In some service spheres, thresholds are higher, given the fact that employees in such spheres require special management techniques to measure their turnover rate. It is the responsibility of an organization’s managers to measure the rate of employee turnover. For example, the military sector represents a specific service industry in which the employee turnover rate may take a different form from other industries. The paper aims to investigate the causes of employee turnover increases among the staff of 1 Royal Irish Regiment (1RIR). To identify these causes, primary data collection methods are utilised. Self-completed questionnaires were given to employees of the British Army. Results of the investigation demonstrated that individual factors could not predict employee turnover rate, and there is no common model of behaviour to analyse the actions of 1RIR employees who wish to leave. The study revealed that the most common reasons for soldiers from 1RIR who decide to quit the organisation are down to medical problems, an absence of desired pension guarantees, cultural discomfort, and unsatisfactory wages provided to soldiers. The focus of the investigation is 1RIR, as it is the primary organisation providing services to the public on behalf of the Ministry of Defence (MOD). This research concludes that the 1RIR should implement retention strategies to help reduce the rate of military employee turnover. The management is also advised to focus on promoting job satisfaction to reduce the rate at which workers leave for alternative opportunities.
Key words: Employee turnover, MOD – Ministry of Defence, British Army, Retention and Causes.
In the modern society, respecting and preserving human capital is a prerequisite for the effective management of an organisation (Gupta 2010). Maintaining effective leadership appears to be the most significant skill for innovative leaders in the changing business community, which implies that managers have to adjust to the changing business skills (Ng'ete, Manusonge, and Iravo 2012). According to Shao and Sturman (2006), practice and proper organisational structure serve as a critical component of the administration of a Company in the supervision of a company. Moreover, the operation of any institution is not possible without respecting staff members and creating a favourable environment for them to work (Loane and Bell 2006).
In the recent years, the Ministry of Defence (MOD) has encountered numerous challenges regarding some sectors of the organisational structure of the military institution, such as the recruitment and retention of employees. Hausknecht and Holwerda (2013) explained that the MOD has developed and introduced numerous financial retention policies and schemes addressing employee turnover rates. After the implementation of these schemes, the rate of employee turnover keeps on increasing at a significant rate (Cigrang, Todd and Carbone 2000).
According to Mallinson (2014), the main challenge being faced by the British Army is poor recruitment coupled with increasing level of employee turnover. As a result, numerous serving soldiers are losing their motivation to remain part of the British Army. According to Loanne and Bell (2006), the development and application of retention strategies for qualified military personnel were prioritised in operation and functioning of the military. As a result, the overall organisational performance was improved because the most talented workers were retained. The extent of this problem, including an evaluation of the reasons for rising employee turnover in the British Army, has been the subject of consideration by the North Atlantic Treaty Organisation (NATO) Task Group (Neuman 2006). The retention of soldiers has become a serious issue for NATO, MOD and 1RIR and they seek to address it for the sake of maintaining national security (Cardon and Stevens 2004).
Understanding factors leading to employee motivation is critical when it comes to observing dynamic changes in turnover levels (Donovan 2001). This research on the influence of employee turnover in 1RIR highlights the external and internal factors affecting employee turnover. Furthermore, it analyses factors which undermine retention of soldiers in 1RIR. Thus, an investigation of turnover levels and their fluctuations within 1RIR is subjective to industry-specific internal and external factors, which is considered a great hindrance to the operation of military units. The paper aims to evaluate the effectiveness of all the methods and strategies that are used by the 1RIR management with the aim of retaining employees through motivation.
Statement of the Research Problem
Surji (2013) asserted that employee turnover is an integral part of the organisational structure and corporate governance of the military institution. High turnover rates cause numerous adverse outcomes, including low productivity, loss of trust and confidence (Jain 2013; Ling et al. 2005). Since the productivity of staffs and soldiers is partially contingent upon the level of employee turnover, the command officers must invest resources to expand effective retention strategies that satisfy employees' expectations and needs, which has not been greatly achieved by the British Army. Also, the implementation of motivational measures is a key rising concern in military departments. Human Resource managers find it necessary to enact motivational measures that aim at staff retention (Samuel and Chipunza 2009; Liu et al. 2006). A substantial level of motivation generally lacks in the British army, which essentially affects the operation of officers. According to (Stranks 2005), employee retention tends to be more effective when connected to a motivation that improves their morale to work.
