Labour turnover in the retail industry

Abstract

Purpose -This paper aims to identify key variables that influence the variability of labour turnover. Design/methodology/approach -The approach used in this research is a case study of a major retailer. The key data sources are an index for local competitive and labour market factors, an annual employee survey, and internal labour turnover data for each UK unit of the retailer. The method used for analysis is stepwise regression which identifies the key relationships that predict labour turnover. Findings -The findings show that environmental factors such as local labour markets have a major influence on labour turnover. Organisational factors such as company culture and values are a significant influence. Management behaviour as seen through operational and control variables are also of importance. Individual employee variables are also important in decisions concerning turnover.Research limitations/implications -The statistical analysis accounts for 38.7 per cent of the total variance in labour turnover. There are, therefore, other factors which are not assessed in this paper which also contribute to labour turnover. Whilst this study is of retail units across the UK as a whole, it is of one organisation and statistical generalisations cannot be made from this research. Practical implications -A significant paradox is found in which, as employees become more embedded and familiar with the organisation, its valency for them diminishes and labour turnover increases. This poses a challenge for retailers: how can they retain valued employees who find that as their self-esteem increases they wish to search for better jobs elsewhere? Originality/value -This research uses a statistical approach to provide new findings concerning the attitudes of individuals to their work and good explanations of the factors involved in labour turnover. It also provides statistical predictions which could be used by managers who wish to improve performance and decrease labour turnover at the retail unit level.

Re-conceptualising talent management and development within the context of the low paid

“…Thunnissen et al (2013) identify the need for empirical evidence to support theorising and report a gap in the literature associated with the exit and turnover of talent. Our analysis suggests that some organisations and sectors, particularly those with a large proportion of low paid jobs such as retail and catering, are bedevilled by high rates of labour turnover which adversely impact on their financial performance and productivity at the micro level of the organisation (Booth and Hamer 2007). Stewart (2008) has reported a strong association between TMD and employee retention however many employers appear to consider high labour turnover to be an inevitable consequence and to focus on managing the situation rather than seeking to improve it (Rowley and Purcell 2001).…”

Intra-urban location of stores and labour turnover in retail

“…Surprisingly, research related to labour turnover in retail has not attracted a lot of research over the years, although there are some important exceptions (see e.g. Arndt et al 2006;Booth and Hamer 2007;DeConick and Bachmann 2005;Foster, Whysall, and Harris 2008;Harrison and Gordon 2014;Heidig et al 2018;Hendrie 2004;Hicks 2007;Ramaseshan 1997;Siebert et al 2006;Tang et al 2014;Tian-Foreman 2009). Research on labour turnover and employee mobility, in general, tends to emphasize the importance of human resource management and working conditions at the workplace (see review below).…”

“…Tang et al 2014). A good representative of this research strategy is Booth and Hamer's (2007) study of a large UK food retailer, based on a questionnaire to more than 130 000 employees (88% response rate) in more than 500 stores in different locations all over the country. Typically, the questions asked in the survey revolves around commitment to the firm's overall values, job satisfaction, work conditions, trust and respect among workers, management support, career opportunities, and fairness of pay.…”

What industry wants: employers' preferences for training

“…In the tight labour market of the past decade it has been increasingly difficult to attract staff to many jobs in the industries (Poulston, 2008). Labour turnover is high (Booth and Hamer, 2007) partly because the workforce tends to be young and, especially in hospitality, transient. In the UK, and Ireland in particular, for example, hospitality has attracted huge numbers of workers from the EU 'A8 accession countries' such as Poland (Wickham, Moriarty, Bobek and Salamonska, 2009) which brings additional training needs such as language training as well as a workforce that does not intend to stay in the industry.…”