ESLSCA BUSINESS SCHOOL

BUSINESS RESEARCH METHODS FOR MANAGERS

MASTER OF INTERNATIONAL BUSINESS ADMINISTRATION

FACTORS THAT AFFECTING THE

EMPLOYEE'S TURNOVER IN EEIC COMPANY

Prepared By: Mohamed Abdel Badee Abdel Rahman Mohamed

Prepared To: Dr. Adel Saker
Group: 51i

Cairo, Fall 2016

 |Page1

Table of Contents

ACKNOWLEDGMENT..........................................................................................................2

CHAPTER ONE: INTRODUCTION AND OVERVIEW..........................................................3

CHAPTER TWO: LITERATUREREVIEW.............................................................................6

CHAPTER THREE: THEORETICAL FRAMEWORK..........................................................10

CHAPTER FOUR: RESEARCH DESIGN............................................................................16

CHAPTER FIVE: FINAL CONCLUTION.............................................................................22

CHAPTER SIX: REFERENCES..........................................................................................24

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page2

Acknowledgment

I would like to thank Dr. Adel Saker for giving us this great chance to learn and gain
knowledge about using the research methods and techniques for dealing with our business
purposes and problems.

On the other hand, the using of parsimony from his side made me easily understand the
fundamentals of business research.

The thanks are extended to the way of testing our performance till the end of the term by
using a smart way that gave us the feeling that we are treated as MBA seekers and let us
use our understandings more that the memorizing, thus, I did my best to introduce my
problem in a good manner as much as I could.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page3

CHAPTER1: INTRODUCTION

AN OVERVIEW

EEI is a diversified electric industrial company, well established in Egypt since 1990 and
throughout the middle east.

Being one of the market leaders in today competitive local industries EEI has successfully
managed to impact the local market in various operational scopes such as manufacturing,
distribution, delivering turn key projects.

Today , EEI surpass its vision and goals for expansion as it has well spread over the middle
east and Africa region, increasing its customer data base and business value portfolio
across the overseas.

EEI , known to strive for continuous research and development which has led the entire
business to retain such customer loyalty throughout the past 20 years .

Quality and after sales services with the highest level of competence for each product that
holds EEI label . As well as abiding by the guidelines for various issues such as health
,safety and environment awareness and regulations is life time commitment to its
community and all its valued client is the final inspector.

EEI has three lines of products lighting fixtures, cable trays & UPVC conduits.

Recent years we face a significant problem regarding employee turnover and the negative
impact in sustaining the business due to the cost of turnover.

OBSERVATIONS

Todays competitive business world, it is considered to be an important task to manage

employee turnover for any organization. Naturally people want diversities in his/her
everyday life; seeks for new and challenging jobs and good working environment in job
place. To provide these things to the employees in an economic way is very difficult and
cumbersome.
But it is also crucial for any organization to retain its talented employees. Every organization
wished to have high productivity, fewer turnovers and to be profitable. Managing turnover
successfully is a must to achieve the above goals.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page4

The management of people at the work place is an integral part of the management process,
as they represent the most valuable assets and the most important resource of any company
and should not be treated as cost.

The successful companies do not only focusing on the capital investment but on the human
resources as the fundamental source of improvement.

The well managed business improve a healthy business environment the obtain, maintain
and retain the productive workers and employees, and in order to do that the business
needs to motivates this human capital and creates the will to work by motivating the
employees as the employee will not give you nothing if he is not motivated and it will finally
ended up with losing your most valuable asset affecting your rate of employees turn over.

In EEIC company it becomes more noticed in the last few years that the employees
turnover became high and there is a state of frustration and low morale, so, I do believe that
the company needs to study how it can motivates their human resources in order to retain
and sustain them as well as improving their productivity.

However, it could be understandable that an employee leaves work after a reasonable

period of time in his job, but it is difficult to understand why a recent graduate employee
leave his work after four or five months of the date of starting, and that is what had been
observed.

IMPACT OF OBSERVATIONS

As a result of this high rate of employees turn over the quality of work become at stake
and a state of lack of job stability has been appeared.

On the other hand, the negative impact become more sensitive regarding the sections and
departments that have sensitive information, design or knowhow.

Unfortunately, the high turnover affect negatively the current work force by creating general

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page5

atmosphere that company lost its power and ability to retain and sustain its human
resources.

