Managing Employee Retention at Store 24
Assignment Title: Managing employee retention at store 24
Objective: This report aims to determine whether employee tenure does in fact relate to store profitability, as has been the standard so far or whether new factors should also be considered. A random sample of several of our branches was analyzed and in this report we will outline the findings and suggest strategies aiming to increase profitability.
Methodology
* We chose a random sample of 7 stores (every tenth store) * The mean and median were then calculated. * To determine correlation between crew and manager tenure and profitability, regression analysis was used.(see scatter graphs in excel page Mtenure Vs Ctenure)
Conclusion: Our findings show that the average store operates 24 hours in a residential area that is moderately populated with a moderate number of competitors; makes around 1.27 M in sales and a profit of 280 thousand; and has the average manager tenure of 50 months (almost 4 years ) and crew tenure of 13 months.
Therefore looking at the findings we notice that though indeed manager tenure does have a strong impact on profitability, crew tenure is the real driver. Crew tenure to date has not had a positive impact on profitability. Therefore and using our sample we show what the impact of increasing both manager and crew tenure does to our profitability levels. Though both increases affect profitability positively, increasing crew tenure makes a substantial difference. (as shown in Mtenure and Ctenure vs profitability excel pages)
Our findings also show the highest and lowest performing branches with the only differentiating factor that could be affecting performance being the level of competition around the store. Therefore we can say that profitability varies between the different branches due to site location –I.e. being situated closer to competitors To conclude, the findings point out that our strategies for retaining and recruiting managers seem to be
Objective: This report aims to determine whether employee tenure does in fact relate to store profitability, as has been the standard so far or whether new factors should also be considered. A random sample of several of our branches was analyzed and in this report we will outline the findings and suggest strategies aiming to increase profitability.
Methodology
* We chose a random sample of 7 stores (every tenth store) * The mean and median were then calculated. * To determine correlation between crew and manager tenure and profitability, regression analysis was used.(see scatter graphs in excel page Mtenure Vs Ctenure)
Conclusion: Our findings show that the average store operates 24 hours in a residential area that is moderately populated with a moderate number of competitors; makes around 1.27 M in sales and a profit of 280 thousand; and has the average manager tenure of 50 months (almost 4 years ) and crew tenure of 13 months.
Therefore looking at the findings we notice that though indeed manager tenure does have a strong impact on profitability, crew tenure is the real driver. Crew tenure to date has not had a positive impact on profitability. Therefore and using our sample we show what the impact of increasing both manager and crew tenure does to our profitability levels. Though both increases affect profitability positively, increasing crew tenure makes a substantial difference. (as shown in Mtenure and Ctenure vs profitability excel pages)
Our findings also show the highest and lowest performing branches with the only differentiating factor that could be affecting performance being the level of competition around the store. Therefore we can say that profitability varies between the different branches due to site location –I.e. being situated closer to competitors To conclude, the findings point out that our strategies for retaining and recruiting managers seem to be