Literature Review On Employee Turnover At Nara Lounge

The Business Problem and Objectives

1.0. Business Problem

Nara Lounge is positioned as a full-service bar and hookah lounge with banquet hall and restaurant on the second floor. The lounge is focused to operate as a unique ambiance along with experience each day. It is observed these days that the manpower turnover is the biggest concern in the hotel industry that is drastically affecting the performance and productivity of these hotels (Lounge2018). Nara Lounge is observed to deal with issues related with increased employee turnover for the reason that the salary of the employees is not as per their matching experience along with their standard within the competitive market. There are several factors within the company that is resulting in consumer dissatisfaction within the company for which implementation of training program is deemed necessary for motivating the staff to perform well (Li et al. 2016).

1.1. Business Decision

Focused on theresearch problem explained under, employee turnover is a drastic issue faced by Nara Lounge which is observed to impact the quality of services in the restaurant along with its productivity. An increased rate in employee turnover in the company has drastically impacted employee morale along with increasing stress among the staff. The increased intensity of turnover in the company has affected its restaurant service by 10% in the current year that has resulted in decreased sales (Dubey et al. 2016). Moreover, it has also been observed that the company’s subjective and objective performance has been affected because of inadequate wage levels resulting in employees moving to competitors, poor morale along with low motivation level. In dealing with such issue Nara Lounge is focusing on improving the compensation structure along with introducing employee motivation training to decrease the issue of increasing turnover rate (Hom et al. 2017).

1.2.1. Investigate the management or the general work environment

Nara Lounge is observed to have a creative and constant innovation workplace environment and the employees those work in thecompany are of diverse cultural backgrounds and nationalities (Pohler and Schmidt 2016). The employee development is influenced by the policies and procedures developed by the HR department (Taylor 2016). Nera Lounge’s company values are focused on maintaining team effectiveness that serves as a major financial determinant of the company.

1.2.2. Understanding the salary of the employees which matches with their experience and their standard on competitive market

Attaining understanding on the salary of the employees can facilitate in obtaining an understanding whether the compensation structure followed by Nera Lounge is aligned with the experience of the workforce and as per the standard on the competitive market (Pohler and Schmidt 2016). To attain understanding of such factor it will be simpler to analyze the satisfaction level of the employees working in Nera Lounge along with the factors that they find demotivating regarding the salary paid to them which is making them leave their jobs. Such data can be gathered through surveying the former employees of Nera Lounge.

1.2.3. Investigate the employees benefit program to make them happy

Needed Information

In investigating the employees benefit program in Nera Lounge it will be simpler to understand the ways in which the benefit program implemented by the company is motivating the employees to perform efficiently in the company. Employee surveys will be carried out in gathering their viewpoints on the effectiveness of the employee benefit program present in the company (Dubey et al. 2016). Moreover, analyzing these factors will facilitate the company in determining the training program and compensation structure gap that is present in the company son that they can make necessary improvements in its organizational processes as an approach to decrease the turnover rate in the company.

1.2.4. Understanding the major factors of employee dissatisfaction which leads them to quite the job

This aspect will analyze the major factors those resulted in employee dissatisfaction in Nara Lounge which lead to increased turnover rate within the company. Moreover, poor management in the company along with lack of encouraging financial rewards are deemed to affect employees’ views regarding the payment scale as well as the compensation structure received by them as per their experience and job position (Dubey et al. 2016).

1.2.5. Understanding the training program to implements on new staff to make them perform well

This section would shed light on understanding the training program for implementing on new staffs in order to ensure effective performance. In order to achieve the same, program goals will be developed, which will assist in gaining an overview of the needs of the employees. Secondly, right employee training software needs to be implemented for offering increased personalized experiences (Pohler and Schmidt 2016).

1.2.6. Reason behind staff turnover

Fromanalyzing the reasons behind staff turnover,it will be raveled the ways in which weak compensation structure, inefficient hiring process of employees and poor training programs developed by Nara Lounge resulted in drastic employee turnover within the company (Lounge2018). Moreover, it will also be evaluated that the employees in the company get motivated through earning special incentives along with extra paid time and employee training programs on new job responsibilities to attain increased employee motivation within the workplace.

The research objectives those are to be addressed through completion of the current research are explained under:

• To analyze the management structure or organizational work environment of Nara Lounge
• To analyze the compensation structure of the employees matching with the employees experience and standard in the competitive market
• To attain an understanding on major factors those result in employees dissatisfaction and turnover
• To analyze the training program that can be implemented on new employees for enhancing their performance in the workplace

2.0. Investigate the management or the Organizational work environment

Lee et al. (2017) indicated that Nara Lounge is observed to have a creative and constant innovation workplace environment and the employees those work in the company are of diverse cultural backgrounds and nationalities.

