Factors driving staff turnover within micro retail businesses

Abstract

Employees are important to any business and without them businesses could be unsuccessful. This is particularly the case with micro retail businesses where employees are in direct contact with customers and more often than not, generate most of the revenue. Staff turnover on the other hand, may play a significant role and have an impact on business performance especially, in micro retail businesses. The success of micro retail businesses may be in understanding the possible causes of staff turnover and explored in this research. The aim of this research is to ascertain what causes staff turnover within micro retail businesses in Cape Town, South Africa, and how this can be reduced or prevented. To satisfy this goal, the research problem formulated as: It is unknown what interventions are needed for micro retail businesses to retain their staff The researcher conducted extensive literature analysis to understand the theoretical background and the possible factors that cause high staff turnover in micro retail businesses. Thereafter, the researcher uncovers the drivers causing staff turnover in micro retail businesses using a survey study. The research population is micro retail businesses in Cape Town, South Africa. Due to the nature of this research, a purposive sampling method is found to be the most appropriate. Questionnaires are used to collect primary data, whereas literature analysis assists with obtaining secondary data. The researcher found that remuneration, physical and employment working conditions and working hours are the top three most likely causes of staff turnover in micro retail businesses in Cape Town, South Africa. The researcher recommended that businesses should offer relevant and competitive remuneration packages, provide safe and secure working environments and arrange fair shift patterns. These would assist micro retail businesses to prevent or at least reduce high staff turnover.