By the way, the negative impacts of the observations are extended to the following aspects:
low productivity, replacing qualified employees, high cost of overtime or temporary help,
increasing in recruitment cost, and time and costs spend in interviewing and orientations.

PROBLEM DIFINITION

In current competitive business environment, it is considered to be an important task to

understand and manage employee turnover for any organization. Managing turnover
successfully is essential to achieve the organizational goals.
Significant numbers of researches has been done to understand the major causes of
employees turnover and retentions solutions that organizations should develop.
EEI company is increasingly suffer from the high rate of manpower turnover in the last five
years that affect the work stability, productivity, information safety, cost of replacing and
training of new employees, and human resources moral and loyalty.

RESEARCH OBJECTIVE & IMPORTANCE

RESEARCH OBJECTIVE

The research objective is to draw a full picture of the reasons of the high rate of the
manpower turnover in the last five years and what motivational factors affect it in order to
maintain, sustain, and retain our valuable human resources throughout delivering the
outcomes of the research to our HR department in order to help them for developing effective
motivational plans based on employees needs and considerations.

RESEARCH IMPORTANT

The importance of research is represented in increasing the work stability and flow,
increasing productivity, enhancing the work security, saving the cost of training and
developing the workforce and generally to avoid the negative effects of the above mention
impacts of observations.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page6

CHAPTER TWO: LITERATURE REVIEW

Turnover refers to retirement, resignation and redundancy. Employee turnover is

considered to be one of the persisting problems in organizations (Armstrong, 2009 cited in
Hana and Lucie, 2011). The turnover means that another organization may gain a new
knowledge employee who can become its competitive advantage. The loss of knowledge
thus is a threat for the former organization, which increases the significance of knowledge
continuity (Hana and Lucie, 2011).
The rate of turnover varies from company to company. The highest level of turnover
normally found in private sectors than public sectors. The levels of turnover also vary
from region to region. The highest rates are found where unemployment rate is lower and
where it is easy for people to get alternative employment (Neil Rankin, 2006).
The overall culture of an organization has a lot to do with employee satisfaction and
turnover, although achieving 0% employee turnover is unrealistic, high turnover can cause
major drawbacks to an organization. Yasser Hassan El Sayed, (2014). The Reasons
Behind Employee Turnover, Its Effect And The Methods To Reduce It (Masters thesis,
Eslsca Business School, Paris,).
Around 89% of managers believe employees leave for more money, and 11% of managers
believe employees leave for other reasons, while, 12% employees leave for more Money
and the rest percentage is for employees that leave for reasons other than Money (David A.
DeCenzo, Stephen P. Robbins, 2010).
Turnover occurs for many different reasons. Sometimes new job attracts employees and
make them to leave the old one. In contrary employee also pushed to leave job due to the
dissatisfaction in their present workplace or by domestic circumstances when someone
reallocates with their families (Michael A. Campion, 1991).
Limited Career and promotion opportunities, Coworkers' attitudes, and, poor supervision
represented in lack of respect and support, can be an important reasons for the employees
to leave their jobs. It is relatively rare for people to leave jobs where they are happy even if
they offered by higher salary elsewhere (David A. DeCenzo, Stephen P. Robbins, 2010).

Turnover risk could be minimized through considering different managerial tools. These
may include providing training to the line managers for an effective supervision before
upgrading them, providing security of jobs with good working environment etc. There may

