Chapter Four
Chapter Four
4.0 Introduction
This chapter presents, analyses, and discusses findings from the study conducted to
investigate the impact of employee performance on employee retention. In the first section,
the findings, which include participants’ demographic information and responses to different
survey questions related to the research problem are presented. In the second section, the
findings are analysed, and hypotheses tested. In the subsequent section, the findings are
A total of 111 employees of Mitchells and Butlers were surveyed. A majority of the
respondents fell within the age range of 25-35 years, comprising 55.856% of the total sample.
The highest frequency was observed in the 25-29 age group with 33 respondents,
representing 29.730%, followed closely by the 30-35 age group with 29 respondents,
constituting 26.126% (See Figure 4.1). The older age brackets, specifically 45 years and
above, were less represented, with individuals aged 65 years or above comprising only
while males constituted 34.234% (See Figure 4.2). Other genders were represented by
The largest marital status category was 'Single', comprising 46.847% of the sample,
followed by 'Married' at 34.234%, implying that the majority of the participants were either
single or married (See Figure 4.3). Those who preferred not to disclose their marital status
made up 7.207% of the respondents. 'Divorced', 'Widowed', and 'Other' marital statuses were
of the sample, making it the most prevalent educational attainment. Bachelor's degree holders
constituted the second-largest group at 26.126%, indicating a highly educated workforce (See
Figure 4.4). High school graduates represented 9.910% of the respondents, while those with
college certificates and diplomas each constituted around 12.613%. Moreover, 8 participants
(7.207%) had attained PhDs. In essence, educational distribution reflects a diverse range of
qualifications among the employees, with a focus on higher education qualifications such as
Various positions were represented within Mitchells and Butlers, with 'Customer
Service' being the most common at 24.324%, followed by 'Operations' at 13.514% (See
Figure 4.5). 'Executive' roles accounted for 11.712% of the sample, indicating a presence of
managerial positions within the company. 'Middle Management' and 'Sales and Marketing'
roles constituted smaller proportions at 3.604% and 9.009%, respectively. The diversity of
positions reflects the multifaceted nature of roles within the organization, ranging from
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The majority of employees had been with the company for 1-3 years, representing
36.937% of the sample, indicating a relatively young workforce. Employees with less than 1
year of tenure accounted for 27.928%, suggesting a continuous influx of new hires (See
Figure 4.6). Those with 4-6 years of employment constituted 20.721% of the respondents,
indicating a substantial retention rate within the first few years. Conversely, employees with
more than 10 years of tenure comprised a smaller proportion at 5.405%, indicating either a
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• Less than 1 year • 1-3 years • 4-6 years • 7-10 years • More than 10 years
influential factors, with 45% and 42.3% of respondents selecting them, respectively (See
Figure 4.7). This suggests that employees highly prioritize opportunities for advancement and
competitive remuneration packages, indicating a desire for both personal and financial
growth within the organization. Additionally, training and development programs were
learning and skill enhancement in retaining talent. Notably, work-life balance, organizational
culture, and relationships with managers and colleagues were also considered influential
loyalty. However, job security emerged as a comparatively less prioritized factor, with only
25.2% of respondents selecting it, suggesting that while important, it may not be the primary
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The majority of respondents rated the overall employee retention rate as moderate,
retention rate to be high, while 9.910% rated it as very high, suggesting a generally positive
perception of employee retention within the company (See Figure 4.8). Conversely, only a
small proportion of respondents rated the retention rate as low or very low, at 9.009% and
0.901% respectively, indicating that the majority of employees perceive the retention rate to
be at least satisfactory.
• Very low
• Low
• Very high
• High
• Moderate
0 10 20 30 40 50 60
The competitive job market and excessive workloads and long hours emerged as the
most significant challenges, with 42.3% and 36% of respondents selecting them, respectively
(See Figure 4.9). This indicates that the organization faces stiff competition in retaining
opportunities and inadequate compensation and benefits were notable challenges, selected by
27% and 24.3% of respondents, respectively, suggesting that employees may feel constrained
work-life balance and unsupportive organizational culture were also identified as challenges
work environment. Notably, ineffective management and leadership, as well as the lack of
training and development programs, were perceived as challenges by a smaller yet still
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commendable level of competence within the organization (See Figure 4.10). Conversely,
only 7.207% of respondents rated the performance as below average, suggesting that the
However, it's worth noting that 5.405% of respondents rated the performance as much below
average, indicating a minority who perceive significant room for improvement in employee
performance.