Research Objectives
1. To determine factors that have led to the rise of employee turnover rates in 1RIR.
2. To determine the consequences arising from high turnover levels in the context of a military organisation.
3. To determine strategies that should be deployed by 1RIR to achieve staff retention.
Research Questions
1. What factors have led to the rise in employee turnover rates in 1RIR?
2. What consequences arise from high turnover levels in the context of a military organisation?
3. What strategies should 1RIR deploy to achieve staff retention?
The significance of the study
Understanding factors that determine employee turnover rate be critical for the operation of 1RIR as an organisation deployed worldwide on an emergency basis to conduct military operations (Zhang 2016). Studies focus on investigating the impact of numerous external and internal factors on the employee turnover rate regarding diverse business structures, while institutions such as the Army and 1RIR fall beyond the scope of most research (Samuel and Chipunza 2009; Liu et al. 2006). Recent reports indicate that employee turnover rate is higher in the British Army than in other military institutions (Zhang 2016). Various factors have a predominant influence on the soldier’s desire to perform their functions appropriately. Identification of any connection between the roots of employee turnover and the overall performance of 1RIR is significant to the functioning of military organisations. For this reason, responding to research questions such as what factors have led to a rise in employee retention rates will give the clear relationship between employee turnover rates and the general performance of 1RIR.
Structure of the study
The paper consists of logically connected six chapters the first one covered the introduction of the study, which includes the background information, research problem, research objectives and questions and lastly its significance. Chapter Two consists of a literature review of earlier studies relevant to this paper’s aim. Chapter three contains a description of the research design and framework which should be followed explicitly followed throughout the paper to define the influence of factors affecting the turnover rate. Chapter four covers an overview of questionnaires and focus group meetings responses. Chapter five outlines analysis of SMART concept about employee turnover, how to maintain qualified employees using retention strategies and improve the operation of 1RIR. Chapter six concludes the paper with turnover implication for the military industry and provides direction for future research.
Literature Review
This chapter provides a synthesis review of earlier studies on the subject of employee turnover, its causes and effects on the performance of companies within different industries. Analysing earlier studies allows an accurate depiction of the subject matter in order to measure assisting in measuring the turnover’s impact on the level of employee performance. Apart from the discussion of various theories, employee retention is considered in the context of military organisations, which applies to 1RIR.
Employee turnover and its causes
The notion of employee turnover is intimately connected to human capital management practices (Batt and Valcour 2001; Saunders et al. 2009). The provision of general training for employees affects the productivity of individual and organisation. According to scholars, a significant number of businesses and institutions encounter problems with retaining resourceful personnel (Morrell et al. 2004). Many available studies argue that an organisation’s employees remain nearly the sole driver of adequate performance in the marketplace (Morrell et al. 2004). Therefore, fluctuations in the turnover rate may cause problems for the company’s operational capabilities. Subsequently, an institution will be incapable of delivering quality services to its customers if it cannot retain workers, who have an interest in contributing to the organization’s development (McDermott 2011; Saunders et al. 2009).
An empirical study by Rowley and Purclee (2001) illustrated that there is a lack of a universal employee turnover model that can also differentiate the causes of low satisfaction or dissatisfaction with working conditions. Rowley and Purclee (2001) further indicated that the circumstances under which personnel leave organisations are unique. The scope of literature has been found to insufficiently explain the causes of voluntary decisions to quit an organisation (Liu 2014). Each Company invests significant resources in employee training (Van de Ven 2003). Consequently, effective strategies and policies that can minimise employee turnover are continuously sought (Simons and Hinkin 2001). Also, the retention of qualified employees has become an integral element of company strategy in recent years (Van Dyk and Coetzee 2012; Son 2014).
Staff turnover and the underlying reason for it influence the organisational effectiveness of companies across all industries (Bosman et al. 2005). However, employee turnover and retention are not standard issues for military organisations because the management assumes the use of recruitment policies necessary to acquire qualified personnel (Krueger 2001; Son 2014). A higher employee turnover rate also leads to lower staff productivity and demoralisation of the workforce (Holden and Scholtz 2002). Kotler and Armstrong (2013) indicate that the cost of employee turnover should be considered by every organisation regardless of status and industry because this rate is an indicator of organisational performance in addition to the overall financial outcomes of the company.
