Rahman, & Ahmad (2018) emphasized the significance of employees in the
restaurant industry, pointing out that their turnover becomes an organizational weakness. This
weakness translates to the reduction in organizational productivity and organizational costs. The
loss of talented employees has an adverse effect on restaurant businesses, and the management is
pointed out as a vital factor of influence that can solve this problem.
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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CHAPTER THREE
METHODOLOGY
3.1 Research Data
The research methodology will be quantitative in nature and co- relational design.
Primary data collection method will be used. Data will be collected by those workers who
working in selected fast food restaurants in the Caribbean. The primary data will be collected by
means of a questionnaire which is based on specific problems. The data to be obtained will be
tabulated in different tables to reflect the mean with their corresponding description of each of
the item according to the respondent groups.
3.2 Sampling Size and Sampling Technique
There are over 3,000 employees working with the Prestige Holdings Limited (P.H.L,
2020). The sample size of 346 will determined by the sampling size determination table (Saunders,
2011). Using a confidence margin of 95%, the study intends to float the questionnaire to 346
randomly selected employees from Prestige Holdings.
3.3 Statistical Tool and Technique
The following statistical tools will be used to analyze the data gathered in the study:
1. Frequency and percentage to describe the respondents’ profile as well as that of the
responses under indicators 1 through 7. The questionnaire has two sections: one is
demographic profile under indicators 1 through 7 and employee perception indicators
8 through 17.
2. Frequency and weighted mean will be used to determine the factors influencing
employee turnover rate.
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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3. The Pearson Product-Moment Correlation Coefficient (rxy) and Analysis of Variance
(ANOVA) to determine the relationships and differences between the profile of the
respondents as well as the factors influencing employee turnover rate. Correlation and
regression analysis will be used to analyze the data. Version 22 of SPSS programming
will be used to analyze the quantitative data to be collected via closed-ended
questionnaires. For measuring turnover intention among employees, the scale
developed by Bothma, and Roodt, (2013) will be used.
EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
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References
Alkahtani, A. H. (2015). “Investigating Factors that Influence Employees Turnover Intention: A
Review of Existing Empirical Works”. International Journal of Business and
Management, 10, 10(12),152-166.doi:10.5539/ijbm.v10n12p152.
Adnan, A. M., Rahman, A. E. A., & Ahmad, R. (2018). Factors Influencing Turnover Intention
among Fast Food Restaurant Managers. Sciences, 8(17), 195-210.
Batt, R., Lee, J. E., & Lakhani, T. (2014). A national study of human resource practices,
turnover, and customer service in the restaurant industry (Doctoral dissertation, School of
International & Public Affairs, Columbia University). Retrieved from
http://rocunited.org/wp-content/uploads/2014/01/HRPTCS_Cornell_Report_4.pdf
Bebe, (2016). Employee Turnover Intention in the U.S. Fast Food Industry. Walden
Dissertations and Doctoral Studies.
Bothma, C. F. C., & Roodt, G. (2013). The validation of the turnover intention scale. SA Journal
of Human Resource Management, 11(1), 1-12. doi:10.4102/sajhrm.v11i1.507
Dike, D. W. (2012). Changes in the role of supervisors in managerial leadership theories: A
historical perspective. International Journal of Management, 29, 189-194.
DiPietro, R., & Bufquin, D. (2018). Effects of work status congruence and perceived
management concern for employees on turnover intentions in a fast-casual restaurant
chain. Journal of Human Resources in Hospitality & Tourism, 17(1), 38-59.
French, L. (2014). The survey shows that restaurants can reduce costs through better
employment practices. Retrieved from http://www.clasp.org/
Jang, J., & Kandampully, J. (2018). Reducing employee turnover intention through servant
leadership in the restaurant context: A mediation study of affective organizational
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commitment. International Journal of Hospitality & Tourism Administration, 19(2), 125141.
Journal, W. S. (2020, January 18). PHL.TT | Prestige Holdings Ltd. Company Profile &
Executives – WSJ. Retrieved January 18, 2020, from https://www.wsj.com/marketdata/quotes/TT/XTRN/PHL/company-people
Kacmar, K. M., Andrews, M. C., Van Rooy, D. L., Steilberg, R. C., & Cerrone, S. (2006). Sure
everyone can be replaced… but at what cost? Turnover as a predictor of unit-level
performance. Academy of Management Journal, 49(1), 133-144.
Kwon, H. S. (2014). Economic theories of low-wage work. Journal of Human Behavior in the
Social Environment, 24(1), 61-70.
MacCallum, R. C., Widaman, K. F., Preacher, K. J., & Hong, S. (2001). Sample size in factor
analysis: The role of model error. Multivariate Behavioral Research, 36, 611-637.
Mathe, K., & Slevitch, L. (2013). An exploratory examination of supervisor undermining,
employee involvement climate, and the effects on customer perceptions of service quality
in quick-service restaurants. Journal of Hospitality & Tourism Research, 37(1), 29-50.
Premack, R. (2018). The Fast Food Industry is Facing a Growing Crisis. Insider, Inc. Retrieved
from https://www.businessinsider.com/mcdonalds-taco-bell-fast-food-turnovertechnology-2018-4
Prestige Holdings Limited. (PHL). (2020). Prestige Holdings Limited Official Website.
Retrieved from: https://www.phl-tt.com/about-us/
Raphael, J. (2019). A high turnover means lower revenue. Retrieved from
https://www.guardian.co.tt/article-6.2.361964.8b631d203f
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EMPLOYEE TURNOVER IN A FAST FOOD CHAIN OF RESTAURANTS
Appendix
This questionnaire has 17 small questions to study the employee turnover in the restaurant
industry. Participants will be asked to select the option that best suits your response. It is
anticipated that the questionnaire will take five minutes of your time to complete. This
questionnaire is designed solely for academic purpose, to be used in academic research work. You
are being invited to take part in this study on Employee Turnover in A Fast Food Chain of
Restaurants. This study is being conducted by Karessa George from the University of the Southern
Caribbean.
The purpose of this …
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