FACTORS AFFECTING EMPLOYEE RETENTION IN A RETAIL COMPANY IN QUEZON CITY

Abstract

In today’s rapidly evolving business environment, where technological advancements and innovation are constant, companies face the challenge of retaining talented employees. Ensuring employee retention is vital not only for the long-term success of an organization but also for maintaining a highly engaged, productive workforce. This study, titled Factors Affecting Employee Retention in a Retail Company in Quezon City, focuses on the retention challenges at Ace Hardware, SM North EDSA, examining factors that contribute to employee turnover and identifying strategies to improve retention rates. The goal of the study is to propose a comprehensive training program to enhance employee performance and reduce turnover within the company.  Key Factors Affecting Employee Retention:  Workplace Culture and Employee Well-being: The study emphasizes that a positive workplace culture is a significant factor in retaining employees. When companies prioritize the mental health and well-being of their staff, employees feel valued and supported, leading to higher job satisfaction and loyalty. This, in turn, lowers turnover rates and boosts employee engagement. A supportive workplace culture can promote open communication, flexibility, and a healthy work-life balance, all of which contribute to a more committed workforce.  Training and Development Opportunities: One of the critical findings of this study is the importance of offering continuous training and development opportunities. Employees are more likely to remain with a company that provides avenues for career growth and skill advancement. In the retail industry, offering employees ongoing training in product knowledge, customer service, and management skills can significantly improve both individual performance and overall business success. Regular development programs also foster a sense of achievement, encouraging employees to stay with the company for the long term.  Competitive Compensation and Benefits: While larger organizations may offer more attractive financial incentives, the study reveals that competitive compensation remains a key factor in employee retention. Employees who feel that their contributions are adequately compensated are less likely to leave. However, beyond salary, non-monetary benefits such as flexible work hours, recognition programs, and opportunities for career advancement can also significantly impact retention. Companies should focus on offering a competitive package tailored to the needs of their employees, even if the financial resources are not as extensive as those offered by larger organizations.  Alignment of Employee and Organizational Values: The study also highlights the importance of aligning employee values with the company’s mission and goals. When employees share the same vision and values as the company, they are more likely to remain engaged and committed to their work. Recruiting employees whose personal values align with the organization’s culture can reduce turnover and enhance overall job satisfaction. This alignment fosters a sense of purpose and encourages employees to contribute meaningfully to the organization’s success.  Workplace Environment: A positive work environment is crucial to employee retention. The study found that employees who feel part of a supportive and collaborative team are more likely to stay. A work environment that promotes mutual respect, teamwork, and a sense of belonging encourages long-term commitment. In contrast, a toxic or unsupportive work culture can lead to dissatisfaction, disengagement, and increased turnover rates. This study utilizes a quantitative descriptive research design to explore the factors affecting employee retention at a retail store in Quezon City. The descriptive method was selected to gather data that accurately represents the current situation regarding employee retention and the factors influencing it. This approach allows the researchers to systematically collect and analyze data without manipulating any variables, providing a clear picture of the situation.  Sampling Technique: The researchers used the purposive sampling technique to select the respondents for this study. A total of 45 regular employees from Ace Hardware at SM North EDSA were chosen based on their relevance to the study. The purposive sampling method ensures that the selected employees have the necessary experience and knowledge to provide meaningful insights into the factors that affect their retention. This targeted approach helps to focus on those most familiar with the company’s working environment and retention issues.  Data Collection and Analysis: For the statistical treatment of the data, the researchers employed the following methods:  Weighted Mean: This was used to determine the average response for each factor affecting employee retention. By assigning weights to responses, the researchers were able to identify the significance of each factor and assess which ones have the most impact on retention.  Frequency Percentage: This technique was applied to calculate the distribution of responses and determine how frequently certain factors were mentioned by the respondents. It provided a clear understanding of the prevalence of each factor and its perceived importance to employees. This study identified several key factors influencing employee retention at Ace Hardware, SM North EDSA Branch, including compensation, remuneration and benefits, work environment, and advancement opportunities.  Compensation: The study found that salary significantly influences employee satisfaction and retention. Employees indicated that competitive pay, especially in comparison to similar roles in other retail companies, along with the economic conditions of the country, plays a major role in their job satisfaction. The average weighted mean of 2.80 suggests that employees generally agree that salary is a crucial factor in their decision to stay with the company. Offering competitive compensation helps Ace Hardware attract and retain skilled employees in the highly competitive retail sector.  Remuneration and Benefits: The study also examined the employees' views on remuneration and benefits, particularly focusing on compensation during layoffs or accidents. Employees positively evaluated the company’s provision of financial support in these situations, with a weighted mean of 2.77. This finding suggests that employees value the security provided by the company in times of hardship, contributing to their overall job satisfaction and loyalty, which is essential for reducing turnover.  Advancement Opportunities: The study revealed that employees place significant importance on career advancement opportunities within the company. Employees expressed that promotions and advancements are based on merit and carried out in a fair and transparent manner. With a weighted mean of 3.02, this indicates strong agreement that Ace Hardware offers a transparent and equitable approach to promotions. This factor plays a vital role in employee retention, as employees who perceive opportunities for growth and advancement are more likely to remain committed to the company.  These findings underscore the importance of competitive compensation, comprehensive benefits, and clear advancement pathways in fostering employee retention. By ensuring that employees are fairly compensated, provided with valuable benefits, and given opportunities for growth, Ace Hardware can enhance employee satisfaction and reduce turnover, ultimately promoting long-term organizational success. The study also examined the impact of job positions and educational attainment on employee retention, highlighting the differing priorities of employees based on their roles and educational backgrounds.  Job Positions: The findings suggest that employees in different job positions within the company prioritize different factors influencing retention. Sales clerks are more likely to prioritize a positive work atmosphere and advancement opportunities. These factors are essential to them as they seek a supportive work environment and career growth within the company. Conversely, supervisors and managers tend to place greater emphasis on salary and compensation, reflecting their higher level of responsibility. This indicates that Ace Hardware should customize its retention strategies to meet the specific needs of different employee groups. For lower-level employees, such as sales clerks, focusing on creating a healthy work environment and providing clear advancement paths would be effective, while for supervisory and managerial staff, competitive pay and attractive benefits should be a priority.  Educational Attainment: The study also found that educational attainment influences retention, with a noticeable difference between employees with secondary education and those with vocational degrees. Employees with higher educational qualifications, such as vocational degrees, tend to prioritize factors like salary, benefits, and career advancement over those with lower educational qualifications. These employees are more likely to seek better-paying opportunities and career progression, and as a result, they may stay with the company longer if these needs are met. On the other hand, employees with secondary education may place more value on other factors, such as job stability, work atmosphere, and immediate rewards.  These findings suggest that Ace Hardware must consider both job positions and educational backgrounds when designing employee retention strategies. By addressing the specific needs of each employee group, such as offering a supportive work environment and clear opportunities for growth to lower-level employees, and providing competitive salaries and advancement opportunities to those in higher positions, the company can foster greater employee satisfaction and loyalty. Tailoring retention strategies to these different factors will contribute to a more engaged and committed workforce across all levels of the organization.