IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102867.html
   My bibliography  Save this paper

Sales Personnel Attrition Control and Retention – An Integrated Framework for Lifestyle Retailers in India (RSPR-LS)

Author

Listed:
  • H. R., Ganesha
  • Aithal, Sreeramana

Abstract

A majority of organized brick-and-mortar lifestyle retailers in India believe that the cost of Sales Personnel (SP) attrition is insignificant, and this belief has made lifestyle retailers ignore the importance of SP attrition control and retention activities (SACR). Mathematically it may be true that the cost of SP attrition is very low as the average salary of the SP is 5.46 times lesser than that of Non-Sales Personnel (NSP) in the organization, but the fact is a majority of employees in a retail organization who are closest to the market and the consumers are the SP even though they are at the lower levels of retailer’s organizational hierarchy. We determinedly believe that the key to success is in identifying who is closer to the market and the consumer and ensuring such employees (if performing well) are consistently motivated to stay in the organization for a longer duration. The literature, exploratory qualitative primary findings, and empirical evaluation indicate that the existing SACR model of select organized brick-and-mortar lifestyle retailers in India is irrational as it seriously fails to understand the magnitude of the negative impact that is moderated by higher SP attrition rates on the overall store’s revenue and long-term firm’s sustainability. This study was not limited to just evaluating the existing SACR model of retailers in the study and recommending a theoretical framework. Once the RSPR-LS framework was designed that is built on proven theories in the literature, findings and insights from the exploratory phase of this study, and recommendations from previous research works relevant for lifestyle retailing in India, we have experimented the RSPR-LS framework on one of the ten lifestyle retailers in the study over 24 months’ at over 25 percent stores of the select retailer. Experimentation results demonstrate that these stores which have gone through the treatment have shown 37.59 percent improvement in walk-ins conversion rate, 87.54 percent improvement in consumer’s repeat store visit rate that resulted in 20.23 percent improvement in the overall store revenue and 2.00 times improvement in the overall store profit on account of 21.35 percentage points improvement in SP retention rate thereby providing validity and reliability of the proposed RSPR-LS framework in the field.

