CITY OF MALABON UNIVERSITY

College of Business and Accountancy

Pampano cor., Maya-maya St., Barangay. Longos, Malabon City

DETERMINANT FACTORS OF EMPLOYEE‘S

TURNOVER IN SELECT FAST FOOD

INDUSTRIES IN MALABON CITY: BASIS FOR

ENHANCING WORKING CONDITION

In partial fulfillment of

the requirements in Subject

Business Research

Adorna, Danica Mae M.

Jatulan, Janelle Kyla

Perez, Jerrizylle A.

May 2024
 Chapter 1

PROBLEM AND BACKGROUND OF THE STUDY

Introduction

Employee turnover refers to employees who parted ways with organizations they worked

for different valuable reasons. It can relate to a company's recruiting, culture, compensation,

benefits structure, individual managers, training and career progression paths. PLOS Journal

(2023) stated that employee turnover is one of the topical issues worldwide. The impact of

factors affecting employee turnover varies occasionally, and new factors are considered. Many

countries have examined various factors that affect employee turnover.

Like any other companies, employee turnover is more prominent in the fast food industry

and has remained problematic. Malek et al. (2018) reported that employee turnover is twice as

high in the hospitality industry, which includes the fast food industry, compared to others. It

significantly hinders their organization's productivity and can negatively impact the

sustainability, competitiveness, and profitability of the fast food industry. Employees play a

crucial role in these industries; their choice to remain or leave the organization affects its internal

and external performance. The reduced performance of employees will result in undesirable

productivity and cost to the organization in terms of recruitment costs.

In the U.S. fast food industry, employee turnover has been high, averaging 150% per year

(Imelda A. Bebe, 2016). It is a crucial metric for the fast food industry to monitor as its

underlying issues include poor management, lack of career development opportunities, or

unsatisfactory working conditions. On the other hand, Skelton et al. (2019) explained that

turnover also negatively impacts communities because of a loss of payroll taxes and fiscal
limitations on social contributions. The negative effects of turnover cost employees time and

energy who attempt to maintain performance and degrade the economic growth of communities.

This study seeks to provide a valuable understanding of the experiences and perceptions

of former employees in the fast food industry in Malabon City. Continued research into

employee turnover is crucial for the fast food industry, as it provides insights to devise

innovative approaches aimed at reducing high turnover rates within their industry.

Review Related Literature

Employee Turnover

According to Tubay, J. B. (2020), employee turnover is prevalent in businesses

worldwide. Employees may feel disconnected from their work or company for various reasons

and incidents. If an employee performs poorly or violates company policies or norms, it may

result in ultimate termination, referred to as turnover. The company is solely responsible for this

type of turnover. When an employee's decision leads to turnover, voluntary turnover is

commonly known as resignation or job quit.

Employee turnover refers to the rate at which employees leave a company within a year,

a key metric used in the business world. To calculate labor turnover, divide the number of

employees who have left the organization by the average number of employees in the business.

Gonzales (2014) offers a comprehensive explanation of this concept.

Pastor C. K. (2020) emphasizes the significance of employees as an organization's most

valuable asset. Employee turnover, which refers to the departure of staff from a business or

organization, is a crucial factor for all institutions. When employees leave, organizations must

find and train new employees to replace them, which can significantly affect their productivity,
expenses, and overall performance. The organization's expenses can increase as it invests in

hiring, training, and onboarding new staff. Employee turnover can also impact institutional

knowledge and experience, negatively affecting the quality of work and the organization's overall

performance. Therefore, organizations must focus on retaining their employees to ensure their

stability, growth, and success.

Job stress

Olipane, H. G. E., & Avecilla, J. F. D. (2023) suggest low job stress can lead to high

organizational commitment among workers. Employers and organizations should, therefore, take

steps to reduce job stress and provide adequate facilities at the workplace to ensure high levels of

organizational commitment. High organizational commitment can contribute to a worker's

productivity and benefit the worker, employer, and organization. Indicates that job stress can

negatively impact employees' health, leading to lower engagement and commitment. Therefore,

maintaining an optimal level of occupational stress can result in higher employee engagement.

A study by A. L. Hakim, Sudarmiatin, and Sutrisno (2018) found that work stress

significantly impacts turnover intention. Job stress could be due to the need for job satisfaction,

including dissatisfaction with the salary given by the company. Stress in the work environment

and pressure from leadership to meet targets trigger high stress levels in employees. The

increased pressure leads to discomfort and workplace tension, which triggers employee stress

and turnover intentions.

