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Retention of Employees in The Fast-Food Industry in Pakistan

This document summarizes a research study on factors that influence employee retention in the fast food industry in Pakistan. The study identified five critical factors - job satisfaction, brand image, job security, career development, and supervisor support - and examined their relationship to employee retention. Through quantitative analysis, the study found that job satisfaction, brand image, and job security have a significant positive impact on retention, while career development and supervisor support do not. These results were validated by interviews with industry experts. The study recommends enriching job roles and reenergizing employee motivation to improve retention in the Pakistani fast food sector.

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0% found this document useful (0 votes)
292 views17 pages

Retention of Employees in The Fast-Food Industry in Pakistan

This document summarizes a research study on factors that influence employee retention in the fast food industry in Pakistan. The study identified five critical factors - job satisfaction, brand image, job security, career development, and supervisor support - and examined their relationship to employee retention. Through quantitative analysis, the study found that job satisfaction, brand image, and job security have a significant positive impact on retention, while career development and supervisor support do not. These results were validated by interviews with industry experts. The study recommends enriching job roles and reenergizing employee motivation to improve retention in the Pakistani fast food sector.

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Tayeb Khan
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We take content rights seriously. If you suspect this is your content, claim it here.
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Journal of Contemporary Issues in Business and Government Vol. 27, No.

5,2021
https://cibg.org.au/
P-ISSN: 2204-1990; E-ISSN: 1323-6903
DOI: 10.47750/cibg.2021.27.05.039

“RETENTION OF EMPLOYEES IN THE FAST-FOOD


INDUSTRY IN PAKISTAN”

Adnan Ahmed 1, Dr Muhammed Arif 2


1. Strategic Business Consultant, email: adnan68@gmail.com, ORCid: 0000-0002-
8173-4211, A 204, Falak Towers, Clifton Frere Town, Karachi, Pakistan -
Corresponding author
2. Assistant Professor, Institute of Business Management (IoBM),
email:effiarif@gmail.com
ORCid:0000-0001-9921-2027

Abstract
This study identifies critical factors which have influence employee retention in the fast-
foodpolicies in these organizations to retain staff at the floor level.Overall, the results give a
fresh insight into the topic of retention industry. It adds to research studies on similar topics by
exploring critical factors which have not been a regular part of the research, such as supervisor
support and job security. Instead of taking employee turnover intention, this study takes a more
direct approach by using the retention of employees as a dependent variable. The study confirms
through quantitative analysis that three independent variables – Job Satisfaction, Brand Image,
and Job Security have a significant impact on employee retention. In an unusual result, two other
independent variables – Career Development and Supervisor Support have been found to have an
insignificant impact on the employee retention in the fast-food industry. These results have been
validated through online interviews with an Industry Specialist and a Food Researcher.Based on
this study, it is recommended that Operations staff should have their jobs enriched with regular
transfers to other areas like Finance, Marketing, and Purchasing. There is also an urgent need to
reenergize the motivational levelof employees in the fast-food industry in Pakistan.
Key Words: Fast Food industry, Job Satisfaction, Brand Image, Job Security, Employee
Turnover, Retention of Employees

JEL Clarification: L66, J28, L1.

INTRODUCTION
Background of the study
Fast Food Restaurants are an important part of the retail business in Pakistan.(Economic Survey
of Pakistan, 2016-17).The National Restaurant Association in India (NRA) defines the restaurant

