The Effects of Motivation and Job Satisfaction on Employee Retention. A Case Study on Zara

Academic Paper from the year 2020 in the subject Leadership and Human Resources - Employee Motivation, grade: A, University of Edinburgh (College of Arts, Humanities and Social Sciences), language: English, abstract: Employee retention is one of the biggest challenges that human resource management of organisations is currently faced with. The uncertainty in the changed economic conditions, diversity in workplace and increased competition has forced majority of the organisations to hold on their top performers at any cost that they have to pay. It is very crucial task for recruiters in organisations to hire such professionals that have right skills and expertise to serve for the company. Thus, the focus of organisation has shifted from numbers to quality and from recruitment to retention. Based on the research topic, the researcher has gathered primary data regarding employee motivation and satisfaction at Zara and its effect on employee retention. The study aimed to assess whether there exist a relationship between employee motivation, satisfaction and employee retention. The literature review has described major factors that influence job satisfaction while the levels of employee job satisfaction were found through surveys at Zara. The literature also described the link between employee motivation and employee retention, in addition to employee satisfaction and employee retention. Survey and interview questionnaires were designed to gather primary data. The interviews revealed what employee motivation and satisfaction measures were adopted by Zara. The interviews also found the importance of employee retention from manager’s point of view. The study concluded that employee motivation and satisfaction has effect on employee retention. It was also found that organisation found significant to make their employee feel happy, motivated and satisfied so that they can give their best to achieve organisational goals. Organisational productivity is dependent on employee’s productivity, and employee’s productivity can be increased by making them best satisfied with their jobs. For such reasons, organisations provide their employees with flexible work culture, benefits, welfare services, job promotion opportunities and other measures that keep them motivated and satisfied with their jobs. By doing so, the ultimate goal of organisation in retaining its best talent is achieved.