Beruflich Dokumente
Kultur Dokumente
Thesis Proposal
Submitted to the faculty of the
Department Management
Cavite State University – Carmona Campus
Carmona, Cavite
In partial fulfilment
of the requirements for the degree of
Bachelor of Science in Business Management
ANNE MIANO
ELDREIH CASTILLA
September 2018
FACTORS INFLUENCING EMPLOYEE RETENTION OF SERVICE CREWS
IN MC DONALD’S CARMONA, CAVITE
Anne Miano
Eldreih M. Castilla
Introduction
pressures to the labour-market (Burke and Ng,2006). According to the report from Hay Group
(2013), an employee turnover-rate of 23% was forecasted and the number of global voluntary-
Thus, on one hand, the organizational-issue was the lack of talented-workers, meanwhile,
on the other hand, organizations were faced with the risk of losing their skilled, experienced
human-resources which they already possessed (Gharib et al.,2017). This has potentially created a
competitive disadvantage to organizations (Moncarz et al.,2009) and subsequently has forced them
to consider employees as an important asset, who needs to be protected and retained (Kossivi et
al.,2016).
Retaining talented employees will not only boost the competitiveness of companies, but
will also reduce the cost of companies alleviating costly recruiting-cycles; which counts for like
(Kumar, 2012). Therefore, since issues of employee retention are recorded to be emerging with
the current and predicted increases in turnover rates, retaining employees is likely to be a major
challenge for employers in the immediate-future, which needs much focus from organizations
(Walsh and Taylor, 2007). Thus, the key focus of this research is to recognize and analyse the
Retention issues are emerging as the most critical workforce management challenges of
the immediate future. Researches have shown that in the future, successful organizations will be
those which adapt their organizational behaviour to the realities of the current work environment
where longevity and success depend upon innovation, creativity and flexibility. In fact, the
dynamics of the work environment will have to reflect a diverse population comprised of
individuals whose motivations, beliefs and value structures differ vastly from the past and from
one another. This phenomenon is especially true in light of current economic uncertainty and
following corporate downsizings when the impact of losing critical employees increases
employees who possess the requisite knowledge and ability to perform at high levels, meaning that
organizations failing to retain high performers will be left with an understaffed, less qualified
workforce that ultimately hinders their ability to remain competitive (Rappaport, Bancroft, &
Okum, 2003) with managers facing a difficult challenge of motivating and retaining the employees
in an environment of increased uncertainties (Mitchell, 2002). Retention rates generally falls as
employees become distracted, confused and preoccupied with potential outcomes immediately
following an organizational transition (Bridges, 1991). However, despite the vast literature on
employee turnover, which is aimed at identifying factors that cause employees to quit (Griffeth,
Hom, & Gaertner, 2000), much less is known about the factors that compel employees to stay. For
example, Maertz & Campion (1998) noted “relatively less turnover research has focused
specifically on how an employee decides to remain with an organization and what determines this
attachment…retention processes should be studied along with quitting processes”. Steel, Griffeth,
& Hom (2002) added “the fact is often overlooked, but the reasons people stay are not always the
The study was conducted to determine the Factors Influencing Employee Retention of
Service Crews in Mc Donalds’s Carmona Cavite. The researchers intended to know the following:
A. age;
B. sex;
D. length of service
2. How does compensation affect the employee retention of service crews in Mc Donald’s
Carmona, Cavite?
3. How does work life balance affect employee retention of service crews in Mc Donald’s
Carmona, Cavite?
4. How does management/leadership affect employee retention of service crews in Mc
6. Is there a significant relationship between work life balance and employee retention?
Generally, this study sought to examine the Factors influencing Employee Retention of
a. age;
b. sex;
d. length of service
Carmona, Cavite.
3. the work life balance affect employee retention of service crews in Mc Donald’s
Carmona, Cavite.
Carmona, Cavite.
6. assess a significant relationship between work life balance and employee retention.
A lot of individuals will be benefited in the outcome of this study specially the following:
Company. The outcome of this study may help the company to gain some advantage to
know that can be possible to less paying the recruiter to teach newbie in the field.
Employee. This study will help the employee to be aware of their presence in organization
HR Manager. Through this study HR Manager will know that their time and effort that
Researcher. The result of the study can serve as future reference for researchers and may
be used as the basis of making new study about the same topic.
The study will be conducted in Mc Donald’s Carmona Cavite from September 2018 to
December 2018.
The place of the study covered Carmona Cavite. The study was limited to the service crew
of Mc Donald’s were the participants regardless of their age, sex, civil status and length of service.
This study set limitation with the information gathered. The personal profile will include age, sex,
civil status and length of service. The Employee Retention will only include its factors belongs
Work life balance. is the term used to describe the balance that an individual needs
between time allocated for work and other aspects of life. Areas of life other than work-life can
be, but not limited to personal interests, family and social or leisure activities.