Overtime Work

Employees often feel undervalued and unappreciated, leading to stress from overwork

and an imbalance between work and personal life. A loss of trust in leaders is also a common

cause of stress. Trust is crucial for an organization's employees to perform well and maintain
their well-being. Work stress can negatively impact a person's emotions, thoughts, and physical

condition. Stress-related burnout caused by long working hours can lead to employee turnover.

Employees who work long hours often choose to leave their jobs. In the power generation

industry, particularly in private power plants, overtime is expected during outages or

maintenance schedules to maintain and operate generator engines. Overtime work can cause both

physical and psychological fatigue. The lack of attention from management can also cause

employees to feel uncomfortable and have a low commitment to the organization. High levels of

overtime work could increase the likelihood of employee turnover.

Shifting Schedule

According to Kaduk et al. (2019), changing one's work schedule can be a job demand or

a job-related resource and impact employee turnover. Although it may seem like a personal

preference, rearranging or shifting schedules can still present challenges for employees, as

Kossek, Lautsch, and colleagues (2001) pointed out. Furthermore, research has shown that

perceived flexibility or schedule control can negatively affect employees' well-being and job

satisfaction (Byron, 2005).

Work Environment

The work environment refers to how employees carry out their daily tasks and adjust to

physical and non-physical factors. The work environment can determine an employee's decision

to stay or leave an organization (R. et al. Webber, 2015). As stated by Kurniawaty, K., Ramly,

M., & Ramlawati, R. (2019), a lack of a supportive work environment by management can

hinder employee efficiency. A supportive work environment gives employees a sense of security

and empowerment, leading to increased productivity. Employees who feel comfortable in their

workplace will likely see it as an extension of their home and utilize their time more effectively.
 Additionally, a study conducted by Jiang, M., & Po, S. M. in 2023 has shown that a

supportive work environment can improve performance and job satisfaction. The work

environment moderates the relationship between training and development and employee

retention, as well as the relationship between employee participation in decision-making,

compensation, job security, performance appraisal, and employee retention. Examining the

moderating effect of the work environment on this relationship can contribute to the existing

literature on HR practices and employee retention. The work environment encompasses the

physical, social, and psychological factors that impact employee productivity and well-being.

Theoretical Framework

Turnover intention refers to an employee's plan to leave their current job. This decision

may be made voluntarily or involuntarily, depending on the situation. Involuntary turnover may

occur when employees face an unfavorable work environment, such as mistreatment or

organizational changes that affect their job security. On the other hand, voluntary turnover arises

when employees feel dissatisfied with their jobs and desire to leave their current positions

(Robbins & Judge, 2013).

Chen & Francesco, 2000, Several factors can influence an employee's turnover intention.

One such factor is job satisfaction, which is how content employees are with their current jobs. If

an employee feels unhappy or unfulfilled with their job, it may increase their turnover intention.

Organizational commitment, which refers to an employee's loyalty and dedication to their

organization, is another factor that can influence turnover intention. If an employee feels

disconnected or uncommitted to their organization, it may increase their turnover intention.

(Mobley et al., 1978).

 The Unfolding Model of Turnover (Lee & Mitchell, 1991) suggests that work schedules

that are constantly changing or unpredictable can cause employees to feel stressed and

dissatisfied. Such schedules may disrupt their personal lives and negatively impact their

work-life balance, leading to feelings of frustration, anxiety, and burnout. Employers should

consider implementing fair and consistent scheduling policies that prioritize employee

well-being and enable them to plan and manage their personal lives more effectively, to avoid

this situation. Employees' well-being and organizational performance can be negatively affected

by job stress. Heavy workload, lack of resources, unclear expectations, poor management, and

interpersonal conflicts can all cause job stress. Employees who experience job stress may feel

overwhelmed, frustrated, and burnt out.

Mobley, W. H. (1977), Job stress can lead to a range of physical and psychological health

problems, such as fatigue, headaches, depression, anxiety, and sleep disturbances. It can also

result in absenteeism, presenteeism, and decreased productivity. Furthermore, job stress can

significantly reduce job satisfaction and increase employee turnover, which can harm an

organization's success. A toxic work environment can have far-reaching consequences for both

employees and employers. When employees are subjected to poor communication, lack of

respect, or harassment, it can create constant negativity that can impact productivity, morale, and

even physical and mental health. Toxic behavior in the workplace can have serious negative

consequences on employees' mental and physical health, job satisfaction, and productivity. It can

also lead to high turnover rates. However, the impact of such behavior can be challenging to

measure as its effects may be subtle and long-term.