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industry as locations where meals, snacks, and beverages can be purchased and consumed. This
also includes all the takeout meals. A quick service restaurant serves what is called fast-food. A
consumer pays at the counter and consumes the product quickly.(Borgave, 2016). Fast Food
Restaurants started in Pakistan with KFC (1997) and McDonald’s (1998). Pizza Hut was
established in 1993 but is technically not fast food but sometimes mistakenly identified as
such(Borgave, 2016). The last two decades have seen a rise in new Fast Food Restaurants with a
different type of retail designs and displays in all the large cities of Pakistan.(Ghani, 2014)
Changes that are now taking place in Pakistan in the Fast Food industry are similar to those that
occurred in the twentieth century in North America and Europe(Ghani, 2014).
Pakistan has a population of above 220 million, with a flourishing middle-class.
Approximately one quarter of the total population represents the potential market for fast
food, and interestingly it is also rising due to increased affordability. The success of
international fast-food chains such as McDonald’s, KFC, Pizza Hut, Pizza Express, Subway
and others clearly validates the increased desirability of fast food in Pakistan.(Ehsan, 2010).
Retail Planet estimates the entire Pakistani Retail landscape at $ 152 billion in end 2016.
The research also outlines the figures for QSRs, but the data is inaccessible. What is clear is that
there is growth in this segment, all around Pakistan, and this can be gauged by the fact that new
restaurants have all come up in the last 20 years. Pakistan holds the world’s eighth largest market
when it comes to fast food and food related business.(Memon, 2016). For Karachi specifically,
you have new chains in Pantry, Moos, and Cluck, Hiesens, OMG, etc.The opening of malls also
had an impact on the growth of the QSR industry. Major malls have come up in all the main
urban centers of Pakistan. Prominent amongst these are Lucky One (3.4 million square feet),
Packages Mall (3.1 million square feet), and Nishat Emporium (2.6 million square feet). The
latter is based in Lahore but the first one is in Karachi – it is Pakistan’s largest mall. Every mall
has a food court, and every court has at least 3-4 fast food brands.
Employee Turnover in Pakistan’s Retail Industry is highest in the World in 2016. It’s
55% compared to 25% in the US and 20% in the EU.In the food industry in Pakistan, employees
will switch jobs very quickly due to low pay scales, work environment, and other
factors.(StaticA, 2016). Some studies on US fast food chainshave shown voluntary employee
turnover as high as 50% and an estimated cost of 30 -50% of the cost of labour for entry-level
positions(Cross, 2017). Retention of employees globally involves several factors which include
training and development, job satisfaction, reward systems, and many other variables that differ
industry to industry(Brown , Murphy , & Wade, Human resource development implications for
large and small organizations, 2006). But its importance to the entire fast food industry remains
undisputed and involves active HR engagement as well as a complete program for employee
retention. It also requires a complete understanding of the critical factors which influence
employee retention(Dienhart, 1993)

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DOI: 10.47750/cibg.2021.27.05.039

Statement of the Problem


Employee turnover is very high in the fast food industry(Cross, 2017). Since this is a highly
service oriented industry, the retention of employees becomes an important factor (Dipietro,
Thozhur , & Milman, 2007). Therefore,it is imperative to identify and understand the critical
factors which impact employee retention in the fast food industry.

Research Gap
Previous studies point out the impact of key variables on employee retention in the fast food
industry. But these studies have been carried out indeveloped countries. There is a need to do this
study on the rapidly growing fast food industry of Pakistan. As previous studies have already
established key retention factors such as training, work environment, and compensation, etc., in
this paper, the aim is to explore other critical factors that impact employee retention.

Objectives of the study


 To Identify the critical factors that impact the retention of employees in the Fast Food
Industry
 To understand the relationship of these factors in the retention process in the Fast Food
Industry

Research Questions
 What are the critical factors for the retention of employees in the fast food industry?
 What is the relationship of these factors to employee retention in the Fast Food
Industry?
This paper has four further sections. Section 2 is the literature review and describes the
theoretical framework and the conceptual model. Section 3 explains the research methodology.
Section 4 is the analysis and discussion and includes the quantitative analysis and application of
SEM. Finally, Section 5 enumerates the recommendations, limitations and concludes the
findings.

LITERATURE REVIEW
Review of literature
A quick service restaurant serves what is called fast-food. A consumer pays at the counter, often
serves himself, and consumes the product quickly. Unlike traditional eateries, payment is made
before the consumption of food (Borgave, 2016).
The product mainly comprises of Burgers, Sandwiches, Donuts, Coffee, French Fries,
and other snack items. Beverages are part of the product range. Pizza is defined as fast food but
is a fine dining item in some countries. Some QSRs will also serve specialty items (Borgave,
2016). The defining characteristics of fast-food industry is to, it is moving fast, available quickly
at outlets situated nearby, so that such food is available within minutes. Fast food is

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homogeneous. This is its second characteristic, like Big Mac is not just available quickly and
easily but is designed to be eaten quickly and easily. Bap, Pizza edge or taco shell is made to be
held in the fingers so that knives, forks and even tables are not required. Fast food can be eaten
anywhere, even in transit. (Grumett, Bretherton, & Holmes, 2015). The foodservice industry is
shown below.

