Reasons given for employee turnover in a full priced department store

Abstract

Employee turnover in the retail workplace has become an important area ofresearch from both a theoretical and a practical standpoint. It is important from a theoretical perspective, in understanding how the underlying causes of turnover can provide insights into how to control the growing problem and where a retailer's specific turnover problems lie. However, from a practical standpoint, learning how to minimize the turnover of skilled employees is crucial from the business expense side. Retailers in the twenty-first century must be able to keep knowledgeable and experienced employees working in their organization. This problem is even more critical in today's retail world considering unemployment rates are hovering near a 30-year low. This study examined 1190 employee exit interviews from a chain of fifty-three department stores to analyze the reasons given for leaving the organization. The 41 different reasons for leaving the organization were organized into categories based on similarities found. Significant differences were found in the reasons given for termination based on employment status and length of employment. Full time and part time employees most often left due to job-related reasons. Hourly employees most often left due to non-job related reasons. Exiting employees who had worked in the department store three months or less most frequently left without notice (27.8%), while exiting employees who had worked 12 months or more most frequently left due to job-related reasons. No significant differences were found in the reasons given for termination by males and females. The findings of this research can be used in the development of appropriate programs to reduce the level of employee turnover within retail organizations.