Evaluate the Effective of Incentive Schemes on Employee Retention (GC02031)
Table of Contents
Introduction.
1.0 Introduction.
1.1 Research Rationale.
1.3 Research aims and objectives.
1.4 Research Hypothesis.
1.5 Research Questions.
Literature Review.
2.0 Introduction.
2.1 What is staff retention?.
2.2 Importance of staffs retention.
2.3 Incentive schemes.
2.4 Impact of inventive schemes on staffs retention.
2.5 Incentives schemes and staffs retention scenarios in Iceland.
2.6 Links between incentive schemes and staff retention.
2.7 Conceptual framework.
Research Mythologies.
3.0 Introduction.
3.2 Type of investigation.
3.3 Data collection methods.
3.4 Sampling method.
3.4 Accessibility Issues.
3.6 Ethical issues.
3.7 Data analysis plan.
3.8 Research limitations.
3.9 Research timetable in Gantt Chart.
4.0 Conclusion.
5.0 References.
Introduction
1.0 Introduction
Retained workforces contribute more with their skills and experiences in the workplaces than newly joined ones Mullins (2009). However, high employee turnovers 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). Staffs motivations through different incentives can play an important role to improve employee retention level 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 staffs and skills shortages, increasing costs in selection and recruitment, training and development, and impacting productivity and workforce performance (Iceland Annual Report, 2014).
As a result, this proposed study will evaluate the effectiveness of different incentives programs on customer retention level to suggest Iceland for improving its incentives schemes to motivate and retain staff for a long time basis.
1.1 Research Rationale
What is the issue?
UK retail industry is facing challenges in staffs motivation, retention and loyalty (Bratton and Gold, 2012) which are giving hard time in fulfilling staffs experiences and staffs shortage, gaining improved productivity and performance (Mullion, 2009). In the same way, Iceland is facing an increased staffs turnover of 44%, which is impacting its overall cost, profit, productivity and performance. Thus, Iceland needs to find out ways of improving its staff’s retention level.
Why is it an issue?
High staffs turnover in UK retail industry including Iceland is impacting business in different ways (Groysberg, 2010). It is creating skills and staffs shortages which are reducing overall staffs performance in Iceland. In addition, when staffs leave frequently Iceland needs to recruit frequently and need to train and develop the new staffs, which are cost-effective and time-consuming. Furthermore, when new staff joins in workplaces it takes time to perform better, which impacts overall productivity. In a word, high employee turnover impacts Iceland sales and profits. Consequently, it needs to motivate and retain its staff for a long time.
Why is it an issue now?
Employee motivations with several incentives schemes can improve staffs retention levels significantly (Briton and Gold, 2012). Although there are some incentives schemes that existed in Iceland, in most cases staffs are not happy with that. In addition, Iceland is failed to identify its staff’s needs and expectations in many cases. On the other hand, Iceland sometimes ignores these significant issues because of enough understanding of the effectiveness of incentive schemes on staffs retention. Therefore, Iceland needs to know the effectiveness of incentives schemes in improving staffs retention levels.
What could this research shed light on?
The proposed study will evaluate the effectiveness of the widely used incentive schemes in the retail industry. Then, the study will evaluate the incentives schemes used in Iceland, and identify Iceland’s staff’s needs and expectations. Next, the study will find out the weaknesses of Iceland’s incentives schemes. Finally, the study will suggest Iceland for
1.3 Research aims and objectives
Research aims
The aim of the study is to evaluate the effectiveness of incentive schemes in motivating staff and improving their retention level in the UK retail industry to suggest Iceland improve its incentives programs.
Research objectives
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.
1.4 Research Hypothesis
H1: Incentive schemes have a significant impact on staffs motivation and loyalty.
H3: Incentive schemes do not have any influences on staffs motivation and loyalty.
1.5 Research Questions
1) What types of incentive schemes are used by Iceland to improve its employee loyalty?
2) Is Iceland able to retain its staff with its existing incentive chemise?
3) How much Iceland’s existing schemes are effective in its employees’ view?
4) What are the impacts of incentive schemes on staff retention?
5) What are the gaps in Iceland’s incentive schemes?
5) How can Iceland develop its incentive schemes to improve staffs loyalty?
Literature Review
2.0 Introduction
In this chapter, the researcher has critically evaluated the literature of research subjects. Firstly, the researchers have focused on the impact of incentive schemes on staffs motivation and loyalty. secondly, the researcher has emphasized existing inceptive schemes applied in the Icelandic workplace. In the end, the research has concentred on undertaking researches on the research topics and subjects…………………………….
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