Figure 1: Classification of the Restaurants


Source: (Borgave, 2016)

Should Pizza be defined as fast food? In some countries, Pizza is classified as fast food as
it has all the above mentioned characteristics. In Pakistan, however, you do not pay at the
counter and the food is served by a restaurant employee at the table. Furthermore, it is social
activity to eat out in Pizza restaurants and you spend a lot of time in them. However, even in the
case of Pakistan, articles and research include Pizza as fast food.(Farooqui & Alwi, 2019)
The global Fast food industry has grown by 3.5% since last five years and generates
revenue of approximately 668 billion dollars.(IBIS WORLD, 2018) It is forecasted that in 2022
the fast food industry will grow from 533,244 M dollars to 743,859M dollars at a compound
annual growth rate of 4.8%.(Farooqui & Alwi, 2019). Compared to global market of fast-food
industry business, Pakistan rank 8th among all countries around the world.(Farooqui & Alwi,
2019). The consumption of fast food in Pakistan has increased drastically. Contributing factors
which impact on customers food preferences are as follows; Urbanization, socializing, taste
preferences by the students of college and universities, Pakistani family’s dual income
expediency and other aspects(Farooqui & Alwi, 2019) On average Pakistan fast food industry
observed 21% annual increase in business because of the people more spending on fast food
eating preference, which make fast food industry in Pakistan is one of the fast growing
businesses around globe(Farooqui & Alwi, 2019).

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Retention of employees is a major KPI in managing the humanresource of an


organization (HRM) (Cross, 2017). Across industries, it is ofparamount importance as there is a
cost of high employee turnover, whether it be a more recent industry like IT and Services or an
older manufacturing concern. Strategies for employee retention vary from industry to industry
but some elements remain common. These are Training and Development, Compensation, and
Work environment(Nasir & Mahmood, 2016). But across industries, the importance of some
factors varies. In the hospitalitysector, Work Life Balance is rated as the most critical(Deery &
Jago, 2015).In the fast food industry, training and development is the most commonly cited
factor for retention of employees. Similarly, for hourly wage workers in fast food chains, the
important variables are ease of commute, location of the restaurant, and flexible hours(Dipietro,
Thozhur , & Milman, 2007). This study looks at other variables other than the common ones and
attempts to identify their impact on the retention of employees in the fast food industry. These
variableshave been identified through an extensive literature review, details of which have been
attached in the appendix section. These variables are Job Satisfaction, Career Development,
Supervisor Support, Brand Image, and Job Security.
Job Satisfaction
According to Spector (1986), job satisfaction is "how individuals feel about their work
and the different dimensions of their work". According to another definition by Locke and
Henne, (1986), job satisfaction is expressed as a "pleasant feeling of being successful”. Since the
1930s, more than 11,000 research have been done on Job satisfaction(Taspinar & Turkmen ,
2019). Job satisfaction is critical in the retention of employees. It results in customer oriented
behavior which ultimately leads to customer satisfaction. The Organization’s Training and
Development Program and Rewards System also impact Job Satisfaction directly(Choi & Joung ,
2017). Factors that impact job satisfaction are Compensation, career progression, supervisor
support, and the work itself (Abuga, 2010). Results showed that job empowerment increases job
satisfaction and loyalty to the organization(Naqvi , Ishtiaq, Kanwal, & Ali, 2013).Job satisfaction
in new employees isaffected by five dimensions of Job Characteristics – challenging job, sense
of accomplishment, meaningful work, friendly co-workers, and job security (Lam & Zhang,
2003).
The most prevalent and popular theory regarding job satisfaction remains the two-factor
theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory). This was
developed by psychologist Frederick Herzberg and states that job satisfaction and job
dissatisfaction are both caused by a different set of factors in the workplace. These factors act
independently of each other. This theory clearly distinguishes between theMotivators that give
positive satisfaction and the Hygiene factors which lead to dissatisfaction when they are absent.

