FILAMER CHRISTIAN UNIVERSITY

GRADUATE SCHOOL
AUTONOMOUS STATUS-CHED
Roxas Avenue, Roxas City 5800
Tel. No. (036) 6212-317 Fax No. (036) 6213-075

MIDTERM EXAMINATION
MBA 411 HUMAN RESOURCE DEVELOPMENT

HIGH EMPLOYEE TURN OVER: CAUSES AND SOLUTIONS FOR

MEGA PANAY DISTRIBUTION INC,

CARMEL GRACE B. LINGA

MASTERS IN BUSINESS ADMINISTRATION

Submitted to:
DR. MATT NUMER B. OFALLA
COURSE FACILITATOR
 Introduction/Rationale

Problem and issues with employees are always the hardest to understand and find a

solution. No matter how big or small the company is there will always be problems and

issues that stems from the employees.

One particular issue that is rampant to specific industries is high employee turnover. By

definition, Employee turnover is what happens when employees leave – either of their

own accord or being asked to leave, perhaps following poor performance, dissolution of

their role, or other organizational changes.

High employee turnover is especially rampant with growing companies and institutions

like Mega Panay Distribution Inc. (MPDI) a local distribution and logistics company in

Western Visayas. This issue is mostly seen on the rank & file level and entry levels. It is

pointed out that this problem is especially burdensome since the whole hiring and training

process of employees are expenses and costs that are needed for the company. But having

high turnover on these levels resulted to high costs.

There are several causes of employee turnover. To name a few there are bad hiring

practices, low engagement, overworking your star performers, employee burnout, pay out

of line with performance, poor compensation, lack of employee purpose, low

organizational commitment, little feedback or recognition, no opportunity for growth or

development, and toxic culture.

 The rationale of this study is to understand the reason as to why there is a high employee

turnover at Mega Panay Distribution Inc. (MPDI) and to find possible solutions that can

mitigate this problem

Objectives/Statement of the Problem

● To identify the causes of employee turnover.

● To recommend possible solutions to solve the issue of employee turnover.

● To suggest a way to establish a system for a competitive promotional program

● To propose a way to send employees to training and seminars.

Research Paradigm

1.A Training and Seminar workshops

Employee Rank & Department

Training & Seminars Proposals
Rank& file
Professional Level
(finance & admin
Government
department)
organized seminars
Sales-entry level
Company organized
(sales department)
seminars
Management level
(Sales and Finance &

Purpose & competency

CPD units
Holistic Approach seminars
Team-building
Skill Approach seminars
 1.B. Competitive promotional program

Vacancy application Preliminary exams & interview Ranking of each

applicant based on
Requirement Panel of the
% of each phases
submission board of directors
Preliminary and other
screening of Operational
applications submitted managers
Appointment of
the applicant with
the highest % rank
 Significance of the Study

This research aims to provide an in depth analysis of the causes as to why there is

frequent employee turnover in MPDI. By conducting a thorough observation and study of

the way the organization hires, trains and compensates their employees and finding out if

there is a significant relationship with the employee turnovers. This study will also cover

giving possible solutions to mitigate the issues and possible changes with the way MPDI

gives compensation and incentives to its employees.

Specifically, this will benefit Mega Panay Distribution Inc. and all the departments alike.

Likewise, it will also serve some kind of aid to MPDI’s sister companies engaging in

distribution and logistics experiencing the same problems with employee turnovers.

Review of Related Literature.

Employee Turnover

Employee turnover is the percentage of employees that leave your organization during a

given time period. Organizations typically calculate turnover rates annually or quarterly.

They can also choose to calculate turnover for new hires to assess the effectiveness of

their recruitment policy. Employee turnover is a crucial metric for measuring the

performance of human resources departments or human resource management apps.

(Shweta & Watts-Forbes, 2022)

Importance of Employee Turnover

Employee behavior, principles and beliefs affect not only productivity, but also the

overall efficiency and effectiveness, and the nature of tasks and collaboration is of

paramount importance to employees. Besides, employee turnover has a huge impact on

the organization. For example, the organization needs to hire and train new employees,

as well as the time the new employee needs to be produced effectively. Besides,

employee turnover is expensive from the view of the organization due to the

replacement costs for the new employees. If an employee leaves the company due to a

turnover, the assurance of good employee quality is at risk and significant amounts are

spent on the selection and training of new employees, which ultimately leads to the loss

of the company. Moreover, if employees continue to leave companies, companies

should spend time and money hiring and retraining new employees, which negatively

affects companies in the long run. High turnover reduces the number of entry-level

employees, forcing the use of temporary workers, negatively impacts productivity and

competitiveness and hinders skills development. Furthermore, employee turnover can

have a negative impact on operating costs and maintain the skills that are necessary to

maintain business operations and competitive advantage. ( Al-Suraihi,Samikon, Al-

Suraihi, Ibrahim, 2021)

Causes of Employee Turnover

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 - 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.

Research Methodology

I. Research Design

A. Training and Workshop seminars

MPDI’s current training and workshop structure is highly restricted by the cost of

trainings. Most if not all if the trainings and workshop are company prepared and

usually not focused on skill related trainings

The questionnaire will be distributed to different departments namely the Sales

department, Finance & administrative department, Warehouse Department and

the Local management.

