Report on Employee Turnover and HR Management at Lulu Group International

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Background to the Research
In the cutthroat competition that is existing across the globe, employee turnover plays a significant role in contributing to the success and growth of an organization. The overall sustainability of the organization in the market is controlled by it. There are different perspectives of handling employee turnover in different industries.
A high rate of employee turnover in the global retain industry leads to the incorporating of demotivation among the employees regarding their jobs in the company. It has been observed that the rate of employee turnover is extremely high in the super market industry. Hence, it is a great challenge for the companies involved in the retail grocery business to encourage employees through providing several incentives and recognition for holding them in the organization. There is a knowledge gap between the strategies applied by the companies and the cost that is invested in it (Harrison & Gordon, 2014).
The work practices and structures that are followed in the industry has significant effects on the employee’s motivation, their engagement and it ultimately has a vital role in employee turnovers that are witnessed in the retail industry. It is very important to obtain the perception of the employees while working in the retail company as the retail company consists of interacting with the customers on upfront basis as seen in the case of supermarkets (Michel, Kavanagh, & Tracey, 2013).
The characteristic of embeddedness plays a significant role in the attitude of the employees to shift over jobs and switch to other companies frequently. The psychology that has been prevailing among the employees through the culture that has been developed in the organization needs to be identified, evaluated and then restructured if it needs to be improved (Peltokorpi, Allen, & Froese, 2015).

Introduction to the company
The very first store by the Lulu Group International was in 1995, situated at Abu Dhabi in UAE. The company, then developed many department stores in the Middle East countries. Taking the super market chain to a global level on a large scale, the Lulu group established the Lulu Hypermarket in 2000, which was located in Dubai (LULUHYPERMARKET.COM, 2015).
It has been expanding tremendously since then, where today, it comprises of more than 118 outlets in the GCC (Gulf Cooperation Council) countries alone. It possesses an impressive 32% of the retail market share in UAE. It stands at 11th position in the list of the biggest growing retail chains across the world (LULUHYPERMARKET.COM, 2015). The outlets of the Lulu Hypermarket chain has currently been employing more than 35,600 employees which belong to different nations and are working efficiently in the firm due to the friendly policies and employees schemes developed by the Lulu Hypermarket for all its stores across the world (LULUHYPERMARKET.COM, 2015).
Lulu hypermarket has always been focusing on the environmental and social benefits through its operation and structure. This is very clear from the statement provided by the Managing Director of the Lulu Hypermarket, M.A. Yusuffali which is given as flows:
“Operating in various countries, and confirming to social requirements in these regions, have made us conversant with the concept of a free and fearless world where everybody can live in harmony with each other, and our commitment is to enable the realization of this world in every way we can” (LULUHYPERMARKET.COM, 2015).
The management of the strategies is very important from the point of view of developing a considerable share in the global market. This has been carried out very effectively in the Lulu Hypermarket. It involves developing entrepreneurship opportunities through its operations and helping the people to emerge as a successful entrepreneurs. Human Resource management staff of the Lulu Hypermarket has been very appropriately maintaining the entrepreneurship and other communication skills in the employees through regular and effective training.

Significance of the Problem
The high rates of employee turnover in the supermarket industry is a major area of concern and it has to be evacuated from the Lulu hypermarket.
Statement of Purpose
The main purpose of this research is to identify the factors that affect the employee turnover and its frequency in the retail industry considering the case of Lulu hypermarket.
Primary research regarding the work practices and employee turnover that is carried out at the Lulu hypermarket in order to explain the relationship between employee turnover and growth of a business.
Aims and Objectives
The main aim of this research is to identify the impact that employee turnover has on the success and productivity of the company and to obtain several factors present in the Lulu hyper market that help in developing the current rate of employee turnover.
• Develop the factors that are responsible in contributing to the employee turnover through reviewing the literature.
• Identify key issues of employee management witnessed in the Lulu hypermarket
• Provide recommendations for improving the working and structure to decrease the employee turnover in Lulu hypermarket.
Research Questions
1. What human resource strategies are generally used by the supermarket sector to recruit and retain employees?
2. What human resource strategies are used by Lulu hypermarket to retain employees?
3. What measures can Lulu hypermarket take to improve employee motivation?
4. What practices have been adopted at Lulu hypermarket to increase the employee engagement across its stores?
5. What recommendations can be made to improve the rate of employee turnover at Lulu hypermarket?

Harrison, S., & Gordon, P. A. (2014). Misconceptions Of Employee Turnover: Evidence-Based Information For The Retail Grocery Industry. . Journal of Business & Economics Research (Online), 12(2), , 145.
LULUHYPERMARKET.COM. (2015, November 21). MD’S MESSAGE. Retrieved from
Michel, J. W., Kavanagh, M. J., & Tracey, J. B. (2013). Got support? The impact of supportive work practices on the perceptions, motivation, and behavior of customer-contact employees. . Cornell Hospitality Quarterly, 54(2), , 161-173.
Peltokorpi, V., Allen, D. G., & Froese, F. (2015). Organizational embeddedness, turnover intentions, and voluntary turnover: The moderating effects of employee demographic characteristics and value orientations. Journal of Organizational Behavior 36.2, 292-312.


Posted on

March 10, 2018

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