Huffman, Casper and Payne (2014) stated that the management structure of Nara Lounge includes functional hierarchy, geographic divisions, and service-based divisions along with teams. In the functional hierarchy it has a HR, marketing and finance department. The employee development is influenced by the policies and procedures developed by the HR department. This hierarchy is deemed to control and monitor the work performance of the employees in a top-down approach. Vardaman et al. (2015) also added that NaraLounge’s company values are focused on maintaining team effectiveness that serves as a major financial determinant of the company. Moreover, it has also been gathered that the corporate culture of Nara Lounge is focused on encouraging team effectiveness. Kangas et al. (2016) revealed that despite such well-structured management system the company is dealing with issues of increased employee turnover, as the compensation structure and the training programs for the new joiners are observed to be ineffective to motivate the newly joined employees to sustain within the company for a long duration.

2.1. Understanding the salary of the employees which matches with their experience and their standard on competitive market

Major Factors of Employee Dissatisfaction

As stated by Huanget al. (2016), the compensation in the hospitality industry is lower than the other industries even though the stress level of work is higher in other sectors.  The benefit package for the employees in the hospitality industry should be developed and designed based on the best practices in the industry. It is crucial to keep a compensation that meets the benchmark of the industry. According to Mathieuet al.(2016), the majority of the employees leave their job due to pay issues or for better compensation package in the hospitality industry.  As stated in the Maslow’s Hierarchy of needs, compensation has been considered as one of the most significant motivating factors for the employees working in hotels or any other industry. Compensation is one of the key components of employee retention in majority of the organizations as monetary rewards act as a motivator for employees.

2.2. Investigate the employees benefit program to make them happy

As stated by Muguongo, Muguna and Muriithi(2015), benefit programs can be of different types, both monetary and non-monetary benefits. The employee benefit programs belong to the category of fringe compensation which again reflects that compensation is essential for job satisfaction. The major benefit programs consist of life insurance plans, retirement plans, health insurance, educational assistance, holiday pay and vacations. Harris, Lavelleand McMahan (2018) states that all types of benefit programs provide motivation to the employees as fulfills their needs and wants. Fringe benefit is one of the most desirable attributes of any job and comprises of at least 30% of the total compensation. McPhailet al.(2015) states that fringe benefits are one of the most important ways of making the employees feel secure and provide satisfaction to them.

2.3. Understanding the major factors of employee dissatisfaction which leads them to quit the job

Even though, it has been discussed that lack of appropriate compensation and employee benefits are major reasons for dissatisfaction among different employees, there are certain other factors that are responsible for causing dissatisfaction. Work life balance is another key factor for lack of satisfaction among the employees which is a key issue in the hospitality sector where the work load is quite heavy. Compensation package is also a valid reason as employees can get better paying jobs with less stressful environment (Coetzee and Stoltz 2015).  The majority of the employees working the hospitality industry do not like their superiors and their coworkers which is one of the reasons that theydo not have a healthy organizational culture. The next factor is the lack of growth within the organizations. However, lack of management and proper leaders will cause the employees to lose their focus as they are receiving any valuable feedback from their managers.

2.4. Understanding the training program to implements on new staff to make them perform well

Understanding the Training Program

Sundstromet al. (2016) states that training programs are not only required to improve the skill level of the employees but also to provide them with different job roles and help them grow within the organization.  There is shortage of labor in the global hospitality industry due to the fact that majority of the employees are moving to different sectors due to better work life balance and more compensation package at lesser stressful environment. As stated by Luet al. (2016), career growth has gained its prominence and have become of the one of the most crucial elements for increasing the level of satisfaction among employees. The next factor is the lack of growth within the organizations. Hanaysha and Tahir (2016) states that the use of training and development programs are more crucial to the new employees as they are provided with opportunity of growing up the ladder in the organizational hierarchy.

2.5. Reason behind staff turnover

Porter,  Woo and Campion (2016) argues that lack of work life balance and stress level of the employees are key aspects that increases the level of motivation among the employees. Work life balance is another key factor for lack of satisfaction among the employees which is a key issue in the hospitality sector where the work load is quite heavy. Compensation package is also a valid reason as employees can get better paying jobs with less stressful environment.  Huffman, Casperand Payne (2014)states that even though there are various factors responsible for employee turnover in the hospitality industry, the compensation is still at the top as the salary package in other industries are quite higher.

2.6. Quality Assessment of Literature

Research Questions	Assessment	Gaps in knowledge
What is the management structure or organizational work environment of Nara Lounge?	2/3	The given data is quite up to date and provides sufficient knowledge but consists some missing elements.
What is the compensation structure of the employees matching with the employees’ experience and standard in the competitive market?	2/3	The major gap is the fact that the literature only considers the traditional motivational theories and there is lack of mention of the modern motivational theories such as self-determination theory
What are the major factors those result in employee’s dissatisfaction and turnover?	2/3	The major factors responsible for turnover have been identified but they are generalized and more focused result is required.