According to Fortescue (2014), numerous explanations are available for the roots of failure in the organisational performance some of which are seen 1RIR. For instance, leaving costs, personnel administration, patrolling cost of leaving employee, and the direct cost of the recruitment process. It also includes the time spent by human resource personnel in recruitment and selection, direct costs spent on staff training, and input costs that arise from employees' deciding to leave (Kotler and Armstrong 2013; Ahmad and Sawhney 2014). However, as explained by Fortescue (2014), the main issue for 1RIR is voluntary turnover. It refers to an act in which employees make a singular decision to terminate their contract for several personal reasons, such as applying for a new job with another organisation where compensation and benefits packages are comparatively improved (Becker and Cropanzano 2011; Zhu et al. 2016). An area that is attracting many 1RIR soldiers is the private security industry. According to research by Obradovic (2018), the number of army soldiers that left IRIR in the year 2015, 2016 and 2017 was 113, 146 and 171 soldiers respectively. The lure of a better wage and freedom to utilise personal time is a substantial influencing factor. Also, involuntary turnover takes place because of poor management practices that can expose an employee to dismissal or violation of employment policies (Loquercio, Hammersley and Emmens. 2006). The only time this affects retention in 1RIR is when a serious breach of discipline has happened, which compromise the values and standards of the institution by the individual’s behaviour or actions.
Investigating the potential effects of employees’ intentions to quit their job is crucial in establishing effective retention strategies Liu et al. (2013). In this respect, studies agree on the fact that various factors support the decision of employees to quit one company in favour of another. Firth et al. (2004) discussed how employees regularly experience stressful situations at work. In addition, Meyer et al. (2002) and Zhu et al. (2016) argued that employees tend to leave a company for economic reasons, including low salary and the lack of prospective career advancements.
Pinder (2008) includes a broader scope of factors, in comparison to previously discussed studies, such as the motivational process for intended decisions, the direction of causality, social fluctuations, and so on. Hence, why, by synthesising findings from earlier studies, a conclusion can be drawn showing that voluntary termination of employment relations should be considered. Thus, the roots of employee turnover in 1RIR should be considered via the application of structural variables, environmental factors, mediating variables, and demographic circumstances. Pizam and Thornburg (2000) recommended the development of an employee turnover model that can be used by managers to identify the roots of employees’ low satisfaction with their current working opportunities.
Taylor (2008) developed a new classification of the roots and causes, including controllable and uncontrollable factors. According to his model, rising turnover rates are a direct consequence from the personal feelings of individuals, who are bored with the lack of career developments as seen by McClelland in his Three Needs Theory. The theory elaborates how need to develop and achieve affects decisions of employees. Some employees also choose to quit the organisation once fed up with the managers of the organisation. Due to the current retention problems within 1RIR, opportunities for soldiers to deploy on career-enhancing courses are limited, compared to other units that have better retention planning procedures. Consequently, 1RIR operates with shorter timelines, giving deployments less time to see family and develop individuals’ professional levels (Andrzejewski 2013; Mendis 2017). According to Gupta (2010), this results in soldiers potentially lacking career development opportunities or worried with the rising deployment rates.
Taylor (2008) suggests that low satisfaction of individuals in the working environment is not sufficient reason for terminating service. For example, Mano, Negrin and Tzaf (2004) suggest the individual has to be able to prospect with employment opportunities and more security in another company. These assumptions would explain why 1RIR soldiers decide to quit only when a better job in the security industry is secured. Finally, Taylor (2008) recommends evaluating the reasons that encourage employees to leave organisations via the use of surveys and other types of primary data collection. This practice has been adopted by 1RIR, who have implemented a series of interviews for all soldiers, who terminate their service to evaluate argumentation and collect primary data, linking common reasons to leave (Heffner and Gade 2003; Mendis 2017). The interviews start with the Platoon Commander, who manages 25 soldiers and end with the head of the establishment, the Commanding Officer, who manages 560 soldiers.
Summarising the causes of employee turnover, Fitz-Enz (2009) elaborated an efficient model by classifying all the factors into several groups. In his study entitled ‘The ROI of Human Capital’, he described seven main reasons supporting employees’ intention to leave an organisation. These reasons are divided into the following:
1. Misfit of role with the individual’s expectations.
2. Misfit with the person’s qualifications.
3. Lack of training and proper communication between employees and managers.
4. Slow progress and limited advancement opportunities.
5. The devaluation of the individual.
6. The absence of balance between professional commitments and entertainment.
7. Low level of trust amongst employees and managers.
Impact of employee turnover on performance
Understanding the effects of employee turnover is vital as it gives the business an opportunity to assess and retain the most relevant workforce. According to Samuel and Chipunza (2009), the final output of an organisation is highly affected by employee turnover rate. When the number of employees leaving an organisation is high, it generally reduces production. There, high turnover has negative implications on the level of employee’s work performance of a business (Iqbal 2010).
