The data gathered for this study composed of the retention measures identified by the business manager or proprietor and was ranked in terms of whether it contained the following: competitive salary, fringe benefits, and profit sharing, flex time and day care provisions. The retention factors were given weights based on the reviewed literature and in the context of the location of the business.
A competitive salary was given the weight of 3, fringe benefits which included sick and vacation leaves was given a weight of 2, profit sharing which is relatively new to the area was given a 2, flex time was given a weight of 3 and day care provisions was a 2. Hence the group with all of these measures would be given a score of 12 as the perfect score. Sales were reported in dollars, where daily sales will be compared to identify the average sales for the two weeks that the study analyzed it.
Descriptive analysis of the retention measures and sales record for each business unit is presented in graphs and tables. Then the sales and retention scores was subjected to product moment correlation in order to test the relationship of retention and productivity. Then the sales 20 of the two small business groups was tested against each other using t-test to determine the significant difference of their productivity and sales based on their retention measures used.
Need essay sample on "Business units"? We will write a custom essay sample specifically for you for only $13.90/page
Methodological Assumptions This study employed the document research and analysis of pre-existing data as the study focuses on the effect of employee retention factors to small business productivity. The difference of perceptions of employees and the management of retention measures would be an extraneous variable for the study and given that many small businesses do not always have all the retention measures of big companies.
Moreover productivity was measured in terms of sales and the data is readily available whereas employee turnover as most research on retention have used is not applicable to the group however, it will adversely affect the operation of the business. Weights were given to the different retention measures considering the kind of workers that the company has and the locality of the business. This would also better facilitate the statistical analysis of the data. The use of descriptive and inferential statistics was utilized in order to present a more complete picture of the variables under study.
The use of two groups or business units also gave more credibility to the study rather than using only a single business unit, comparing the measures of productivity clearly identified the effect of retention measures. Limitations The limitations of the study is that it is based on documents and the human element have been taken out, thus the study would not be able to account for the differences in the preference of employees on one retention strategy over the other or why in some days sales were lower or 21 higher than the rest.
The study is strictly limited on identifying the effect or non-effect of retention to business productivity and hence should not interpret it as supporting one retention measure or recommending all retention measures. It is also limited to an investigation of small business outfits that produce the same product and hence have the same market, thus it cannot wholly be generalized to all small business units. Lastly, this study is exploratory in nature and hence any findings from this study will be new and might not entirely be applicable to all.