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Figure 2: The Two Factor Theory


Source: (Herzberg, 1959)
Career Development
Employment in Fast Food restaurants is beneficial for future career development for
young employees, as they improve their communication skills,self-confidence, ability to work in
teams,and daily work habits(Hawke, Lawn, Robertson, VandenHeuvel, & Wooden, 1999). There
are several aspects to career development –Internal promotions, Succession planning, Training,
and development. Some individuals want a long term career in the fast food industry and move
from one restaurant chain to another. They will invest in themselves and look at other
organizations with a strong training and development program as well as strong retention
policies.(Dipietro, Thozhur , & Milman, 2007)Research shows a direct relationship between the
quality of training and retention of an employee.Those employees who have received the right
training are six times more likely to be retained.(Brown , Murphy , & Wade, Human resource
development implications for large and small organizations, 2006).The higher the opportunities
to develop your career, the higher is the retention of employees for a longer duration(Nasir &
Mahmood, 2016)
Supervisor Support
As we have seen while studying the last factor, career development, employees want to
develop themselves in a way that will enhance their long term careers. This becomes a source of
competitive advantage for the fast food chain. But to fullyutilize the potential of the employee,
the role of his manager/ supervisor is critical(Sinclair-Maragh, Jacobs-Gray, & Roomes, 2017)
51.5% of fast food employees are motivated through mentorship, as per another research study
which also states that individuals are motivated when they are told that they have a special talent.
Coaching, mentoring, motivation, and empowerment by the supervisor remains a strong measure

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to foster talent(Sinclair-Maragh, Jacobs-Gray, & Roomes, 2017). Another way of providing


support is to encourage decision making, empower the employee, and provide autonomy to the
direct subordinate. This works especially well for young employees(Sterling, 2015)
Brand Image
In recent years, companies have increasingly focused on employer branding to create a
strong company brand image. Employer branding was introduced in 1996 and is defined as those
benefits provided by the employer that are identified with their company. This marketing
strategy aims to establish the company as a preferred employer within the industry, by,
communicating employment promises to potential and current employees about particular
experiences and opportunities provided by an organization.(Tanwar & Prasad, 2016).Companies
position themselves as brands to attract and retain talent. Thus, marketing your place “as a great
place to work in” attracts high potential, new talent.(Agarwal, 2015)There are five values of
employee branding: social, economic, reputation, development, and diversity value, and they
directly impact employee commitment and job satisfaction. (Kaiser & Regjepaj, 2019).On
average, it costs about one-and-a-half years of departing employees’ annual salary to attract new
employees, which is more than the investments for the retention of the current workforce.
Employer branding is now being used for talent acquisition, development, and retention(Kaiser
& Regjepaj, 2019)

Figure 3: Employer Branding Framework(Tanwar & Prasad, 2016)


The Employer Branding Framework is presented above. (Tanwar & Prasad, 2016) According to
this model, employer branding is made up of four dimensions: Corporate Social Responsibility,
Work-Life Balance, Training and development, and Work Environment. Further, employer
branding creates five possible outcomes: job satisfaction, psychological contract, productivity,
organizational commitment, and brand advocacy. Employer branding impacts job satisfaction
and psychological contract which in turn impacts the retention of employees. The retention of
employees further impacts productivity. Next, employer branding contributes to organizational
commitment which in turn leads to the creation of brand advocacy. A direct link between