According to Iqbal (2010), high employee turnover leads to reduced production, especially in military industry. The impact often soldiers leaving the army has a significant implication on the entire army. The productivity of the military is based upon the experience and number of soldiers available. In order to maintain the growth and progress of the IRIR organisation, the rate of employee turnover should be minimised. According to Curtis and Wright (2001), a high level of employee turnover will affect the ministry of defence that seeks regular deployment of soldiers to keep peace in different places. A high employee turnover rate will will render 1RIR unable to participate by offering soldiers in such critical emergencies.
As explained by Samuel and Chipunza (2009), a high employee turnover rate decreases the number of talented soldiers serving the organisation. According to Holden and Scholtz (2002), the most useful and valuable employees are the ones that quit the organisation voluntarily looking for well-paying opportunities. Because of employee turnover, the management of 1RIR is expected to implement retention policies and strategies to prevent future turnover of the workforce (Stovel and Bontis 2002).
Employee turnover in military organisations
Capon et al. (2007) conducted an extensive study on the employee retention level in military institutions. According to the results of their study, numerous theoretical aspects of retention and turnover applicable to military situations. In addition, the findings reaffirmed the significant role of organisational intervention in military institutions to civilian organisations in appraising work satisfaction and commitment. Another study, executed by Gultekin, Abdan and Kilic (2012), regards the role of human capital management techniques in the preservation of a stable military turnover rate. The paper concluded that scholars opt for case studies while focussing on specifics of the problems within one organisation, while there is no common position about employee turnover in all military institutions regardless of their location and cultural peculiarities. According to Shute and Oliver (2014), having an overview of the organisation contextually is significant before attempting to collect data related to turnover rate. According to the North Atlantic Treaty Organisation (NATO, 2007) survey, adverse effects of turnover rate on the performance of the military can be prevented with the use of a specific model developed by (Becker and Cropanzano 2011). The model is presented in the figure below.
According to Figure 1 above, managers within the organisations should consider all the factors, including those specific to the military sphere (Dowden, 2000). One may presume that this model can be applied to the employees’ turnover rates in any military organisation. However, Becker and Cropanzano (2011) advised that any military institution should look at features of its working conditions and assess the level of employees’ satisfaction with the current opportunities provided. Based on figure 1 above, there are various stages and factors that occur before employee’s decision to quit the military job. For instance, the employee might find other job alternatives or commit time in another sector. This triggers the intention to leave the current military employment (Zheng and Lamond 2010). The above model is relevant to the current study because it outlines possible factors that can guide the management to implement effective retention strategies.
Employee Retention Strategies
Mathews and Khann (2016) argue that employee retention strategies are mainly concerned with retaining valuable workers in the organisation by boosting their level of satisfaction. As explained by Berson and Linton (2005), this can be greatly achieved simply by providing feedback that is more positive. The results of research studies by Catteeuw et al. (2007), Fock et al. (2013), and Haise and Rucker (2003) shows that the satisfaction level of employees significantly increases when the organization provides positive feedbacks about work or job they have completed.
The annual publications of the Defence Committee reported on the importance of employee retention strategies development for military institutions for recruitment and retention of Armed Forces staff (Gultekin, Abdan and Kilic 2012). According to their report, one can trace in time the evolution of some problems about the management of British Army’s workforce, including high employee turnover rates and strategies applied towards this issue (Gultekin, Abdan and Kilic 2012). 1RIR have employed a retention officer within the Unit who holds monthly meetings to try to re-engage with soldiers who have requested to terminate their service. The rationale for this is a collection of data, assisting the identification of any trends, which would allow better practices across the Unit regarding dealing with soldiers with similar circumstances in the future.
Literature Conclusion
The Chapter illustrated evidence that reasserts that employee retention in 1RIR should be considered similar to the performance of any other company. The literature review revealed that retention of employee is complex, due to a variety of various, influencing decisions of employment termination. It can be argued, 1RIR need to have a joined-up approach along with the MOD to tackle the current retention problem. The turnover issue currently faced at the institution is depriving of the MOD’s confidence in deploying 1 RIR worldwide without the need of consolidating other units. If the ministry commonly relies on staff from other units for 1RIR tasks, the retention issue across the defence system will multiply. All parties must coordinate a coherent message on retention and understand that local solutions to retention may be an option for 1RIR. This paper aims to discover which basis could be used to discover the influence of employee turnover in 1RIR. Furthermore, it will provide insight into retention issues and prioritise parameters for tackling them in the context of 1RIR. In the next chapter, the researcher described in details the methodology that was applied to complete the empirical analysis.