1-Strongly
Disagree 2-Disagree 3-No comment 4-Agree 5-Strongly Agree
The first part of the questionnaire will focus on their satisfaction rates based on

their current training regime with the following guidelines

1-Strongly
Disagree 2-Disagree 3-No comment 4-Agree 5-Strongly Agree
The second survey form would focus on their willingness to join trainings and

seminars.

____________________other comments___________________________

This form would not only measure their enthusiasm but also show what kind of

trainings and seminars are they willing to participate.

B. Competitive promotional program

The promotional system of MPDI is more of a recommendation process where

managers and top superiors will suggest and recommend who will be fit for the

role and give the said position to the employee if they are willing to accept.

1-Strongly
Disagree 2-Disagree 3-No comment 4-Agree 5-Strongly Agree
The first questionnaire will focus on the satisfaction rates based on the current

regime of the promotional system

1-Strongly
Disagree 2-Disagree 3-No comment 4-Agree 5-Strongly Agree
The second questionnaire would be focused on the proposed competitive

promotional program.
 ____________________other comments___________________________

II. Locale/Respondents of the Study

The research study was conducted in Mega Panay Distribution Inc. Roxas City

branch. The Roxas City branch is composed of 25 MPDI employees across all

departments from the branch (Finance & admin

III. Sample Size

There will be 10 respondents all across the departments in the Roxas City branch. 4

for finance & admin, 4 for Sales and 2 for warehouse department and 2 for Local

management.

IV. Sampling Techniques

Simple random sampling will be used to pick the 10 respondents, wherein each

element has an equal chance or probability of being chosen as the subject of the

study.

V. Instruments

The instruments and tool to be used in the study is a survey questionnaire that is

divided into 2 parts. The first is to measure their satisfaction for the current system in

place and the second part is their satisfaction for the proposed program/system. The

questionnaire will be composed on a series of questions to be answered by the

employees.

VI. Data Gathering Procedure.

 For the purpose of this study, the questionnaires will be distributed simultaneously by

department. The main reason for this is to introduce the program first to the

employees and to let the presentation focus on their department’s category and let

them ask questions if necessary. The questionnaires will then be answered by them on

the same place. The same goes to the respondents of the other departments.

VII. Data Analysis Procedure

The results of this study that will be gathered will be analyzed using Cross-tabulation

analysis.

Cross-tabulation analysis, also known as contingency table analysis, is most often

used to analyze categorical (nominal measurement scale) data. A cross-tabulation is a

two (or more) dimensional table that records the number (frequency) of respondents

that have the specific characteristics described in the cells of the table. Cross-

tabulation tables provide a wealth of information about the relationship between the

variables (Qualtrics).

References
Ongori, H. (2007). A review of the literature on employee turnover. African Journal of Business

Management, 1(3), 049–054. https://doi.org/10.5897/ajbm.9000027

Amruta, G. (2019). AN ANALYSIS OF EMPLOYEE TURNOVER Reasons and its Effects at

Accenture

Al-Suraihi, W., Samikon, S. A., Al-Suraihi, A. A., & Ibrahim, I. O. (2021). Employee Turnover:

Causes, Importance and Retention Strategies. European Journal of Business and

Management Research, 6(3), 1–10. https://doi.org/10.24018/ejbmr.2021.6.3.893

Akinyomi OJ.(2016) , LABOUR TURNOVER: CAUSES, CONSEQUENCES AND

PREVENTION. Fountain University Journal of Management and Social Sciences: 5(1)

Special Edition, (2016), 105 – 112.

Survey Questionnaire

A. Training and Workshop Seminars

 Directions: Please indicate the level of agreement or disagreement for the following

questions presented. Place a 🗸 mark for your corresponding answer.

A. Satisfaction : 1- Strongly 2- 3- No 4- Agree 5- Strongly

Training and disagree Disagree comment agree
Workshops
1. I was able to exhaust
my full potential
2. Beneficial for me and
my profession
3. Worthwhile and
enjoyable
4. Can be applied to my
career
B. Proposed Training
and workshop
programs
1. There is a sense of
fulfillment
2. Worth my time and
efforts
3. Skills attained can be
applied in my job and
personal life
4. I would love to
participate again in any
trainings and workshops

____________________other comments___________________________

B. Competitive Promotional Program

Directions: Please indicate the level of agreement or disagreement for the following

questions presented. Place a 🗸 mark for your corresponding answer.

A. Satisfaction: 1- Strongly 2- 3- No 4- Agree 5- Strongly

Promotional program disagree Disagree comment agree

1. The system is
transparent.
2. Equal opportunities
for all employees.
3. Less inconvenience

4. Satisfied with the

current system
B. Proposed
competitive
promotional system
1. There is a sense of
fulfillment
2. The process will be
worth the time and
effort
3. Can exhaust hidden
potentials among
employees
4. Competition provokes
ambition.

____________________other comments___________________________

Expected Outcome/Output of the Research

This results of this research is aimed toward knowing the current satisfaction levels of

employees of Mega Panay Distribution Inc. with the current implementation of the

Training and workshops and the current promotional system. Also, it is expected to know

about how the employees of every department will react to the proposed changes with the

Training and Workshop system and the Proposed Competitive Promotional System.

It is expected that the employees will be able to be more motivated when it comes to

participating in different workshops and seminars proposed by the system. Also, the

results are expected to let the employees participate in the competitive promotional

programs to let them be more motivated in engaging in a healthy competition established

by the company.