Series 1
• Above average
• Average
• Below average
0 5 10 15 20 25 30 35 40 45 50
Series 1
Figure 4.10: Rating of Overall Employee Performance
retention rates to a large extent, indicating a strong correlation between performance and
employee retention within the organization (See Figure 4.11). Additionally, 34.234% of
Conversely, only 6.306% of respondents believed that employee performance does not affect
retention rates at all, suggesting a minority perspective that contradicts the prevailing notion.
However, it's essential to note that 14.414% of respondents believed that performance has
only a small extent of influence on retention rates, indicating a segment of employees who
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• Not at all • To a small extent • To a moderate extent • To a large extent • To a very large extent
Notably, customer service quality emerged as the aspect of employee performance with the
greatest perceived impact on retention, with 53.2% of respondents selecting it (See Figure
deemed crucial in retention efforts, indicating the value placed on cohesive and cooperative
work environments. Productivity and efficiency were also identified as significant factors,
with 47.7% of respondents selecting them. On the other hand, problem-solving and
innovation, leadership and mentorship, and technical expertise were also considered
respectively.
Customer services quality Technical expertise Productivity and efficiency
Problem-solving and innovation Leadership and mentorship
The findings indicate that the majority perceived some level of effectiveness in the
satisfaction with the existing systems (See Figure 4.13). Additionally, 33.333% of
respondents rated the systems as very effective, indicating a substantial number of employees
who perceive them positively. However, it's noteworthy that 15.315% of respondents rated
the systems as only slightly effective, suggesting room for improvement in motivating
employees and enhancing retention. Notably, only 1.802% of respondents believed the
performance and retention. Notably, offering competitive compensation and benefits was
deemed important by 48.6% of respondents, suggesting the need to align remuneration with
industry standards to attract and retain talent effectively (See Figure 4.14). Additionally,
respondents, indicating the importance of providing avenues for professional growth within
the organization. Flexible work arrangements and improved work-life balance were also
employees' needs for greater flexibility and balance. Moreover, strong training and
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retention strategies to the unique needs and preferences of the diverse workforce as either
very important (41.441%) or extremely important (24.324%) (See Figure 4.15). This
rated the importance as either not important (3.604%) or not important at all (4.505%),
4 (very important)
3 (neutral)
2 (not important)
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retention at Mitchells and Butlers (See Figure 4.16). This indicates a prevailing belief among
employees regarding the connection between performance and retention within the
segment of employees who may require further evidence or clarification on this relationship.
(7.207%) with the statement, indicating a minority perspective that differs from the prevailing
sentiment.
5 (Strongly agree)
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
0 5 10 15 20 25 30 35 40 45
Mitchells and Butlers would contribute to increased employee retention (See Figure 4.17).
This indicates a strong consensus among employees regarding the positive effect of
respondents adopted a neutral stance, suggesting a segment of employees who may require
12.612% of respondents either disagreed (7.207%) or strongly disagreed (5.405%) with the
statement, indicating a minority perspective that differs from the prevailing sentiment.
5 (Strongly agree)
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
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strongly agreed (28.829%) that they feel confident in their work performance at Mitchells and
Butlers (See Figure 4.18). This suggests a prevailing sense of confidence among employees
respondents adopted a neutral stance, indicating a segment of employees who may have
(2.703%) with the statement, indicating a minority perspective that differs from the prevailing
sentiment.