Conceptual Framework
The conceptual Framework of the study shows the relevant factors that influence employee
retention of service crews in Mc Donald’s in Carmona, Cavite. Figure 1 illustrates the influence
and connection of the independent variables to the dependent variable. In this study, compensation,
work-life balance and leadership will serve as the independent variables while employee retention
COMPENSATION
WORK-LIFE
EMPLOYEE
BALANCE
RETENTION
LEADERSHIP
Figure 1. Conceptual framework showing the relationship between the compensation, work-
life balance and leadership to the employee retention.
REVIEW OF RELATED LITERATURE
Employee Retention
workplace (Huang et al.,2006). It is when employees are encouraged to remain in the organization
Subsequently, has it created; a mandatory requirement for organizations to retain those human-
assets (Horwitz et al.,2003). Thus, this literature review mainly focuses on recognizing the factors,
and how they affect employee retention. Subsequently, as per studies of (George,2015; Moncarz
employee-retention.
Compensation
Compensation was defined as the sum of both financial and non-financial remuneration,
offered to employees by employers for the provision of their valuable services (Osibanjo et
al.,2004), which had a direct relationship with employee retention (Hytter,2007). Meanwhile, on
the other hand, Teseema and Soeters (2006), cited more specifically that voluntary turnover was
high among employees who valued higher financial-rewards as a part of their compensation-
package, which subsequently implied that compensation plays a major-role in retention. For
instance, professional nurses who migrated from South Africa cited compensation as the reason
for their leaving (Spence et al.,2009). Yet controversially, Hayes et al (2006) and Kossivi et al
(2016) stated that compensation and retention holds no-direct-relationship. For example, though
Google Inc. was famous for having a generous-compensation package, their median tenure was
around one year, due to the fact of the tech-market being hyper-competitive, with many new job-
opportunities (Business Insider,2015). Also, in the recent global survey of CEOs carried by PWC
(2011), they discovered that 65% of corporate-leaders were focusing on non-financial rewards.
Also, it was further cited by millennials that ‘money is not everything’. Furthermore, based on a
research carried by Kovach (2001) among industrial blue-collar workers, it was noted that
wages/salaries alone do not satisfy workers. Thus, it could be realized that; compensation is
moreover a key-driver of retention, yet it alone will not retain employees in the long-term, as unlike
in the past generations, today’s employees, both managerial and blue-collar workers think much
about the worth of their job, in many other aspects, like work/life-balance and employer-employee
Work-Life Balance
between a person’s personal-life and professional-life. Meanwhile, Estes and Michael (2005)
stated that work-life-balance includes; flexible work-arrangements and leaves, including practices
care. Over the years, work-life balance has become an increasingly significant factor for many
environment, employees tend to demand for flexible work-schedules which brings a balance
between their professional and personal lives (Ellenbecker,2004). According to a survey carried
by PWC (2011), 95% reported the importance of work-life-balance, whereas, 70% stated that it is
highly important. Millennials from Japan were the least concerned people about work-life-balance,
but still 85% of them said that work-life-balance is important to them. Furthermore, Kossivi et al
(2016) and Arnolds (2005) stated that; jobs that offer work-life-balance offer opportunities for
employees to fulfill their family and other responsibilities; like child and elderly-care-
commitments, educational-plans, religious-observances and fulfill the need for reduced levels of
stress, with flexible-work (ACAS,2015). These will boost employee retention levels, whereas,
work places which lack work-life-balance will be encountered with high turnover levels, implying
low-retention levels. For instance, in Taiwan, family matters, mainly including child care and
traditional family responsibilities (Sinha and Sinha,2012); regularly has affected the retention of
working-women, who consequently tend to have higher turnover-rates than men (Naqvi and
Bashir,2012). Thus, with respect to this concern, if work-life-balance existed, working mothers
could have planned their work schedules by considering their home and children-based schedules,
thus allocating dedicated time for both their professional and personal lives (George,2015).
Leadership
Leadership and Employee Retention Eisenberger and associates (1990) [51] suggested that
the supervisor. McNeese-Smith (1995) [52] mentioned in his study on Leadership behavior of
hospital directors found that there is significantly positive relation between productivity, work
satisfaction and organizational commitment of staff. Brunetto and Farr-Wharton (2002) [53] were
of the view that supervision of the immediate manager increases the level of job satisfaction in the
public sector employees. Chung-Hsiung Fang, Sue-Ting Chang, Guan-Li Chen (2009) [54] has
found that leadership style can affect organizational commitment and work satisfaction positively
and work satisfaction can affect organizational commitment and work performance positively.