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page7

be an offer for re-training the existing managers who have a poor record at keeping their
staff happily. Supervising managers could be responsible for employee turnover in their
teams. Maximization of opportunities for individual employees such as accommodate
individual preferences on working hours, regular appraisals, in addition to an effective
retention plan, providing as much job security as possible can help to reduce turnover
(HUTCHINSON, S. and PURCELL, 2003).
Turnover basically arises from the unhappiness from job place for individual employee. But
being unhappy in a job is not the only reason why people leave one company for another. If
the skills that they possess are in demand, they may be lured away by higher pay, better
benefits or better job growth potential. That's why it is important to know and recognize the
difference between employees who leave the job because they are unhappy and those who
leave for other reasons. There are number of factors that contribute to employee turnover.
We explore some of these factors in more detail below:
(I) The economy:
In exit interviews, one of the most common reasons given for leaving the job is the
availability of higher paying jobs. Some minimum wage workers reported for leaving one job
to another that pays only 50 cents an hour more. Obviously, in a better economy the
availability of alternative jobs plays a role in turnover, but this tends to be overstated in exit
interviews.
(ii) The characteristics of the job:
Some jobs are intrinsically more attractive than others. A job's attractiveness will be
affected by many characteristics, including its repetitiveness,
challenges, danger, perceived importance and capacity to elicit a sense of accomplishment.
(iii) Demographics:
Empirical studies have demonstrated that turnover is associated in particular situations
with demographic and biographical characteristics of workers.
(iv) The person:
In addition to the factors listed above, there are also factors specific to the individual that
can influence turnover rates. These include both personal and trait-based factors. Personal
factors include things such as changes in family situation, a desire to learn a new skill or
trade or an unsolicited job offer. In addition to these personal factors, there are also trait-
based or personality features that are associated with turnover.
(v) A bad match between the employee's skills and the job:

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page8

Employees who are placed in jobs that are too difficult for them or whose skills are
underutilized may become discouraged and quit the job.
(vi) Substandard equipment, tools or facilities:
If working conditions are substandard or the workplace lacks important facilities such as
proper lighting, furniture, restrooms and other health and safety provisions, employees will
not be willing to put up with the inconvenience for long time.
(vii) Lack of opportunity for advancement or growth:
If the job is basically a dead-end proposition, this should be explained before hiring so as
not to mislead the employee. The job should be described precisely, without raising false
hopes for growth and advancement in the position.
(viii) Feelings of not being appreciated:
Since employees generally want to do a good job, it follows that they also want to be
appreciated and recognized for their works. Even the most seasoned employee needs to be
told what he or she is doing right once in a while.
(ix) Inadequate or lackluster supervision and training:
Employees need guidance and direction. New employees may need extra help in learning
an unfamiliar job. Similarly, the absence of a training program may cause workers to fall
behind in their level of performance and feel that their abilities are lacking.
(x) Unequal or substandard wage structures:
Inequity in pay structures or low pay is great causes of dissatisfaction and can drive some
employees to quit. Again, a new worker may wonder why the person next to him is
receiving a higher wage for what is perceived to be the same work (as cited in AHM
Shamsuzzoha & Md. Rezaul Hasan Shumon, 2006).

In the article, All aboard, featured in the March, 2016 issue of Professional Carwashing &
Detailing Group Editorial Director/Editor in Chief Rich DiPaolo discusses why employee
training is essential to ensure profitable operations for car care businesses. Employee
turnover, writes DiPaolo in the article, is common in the Carwashing industry. In the article,
Steve Gaudreau, president of Brink Results LLC (gaudreau@brinkresults.com), shares four
major variables of employee turnover in the Carwashing industry as follows:

1. The types of compensation that you offer: What you pay determines to some degree
who you attract, he says. Look at the local competition and the overall market
averages, and see what other carwash owners and operators are paying; and, if you

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 |Page9

are interested in attracting the best of the best, consider raising your starting wage
by a dollar or two over the average.
2. The process of interview: Carwashing is a fast-paced and physical work
environment. Therefore, notes Gaudreau, you want to hire people with high energy
to work for your business. Crew employees have to be able to bend, twist, lift, push,
pull, wipe, etc. Hiring high-energy and physically able candidates is important to
achieve these tasks. If you hire low energy, you get high turnover, he warns.
3. The training program if any: Most people are trained on-the-job by another employee
who informs them what their mistakes are, creating negative feedback. The right
way to train is upfront, which is positive reinforcement from day one, asserts
Gaudreau.
4. The management style of people: This is a matter of personal respect. If you need
to correct an employee, do it privately and not publicly. And, do not be angry, upset
or yell; instead, communicate with the employee in a calm and professional manner,
advises Gaudreau.

The most common reason why people quit, according to various surveys and polls, is
because they were mistreated by their immediate boss, continues Gaudreau in the article.

