Store24 A Managing Employee Retention Case Solution

1. Does the tenure of the crew in the store raise the performance of the store? Be prepared to defend your answer using relevant econometric tools and managerial analysis.

Assuming that the performance of the store is measured by the profits it makes, the tenure of the crew in the store does not seem to have a positive impact on the store performance. As gauged by the performance of the top ten most profitable stores, the store with the greatest number of months in crew tenure (114) is only the fifth most profitable store. In addition to that, there are stores with high values of crew tenure in the bottom ten least profitable stores. It is important to point out that the average crew tenure for the sample is 13.9 with a standard deviation of 18. The fact that the standard deviation is greater than the mean is indicative that the data for this sample has a high spread. This makes it difficult to successfully gauge whether crew tenure is significantly impacting the performance of the store.  

This is further complicated by the lowest crew tenure being one month and the highest being 114 months. The data is too widespread to be able to successfully use these measures to determine the relationship. It would be better to make use of correlations to see whether there is any significant influence of crew tenure on the profits of the store. Nonetheless, intuitively, the tenure of crew members is an important influencer on the performance of the store. This is because crew tenure is reflective of the motivation and productivity of the members, which would directly impact the profits of the store. If the crew members are motivated, feel more stable in their positions, this results in greater productivity and loyalty to the store. Thereby, increasing the crew tenure along with the performance of the store. However, for this sample, with the given information it is difficult to discern whether the tenure of the crew is influencing the store performance.

2. Does the tenure of the manager raise performance?

The tenure of the managers in this sample is similar to the tenure of crew members. This is because the standard deviation being higher than the mean indicates that the data has very widespread. Even though the difference between mean and standard deviation is not as high as the crew members, nonetheless, this is indicative of a widespread in the data. In addition to that, there are stores whose manager’s tenure is very high but their corresponding profits are in the bottom ten stores. Similarly, managers with relatively lower tenures are in the top ten most profitable stores. Furthermore, along with profits of the store, manager tenure must also impact the tenure of the crew. That is why it intuitively makes sense that the longer a manager stays in the store, it should ideally impact the performance of the store.