Analysis of Impact of Employee Turnover on Organizational Profitability: Burger Kings

1. Introduction

The study is having in depth discussion about the impact of employee turnover over organization profitability level (Mowday et al., 2013). The organization selected by researcher for this study is Burger king, one of the famous food chain organizations.

 

1.1 Aim of research study

The main aim of this study is to analyze the impact of employee turnover and performance over Burger King Profit share. In addition to this, the aim of this study is also to analyze the relation between the employee turnover and organization profitability.

 

1.2 Objective of research study

The objective of this research study is as –

• To determine the impact of turnover rate on Burger King operational efficiency.
• To analyze the reason behind Burge King employees turnover ratio and its affect on organization profitability
• To analyze the relation between the employee turnover and organization profit share
• To analyze the importance of employee turnover and organization profitability

1.3 Hypothesis

H0 – Burger king profit share is dependent on employee turnover ratio

H1 - Burger king profit share is not dependent on employee turnover ratio

2. Literature review

2.2 Analysis of employee turnover impact on Burger King Employees

As mentioned by Epstein and Buhovac (2014), employee turnover is dependent on many factors, that is, external and internal environment of organization and others. On the other hand, if employee performance or turnover is low, then organization overall performance will also be affected. Apart from this, Burger king is having their outlet in many places and the employees are also from different beliefs and society. So, their working style and method is also different, which affect the overall turnover of organization. In context to this Poole and Jenkins (2013) stated, employee’s turnover ratio is main factor on which organization profit share is dependent.

 

2.3 Relation among employee turnover and organizational profitability

In context to this Park and Shaw (2013) stated, employee turnover and organization profitability are independent on each others. The reason behind this is as, if employee is having low turnover then Burger King Profit share will be also low. On the other hand, if any individual is not performing better then, Burger king profitability will be affected in low share. But the team in which employee is working its performance and profit share will be affected. In context to this Appelbaum (2013) stated, the employee turnover is dependent on various factors, that is, their working style, environment of workplace. In addition to this, Burger King Profitability is also dependent on several factors, that is, selling rate, employee turnover ratio and others. On the other hand, employee turnover work as a motivational factor. That is, it help in motivating employees, if they will increase their individual turnover organization turnover will be improved automatically. In context to this Hancock et al. (2013) stated, if organization profit share is high the rewards and incentive provided to employees will also be high.

 

2.4 Summary

The employee turnover and Burger King Profitability is dependent on each other, that is, high range of profitability will only be gained when employees are performing better. The employee turnover is the main factor behind increase profitability range of organization.

 

3. Research methodology

3.1 Research approach

As mentioned by Heavey et al. (2013), the research approach opted In this research approach is deductive research approach. That is, the research is done taking into consideration top to bottom approach. The theories used are based on top to bottom approach.

 

3.2 Research design

In context to this Poole and Jenkins (2013) stated, blueprint of project plays very important role in presentation of designing and others. The research designing in this research study is done with the method of explanatory approach.

 

3.3 Research philosophy

The research philosophy method in this research study helps in collecting information in proper manner. The information collection is done with the help of different principles and theories based on this topic.

 

3.4 Data collection approach

The data collection in this research is done with the help of primary and secondary data collection method. Primary data collection is done with the help of Burger King Employee and secondary data is collected from different online sources.

 

3.5 Sample Size

The sample size opted for this research study is 10 employees of Burger king and 10 top Level employees.

 

3.6 Research ethics

The research study is completed taking into consideration all rule and regulations and code of conduct.

 

3.7 Limitations

The limitations regarding this research study are budget, time and limited source of information.

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References

Mowday, R. T., Porter, L. W., and Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic Press.

Epstein, M. J., and Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Poole, M., and Jenkins, G. (2013). The impact of economic democracy: Profit-sharing and employee-shareholding schemes. Routledge.

Park, T. Y., and Shaw, J. D. (2013). Turnover rates and organizational performance: A meta-analysis. Journal of Applied Psychology, 98(2), 268.

Appelbaum, E. (2013). THE IMPACT OF NEW FORMS OF WORK ORGANIZATION ON WORKERS”. Work and Employment in the High Performance Workplace, 120.

Hancock, J. I., Allen, D. G., Bosco, F. A., McDaniel, K. R., and Pierce, C. A. (2013). Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), 573-603.

Heavey, A. L., Holwerda, J. A., and Hausknecht, J. P. (2013). Causes and consequences of collective turnover: a meta-analytic review. Journal of Applied Psychology, 98(3), 412.