Research Methodology
The current chapter contains an overview of the methodology used in this investigation and the connection between variables. It describes the methods, tools, as well as statistical techniques that were applied to investigate the research problem, which constitutes several factors causing fluctuations in turnover rates. Several aspects of research methodology were considered including the research design, method, instruments as wells as a technique of data analysis and ethical consideration among others as presented in the following sections.
Research Design
According to Jones (2009) research design can be defined simply as a general plan of action adopted by the researcher in order to answer the questions being explored by the study. Several types of research designs exists, however, for the currents study only descriptive design was adopted to investigate the research problem. According to Fassinger and Morrow (2013), the descriptive research design describes the research problem or population in terms of its existing characteristics as well as the existing relationships. The design was chosen because of its higher ability to accurately depicts characteristics of the phenomenon as well as unveil the existing relationships (Bryman and Bill 2015; Nassaji 2015; Nardi 2018; Kothari 2004).
Research Method
Mixed method
The current study was based on the use of a mixed method which essentially involves both qualitative and quantitative techniques (Fassinger and Morrow 2013). Research should be considered as a systemic approach to the formal investigation of a specific subject. Jones (2009) suggested that the availability of numerous research methodologies could be applied for consideration of diverse research problems. Venable (2012) emphasised that both quantitative and qualitative methods have various pros and cons related to the strengths and weaknesses of the investigation of the issue with the use of numerous instruments. Sirmon, Hitt, and Ireland (2007) noted that quantitative research aims to collect individual experiences regarding the subject in question (Creswell and Creswell 2017; Koul 2009).
Moreover, Fassinger and Morrow (2013) asserted that qualitative research aims to collect individual experiences regarding the subject in question. Using both types of research methods enhances the understanding of the phenomenon (Ventkatesh 2013). Venkatesh (2013) explained that a mixed research method could not be applied to the evaluation of similar research questions. However, the application of this research method aims to develop a proper understanding of the research problem from different perspectives (Walsham 2006). In addition, Teddlie and Tashajjori (2009) reaffirmed that employing a mixed research method ensures a stronger interpretation of the collected data in comparison to a single method. Hence, the use of mixed research methods may facilitate the identification of the strengths and avoidance of the weaknesses of qualitative and quantitative methods (Johnson and Turner 2003).
In addition, a quantitative research method should assist the researcher in the collection of numeric information concerning the roots of employee turnover (Punch 2013). Quantitative research methods provide the researcher with an opportunity to collect significant portions of information within a short period (Bryman and Bell 2015). The current study is prepared concerning the identity theory used to determine the scope of the subject matter in the paper in the form of processing research. Identity theory is the theory of mind based on which a researcher may trace the behaviour of an individual (Antonakis and Day 2017).
Sample Size and Sampling Technique
For the current research, the participants were employees of 1RIR. These soldiers had different lengths of service and contractual arrangements with the Army. Participants were invited via both military and civilian e-mail through a link they could open and confirm their participation in the survey. This link administered a ten-minute questionnaire. The questionnaire was created and distributed through Survey Monkey (Nesbary 2000). Also, quality was ensured through the platform. In addition, participants could request copies of their responses once confirmation of their preferences regarding employee retention was identified. Invitations for participation were sent throughout August 2018, and responses could be given until September 2018. An e-mail containing an invitation to participate in the survey was followed by invitation to a further group discussion, where the participants could share their views on employee retention (Neuman, 2006).
Chen (2010) described that the sample size should encompass a level that is representative and creates confidence. The sample in this research included 100 employees who work in diverse military departments. The sampling strategy represents an integral part of the research framework and design. According to Cameron (2016), errors are proportional to sample sizes, and the quality of data does not improve with a greater number of applicants. Application of a correct sampling strategy results in the active enrolment of the respondents in the primary data collection, which will produce accurate and valid information (Kumar 2014). The sampling procedure is critical in order to avoid any bias in the completion of the questionnaires (Hsu 2005).
Stratified sampling technique
Accordingly, the sample for this paper was developed using a stratified sampling technique. The sampling technique enabled the researcher to select sample respondents am
