Reducing Employee Turnover in Retail Environments: An Analysis of Servant Leadership Variables

Reducing Employee Turnover in Retail Environments: An Analysis of Servant Leadership Variables by Beatriz Rodriguez MBA, Webster University, 1994 BBA, University of Puerto Rico, 1989 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Abstract In a competitive retail environment, retail store managers (RSMs) need to retain retail customer service employees (RCSE) to maximize sales and reduce employee turnover costs. Servant leadership (SL) is a preferred leadership style within customer service organizations; however, there is disagreement regarding the usefulness of SL in the retail industry. The theoretical framework for this correlational study is Greenleaf’s SL theory. Seventy-four of 109 contacted human resources managers (HRMs) from a Fortune 500 United States retailer, with responsibility for evaluating leadership competencies of the RSMs they support, completed Liden’s Servant Leadership Questionnaire. RCSE turnover rates were available from company records. To analyze the correlation between the 3 SL constructs and RCSE turnover, multiple regression analysis with Pearson’s r providing sample correlation coefficients were used. Individually the 3 constructs FIRST (beta = .083, p = .692), EMPOWER (beta = -.076, p = .685), and GROW (beta = -.018, p = .917) were not statistically significant to predict RCSE turnover. The study multiple regression model with F (3,74) = .071, p = .98, R2 = .003 failed to demonstrate a significant correlation between SL constructs and turnover. Considering these findings, the HRMs could hire or train for different leadership skills that may be more applicable to effectively lead a retail sales force. In doing so, the implications for positive social change may result in RCSE retention leading to economic stability and career growth.In a competitive retail environment, retail store managers (RSMs) need to retain retail customer service employees (RCSE) to maximize sales and reduce employee turnover costs. Servant leadership (SL) is a preferred leadership style within customer service organizations; however, there is disagreement regarding the usefulness of SL in the retail industry. The theoretical framework for this correlational study is Greenleaf’s SL theory. Seventy-four of 109 contacted human resources managers (HRMs) from a Fortune 500 United States retailer, with responsibility for evaluating leadership competencies of the RSMs they support, completed Liden’s Servant Leadership Questionnaire. RCSE turnover rates were available from company records. To analyze the correlation between the 3 SL constructs and RCSE turnover, multiple regression analysis with Pearson’s r providing sample correlation coefficients were used. Individually the 3 constructs FIRST (beta = .083, p = .692), EMPOWER (beta = -.076, p = .685), and GROW (beta = -.018, p = .917) were not statistically significant to predict RCSE turnover. The study multiple regression model with F (3,74) = .071, p = .98, R2 = .003 failed to demonstrate a significant correlation between SL constructs and turnover. Considering these findings, the HRMs could hire or train for different leadership skills that may be more applicable to effectively lead a retail sales force. In doing so, the implications for positive social change may result in RCSE retention leading to economic stability and career growth. Reducing Employee Turnover in Retail Environments: An Analysis of Servant Leadership Variables by Beatriz Rodriguez MBA, Webster University, 1994 BBA, University of Puerto Rico, 1989 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Dedication I dedicate this to my three sons: Javi, J.J., and Javier. You inspire me to reach my goals, hoping that I can set you on the path to reach yours. May this work be an example that with hard work and perseverance, we can accomplish anything. Acknowledgments I would like to extend a heartfelt thanks to my husband, Alfredo, and my friend, Elaine. Their continuous encouragement, help, and support provided the fuel that helped me reach this point in my academic career. I am lucky to have such supportive individuals in my life. Along with my unwavering parents, they believed in my ability to succeed. Lastly, thank you to my Chair, Dr. John Hannon, Co-Chair, Dr. Perry Haan and URR committee member Dr. Lyn Szostek. Their dedication to Walden University and the students is commendable.