An empirical results of a study of factors affecting turnover intention of hotel employees

showed that (1) more harmonious coworker relationships between hotel employees and a
higher level of satisfaction regarding their work environment have a significantly positive
effect on job satisfaction; (2) a higher level of organizational commitment among hotel
employees has a significantly negative effect on turnover intention; (3) the direct effect of
employee job satisfaction and salary level on turnover intention has not reached a
significant level. Nevertheless, the two factors have indirect negative effects on turnover
intention (Chun-Chang Lee, Sheng-Hsiung Huang, Chen- Yi Zhao3, 2010)

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 11

CHAPTER THREE: THEORETICAL FRAMEWORK

ITRODUCTION

The theoretical or conceptual framework of this study theorizing the relationships among
several variables relevant to the determinates that affect the employees turnover in
company EEI.

The factors affecting employee turnover today have become increasingly complex
where they are numerous and complex in relation to each other. Nevertheless, among all
the possible factors affecting employee Turnover that I collected from the preliminary
observations through the cases of turnover in my company and through the inventory of
variables that I collected from the review of previously published literature associated with
the problem of the employee turnover, the selected model suggest that factors of
compensation, work stress, job satisfaction, work family conflict, management style, and,
organizational commitment.

The suggested variables represent from my point of view as illustrated above the most
important variables that could affect the employee turnover in my case, company EEI, and
this does not mean that there are no other important factors affecting the employee
turnover by different degrees.
Based on the above I can summarize the factors (variables) that affect employee turnover
in my case as follows:

Compensation
When it comes to your hear the term compensation it comes to your mind the meaning
of "what a person is paid". Although this is true, it is only one component of a complex topic.
Compensation includes not only salary, but also the direct and indirect rewards and benefits
the employee is provided with in return for their contribution to the organization.
Work stress
The health and Safety Executive (HSE) define stress as the adverse reaction people
have to excessive pressures or other types of demand placed on them. Recent research
shows that this adverse reaction can seriously undermine the quality of peoples working
lives and, in turn, the effectiveness of the workplace.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 11

Job satisfaction
Is an attitude that individuals have about their jobs. It results from their perception of
their jobs, including the overall satisfaction of individual psychology, physical environment
and working environment. Job satisfaction generally defined as a pleasurable or positive
emotional state resulting from the appraisal of ones job or job experiences, Dissatisfied
Employees with their work are likely to leave the organization as compared to those who
think they treated fairly and duly rewarded. Therefore, job satisfaction is negatively
associated with turnover
Work-family conflict
The work-family conflict facet was defined as a form of inter-role conflict occurring as a
result of general demands and strain created by the job interfering with ones ability to
perform family related responsibilities (Netemeyer et al., 1996). In contrast, Netemeyer et
al. (1996) defined the family-work conflict facet as role conflict resulting from general
demands and strain created by the family interfering with an employees ability to perform
responsibilities related to work. These two facets when combined form one overarching
work-family conflict construct.
Management style and Lack of supervision

This is a matter of personal respect. If you need to correct an employee, do it privately

and not publicly. And, do not be angry, upset or yell; instead, communicate with the
employee in a calm and professional manner, (advises Gaudreau.)

Every leader has a unique style of handling the employees (Juniors/Team). The various
ways of dealing with the subordinates at the workplace is called as management style.

The superiors must decide on the future course of action as per the existing culture and
conditions at the workplace. The nature of employees and their mindsets also affect the
management style of working.

Organizational commitment

Commitment is a very multidimensional concept and therefore somewhat hard to define.

Commitment has been studied much, and it still remains one of the most challenging and
researched in the fields of management, organizational behavior and human resource
management (Cohen 2007, 33).

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 12

What is good to notice, is that these various commitments will exist at the same time and
employees always have many commitments to different institutions and people, for

example, family, friends, sports and community groups. Therefore, it is unrealistic to expect
total commitment to the organization. (Heery & Noon 2001, 91.)

Organizational commitment also can be defined as the strong belief in and acceptance of
the organizations goals and values, a willingness to exert considerable effort on behalf of
the organization, and a definite desire to maintain organizational membership.