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employer branding and productivity and brand advocacy can also be seen which shows that
employer branding directly impacts productivity and brand advocacy without the mediating
effect of job satisfaction and the psychological contract.
Job Security
Job security can impact the retention of employees(Sokhanvar, Kakemam, & Chegini,
2018). A study of 100 companies confirmed that retention of employees is increased by
promoting from within. This practice increases job security and international fast food chains
practice this. This has also been validated through research.(Dienhart, 1993).In another study on
the factors influencing employee retention, Job security as a retention strategy had the maximum
factor score. It was listed asone of the factors that influence employees to stay in the company.
(Rakhra, 2018)Employees tend to stay longer in an organization when they feel that their job is
secure and are not worried about their future career. Further, if no conditions or factors
arethreatening their job positions, and if they feel that careerprogression is possible through self-
development, retention will be higher. A culture of sympathy and kindness in an organization
also helps in retention of employees(Sokhanvar, Kakemam, & Chegini, 2018)
A tabular literature review table of the important articles is given below.
Author and Time Frame Objective Results / Conclusion
Michelle Kaiser & Albulena How employer branding The five values of employee
Regjepaj impacts employee branding directly influence
(2019) commitment and satisfaction commitment and satisfaction
Darren D. Cross (2017) Understand the tools and Good communication and
techniques of retention of training, along with a
employees in a fast food supportive environment can
environment help improve employee
retention and improve profits
Gaunette Marie Sinclair- To determine whether talent Talent management practices
Maragh, Noriel Jacobs-Gray, Managementpractices play a motivating role and are
Norene Roomes, (2017) motivate employees in a fast mutually beneficial for both
food entity the company and the
employees.
Shuana Zafar Nasir & What is the effectiveness of No single factor alone results
Nasir Mahmood (2016) retention strategies in an in retention. Hence, one has
organization? to work on all correlated
factors.
Harpreet Kaur Rakhra (2018) What are the factors that This paper gives potential
influence employee retention reasons why employees leave
in companies? and compare 6 important
factors concerning age,
gender, and organizational
level. The importance of each

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factor changes with


organizational level and age
but there are minordifferences
in the case of gender
Khawaja Jehanzeb and What is the relationship Age makes a difference in
Anwar Rasheed (2013) between training programs this relationship. Elderly
and job satisfaction among employees are less influenced
the employees? by training programs than
younger ones
Asad Mohsin and Jorge What is the relationship Training, Rewards and
Lengler (2014) between job satisfaction and Loyalty programs and Job
job turnover in fast food Security influence job
chains? satisfaction

Table 1:Tabular Literature Review Table


Conceptual Framework
Based on the literature review, the following conceptual model is given below

Job Satisfaction

Career Development

Employee
Supervisor Support
Retention

Brand Image

Job Security

Fig4:The basic conceptual model

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The following Hypothesis are to be Retained or Rejected:


 H1: Job Satisfaction has a significant impact on the Retention of Employees in a Fast
Food Restaurant
 H2: Career Development has a significant impact on the Retention of Employees in a
Fast Food Restaurant
 H3: Supervisor Support has a significant impact on the Retention of Employees in a Fast
Food Restaurant
 H4: Brand Image has a significant impact on the Retention of Employees in a Fast Food
Restaurant
 H5: Job Security has a significant impact on the Retention of Employees in a Fast Food
Restaurant

RESEARCH METHODOLOGY
Data
Primary Data
Primary data has been obtained from an Online Questionnaire created in Google documents.
Data has been collected from the two leading fast food brands, McDonald’s, and KFC. These are
the two oldest fast food brands and the trendsetters in Pakistan.
Secondary Data
The articles selected for this study are based on the content and relevance of the research
topic. Two searches were conducted. The first used “retention” to identify keywords / potential
variables. These were new articles – 2015 onwards. The second search was fast food specific
using keywords/ variables indicated by the first search with no restriction of time on articles.
Variables
Independent Variables:
 Job Satisfaction
 Career Development
 Supervisor Support
 Brand Image
 Job Security
Dependent Variable:
 Employee Retention
Inclusion Criteria (for Secondary Data)
No relevant unpublished articles, like conference proceedings, on the subject matter are
considered for inclusion in the systematic literature review. Articles published in journals with a
high impact factor are considered for inclusion for the study. However, articles with strong
content representing the regional and local norms and cultures have been considered for
inclusion as well. Thesis studies have also been included in this research. There was no
limitation inthe country in the search. Articles are marked as either accepted or rejected. Rejected
articles are excluded based on inadequate information about research design and methodology.