Suggested Citation

  • H. R., Ganesha & Aithal, Sreeramana, 2020. "Sales Personnel Attrition Control and Retention – An Integrated Framework for Lifestyle Retailers in India (RSPR-LS)," MPRA Paper 102867, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102867
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102867/1/MPRA_paper_102867.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. H. R., Ganesha & Aithal, Sreeramana, 2020. "Rational Organizational Structure: For Brick-and-Mortar Lifestyle Retailers in India to Overcome Diseconomies of Scale and Protect Firm’s Sustainability (ROLS-b)," MPRA Paper 102553, University Library of Munich, Germany.
    2. Brown, Michael E. & Trevino, Linda K. & Harrison, David A., 2005. "Ethical leadership: A social learning perspective for construct development and testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 117-134, July.
    3. Sunil Singh & Detelina Marinova & Jagdip Singh & Kenneth R. Evans, 2018. "Customer query handling in sales interactions," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 837-856, September.
    4. Jay Mulki & Jorge Jaramillo & William Locander, 2008. "Effect of Ethical Climate on Turnover Intention: Linking Attitudinal- and Stress Theory," Journal of Business Ethics, Springer, vol. 78(4), pages 559-574, April.
    5. Sharma, Arun, 2001. "Consumer decision-making, salespeople's adaptive selling and retail performance," Journal of Business Research, Elsevier, vol. 54(2), pages 125-129, November.
    6. H. R., Ganesha & Aithal, Sreeramana, 2020. "Retailing Performance Evaluation Scale for Indian Brick-and-Mortar Lifestyle Retailers (LSRS-b)," MPRA Paper 102554, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. H. R., Ganesha & Aithal, Sreeramana, 2020. "Theory of Brick-and-Mortar Retailing in India (ToR-b)," MPRA Paper 102869, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas & Joan Fontrodona, 2013. "Ethical Culture and Employee Outcomes: The Mediating Role of Person-Organization Fit," Journal of Business Ethics, Springer, vol. 116(1), pages 173-188, August.
    2. Byun, Gukdo & Karau, Steven J. & Dai, Ye & Lee, Soojin, 2018. "A three-level examination of the cascading effects of ethical leadership on employee outcomes: A moderated mediation analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 44-53.
    3. Omar S. Itani & Fernando Jaramillo & Larry Chonko, 2019. "Achieving Top Performance While Building Collegiality in Sales: It All Starts with Ethics," Journal of Business Ethics, Springer, vol. 156(2), pages 417-438, May.
    4. Rita Paralta & Eduardo Simões & Ana Patrícia Duarte, 2023. "Subjective Well-Being in Organizations: Effects of Internal Ethical Context and Ethical Leadership," IJERPH, MDPI, vol. 20(5), pages 1-17, March.
    5. Yuhyung Shin, 2012. "CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior," Journal of Business Ethics, Springer, vol. 108(3), pages 299-312, July.
    6. H. R., Ganesha & Aithal, Sreeramana, 2020. "Theory of Brick-and-Mortar Retailing in India (ToR-b)," MPRA Paper 102869, University Library of Munich, Germany.
    7. Imran Shafique & Masood N. Kalyar & Bashir Ahmad, 2018. "The Nexus of Ethical Leadership, Job Performance, and Turnover Intention: The Mediating Role of Job Satisfaction," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 16(1), pages 71-87.
    8. An-Chih Wang & Jack Ting-Ju Chiang & Wan-Ju Chou & Bor-Shiuan Cheng, 2017. "One definition, different manifestations: Investigating ethical leadership in the Chinese context," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 505-535, September.
    9. Chikelu Okey Felix & Rosita Bint Arshad, 2015. "Examining Moral Reasoning and Transactional Leadership behaviour in the Nigerian Public Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 110-118.
    10. Rajesh Srivastava & Thomas Tang, 2015. "Coping Intelligence: Coping Strategies and Organizational Commitment Among Boundary Spanning Employees," Journal of Business Ethics, Springer, vol. 130(3), pages 525-542, September.
    11. Thuy-Van Tran & Sinikka Lepistö & Janne Järvinen, 2021. "The relationship between subjectivity in managerial performance evaluation and the three dimensions of justice perception," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(3), pages 369-399, September.
    12. S. Hansen & Bradley Alge & Michael Brown & Christine Jackson & Benjamin Dunford, 2013. "Ethical Leadership: Assessing the Value of a Multifoci Social Exchange Perspective," Journal of Business Ethics, Springer, vol. 115(3), pages 435-449, July.
    13. Yidong Tu & Xinxin Lu & Yue Yu, 2017. "Supervisors’ Ethical Leadership and Employee Job Satisfaction: A Social Cognitive Perspective," Journal of Happiness Studies, Springer, vol. 18(1), pages 229-245, February.
    14. Giles Hirst & Fred Walumbwa & Samuel Aryee & Ivan Butarbutar & Chin Jeffery Hui Chen, 2016. "A Multi-level Investigation of Authentic Leadership as an Antecedent of Helping Behavior," Journal of Business Ethics, Springer, vol. 139(3), pages 485-499, December.
    15. Tu Yidong & Lu Xinxin, 2013. "How Ethical Leadership Influence Employees’ Innovative Work Behavior: A Perspective of Intrinsic Motivation," Journal of Business Ethics, Springer, vol. 116(2), pages 441-455, August.
    16. Tran Quang Bao Phuc & Khalida Parveen & Duyen Thi Truc Tran & Dao Thi Anh Nguyen, 2021. "The linkage between ethical leadership and lecturer job satisfaction at a private higher education institution in Vietnam," Journal of Social Sciences Advancement, Science Impact Publishers, vol. 2(2), pages 39-50.
    17. Lara Scicluna & Sharon Seychell & Jonathan Spiteri & Simon Grima, 2019. "The Maltese Financial Services Industry’s Perception on the Regulators: An Empirical Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 16-51.
    18. Heidi Weltzien Hoivik & Domènec Melé, 2009. "Can an SME Become a Global Corporate Citizen? Evidence from a Case Study," Journal of Business Ethics, Springer, vol. 88(3), pages 551-563, September.
    19. Samuel Hunter, 2012. "(Un)Ethical Leadership and Identity: What Did We Learn and Where Do We Go from Here?," Journal of Business Ethics, Springer, vol. 107(1), pages 79-87, April.
    20. Myra V. De Leon & Jerwin B. Tubay, 2020. "Ethical Leadership of Supervisors and Internal Social Capital in a Financial Institution," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 291-301.

    More about this item

    Keywords

    Indian Retail; Brick-and-Mortar Retail; Lifestyle Retail; Sales Personnel; Sales Person; Sales People; Retail Employees; Employee Turnover; Employee Attrition; Employee Retention; Consumer-Orientation; RSPR-LS;
    All these keywords.

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102867. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.