DEPENDENT VARIABLES

Employee turnover:

The ratio of the number of employees that leave a company through attrition, dismissal, or
resignation during a period to the number of employees on payroll during the same period

INDEPENDENT VARIABLES

Compensation
Work stress
Job satisfaction
Work-family conflict
Management style and Lack of supervision
Organizational commitment

MODERATING VARIABLES

Gender:

The gender as a demographic moderating variable affecting the dependent variables of

work stress and work-family conflict as the degree that these two independent variables
affecting the employees turnover increased if the gender is female and decreased if the
gender is male.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 13

SCHEMATIC DIAGRAM

The proposed model for this Thesis illustrated in the following figure:

Compensation

Work Stress

Management
style

Gender Employee
Type Turnover
T Ty
Organizational
Commitment
Work-family
Conflict

Job
Satisfaction

RESEARCH ASSUMPTIONS

Assumption 1: Social, economic, and, all other external factors are assumed to be constant
during the research

RESEARCH LIMITATIONS

Limit 1: Research is limited to EEI company as applied research and could be applicable for
the family business in Egypt

Limit 2: The theoretical framework is limited to the variables included in the model.

Limit 3: Research is limited to employees who are in jobs needed for higher education

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 14

RESEARCH QUESTIONS

MAJOR QUESTIONS

Major Q1: What are the reasons behind employees turnover?

Major Q2: What are the recommendations that could be provided in order to eliminate this
phenomena in EEI company?

MINOR QUESTIONS

Minor Q1: Does the current compensation system affect employee turnover rate?

Minor Q2: Does the work stress variable affect employee turnover rate?

Minor Q3: Does the job satisfaction affect employee turnover rate?

Minor Q4: Does the work-family conflict affect employee turnover rate?

Minor Q5: Does the management style and Lack of supervision affect employee turnover
rate?

Minor Q6: Does the organizational commitment affect employee turnover rate?

Minor Q7: Does the gender type affect the work stress variable?

Minor Q8: Does the gender type affect the work-family conflict variable?

HYPOTHESIS

First, there is a need to make clear understanding with the term of Hypotheses.

Hypotheses are statements whose truth you want to test, or predicted answers to
research questions (Robson, 2002).

Here under I have developed hypothesis statement on the bases of my theoretical

framework, and then I will try to proof these statements:

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 15

Hypothesis # 1

Ho: There is no relationship between the current compensation system and the employee
turnover rate.

H1: There is relationship between the current compensation system and the employee
turnover rate.

Hypothesis # 2

Ho: There is no relationship between the work stress and the employee turnover rate.

H1: There is relationship between the work stress and the employee turnover rate.

Hypothesis # 3

Ho: There is no relationship between the job satisfaction and the employee turnover rate.

H1: There is relationship between the job satisfaction and the employee turnover rate.

Hypothesis # 4

Ho: There is no relationship between the work-family conflict and the employee turnover
rate.

H1: There is relationship between the work-family conflict and the employee turnover rate.

Hypothesis # 5

Ho: There is no relationship between the management style and Lack of supervision and
the employee turnover rate.

H1: There is relationship between the management style and Lack of supervision and the
employee turnover rate.

Hypothesis # 6

Ho: There is no relationship between the organizational commitment and the employee
turnover rate.

H1: There is relationship between the organizational commitment and the employee
turnover rate.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 16

Hypothesis # 7

Ho: There is no relationship between the gender type and the work stress.

H1: There is relationship between the gender type and the work stress.

Hypothesis # 8

Ho: There is no relationship between the gender type and the work-family conflict.

H1: There is relationship between the gender type and the work-family conflict.

CHAPTER FOUR: RESEARCH DESIGN

RESEARCH TYPE

The thesis paradigm is quantitative, for an exploratory, descriptive purpose. The logic of
this research is deductive, as the proposed model was been built using established theories
and models.

The used process is Quantitative and the outcome is applied, the findings is a set of
recommendations for turnover problem in EEI company and the family business and
companies in Egypt.

The time horizon of this thesis is a cross-sectional study.

Unit of analysis (population) is: EEI company

Unit of data collection is: Current and past individuals

The research is Ex-post-facto design. No control over the variables. Report only what
has happened or what is happening as a survey research.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 17

DATA COLLECTION

Questionnaire

A self-administered questionnaire used; the respondents were targeted through e-mails.

and I assumed the success of the questionnaire and the following is the questionnaire
design:

Purpose of the questionnaire is to study the factors affecting the employee turnover rate of
EEI company, so, please read and answer all the following questions carefully putting into
your kind consideration that all information will be treated as extremely confidential.

Many thanks in advance as your answer will be really worth for me.

