At first, I would like to thank God to give ability with knowledge and wisdom to undertake work like this research study. Secondly, my cordial love and honor to my module tutors and dissertation supervisors who have supported me with their suggestions, lecture sheets, notes, and guidelines. Thirdly, I would appreciate to writers and publishers of the related books, journals and websites on these research subject areas. Fourthly, I bless my parents who have supported me mentally with motivation, advice and suggestions, and financially to complete my study here in the UK. Finally, Fifthly, I would like to thank only my friend who has supported me a lot giving advice and guidelines on this research work. Finally, my friends and relatives who live or work with me would be appreciated for their support through giving me opportunities to work on my research work attentively.
Retained workforces contribute more with their skills and experiences in the workplaces than newly joined ones Mullins (2013). However, high employee turnover in an organization can impact business in different ways such as creating staff and skills shortages, increasing overall costs, and decreasing business performance and workforce performance (Groysberg, 2010). Staff’s motivations through different incentives can play an important role to improve employee retention levels with improved productivity and performance in workplaces (Bratton and Gold, 2012). However, many retailers including Iceland are ignoring this issue in many cases because of not having enough knowledge. As a result, this proposed study will evaluate the effectiveness of different incentive programs on customer retention levels to suggest Iceland for improving its incentives schemes to motivate and retain staff for long time basis.
The aim of the undertaking research study is to evaluate the effectiveness of incentive schemes in motivating staff and improving their retention level in the UK retail industry and to suggest Iceland improve its incentives programs. 1) To analyze the different incentive schemes used for staff by Iceland; 2) To assess Iceland’s ability to retain staff; 3) To analyze the effectiveness of the existing incentive schemes from an employee’s point of view as a motivation tool and in encouraging loyalty; 4) To analyze the impact of incentive schemes on staff retention; 5) To identify gaps in the existing system and provide recommendations for further improvement.
This research work has benefited the researcher in several ways. First, it has developed researcher knowledge on how a research study can be conducted successfully using appropriate methods and methodologies. Then, the study has taught how to collect data from both primary and secondary data sources. Next, the research work taught the researcher how the data collected are presented and analyzed. Then, the research study has taught the researcher how to find the solutions to the research problems and recommend the client. Finally, the study has guided how to find out the research limitations and scope for further study. In a word, the undertaking research study has fitted the researcher to work professionally in the industry to achieve a better career.
Different methods and methodologies have been applied in the research works. The research work has been investigated following exploratory and explanatory study. As they approach, the researcher has used deductive techniques to conduct the research study. Both primary and secondary data and data sources have been applied. As primary data source survey and interview technique has been applied and secondary data sources several latest journals, books and websites mainly Iceland and its competitor’s websites and annual report have been studied.
Non-probability quota sampling in the undertaking research study has been applied to conduct a survey on the staff of Iceland. because this sampling has supported the researcher to segments the participants into sub-groups according to the subject. In addition, quota sampling has developed new measures in the exploratory and explanatory study in this research work. A sample size of 50 staffs from Iceland has been considered, where the staffs have been divided into five age groups: 15-24, 25-34, 35-44, 45-54, and 55+ The sample is grouped into five sub-groups: customer assistant, shop floor staff, back-office staffs, supervisors, and management. From every group, 10 people have been selected.
As data collection technique both quantities and qualitative data collection methods have been applied. As data analysis tools, MS Excel, SPSS, ANOVA Test, and themes and content analysis technique have been used. MS Excel and SPSS have been used to present and analyze the quantitative data. ANOVA Test has been used to test the research hypothesizes. Themes, content and coding techniques have been applied to present and analyze the qualitative data.
The key finding of the study is only 5% of staff said they are very satisfied with the incentive provided by Iceland, while 11% disclosed that they are somewhat satisfied. However, 32% of staff would like not to provide any comments about this issues, while 12% of workers said they are dissatisfied well as 40% of workforces shared that they are totally dissatisfied. The study also discloses that the majority number of staff are not motivated by the incentives to provide by Iceland, while only 16% of total staff show their higher satisfaction level towards Iceland’s incentives. This data proves that Iceland incentives programs are not effective. On the other hand, the study on Iceland’s competitors shows that the competitors are providing more effective incentives to their staff. This means if Iceland wants to improve its staff motivation and retention and reduce staff turnover means cost, it must take initiatives to update or improve its incentive programs.