Price, J. L. (1977), excessive overtime work can harm employee's well-being and job

satisfaction. When employees are required to work long hours, it disrupts their work-life balance,
as they are left with little time for personal activities such as hobbies, family, or friends.

Overtime work can lead to significant stress and burnout, ultimately affecting their productivity,

creativity, and job performance. Moreover, when employees are continually required to work

overtime, it reduces their job satisfaction. They may feel undervalued, as their efforts and hard

work should be recognized and rewarded. Overtime work can negatively impact their motivation

and ultimately lead them to consider seeking employment elsewhere. Overtime Work, Excessive

overtime can be a major "shock" in the Unfolding Model (Lee & Mitchell, 1991). Working long

hours disrupts work-life balance, leads to burnout, and reduces job satisfaction. Overtime work

pushes employees closer to considering an ideal job where they have a healthier workload.

Conceptual Framework

Figure 1. Research Paradigm

 In Figure 1, it represents the Conceptual Framework of the study. It consists of the factors

that cause employee turnover such as job stress, overtime work, shifting schedule, and work

environment in the fast food industry located at Malabon City.

Employee turnover can be influenced by various factors such as job stress, overtime

work, shifting schedules, and work environment. The fast-paced nature of the industry and the

physically demanding nature of many roles can contribute to turnover, as employees may seek

opportunities with better work-life balance or less physically demanding work.

Employees in the fast food industry often experience significant job stress due to the

demanding nature of the work. Dealing with long lines, impatient customers, and strict time

constraints can take a toll on employees' mental and emotional well-being. The lack of adequate

support or resources to manage job-related stressors can contribute to a negative work

environment and hinder employees' ability to cope effectively with their workload.

Overtime work is frequently expected in the fast food industry, often without adequate

compensation or consideration for employees' personal lives. Excessive overtime can lead to

burnout and fatigue among workers, affecting their overall health and job satisfaction. The

pressure to work overtime without proper compensation can create a financial strain for

employees who may rely on additional income to make ends meet.

The unpredictability of the schedule can strain relationships outside of work, as

employees struggle to coordinate social engagements and family responsibilities. This instability

may also affect employees' physical and mental well-being, potentially leading to increased

stress levels and decreased job satisfaction. The lack of consistent downtime can hinder

employees' ability to recharge and perform optimally during their shifts, impacting both

individual productivity and overall team performance.

 The work environment in the fast food industry can be competitive, with high pressure to

meet targets and deliver fast service. Interactions among colleagues may sometimes be tense,

leading to a less-than-ideal atmosphere for teamwork and collaboration. This can result in

strained relationships among colleagues and hinder effective communication and cooperation

within the workplace.

Statement of the Problem

The study aims to determine the determinant factors that cause employee’s turnover in

select fast food industries located in Malabon City. It also aims to find out the result if the

management will need to enhance the working conditions for the stay of the workforce in the

company. It is sought to answer the following:

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Sex

1.3 Employee Designation

1.4 Length of Service

1.5 Compensation

2. How do the respondents perceive the determinant factors of employee’s turnover in terms of:

2.1 Job Stress

2.2 Overtime Work

2.3 Shifting Schedule

2.4 Work Environment

3. Is there a significant difference between the respondents’ perception on the determinant

factors of employees’ turnover in select fastfood industries when the profile is considered?

4. Is there a significant relationship between the determinant factors that cause to employee’s

turnover when the profile is considered?

5. Based on the findings, what are the working conditions that the management will be enhanced

for the continuous stay of the current employees?

Hypothesis

1. There is no significant difference between the respondents’ perception on the

determinant factors of employees’ turnover in select fastfood industries when the

profile is considered.

2. There is no significant relationship between the determinant factors that cause to

employee’s turnover when the profile is considered.

Significance of the Study

This study focuses on determining the different factors that cause employee turnover in

the fast food industry located at Malabon City. The following will be benefited the following:

Business Industry

Investigating the factors influencing employee turnover in the fast food industry in

Malabon City is essential for developing effective retention strategies, reducing costs, improving

employee morale and productivity, and enhancing the customer experience.

Employees
 The study aims to uncover factors driving employee turnover at the fast food industry in

Malabon City, providing insights for management to develop strategies for reducing turnover

rates and enhancing employee retention. This research addresses a pressing issue in the fast-food

industry, promoting a more stable and supportive work environment for employees.