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Data Collection Instrument


This is an online questionnaire created in Google documents. It has been pilot tested with three
individuals – a commercial researcher and two senior members of KFC and McDonald’s. It has
been adapted from 4 different studies.
Sample and Sample Technique
The sample size is 126. The sample size has beencalculated based on Tabachnick and
Fidell's famous book on Statistics (2007). The formula is N >= 50 + 8m (where m is the number
of IVs) for testing the multiple correlations and N >= 104 + m for testing individual predictors.
That translates to a sample of 90 to 109. The study has used non-probability, purposive sampling
technique as the two leading fast food chains in Pakistan have been targeted – KFC and
McDonald’s.
Break up of responses is as follows:
KFC 62
McDonald’s 53
Others* 11
* These are ex KFC and McDonald’s staff
Statistical Technique
Multiple Regression Analysis has been used for hypothesis testing and to see if the model
is a good fit. For reliability analysis, Cronbach’s Alpha test has been used. The results have been
validated from a senior resource with over 20 years’ experience in KFC through a qualitative
interview.

ANALYSIS AND DISCUSSION


Quantitative Analysis
Table 2 provides results or reliability analysis using Cronbach’s alpha test.
Table 2: Reliability Analysis
Variable Name N Items Cronbach’s Alpha
Job Satisfaction 5 0.866
Career Development 5 0.862
Supervisor Support 5 0.850
Brand Image 5 0.842
Job Security 5 0.839
Retention of Employees 6 0.871
Overall Instrument 31 0.955

To confirm the reliability of the model, we have performed Cronbach’s Alpha test. Results
show that all Cronbach’s Alpha is more than 0.70 for all variables. Hence, the results of
Cronbach’s alpha showed that the data collection instrument has considerable reliability.
Multiple regression analysis was used for hypothesis testing using SPSS. The following table
showed the results of hypothesis-testing.

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Table 3: Multiple Regression Analysis


Variable Coefficient Std. Error t-Statistic Prob. VIF
Constant 0.675 0.380 1.777 0.078
Job Satisfaction 0.096 0.055 1.736 0.085 1.569
Career Development 0.076 0.081 0.938 0.350 2.654
Supervisor Support 0.018 0.085 0.208 0.835 2.375
Brand Image 0.247 0.093 2.640 0.009 2.781
Job Security 0.455 0.066 6.916 0.000 2.169
Dependent Variable: Retention of Employees
R-Square = 0.678: Adjusted R-Square = 0.665
F-Statistics (Prob.) = 50.576 (0.000)

The results of regression analysis showed that job satisfaction (0.096, p < 0.10) has a positive
significant relationship with retention of employees in the fast-food industry while brand image
(0.2470.096, p < 0.05) and job security (0.4550.096, p < 0.05) have also found a positive
significant effect on retention of fast-food employees. However, career development
(0.0760.096, p > 0.10) and supervisor support (0.0180.096, p > 0.10) were found statistically
insignificant in relation to the retention of employees in the fast-food industry of Pakistan.
The analysis revealed R-Square value of 0.678 and that means that the independent variables
explain 67.8% of the variability of the dependent variable,the R-Square value was 0.665.
The F-ratio tests whether the overall regression model is a good fit for the data. The analysis
shows that the independent variables statistically significantly predict the dependent variable as
F = 50.576, p < .0005 (i.e., the regression model is a good fit for the data).
Qualitative Input
Three variables – Job Satisfaction, Brand Image, and Job Security have shown a significant
impact on employee retention. But Career Development and Supervisor support are not
impacting the retention of employees significantly. To validate this, we conducted an online
interview with a senior resource in the industry. The sample size of both the brands consists
ofmainly Operations staff and 75% of the sample size is manager level or above. As pointed
outby the industryexpert, Operations staff at a certain level do not need supervisor support. It can
turn out to be a hindrance at times as employees like empowerment. The nature of operations is
such that there is decision making at all times and empowerment becomes necessary to keep the
restaurants serving the customers. In the case of career development, there are not many
employment opportunities in Pakistancurrently and people join fast food chains to earn a
livelihood, not because they want to work in a restaurant. Some employees might also feel that
their talents are under-utilized in a fastfood environment and that career
advancementopportunities within the operations set up might be limited. These fast food chains
do have a policy of 50% promotions from within and generally, avoid hiring at a senior level
from outside but more job enrichment is needed to retain Operations staff.

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These factors were later validated by a commercialresearcherwho has done fast food
research as well. His opinions confirmed the views of the industry specialist.

