Proposal For Researching Solutions To Employee Retention

Proposal For Researching Solutions To Employee Retention Issues At Sta

This proposal aims at sourcing funding that would be utilized in conducting research regarding solutions to the problem of employee turnover in Starbucks. The overall goal is to establish and analyze causes of employee turnover and look at ways to improve on it. To ensure that the research gathers adequate information, the study will use quantitative surveys and qualitative interviews. Some of the strategies that have been recommended include increased provision of career development activities, accommodation for flexible work schedules, and better pay and perks.

The specific objectives and research questions developed for the project will be executed according to a clear timeline and budget to make the study comprehensive and efficient. Overall, addressing employee retention remains a key avenue for enhancing productivity, morale, and profitability for the Starbucks organization.

Current Problem

A major concern for Starbucks is the high turnover rates, which has a dire impact on productivity and financial success (Azriuddin et al., 2020). High turnover also means that there are many costs related to factors like recruitment, selection, and training of new employees. These costs are not negligible; based on data from the society for Human Resource Management, the cost for employee turnover has been estimated to be about 6-9 months of the exiting employee's salary (SHRM, 2019).

In a company like Starbucks, which employs a vast workforce, such costs can quickly add up and therefore result in sizeable losses. In addition, high turnover poses inconvenience through creating organizational disruption through poor performance, and low productivity. When the fair-weather employees leave, the faithful workers are left to deal with additional work and stress, which may make them quit as well (Azriuddin et al., 2020). Fluctuations in staffing may also lead to the company's reduced ability to provide quality customer service, which is especially important in the highly saturated coffee market. A lack of a proper attitude towards customers always hampers sales and leads to the erosion of the company's reputation among the customers.

Industry statistics indicate that the employee turnover rate stands at 60% in the retail sector (Fuller et al., 2022). However, Starbucks has been experiencing approximately 65% (Starbucks, 2022). This is even higher than the turnover rate of the food services industry, proving that Starbucks needs to implement better retention practices. For example, the survey conducted in 2023 reported that 45% of the Starbucks employees left the company because of the absence of career advancement opportunities (The Workforce Institute at UKG, 2023). This fact shows that there is a stark absence of the company's focus on adequate employee development initiatives.

Also, employees indicated a moderate level of dissatisfaction with flexibility of the scheduling by 35% (The Workforce Institute at UKG, 2023). Strict timetables can cause organizational conflict with personal time, which is especially sensitive when the employee is studying or has family duties. Such dissatisfaction with scheduling can lead the employees to search for other employment opportunities with a better scheduling system. Moreover, new employees claimed that they would leave if their pay was insufficient, and 20% of employees agreed with this statement (The Workforce Institute at UKG, 2023). Fair remuneration policies such as competitive wages and benefits are essential in keeping employees since most industries are keen on high turnovers.

This means that Starbucks must revisit its compensation policies to ensure they are adequate and competitive in the industry. Conclusively, solving all these challenges is crucial for ensuring high levels of employee satisfaction and turnover, organizational performance, service quality, and profitability.

Proposed Research

Research Objectives

• Identify the main factors contributing to employee turnover at Starbucks.
• Evaluate the effectiveness of existing retention strategies.
• Propose and assess the feasibility of three innovative retention solutions.

Methodology

· Quantitative Surveys: Distributed to employees across various Starbucks locations to gather data on job satisfaction, engagement, and reasons for leaving.

· Qualitative Focus Groups and Interviews: Conducted with current and former employees, as well as management, to gain deeper insights.

· Data Analysis: Quantitative data will be analyzed using statistical software, while qualitative data will be coded and thematically analyzed.

Proposed Solutions

To counter the major problem of high turnover rates among Starbucks' personnel, the following specific measures are suggested:

First, career advancement opportunities are very limited, and this is one of the reasons why people tend to leave the company. To counter this, Starbucks should adopt systemized career growth frameworks, learning maps, and other professional development initiatives. The prospect of career advancement is yet another element that Starbucks can use to improve its employees' satisfaction and retention levels (Azriuddin et al., 2020). Recognizing such an aspect encourages employees to stay loyal and produce better work, as they feel valued and supported in their career paths.

Secondly, the adoption of tight working schedules has been highlighted as a major challenge in organizing work-life balance, leading to high dissatisfaction rates. To address this, Starbucks should offer more flexible workplaces, including flexible work schedules, options to trade shifts, part-time employment, and the possibility of telecommuting for certain positions. These accommodations would be especially valuable for employees who are students, parents, or have other obligations, increasing job satisfaction and retention. Understanding workforce needs and offering tailored flexibility can help Starbucks retain talent longer.

Finally, the lack of proper remuneration and benefits packages has also been linked to staff turnover. Starbucks should conduct a thorough review of wages and benefits, aligning them with ongoing market trends. Introducing performance-based bonuses can motivate employees to excel and reduce the inclination to seek employment elsewhere (Kee et al., 2021). Additional incentives like childcare support and health check facilities can also enhance employee satisfaction by fostering a sense of being valued. Such measures not only aid in recruiting quality personnel but also retain them by improving their overall perception of the employer.

The three proposed solutions—career development initiatives, flexible scheduling, and competitive compensation—target the core reasons for high turnover identified by employees. Implementing these strategies is expected to result in increased employee satisfaction, higher engagement levels, reduced recruitment and training costs, and ultimately improved organizational performance. Investment in these solutions can foster a positive corporate culture aligned with employee well-being and loyalty, which are crucial for Starbucks’ long-term success.

Research Timeline and Budget

The project will follow a structured timeline with specific tasks allocated weekly to ensure comprehensive progress. Starting with survey development in July, data collection in mid-July to August, focus groups and interviews in September, data analysis in October, and drafting the solution proposal in November, concluding with review and report finalization. The total estimated cost for research activities is approximately $22,000, covering survey development, data collection, qualitative sessions, data analysis, and report drafting.

References

• Azriuddin, M., Kee, D. M. H., Hafizzudin, M., Fitri, M., Zakwan, M. A., AlSanousi, D., ... & Kurniawan, O. (2020). Becoming an international brand: A case study of Starbucks. Journal of The Community Development in Asia, 3(1), 33-43. DOI: [insert DOI if available]
• Fuller, D., Logan, B., Suarez, P., & Valkova, A. (2022). How retailers can attract and retain frontline talent amid the Great Attrition. McKinsey & Company. Retrieved from [URL]
• Society for Human Resource Management (SHRM). (2019). The High Cost of Employee Turnover. Retrieved from https://shrm.org
• Starbucks. (2022). Environmental & social impact report: Starbucks fiscal 2022. Starbucks Corporation.
• The Workforce Institute at UKG. (2023). Employee Turnover and Retention Survey. Retrieved from https://workforceinstitute.org
• Kee, D. M. H., Hidayah, N., Syamilah, H., Nasuhah, N. N., Syasya, N. H., & Norathirah, W. (2021). How Starbucks maintain its competitive edge?–the secret of its success. Journal of the Community Development in Asia, 4(2), 34-43.