2.1. Research Objectives

The research objectives those are to be addressed through completion of the current research are explained under:

• To analyze the management structure or organizational work environment of Nara Lounge
• To analyze the compensation structure of the employees matching with the employees experience and standard in the competitive market
• To attain an understanding on major factors those result in employees dissatisfaction and turnover
• To analyze the training program that can be implemented on new employees for enhancing their performance in the workplace

2.2. Research Approach

In selecting suitable research approach in analyzing the reasons for increasing rate of unstable employees in Nara Lounge, it is considered important to analyze the de-motivating factors those are present in the company resulting in such turnover. For carrying out the same, deductive research approach will be employed for this research that can facilitate the researcher in carrying out important tasks of the research along with analyzing the available models and theories on employee motivation and satisfaction mentioned in the literature review (Mackey and Gass 2015). This approach ca further facilitate in attaining desirable outcomes of the research. Deductive research approach is deemed to be most suitable in a study where quantitative research is to be carried out. Moreover, this approach will also support quantitative data collection process in this study here opinion from the employees of Nara Lounge will be gathered through survey method.

2.3.1. Research Technique

Research Objectives

Quantitative research technique will be used in the current research for gathering necessary information to attain constructive research results. Quantitauve technique will facilitate in conducting primary research through surveys in which numerical data will be attained from the survey participants. Moreover, the analysis will also be carried out through employing statistical analysis to attain constructive outcomes based on research objectives. Quantitative technique will be helpful in gathering information on the subject of inclination of human perception concerned with specific research information (Taylor, Bogdan and DeVault 2015). Quantitative technique employed can facilitate in presenting the outcome through charts and tables for making it easier to understand.

The population selected or this study can act as a subset of the target population and it will also be considered as a study population. It will be from the accessible population that the researcher will gather the chosen sample for the research (Lewis 2015). The sample population is considered to include the employees of Nara Lounge as they can provide supportive opinion on the factors those are prevailing in the company resulting in high rate of unstable staff within the company. Moreover, the sample population will be gathered from this population and the quantitative data will be gathered from this the selected population.

Sampling in this research can serve as a technique in which target respondents will be chosen for analyzing the factors resulting in increased rate of unstable employees in Nara Lounge. Suitable sampling technique will be selected based on which the researcher will be able to select the most important source of primary data to attain important research outcomes aligned with aim and objectives of research (Glesne 2015). Considering the same, simple random sampling will be used to carry out survey with the former employees of Nara Lounge those have recently left the company and the existing new employees of the organization. This sampling design will be implemented for the reason that it will facilitate in offering equal opportunities to the respondents those are being selected within the survey. Focused on such sampling approach, relevant quantitative data will be attained by using random sampling from a huge population. It has also been assessed that for attaining constructive research outcomes, quantitative analysis requires a relatively large sample size to attain and evaluate respondent’s opinions on factors turning out to be de-motivating for them to continue in Nara Lounge. Considering the same, 10 former employees and 30 existing employees of Nara Lounge are selected to gather their responses.

Literature Review

As the research will consider conducting surveys on targeted employees of Nara Lounge for this reason, online self-administered implementation plan will be employed. Moreover, cross-sectional implementation will be used in this research as this plan will serve as an observational research which can evaluate data from a huge population and can also facilitate in analyzing a representative subset of survey data at a particular point of time (Brinkmann 2014). This implementation plan can facilitate the researcher in describing the happenings at the present situation of Nara Lounge leading to increased rate of unstable employees.

The survey questionnaire that will be offered to the selected employees of Nara Lounge will be divided into three segments. The first segment of the questionnaire will ask questions regard the demographic profile of the respondents. The second segment will contain questions on employees’ opinion regarding management and organizational structure of Nara Lounge, compensation structure, employee benefit and training programs along with the factors in the company that is considered to be de-motivating for the employees. The third section of the questionnaire will have questions on employee feedback for the company based on which employee motivation can be attained and turnover rate can be reduced by improving operations and benefits offered by Nara Lounge.

Task	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Week 8	Week 9
Selection of topic and search for justification
Constructing literature
Selecting appropriate methods
Data collection
Data analysis and representation
Reviewing the outcomes
Conclusions and recommendations
Submitting draft of the project
Printing and final submission

References

Brinkmann, S., 2014. Interview. In Encyclopedia of critical psychology (pp. 1008-1010). Springer New York.

Coetzee, M. and Stoltz, E., 2015. Employees’ satisfaction with retention factors: Exploring the role of career adaptability. Journal of Vocational Behavior, 89, pp.83-91.

