Effect of Technology on Staff Retention: Case Study of Pick N Pay Namibia
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International Journal of Financial Market and Corporate Finance
2021, Vol. 1, No. 1, pp. 28–32
Copyright © 2021 BOHR Publishers
www.bohrpub.com
Effect of Technology on Staff Retention: Case Study of Pick N Pay
Namibia
Elingua Kuume and Nikodemus Angula
University of Namibia, Windhoek, Namibia
E-mail: kuume75@gmail.com; chcangula@gmail.com/angulan@unam.edu.na
Abstract. Business leaders often realize greater profitability when they have strategies to retain IT employees. How-
ever, the cost to replace IT employees creates significant challenges for business leaders. Given the growing impact of
technology on operational costs, retention of IT employees is imperative. This exploratory single case study sought
to identify the strategies that leaders use to increase IT employee retention. The population was employees from
Pick N Pay in Windhoek Namibia, responsible for the retention of IT employees. Herzberg’s two-factor theory was
the conceptual framework for this study. The data was collected from questionnaire that was send through email
by google forms. Data analysis and methodological triangulation which analyzed the answers from questionnaire
It also includes organizations becoming profitable through better employee retention strategies, and it adds to the
body of knowledge that leaders could use to provide stable employment opportunities to individuals. The retention
rates among IT employees affect individuals, families, communities, organizations, and the economy. Implementing
retention strategies may result in improving employee-employer relationships and organizational profitability.
Keywords: Effect of technology, Staff retention, IT employees.
Namibia. Organizational leaders often realize greater prof-
1 Introduction itability when they have strategies to retain IT employees
(Lo, 2015). The general business problem was the inabil-
The role of Information Technology has made some sig- ity of leaders to enhance employee retention rates in a
nificant changes in the way of how employees conduct way that has lasting effects on organizational profitability
their today running of a business. This has really affected (Hester, 2013). The specific business problem is that some
employment rate due to the fact that no company would leaders lack the strategies to increase IT employee reten-
want to employee, an employee without a background tion. The reason for this is that employee retention is very
of Information technology. The use of ICTs paves way to important to maintain the smooth delivery of the busi-
significant organisational improvement as well as competi- ness process and to the long-term success of the business,
tive advantage (Bankole, 2015). The retention of employees the researcher conducted this required business research
is crucial for the long-term health of an organization. to evaluate the contributing factors relating to retention
Employees contribute to the profitability and success of an rates (Cong, 2013). The researcher has also analyzed the
organization (Hester, 2013). This has led to have continues present economic situation and inspected any association
debate about strategies that can be put into practice to pro- which has increased retention rates, thereby implementing
mote staff retention in global development. In recent years employee training to keep the employees aware of the new
we have seen that technology changes day by day which technology and rewards through tough economic times
also tells business need to also upgrade regularly. might promote retention (Wheeler, 2013).
2 Problem Statement 3 Aims and Objectives
Staff retention has to turn out to be a continuing prob- The aim of the study was to explore what strategies do
lem over the past years for pick n pay retail stores in leaders use to increase IT employee retention in Namibia.
28Effect of Technology on Staff Retention: Case Study of Picknpay Namibia 29
Objectives were: Table 1.
Participants
(a) To examine the effect of technology on staff retention 8
in Windhoek Namibia 7
7
(b) To evaluate strategies that can be put into practice to 6
promote staff retention in Windhoek Namibia? 5
4
(c) To analyze the encouragement programs an orga-
3
nization put into operation to reduce the effect of 3
2
technology on staff retention in Windhoek Namibia
1
0
Female Male
4 Methodology Series1
The researcher used an exploratory single case study
the technology of staff retention in pick n pay (Connell,
design for this study because it allowed researcher to
2014).
understand the specific phenomenon of how business lead-
ers increase IT employee retention within the company.
The case study design focused on decisions that contribute
to real-life phenomena where the boundary and its context 6 Discussion of Results
were not evident (Yin, 2012). This design allowed me to
investigate, gather, analyze, and interpret data of the lived This section presents the findings from the respondents
experiences of participants under study (Saunders, 2009). and from the data that was evaluated and analyzed
Other strategies of inquiries associated with the qualitative through questionnaires. The findings are effects of tech-
research methodology, such as ethnographic, grounded nology in Pick n Pay, which is the basis of this study to
theory, and phenomenology Marshall (2016) received con- investigate and describe the experiences and challenges
sideration but were not appropriate for the study. faced by employees in Pick n Pay. The collected data were
evaluated, analyzed and summarized to come up with the
conclusion and the recommendations. The data in these
findings were collected in questionnaire.
5 Literature Review The researcher distributed 20 self-administered ques-
The purpose of this literature review is to provide a critical tionnaires, however, only 10 were completed and returned
analysis and synopsis of current and previous research that as illustrated in Table 1. This resulted in a return rate of 50%
explores the effect of technology on staff retention in Pick that could be considered as acceptable and the response
N Pay and how managers use to retain employees. rate was sufficient to accept the samples as a true reflection
Employees conduct business on behalf of an organiza- of the population.
tion by having direct contact with customers and suppliers.