5 (Strongly agree)
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
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strongly agreed (12.613%) that poor work performance leads to high employee turnover (See
Figure 4.19). This indicates a prevailing belief among employees regarding the correlation
between work performance and turnover within the organization. Additionally, 25.225% of
respondents adopted a neutral stance, suggesting a segment of employees who may require
either disagreed (10.811%) or strongly disagreed (18.018%) with the statement, indicating a
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
0 5 10 15 20 25 30 35 40
strongly agreed (25.225%) that the reward system at Mitchells and Butlers highly influences
employee retention (See Figure 4.20). This indicates a prevailing belief among employees
regarding the impact of the reward system on retention within the organization. Additionally,
may require further evidence or clarification on this relationship. Conversely, only 14.414%
of respondents either disagreed (8.108%) or strongly disagreed (6.306%) with the statement,
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
0 5 10 15 20 25 30 35 40 45
strongly agreed (18.018%) that the reward system aligns with Mitchells and Butlers'
performance goals. This suggests a prevailing belief among employees regarding the
employees who may require further evidence or clarification on this alignment (See Figure
(8.108%) with the statement, indicating a minority perspective that differs from the prevailing
sentiment.
5 (Strongly agree)
4 (Agree)
3 (Neutral)
2 (Disagree)
1 (Strongly disagree)
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McDonald’s ω was used to test the reliability of the survey instrument. The frequentist scale
reliability statistics provide an estimate of the reliability of the survey instrument. The point
among the survey items (See Table 4.1). Overall, the reliability testing suggests that the
The researcher conducted linear regression analysis to compare the means of various
factors influencing employee retention, such as, job security, compensation and benefits,
training and development programs, work-life balance, recognition and rewards, career
overall employee retention rate at Mitchells and Butlers. Notably, job security, compensation
and benefits, training and development programs, recognition and rewards, and work-life
balance demonstrate statistically significant positive coefficients (p < 0.05), indicating that
improvements in these areas are associated with higher retention rates. However, factors such
do not exhibit statistically significant effects on retention rates (p > 0.05) (See Table 4.2).
These findings suggest that while certain aspects of the work environment positively impact
retention, others may require further attention or different strategies to enhance their
Unstandardize Standard
Model t p
d Error
H₀ (Intercept) 3.405 0.078 43.521 < .001
H₁ (Intercept) 3.250 0.270 12.032 < .001
Job security 1.750 0.810 2.160 0.036
Career development opportunities -0.250 0.810 -0.309 0.759
Recognition and rewards 0.950 0.436 2.181 0.034
Work-life balance 1.750 0.810 2.160 0.036
Training and development programs 1.750 0.810 2.160 0.036
Compensation and benefits. 1.750 0.810 2.160 0.036
Organizational culture and values; 0.750 0.810 0.926 0.360
Relationship with managers and
0.250 0.604 0.414 0.681
colleagues
Table 4.2: Linear Regression Coefficient Table
4.2.2 Relationship between Employee Performance and Employee Retention
In answering this research question, the researcher tested the hypothesis that there is a
this end, correlation analysis was conducted, with employee performance and employee
From Table 4.3 above, the Pearson correlation coefficient between employee retention
and employee performance is 0.461, indicating a moderate positive correlation between the
two variables. This suggests that there is a tendency for higher levels of employee
Butlers. The p-value associated with this correlation is less than 0.001, indicating that the
correlation is statistically significant. Therefore, we reject the null hypothesis, suggesting that
there is evidence to support the alternative hypothesis that there is a significant positive
correlation between employee performance and employee retention at the company. This
4.3 Discussion
The employee retention landscape within the hospitality industry is a versatile one,
frequently determined by shifting priorities and a challenging competitive job market. The
study conducted with employees of Mitchells and Butlers UK illuminates various aspects
affecting employee retention and productivity, which are strategic advantages that can be
and benefits as the most powerful factors, and the majority of the respondents chose both
factors. This implies that employees are keen on career growth and better salaries to feed the
desire for personal and financial development for the organization. In relation to other
studies, our finding confirms the importance of pay and career advancement on increasing
retention of employees (Heimerl et al., 2020; Klehe et al., 2011; Balz and Schuller, 2018).
Studies have proven that employees usually prefer organizations that provide room for
growth and development along with competitive pay. Interestingly, the professional growth
desire is in line with findings from Holston-Okae and Mushi (2018), who noticed that a
stimulating work environment with chances for advancement encouraged personnel retention.