Researchers

This study provides valuable insights into the specific challenges and dynamics present

within the fast-food industry, particularly within a localized context. By identifying the factors

influencing turnover, researchers can contribute to the development of targeted strategies and

interventions aimed at mitigating turnover rates and improving employee retention.

Future Researchers

This study could serve as a foundation for future investigations into the effectiveness of

retention initiatives, the impact of organizational culture on turnover, and the role of

compensation and work-life balance in employee retention strategies.

Scope and Limitation of the Study

This study focuses on determining the different factors that cause employee turnover in

the fast food industry. The data collection will be conducted to thirty (30) former employees of

different branches in Jollibee located at Malabon City. The researchers will provide informed

consent letters for the chosen respondents.

The study may be limited by the availability of data and cooperation from the former

Jollibee employees in Malabon City. Each respondent is given the same survey questionnaire to

answer. The results of this study will be applicable only to the respondents of this study and will

not be used as a measure of the employee turnover in the fast food industry located at Malabon
City. The main source of data will be the survey questionnaire, which is prepared by the

researchers.

Definition of Terms

Employee Turnover: The process by which employees leave an organization and are replaced by

new hires. In the context of this study, it refers to the departure of employees from the Jollibee

fast food industry in Malabon City and the subsequent recruitment of new staff.

Job Stress: The mental and emotional strain experienced by employees due to job demands,

pressure, and challenging work conditions. In this context, job stress is identified as a factor

influencing turnover among Jollibee employees.

Jollibee Fast Food Chain: A highly successful international Filipino quick-service restaurant with

over 1,500 outlets worldwide, known for its commitment to high standards of food quality,

service, and cleanliness. Commonly referred to as "A Taste of Home" by Filipinos abroad.

Overtime Work: The practice of working beyond regular working hours, often without additional

compensation. Excessive overtime can contribute to burnout and fatigue, impacting employee

well-being and potentially leading to turnover.

Shifting Schedule: The unpredictability and variability of work hours and days, can affect

employees' ability to maintain work-life balance. In the study, shifting schedules are considered

as a potential factor influencing turnover.

Work Environment: The conditions and atmosphere in which employees perform their daily

tasks, including factors like workplace culture, interpersonal relationships, and the physical

setting. In the study, it is considered a potential cause for turnover.

 Chapter 2

METHODOLOGY

This chapter focuses on research methodology related to the study. It presents the

research in design, participants and sampling procedure, instrument of the study, data gathering

procedure, data analysis and statistical treatment, ethical consideration, informed consent, and

anonymity and confidentiality.

Research Design

In this research, a quantitative descriptive research design was used. According to the

Dovetail Editorial Team (2023), descriptive research designs aim to methodically gather

information in order to provide a description of a population, circumstance, or phenomena. More

accurately, it helps with the what, when, where, and how questions rather than the why of the

research task. The outcomes of a descriptive study can therefore be examined in more detail and

applied to other types of research. Additionally, it can evaluate the prospective researcher and the

appropriate study methodology. In this study quantitative research is employed, wherein the data

that were collected from the respondents are gathered and will be tabulated. The questionnaire

will be written in accordance with the study's research direction, to address the central question

by systematically determining what factors (job stress, overtime work, shifting schedule, work

environment) influence the employees turnover in Jollibee fast food industry located at Malabon

City.

Participants and Sampling Procedure

 In this study, the researchers will use purposive sampling in choosing and gathering

respondents. A purposive sampling as defined by Foley (2018), is a type of non-probability

sampling where researchers select study participants from the population using their own

discretion.

The participants of the study will be former employees of Jollibee fast food industry

located at Malabon City. The estimated population of former employees is approximately

seventy (70) individuals who have left their positions within the past two years. The researchers

will target those who have voluntarily resigned or left for other reasons, aiming to understand the

factors contributing to their turnover. The main target respondents were fifty (50) former

employees to participate in the study to answer the survey questionnaires. However, the

researchers purposely gathered thirty (30) respondents only. The researchers have considered that

upon the distribution of survey questionnaires there is a difficulty to reach out the respondents by

their voluntary response, and there is only limited time to gather the data responses who can

contribute to the study.

Research Instrument

This study will use the instrument in gathering data that is composed of two parts survey

questionnaires. The researcher prepares self-made questionnaires to have suitable validity and

reliability to measure the variables of what factors of employee turnover using determinants

indicated on the questionnaire. Close- ended questions will be asked in the questionnaire to apply

the quantitative data needed by the researchers. The researchers’ validators ensure that all the

phrases and wordings are clear and can be easily understood by the respondents. Thereafter has

been undertaken by the University's statistician using Cronbach’s Alpha to prove the reliability
of each question, to achieve more accurate data and attained the desired results of the

researchers.