The key recommendations for Iceland are a) 95% of total staffs recommend to proved more staffs discounts mainly in several occasions like Christmas, summers, etc, while 87% of employees would like to get more performance appraisals; b) 77% of employees recommend to give more occasional bonus and 75% staffs said Iceland should provide annual bonuses; c) 37% of staffs like to get paid tours from their employers, some others staffs recommend to improve its current incentives provided as maternity and paternity payment, holiday payment and sick payment. In a word, Iceland has to take initiatives to improve its incentives schemes mainly in staff discount, occasional and annual bonuses, performance appraisals, and company profits share, which are being provided by Iceland competitors including Tesco. In addition, Iceland should improve its work environment and the attitudes and behaviors of managers with staffs. Furthermore, the managers of Iceland should be more friendly, informative, communicative and open-minded. Iceland must take about the working hours, workloads given to their staffs.
Chapter 1: Introduction
Retaining an improved level of an employee by the UK retail industry including Ice Land has been a challenging issue. There is evidence that several incentive schemes can motivate workforces to stay for a long time basis in workplaces (Mullins, 2013). Therefore, it has been a significant issue for the UK retail industry including Ice Land, UK to study the effectiveness of incentive schemes on employee retention.
This chapter has outlined the introduction of the undertaking research works. At first, the researcher has discussed the research background. Then, the researcher has outlined the research rationales. Next, the research aims and objectives have been outlined. Following these, the researcher formulated the research questions. Finally, the researcher has developed research hypothesizes.
1.1 Research Background
Retained workforces contribute more with their skills and experiences in the workplaces than newly joined ones Mullins (2013). However, high employee turnover in an organization can impact business in different ways such as creating staff and skills shortages, increasing overall costs, and decreasing business performance and workforce performance (Groysberg, 2010). Staff’s motivations through different incentives can play an important role to improve employee retention levels with improved productivity and performance in workplaces (Bratton and Gold, 2012). However, many retailers including Iceland are ignoring this issue in many cases because of not having enough knowledge.
Iceland, one of the leading frozen-foods retailers in the UK, has been operating with about 35,000 workforces and serving millions of customers every week in more than 750 stores for the last 25 years. Iceland is growing steadily with improved market shares, sales revenue, profit margin and customer loyalty. However, it is nowadays facing a high employee turnover of 44%, which is creating staff and skills shortages, increasing costs in selection and recruitment, training and development, and impacting on productivity and workforce performance (Iceland Annual Report, 2014).
As a result, this proposed study will evaluate the effectiveness of different incentive programs on customer retention levels to suggest Iceland for improving its incentives schemes to motivate and retain staff for a long time basis.
1.2 Research problems
The UK retail industry including Iceland is using several rewards and incentives schemes to motivate their workforces and improve their performance. However, many retailers, particularly in Iceland have been facing challenges and difficulties in managing staff motivations and their performance in workplaces. In addition, most of the organizations including Iceland still now do not have enough understanding about the impact of several incentives programs/schemes on staffs motivations. According to the Iceland Annual Report (2014), Iceland is facing a high level of staff turnover (45%) and poor motivation, which has been impacting business performance and productivity. In addition, the highly competitive labor market has increased the demand for skilled and experienced workforces, which has reduced the staff retention level in Iceland. Therefore, it has been a significant issue for Iceland on how it can improve its staff motivation level and their performance in workplaces. As, according to Mullins (2013) notes, several incentives schemes play an important role in improving staff motivations and their performance in workplaces, Iceland has to conduct a study on how these incentives impact its workforces’ motivations.
Therefore, the undertaking study has evaluated the impact of several incentives and reward schemes on staff motivations in the perspectives of Iceland business. The study measures and evaluates Iceland’s workforce’s judgments towards incentives provided by Iceland and employees’ satisfaction and motivation levels against that incentives. Finally, the research work recommends Iceland so that it can improve its incentives and rewards programs to improve staffs motivations and work performances………