Academic journal article Global Business and Management Research: An International Journal

Differentials in Attitude and Employee Turnover Propensity: A Study of Information Technology Professionals

Academic journal article Global Business and Management Research: An International Journal

Differentials in Attitude and Employee Turnover Propensity: A Study of Information Technology Professionals

Article excerpt

Abstract

Purpose: Attraction and retention of high valued employees are the prime concern of every organization. Earlier studies have established relationship between employee attitude, developed by the interaction with job-related internal and external factors reflected on job satisfaction, organizational commitment, frustration, occupational stress etc. and employee turnover intension. The purpose of this study is to explore the effects of employees' differential natural attitudes towards life and work on their turnover intention.

Design/methodology/approach: It is an exploratory study based on primary survey among the Information Technology employees. Information on reasons behind employees' voluntary turnover and their attitude towards life and work has been collected. A theoretical framework on employee turnover and logistic regression models have developed.

Findings: Reasons behind employee turnover differs in accordance with employee's attitude towards life and work. Attractions of 'higher portfolio' and 'higher-company-brand-name' have strong effect on turnover propensity of employees giving higher-priority-to-work-life but familial factors, age etc. have significant effect on employees giving higher-priority-to-social-life. Turnover propensity among the young employees is higher in general, affected much by the 'higher salary' attraction from other organization.

Practical implication: This study would be of great help to the HR managers towards formulating employee retention strategies.

Originality: For an in-depth understanding of the turnover phenomenon as well as the role of employee's attitude in particular, this study presents a theoretical framework on employee turnover and on that basis logistic regression models have been constructed for the two distinctly different attitudinal groups of employees.

Keywords: Employee turnover, pull factor, push factor, attitude, intangible capital

Introduction

Human resource is considered as intangible capital (Leslie, 2003) with distinctive functional capabilities that control and augment both physical capital and other resources. This intellectual capital has become the obvious concern of this century which in turn diffused to develop hypercompetitive market rivalries in the present world markets. Success in the present dynamic, competitive markets depends more on innovation, speed and adaptability which are largely derived from firm's own employees and the way they are managed (Pfeffer, 1994). As a result employee turnover is of considerable interest to both organizations and researchers. Some kind of turnover is inevitable in the organizations and in some cases desirable also. But high levels of turnover, especially turnover of high valued employees, not only costly to organizations in the form of recruiting, selecting and socializing the new employees but also have adverse impact on public image of an organization.

Different schools have discussed employee turnover from various perspectives and identified various causal factors. Among the two types of employee turnover - voluntary (Mowday et al., 1982; Gupta and Jenkins, 1991; Saiyadain and Ahmad, 1997) and involuntary (Shaw et al., 1998), most of the researchers have focused on voluntary employee turnover since much of the turnover is voluntary and subject to control by managers (Morrell et al., 2001; Price, 2001). Employees' voluntary turnover depends on the demand for their intellectual capital as well as the availability of alternative job opportunities in the market. The traditional attitude measure advocated that negative attitudes combined with job search predict employee's leaving from an organization (Blau, 1993). The preoccupation with intermediate linkages between job attitudes and resignations has clarified the termination process and identified new constructs mediating the dissatisfaction-quit sequence (Mobley, 1977). …

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