Dubey, R., Gunasekaran, A., Altay, N., Childe, S.J. and Papadopoulos, T., 2016. Understanding employee turnover in humanitarian organizations. Industrial and Commercial Training, 48(4), pp.208-214.

Glesne, C., 2015. Becoming qualitative researchers: An introduction. Pearson.

Hanaysha, J. and Tahir, P.R., 2016. Examining the effects of employee empowerment, teamwork, and employee training on job satisfaction. Procedia-Social and Behavioral Sciences, 219, pp.272-282.

Harris, C.M., Lavelle, J.J. and McMahan, G.C., 2018. The effects of internal and external sources of justice on employee turnover intention and organizational citizenship behavior toward clients and workgroup members. The International Journal of Human Resource Management, pp.1-24.

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

Huang, Y.H., Lee, J., McFadden, A.C., Murphy, L.A., Robertson, M.M., Cheung, J.H. and Zohar, D., 2016. Beyond safety outcomes: An investigation of the impact of safety climate on job satisfaction, employee engagement and turnover using social exchange theory as the theoretical framework. Applied ergonomics, 55, pp.248-257.

Huffman, A.H., Casper, W.J. and Payne, S.C., 2014. How does spouse career support relate to employee turnover? Work interfering with family and job satisfaction as mediators. Journal of Organizational Behavior, 35(2), pp.194-212.

Kangas, M., Kaptein, M., Huhtala, M., Lämsä, A.M., Pihlajasaari, P. and Feldt, T., 2016. Why do managers leave their organization? Investigating the role of ethical organizational culture in managerial turnover. Journal of Business Ethics, pp.1-17.

Katsikea, E., Theodosiou, M. and Morgan, R.E., 2015. Why people quit: Explaining employee turnover intentions among export sales managers. International Business Review, 24(3), pp.367-379.

Lee, T.W., Hom, P.W., Eberly, M.B., Junchao (Jason) Li and Mitchell, T.R., 2017. On the next decade of research in voluntary employee turnover. Academy of Management Perspectives, 31(3), pp.201-221.

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

Li, J.J., Lee, T.W., Mitchell, T.R., Hom, P.W. and Griffeth, R.W., 2016. The effects of proximal withdrawal states on job attitudes, job searching, intent to leave, and employee turnover. Journal of applied psychology, 101(10), p.1436.

Lounge, N., 2018. Nara Lounge – Hurstville. [online] Nara Lounge – Hurstville. Available at: https://naralounge.com.au/ [Accessed 4 Dec. 2018].

Lu, L., Lu, A.C.C., Gursoy, D. and Neale, N.R., 2016. Work engagement, job satisfaction, and turnover intentions: A comparison between supervisors and line-level employees. International Journal of Contemporary Hospitality Management, 28(4), pp.737-761.

Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.

Mathieu, C., Fabi, B., Lacoursière, R. and Raymond, L., 2016. The role of supervisory behavior, job satisfaction and organizational commitment on employee turnover. Journal of Management & Organization, 22(1), pp.113-129.

McPhail, R., Patiar, A., Herington, C., Creed, P. and Davidson, M., 2015. Development and initial validation of a hospitality employees’ job satisfaction index: Evidence from Australia. International Journal of Contemporary Hospitality Management, 27(8), pp.1814-1838.

Muguongo, M.M., Muguna, A.T. and Muriithi, D.K., 2015. Effects of compensation on job satisfaction among secondary school teachers in Maara Sub-County of Tharaka Nithi County, Kenya. Journal of Human Resource Management, 3(6), pp.47-59.

Pohler, D. and Schmidt, J.A., 2016. Does Pay?for?Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee Turnover. Personnel Psychology, 69(2), pp.395-429.

Porter, C.M., Woo, S.E. and Campion, M.A., 2016. Internal and external networking differentially predict turnover through job embeddedness and job offers. Personnel Psychology, 69(3), pp.635-672.

Sundstrom, E.D., Lounsbury, J.W., Gibson, L.W. and Huang, J.L., 2016. Personality traits and career satisfaction in training and development occupations: Toward a distinctive T&D personality profile. Human Resource Development Quarterly, 27(1), pp.13-40.

Taylor, S., 2016. 9. Compensation policy and employee turnover. Research Handbook on Employee Turnover, p.166.

Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Vardaman, J.M., Taylor, S.G., Allen, D.G., Gondo, M.B. and Amis, J.M., 2015. Translating intentions to behavior: The interaction of network structure and behavioral intentions in understanding employee turnover. Organization Science, 26(4), pp.1177-1191.

Zopiatis, A., Constanti, P. and Theocharous, A.L., 2014. Job involvement, commitment, satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism Management, 41, pp.129-140.