With the given knowledge, Mitchells and Butlers can put to use a full analysis of current
consistent with those of equally classed jobs and establishing a culture of continuous learning
What is more, the results of the study show the importance of the training and
respondents. This shows that employees are highly aware of the importance of a continuous
learning process and capability building in retaining their workforce. Suraihi et al. (2021)
underline opportunities for development and promotion as important causes for staff
turnover. Investing in training programs not only give the employees the skills that they need
to succeed in their current positions, but it also shows the organization's commitment to their
personal development, which in turn helps to create a feeling of loyalty and purpose.
Furthermore, work-life balance, organizational culture, and relationships with
managers and co-workers were found to be the significant factors affecting retention efforts
(Kassim 2017; Akgunduz & Sanli, 2017). This result conforms with the existing findings that
have considering the significant effect of work environment and individual’s social network
on employee engagement and retention (Kassim 2017; Akgunduz & Sanli, 2017). Various
studies have revealed that people are more likely to remain with the enterprises in which they
feel respected, trusted, and connected to their co-workers and supervisors. Hence, by creating
a supportive culture, stressing the work-life balance, and building supportive relationships
between employees and management are the key strategies for rising retention rates.
Nevertheless, job security seemed to be less crucial compared to other factors thereby
implying that although a crucial factor it might not be the primary determinant of employees’
loyalty in the company. This is contrary to literature that stresses the importance of job
security in minimizing rates of employee turnover (Suraihi et al., 2021). However, the
significance of job security should not be underestimated, because it helps workers feel safe
This study goes on to explore the connection between job performance and retention,
above average, which means that the company has a skilled team. This shows that the
company is doing well in terms of sourcing and retaining skilful workers. The findings also
retention among employees. This is in line with Dogonyaro's (2021) argument that
motivation is one of the main factors in hospitality, because it affects customer satisfaction,
which is one of the central elements in the hospitality business. By acknowledging and
rewarding those employees who demonstrate the desired behaviour on an ongoing basis,
Mitchells and Butlers can build a performance-oriented environment that not only improves
customer experience but also provides staff members with a feeling of pride and meaning.
This research further highlights the efficiency of the current performance management
systems that is still perceived as moderate, therefore room for improvement. Bevins (2018)
aside output and implementing the systems that do offer a possibility for feedback, coaching,
and recognition will bring about substantial advancement in employee engagement and
methods to different employees' requirements and inclinations. This supports the literature
which points at customization of retention efforts (Ghani et al., 2022). By identifying and
catering to the unique needs of their employees, organizations can develop more inclusive
and supportive workplaces amenable to retention. The study demonstrates the practicality of
these retention strategies including not only competitive compensation and opportunities for
career advancement but also flexible work arrangements. These findings match with the
existing literature that highlights the significance of rewards, career path provision, and work-
life balance in employee retention (Jiatong et al., 2022; Nawaz et al., 2023). Employment of
these strategies will enable organizations to maximize their retention activities and build a
more dedicated and engaged workforce. Moreover, the linear regression analysis reveals the
main predictors of employee retention, such as job security, compensation, training and
development, recognition, and work-life balance. Such a finding helps organizations identify
focus areas that should be given priority in their retention policies (Zboja et al., 2020). By
identifying these retention predictors, organizations are able to avoid any turnover risks and
5.0 Introduction
This chapter wraps up the dissertation by evaluating whether the research objectives
were met by the study conducted to investigate the impact of employee performance on
employee retention. In the first section, conclusions are made based on the research
objectives. The subsequent section evaluates the study’s contribution to theory and practice.
In the third section, the study makes recommendations for Mitchells and Butlers and the UK
hospitality industry at large. Finally, the study’s limitations are acknowledged and potential
5.1 Conclusion
The research dissects the complex landscape of employee retention at Mitchells and
Butlers highlighting the main factors decisive for employee commitment and job tenure in the
organization. Career development chances and competitive remuneration packages are the
leading drivers of employee retention, highlighting the fact that employees highly value their
personal growth and financial security. Additionally, the importance of training programs
remains critical for the sustenance of employee loyalty as well as their lifelong learning and
skills development.
The results also underpin the significance of work-life balance, organization’s culture,
and relationships with bosses and peers to determine the retention outcomes. A supportive
workplace and interpersonal relations play a great role in employee satisfaction and loyalty.