CONCLUSION, LIMITATIONS, AND RECOMMENDATIONS


Conclusion
Employee turnover intention is a favorite topic in Academia research. Articles on this topic are
found across industries in journals and databases. But we argue here that retention of employees
is a more direct, positive, and constructive way than measuring employee turnover intentions.
Organizations should concentrate on retaining employees, not merely find out reasons as to why
and how many intend to leave. This is especially true for fast food restaurants, where there is
ample literature to confirm the impact of losing employees, both in terms of costs and culture of
an organization. This research also adds value in terms of its unusual results – Job Satisfaction,
Brand Image, and Job Security have a significant impact on employee retention in the fast food
industry, but Career Development and Supervisor Support do not significantly impact employee
retention. These results are different from most research conducted on employee turnover
intentions, both in the fast food industry and other industries as well. Organizations spend a lot of
money on training and career development for employees, but some employees might not want a
career in the fast food industry and take jobs temporarily beforemoving on to careers in other
industries. Hence, there is a need for more motivational programs for employeesin order to retain
them and so that they develop a long term career in this industry. Also, at a certain level, too
much supervisor support in operational matters is a hindranceand might prove detrimental toan
employee’s motivation. Employees seek empowerment, not interference in their daily routines.
Retail is a detail oriented industry, and it requires a certain degree of micromanagement. But a
balance needs to be maintained in terms of micromanagement and empowerment.
The selected respondents are from the two most successful brands in the entire fast food
industry in Pakistan, KFC and McDonald’s, both of whom are not only the oldest two brands but
also the trendsetters in the fast food industry in Pakistan. They have defined the standards of this
industry and are the benchmarks against which all fast food brands measure themselves.

Limitations
This research has certain limitations. It is confined to two fast food restaurants, even if these are
an accurate representation of the fast food industry. The respondents working in other restaurants
have also been ex KFC and McDonald’s employees. Both the above restaurants are mainly
concentrated in the big urban cities of Pakistan – Karachi, Lahore and Islamabad. It is only in the
last few years that they have expanded into smaller cities, like Sahiwal, Hyderabad etc. So, the
results represent the top tier cities of the country, not the whole country. The respondents are
mainly from the Operations side. So, the results have been influenced by their experiences on the
floor. 75% of the respondents are of manager grade or above, so the results are representative of
the middle and senior management grades. Operations are the lifeline of any restaurant, but the
demands of the job tend to be different from HR or head office jobs.

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Journal of Contemporary Issues in Business and Government Vol. 27, No. 5,2021
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P-ISSN: 2204-1990; E-ISSN: 1323-6903
DOI: 10.47750/cibg.2021.27.05.039

Recommendation
It is recommended to carry this research forward and to include other fast food chains like
Subway and Burger King in the sample size. Generally, local brands in this market have been
followers but it would be prudent to include at least one strong local brand to gauge their
retention practices as well. The research should be expanded to brands which are present in
smaller cities as well, so the views of the whole of the country can be represented. The research
should include non-operations staff as well. The views of people in the head office would be
different from that of the Operations team. Head office staff have access to a lot more
information and take part in setting corporate policies. This might impact the factor “career
development” as succession planning is a normal part of the HR cycle. However, there is also an
urgent need for fast food chains to review their career development plans for Operations staff.
People often join fast food chains due to the struggling economic conditions in Pakistan. They
might not be looking for a long term career unless motivated enough. This can be seen by the
high rate of employee turnover in the fast food industry in Pakistan. Based on this study, the staff
also feel that their full talents might not be utilized in an Operations environment. Hence, fast
food chains need to urgently review their motivational policies for Operations staff. It is
recommended that further job enrichment be done for Operations staff, with transfers not just
from restaurant to restaurant but also from function to function. Operations staff should be
giventransfers and regular exposure to head office level, in areas of Finance, HR, and
Purchasing. This will add to job enrichment and ultimately, lead to greater retention. A further
recommendation is that this research should be extendedacross all levels. Response at junior
levels was only 25% as it became difficult to control the type of respondent but given more time
and resources this can be attempted as well. Overall, the unusual results will enable other
research to use this as a benchmark for further studies.

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