The main instrument for collecting data from the study's purposely thirty (30)

respondents was the survey questionnaire. Since the target respondents' locations fluctuate, the

researchers chose Google Forms as their primary data collection tool for the survey

questionnaire. The questionnaire was divided into two sections: Part I covers the respondents'

demographic information, including age, sex, employee position, length of service, and

compensation. Part II evaluates the determining factors of employee turnover in the fast food

industry at Malabon City. The researchers will use four (4) – point Likert Scale as a guide in

answering the survey questionnaire with the following descriptions and interpretations. 4

corresponds to “Strongly Agree", 3 for “Agree”, 2 for “Disagree” and 1 for “Strongly Disagree”.

Assigning numerical value to the degree of respondents’ agreement will help the researchers in

analyzing the data efficiently.

Data Analysis and Statistical Treatment

The respondents were categorized based on their demographic profile using the

frequency and percentage. The frequency distribution is regarded as a measurement that

condenses the distribution of a variable when the number of items in each category is shown.

The frequency process calculates the percentage of the class interval in the distribution using

summary metrics for categorical variables expressed as frequency tables.

Percentage of the respondents' profiles was calculated using percentage.

Formula:
Percentage (%) = 𝐹

𝑁 × 100

Where:

% = percent symbol

F = frequency of respondents

N = total of member of respondents

Weighted Mean was applied to get the independent variable's score on average using this

formula:

WX = Where:

WX = weighted mean X = weight assigned

F = frequency for each option

N = total number of respondents

The obtained weighted mean was interpreted using the following scales:

Scale Range Interval of Weighted Verbal Interpretation

Mean

4 3.26 – 4.00 Strongly Agree

 3 2.51 – 3.25 Agree

2 1.76 – 2.50 Disagree

1 1.00 – 1.75 Strongly Disagree

Slovin's is used to calculate the sample size.

Formula:

Where:

n = number of samples N = total population

e = margin of error

Cronbach’s Alpha is a measure of reliability that can reveal whether or not responses are

consistent across items.

Formula:

Where:
N = number of items

c̅ = mean covariance between items. v̅ = mean item variance.

Kruskal Wallis Test was applied to determine the statistical significance of differences between

independent and dependent variables.

Formula:

Where:

K = number of groupings compared N = sample size in total

ni = i-th group’s sample size

Ri = total of the ranks associated with the i-th group

Mann-Whitney (U) Test was used to compare the means of two sample samples from the same

population; it is typically used when the data is ordinal or the t-test assumptions are not met.

Formula:
Where:

Ux = is the sample X Mann Whitney computation N = is the sample number

∑ 𝑟𝑥 = is the sample X total of its ranks.

Wilcoxon Test W is used to compare two related samples, or matched samples.

Formula:

Where:

W = is the test statistic

Nr = sample size, excluding pairs where x1 = x2 sgn = sign function

x_{1,i}, x_{2,i} = corresponding ranked pairs from two distributions Ri = rank I

Ethical Consideration

In this study, the researchers took into account a few ethical concerns. All of the

respondents' private information will be kept private during this study. They will feel more

comfortable revealing certain information that may be sensitive since their privacy will be

protected. Many facets of society may benefit from their involvement, rather than it being seen

as exploitative or damaging to them. Participant consent will be voluntary for both the study and
the interviews. It will be promised to the research object before any research is conducted that

the findings will only be used for thesis writing and will not have any negative effects on the

company's reputation or brand.

Informed Consent

Prior to answering the survey questions, the participants will be asked if they are willing

to participate in the study. The researcher will briefly discuss the intent and objectives of the

study entitled Determining factors of employee turnover in the Fast Food Industry. Consequently,

specific requests will be made, and they will also be told how long the survey will take. Also, the

participants will be made aware that their participation is completely voluntary.

Anonymity and Confidentiality

In conducting this study, the author will thoroughly adhere to the Data Privacy Act of

2012. The researchers will ensure the respondents that they are not obliged to give their names

and contact information. This study will make sure that all gathered data will only be utilized for

academic purposes as it is the main objective of gathering it. Additionally, the researchers will

guarantee that participants get respect, empathy, and candor. Since these are the prerequisites for

building rapport between the interviewers and the respondents, they shall be adhered to in order

to ensure ethical research.