Organizational leaders need to take a keen interest in
retaining their human capital. A fluctuating human capital 7 Work Life Balance
affects the productivity, performance, and, efficiency lev-
els of an organization (Tobias, 2016). This had led to most According to (Viswanathan, 2013), work life balance refers
organization to keep analyze the encouragement programs to being able to maintain satisfying work and family envi-
an organization put into operation to reduce the effect of ronments without compromising on the deliverables of
technology on staff retention. ICTs have been receiving either role. (Viswanathan, 2013) noted that leaders have
enormous scientific and political attention among Interna- discovered that if they manage work-life employee con-
tional Organizations namely the World Bank, the United flicts appropriately, they retain more of their talented work-
Nations (UN), the World Trade Organization (WTO), the ers. Ratna (2012) noted that employees intentionally stay
International Monetary Fund (IMF) (OECD, 2015). The with companies that provide a work-life balance. Studies
2017 World Trade Report states that the use of comput- show employees want a flexible schedule. In response to
ers, information technology (IT) and the internet has effects the overarching research question: Do you think the Tech-
that go far beyond labor productivity (World Trade Organ- nology training provided by the organization is helpful?
isation, 2017). However the effects of ICT in staff retention And How do you rate the usefulness of your Technology
in Namibia is not yet fully understood and to date there is trainings in the daily working procedures at your organi-
insufficient published research that looks at the importance zation? These questions emerged from the questionnaire
of ICT (Weber, 2017). Therefore, the purpose of this quali- question 3 and 4 has an alternate work schedule, or flexi-
tative multiple case studies to explore strategies that affect ble schedule, which is consistent with the responses from30 Elingua Kuume and Nikodemus Angula
the participants. The chart below shows how Technology and nonmonetary, and recognition. The study shows that
played any important role in helping to insure a work life professionals are not always motivated by money alone.
balance on the staff retention. This group seemed to want Stated training opportunities and career advancement are
more opportunities for variety and the ability to fit work incentives and cross training is used to provide employ-
around their life schedule to the maximum extent possi- ees the greater overall knowledge of the IT division.
ble. Kataria et al. (2012) recognized that job flexibility, along This approach breaks up the day to day monotony and
with other (intrinsic) hygiene factors is a critical incentive provides thought provoking challenges. It also makes a
for all employees. better-rounded employee competitive for future promo-
tions. Aguinis, Gottfredson, and Joo (2013) stated that
EFFECTS OF TECHNOLOGY ON WORK LIFE among all types of reward, monetary pay is one of the
BALANCE
most important and significant intrinsic factors affecting
5
employee retention. In the list of Herzberg intrinsic fac-
5 tors, advancement and recognition could influence satis-
4
4 faction. Herzberg found that when leaders recognize an
3 employee’s accomplishments, the employee might be more
2 effective. Verbal praise has the ability to enhance company
1
1 loyalty (Aisha et al., 2013; Sinha and Sinha, 2012). In the
0 Series1 list of extrinsic factors, company policies and job security
Very helpful helpful Not sure could influence employee job dissatisfaction.
8 Telework 10 Quality of Life
The telework policies, procedures, and instructions are Valenti (2014) stated that employees want more from their
readily available for employees and can be located on the jobs than just pay and rewards. Since there is only a
organization’s Intranet as well as in the human resources finite amount of money to go around, most people will
office. Pick N Pay has implemented a telework program gravitate to employment that pays more to increase their
for all of their employees. It is important that the tele- quality of life. Ratna (2012) noted that employees inten-
work program fit the organization as well as the individ- tionally stay with companies that provide a competitive
ual employee and the particular job at hand. Telework pay and bonuses on which they can depend. The body
emerged from the questions 6, 7, and 8. Pick n Pay has of the literature supported this theme. Pick n Pay pol-
implemented the telework program, based on the federal icy document entitled Pick N Pay Strategic Business Plan
policies, to allow employees to work from an approved corroborated that the organization considers “quality of
worksite. Most employees in the IT division are taking life” to be their number one goal for taking care of their
advantage of telework. employees. The participants’ responses are in line with the
According to Herzberg (1959), hygiene factors such as goal of the command to have a better quality of work-life to
characteristics associated with company policy can con- retain their employees. In the list of Herzberg intrinsic fac-
tribute to employee dissatisfaction in the workplace. In this tors, advancement was identified as a possible influence of
case study, the presence of telework policy within Pick n job satisfaction. In the list of intrinsic factors, salary was
Pay positively influences employee retention. also identified as a possible influence of job dissatisfac-
tion. These factors could have an impact on IT employee
retention.
9 Incentives
The government offers incentives to retain employees. 11 Leadership
(Ratna, 2012) noted that employees intentionally stay with
companies that provide competitive pay and bonuses, job Mahal (2012) found leadership style could have a pos-
security, training, as well as retirement arrangements on itive effect on organizational commitment. Mardanov,
which they can depend. Pokorny (2013) agrees that organi- Heischmidt, and Henson (2014) stressed that a leader’s
zations are better able to retain employees who are satisfied positive attitude improves the employee attitudes toward
with their work, and whom they reward and recognize work, their leader, and the organization. The body of
well. The literature review and conceptual framework sup- the literature primarily supported this theme. Leadership
port the theme of incentives. Incentives emerged from emerged from question from section D. Pick N Pay men-
questions 2, 3, 4 and 5. The participants agreed that strat- toring program corroborates the aforementioned evidence
egy used to retain IT personnel is rewards, both monetary that leadership is concerned with growth and developmentEffect of Technology on Staff Retention: Case Study of Picknpay Namibia 31
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