1. I had ideas of quitting my line of work

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

2. I often thought about quitting my present line of work

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

3. I constantly searched for a better alternative to the company

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

4. I actively seek an alternative work role within the company

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

5. I feel to quit the organization due to lack of sense of fulfillment of personal goals

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 18

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

6. Your gender is:

A) Male B)Female

7. What is your age group:

A) 21-24 B) 25-34 C)35-44 D) 45-55 E) Over 5

8. What is your Department:

.............................................................................

9. For how long you have been worked for EEI company:

A) Less than one year B) 1 year to 3 years C) 3 year to 6 years

D) 6 years to 10 years E) Over 10 years

10. The salary package and monetary incentives were sufficient in my company

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

11. The load of work is compatible with the formal time available

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

12. I get assignments without adequate resources and materials to execute it

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 19

13. In comparison to rewards or facilities, my work load is:

A) Extremely less B) Less C) Equal D) More E) Extremely more

14. I feel that I have grown along with my organization

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

15. I am happy with the organizational culture and work environment

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

16. I believe that my skills are used for the better development of the company
A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

17. My work makes me change my plans for family activities

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

18. The demands of my work interfere with my home and family life

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

19. Time spent in my job makes it difficult to fulfill family responsibilities.

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

20. Your immediate supervisor encourages / appreciates your work?

A) Not at all B) Usually not C) Neutral D) Sometimes yes E) Always

21. Your immediate supervisor shows enough respect

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 21

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

22. My supervisor provide enough support and information about my job

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

23. Deciding to work for this organization was a mistake

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

24. I feel that the organization is committed to its employees and their emergency needs

A) Extremely disagree B) Disagree C) Neutral D) Agree E) Extremely agree

CONSTRUCT QUESTIONNAIRE QUESTIONS

What is your gender Q6

What is your age group Q7
Gender
What is your department Q8
For how long you have been worked for EEI company Q9
The salary package and monetary incentives were sufficient
Compensation Q10
in my company
The load of work is compatible with the formal time available Q11
I get assignments without adequate resources and materials
Q12
Work Stress to execute it
In comparison to rewards or facilities, my work load is
Q13
(answer)
I feel that I have grown along with my organization Q14
I am happy with the organizational culture and work
Q15
Job Satisfaction environment
I believe that my skills are used for the better development of
Q16
the company
My work makes me change my plans for family activities Q17
Work-family Demands of my work interfere with my home and family life Q18
Conflict Time spent in my job makes it difficult to fulfill family
Q19
responsibilities
immediate supervisor encourages / appreciates your work Q20
Style of Your immediate supervisor shows enough respect Q21
Management My supervisor provide enough support and information about
Q22
my job
Deciding to work for this organization was a mistake Q23
Organizational
I feel that the organization is committed to its employees and
Commitment Q24
their emergency needs

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 21

DISCUSSION

The questionnaire run successfully and the results tended to accept the and proofed the
existence of the relationship between the proposed independent variables and the
employee turnover rate in EEI company but the degree of the strength of this relation varies
from factor to another.

In our case, the compensation system in the company represent the most variable that
affect the employee turnover rate as it is not compatible with the average market levels.

The overall work environment included high rate of work flow and unorganized work steps
causes a high work load and stress and increased the work-family conflict as the
employees had to work a lot of overtime which came on the account of their families' needs.

Most of the company's departments had a problems in the style of management as the style
of X managers existed more that the Y style, and, the absence of concepts like flat
organization, coaching, leadership skills, empowerment,..each that related to the
contemporary management affected negatively the co-worker relationships.

All the above affected the organizational commitment and the level of job satisfaction but by
a less degree comparing with the compensation as the economic status of Egypt after Jan's
revolution was increasingly hard in the mean of increased rate of inflation which represent
high pressure on the financial position of the individuals especially there were not equal
increases of salaries to face these new financial obligations for the employees.

The study shows that there is another moderating variable that affect all of the independent
variables which is the age that was not included in my proposal but it's effect is great as the
younger age groups had a little bit flexibility regarding the proposed independent variables
more that the older age groups.

The environment of EEI company is reflecting the types of organization in Egypt which
called the business family work environment and it is generally similar from on to another a
that's why I belief that the proposal could be applicable for the same environments.