The comparison of the performance level of employees at Mitchells and Butlers helps
the organization understand where they stand relative to industry standards and the factors
that affect performance variance across the different departments and job positions. In
essence, the findings suggest that Mitchells and Butlers are doing quite well, with the
majority of participants rating the performance higher or higher than the average of the whole
industry. This shows that the business has a winning force of workers fitting their standards.
The existence of a minority who think that their performance is either much below or below
average draws our attention to areas where such performance may be improved. The results
of this investigation reinforce the notion that such gaps should be identified and addressed in
Factors that cause performance variations across departments and job functions could
be multifaceted. The quality of service, teamwork and productivity are major factors
influencing performance, which indicates that the departments that pay attention to these
aspects may have higher performance levels. Nevertheless, challenges, including ineffective
management, lack of career growth opportunities, and poor work-life balance, may slow
down performance in some areas, which, therefore, call for focused interventions to resolve
systems is also one of the most important factors which help in motivating the employees and
in improving the performance. This can be achieved through the use of stringent performance
management practices which entail setting of clear expectations, provision of feedback that is
meaningful and recognition of top performers thereby cultivating a culture of excellence and
constant improvement that will apply across all departments and job roles.
5.1.3 Relationship Between Employee Performance and Employee Retention
Butlers among others offers some important insights about the elements that affect
employees’ tenure and the organization’s ability to retain the best talent. The study
showing that high employee performance levels often go hand in hand with increased
employee retention rates within the organization. The data indicates that employees who do
well are more likely to remain with Mitchells & Butlers, indicating the significance of good
Several factors could be involved. Employees who excel in their roles are likely to
experience this due to greater job satisfaction and engagement with the organization that
leads to stronger commitment. Also, successful staff in an organization can see the
opportunity for career growth and development in the organization, which leads to loyalty
and investment into their long-term growth in the company. On the other hand, a worsening
situation of work performance could lead to dissatisfaction and disengagement, which may
result in higher turnover. The turnover of employees could increase significantly as a result of
talent for Mitchells and Butlers. In addition, the significance of performance management
feedback, and offering chances of expertise improvement and career growth, Mitchells and
5.3 Recommendations
Based on the findings of the study regarding employee retention and performance at
The study showed that career development opportunities were the most motivating
factors for worker retention. Mitchells and Butlers needs to roll out formal career
development programs targeted at fostering the talent in-house. This could be mentorship
programs, individualized career pathways and opportunities for training and certification.
retention. Mitchells and Butlers should carry out periodic analysis of their remuneration and
benefit packages to ensure that they maintain competitiveness in the industry. This could
incentives. The company offering competitive remuneration packages can attract the skills as
management system and employee retention. Mitchells and Butlers should target improving
feedback, and the provision of room for improvement. This could be done through setting
goals, doing periodic performance reviews, and giving constructive feedback and
with the organizational goals and employee development thus leading to increased
This study has several limitations that should be considered when generalizing the
findings. Firstly, the research design employed a cross-sectional approach, limiting the ability
to establish causal relationships between variables. This method captured data at a single
point in time, thus failing to account for potential changes or developments over time.
Secondly, the reliance on self-report measures for data collection may have introduced
response bias, as respondents might have provided answers that they deemed socially
acceptable rather than reflecting their true attitudes or behaviours. While efforts were made to
ensure the validity and reliability of the instruments used, self-report measures inherently
carry the risk of response bias. Finally, the study focused solely on employees within the
hospitality industry, specifically Mitchells and Butlers, which may limit the generalizability
The field of employee retention and performance research can be explored in several
directions to expand the findings of this study. Firstly, conducting longitudinal studies, which
track the changes in employee retention and performance over a longer term may reveal the
dynamics and factors which determine these outcomes much better. Longitudinal research
would give an opportunity to discover trends, patterns, and connections between different
aspects over time. This will be a basis for retention strategies and performance management
including interviews or focus groups, can be used to gain further insight into employees’
done to see the distinctions in employee retention and performance across different sectors or
employee management in many different sectors, researchers would be able to figure what
works best and lessons learned that could be applied to raise employee retention and