Finally, the Ho hypotheses for all variables is proved by the result of the questionnaire
which assumed to be successfully analyzed.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 22

CHAPTER FIVE: FINAL CONCLUSION

The problem of the increasing of the rate of employee turnover in EEI company was
observed after the Jan's revolution 2011 and all of its economical side effects that push a lot
of companies in Egypt event to liquidate their business and leave the country our to
compressed their expenditures and follow a very restricted cut cost plan in order to maintain
their profitability.

This problem of not increasing salaries plus the old fashion of management style and the
inexistence of effective human recourses management indicated in a high rate of employee
turnover as they offered a respectable packages from other companies.

As recommendations the management of the company should pay enough attention to the
employee turnover as it affect negatively the work stability, productivity, information safety,
cost of replacing and training of new employees, and human resources moral and loyalty.
The Organization also suffer the loss of job-specific skills trouble in production and incur
costs of hiring and training new workers.

Although, labor turnover increase organizational cost, affect organization plan, ongoing
projects and cause countless problems to organization, but there are some advantages to
it. These advantages are replacement of separated employees with new ones who could
bring Experiences, knowledge, practices and skills

Turnover can be driver to organizational renewal. Although high turnover is expensive, low
rate can cost saving. In addition, competent ones with lower salary could replace
employees with higher salary. The organization can undergo some form of restructuring,
merger of some positions, which can improve bottom line. Turnover can enable
organization eliminate poor performances, unmotivated workers and people who are
difficult to get along with.

Controlling for job dissatisfaction is only option. Take a good look at employees who are
dissatisfied with their work and see if adjustments in hours, duties or work practices can
elevate the situation. Remember that the remaining dissatisfied employee may begin to
overreact and actually work against you. If you have high turnover among sales persons
and other such jobs even among your long term employees you had better take a hard look
at how employees feel about their supervision, work rules, work environment and the
organization as a whole.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 23

Finally the organization should make major changes in its management to ensure applying
the contemporary and human resources management and develop an effective
compensation plan retain and maintain its human capital.

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 24

CHAPTER SIX: REFERENCES

- Urbancov Hana, Linhartov Lucie, Staff Turnover as a Possible Threat to Knowledge

Loss, Journal of Competitiveness, 2011

- Neil Rankin, Managing Staff Turnover and Retention, 2006

- David A. DeCenzo, Stephen P. Robbins, Human Resource Management, Wiley, 2010

- Michael A. Campion, Meaning and measurement of turnover: Comparison of alternative

measures and recommendations for research

- Yasser Hassan El Sayed, (2014). The Reasons Behind Employee Turnover, Its Effect

And The Methods To Reduce It (Masters thesis, Eslsca Business School, Paris,).

- Hutchinson and Purcell, Employee turnover and maintaining knowledge continuity in large

and small organizations, 2003

- AHM Shamsuzzoha, Md. Rezaul Hasan Shumon, Employee Turnover-a Study of its

Causes and Effects to Different Industries in Bangladesh, 2006

- In the article, All aboard, featured in the March, 2016 issue of Professional Carwashing &

Detailing Group Editorial Director/Editor in Chief Rich DiPaolo

- Chun-Chang Lee, Sheng-Hsiung Huang, Chen- Yi Zhao3, A STUDY ON FACTORS

AFFECTING TURNOVER INTENTION OF HOTEL EMPOLYEES, 2010

- Elina Anttila, COMPONENTS OF ORGANIZATIONAL COMMITMENT, University of

Tampere School of Education, Masters thesis, October 2014

- www.acas.org.uk/businesssolutions, Stress at work, 2014

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016

 | P a g e 25

- http://www.hr.com/en/app/blog/2010/02/compensation-and-benefits-definition-and-

importanc_g5kiosxm.html

- Patrice L. Esson, CONSEQUENCES OF WORK-FAMILY CONFLICT: TESTING A NEW

MODEL OF WORK-RELATED, NON-WORK RELATED AND STRESS-RELATED

OUTCOMES, Thesis submitted to the Faculty of the Virginia Polytechnic Institute and State

University, 2004

- ATG Educational, HUMAN RESOURCES MANAGEMENT, London 2008

- Zorlu Senyucel, Managing the Human Resources in the 21st Century, 2009

- Other References

Mohamed Abdel Badee, Factors Affecting Employees Turnover In EEIC, 2016