Technological Adoption to Combat Turnover

Hy SockelWilliamson College of Business Administration, YSU

One University Plaza, Youngstown, Ohio 44555hysockel@cc.ysu.edu

Kuanchin ChenDepartment of Business Information Systems

Haworth College of Business, Western Michigan Universitykc.chen@wmich.edu

James W. Kroeger Nance College of Business, Cleveland State University

Cleveland, Ohio 44114

The IS&T Survey

This study examines issues relating to retention of Information Systems and Technology (IS&T) employees

• Anonymous Self report Survey – More than 270 IS&T Employees from Midwest USA– Snowball methodology - Based on envelopes– Response rate 20%

• Part of a larger study• Path Analysis – Factor analysis

BackgroundIS&T People Shortage

Orgs use technology as way to– become effective and efficient– eliminate layers of management– gain competitive advantage

The drive for IS&T has created a shortage– Growth in IS&T twice general pop. Growth rate

– Congress increases H1-B visas in recognition of IT shortage (April 2001)

IS&T Different than General population (Griesser)

High Turnover Rates - StressTurnover of Developers leads to a 25% project

abortion rate (Szajna & Scamell - 93)

• Employees that stay are under great pressures to

fill in the gaps, tighten the belt, take-over• They end up – working harder and longer• Prolong exposure to can lead to• Burnout characterized by fatigue, depression, hopelessness• Burnout leads to disengagement and more Turnover

(Perlman, Lee, Grensing)

IS&T People Are Different Than Other Professions

• Fitz-enz (1976) differences based on motivational factors• Couger & Zawacki (1978) found differences 

– rating of their jobs; programmers rated their jobs the lowest

– levels of “meaningfulness" from work (lower).

– growth needs, MIS personnel had very high needs

– social needs MIS personnel displayed very low

• Woodruff (1978), found that the attitudes of IS personnel were significantly different from other groups studied at the time

• Nash & Redwine (1988) found vast differences in abilities, cognitive perspectives, and personality styles of computer

professionals• Orlikowski & Baroudi (1989, p. 23) state that IS workers are distinct

with their own “identity, attitudes, interests, colleagueship, collective action, power, status, and work consciousness”

IS&T People Are Different Than Other Professions

• Igbaria & Wormley (1992 p. 508) state there is evidence that “MIS personnel differ from employees in other fields on a number of personality and motivational factors such as need for achievement, need for growth and social needs”

• Griesser (1993) found that the IS personnel can be more resistant to change than other professionals

• Burn, Tye, Ma, & Poon (1994) report that IS professionals have very different needs and expectations from their working environments

• Myer, Paunonen, Gellatly, Goffin, & Jackson (1989) found highly significant differences between IS and non‑IS professionals in the area of needs

Model IS&T PersonnelModel based on Sockel (2000) and

Mak & Sockel (2001)

H08 was not supported;

Satisfaction

Commitment

Burnout

TurnoverIntentions

Loyalty

+H03

+H06

+H04

+H07 -H08

-H02

-H05

-H01

Definitions

Satisfaction: as an emotional reaction which “results from the perception that one’s job fulfills or allows the fulfillment of one’s important Job values …” (Locke, 76)

Loyalty: is a strong desire to maintain a relationship with the organization

Commitment: strong belief and acceptance of the organizations goals and values – a relative strength of an individual’s identification

Scales

Scales were pre-testedMost Scales used were from established instrumentsAll scales pre-tested on two exploratory studies7 point Likert like scale

• Validity assessed using factor analysis• Construct Cronbach’s alphas all above .9

Nunnally indicates • > .6 Exploratory• > .7 Acceptable• > .8 Excellent

Sample Questions – Commitment

9 Item - Mowday, Porter, Steers

 

I am willing to put in a great deal of effort beyond that normally expected in order to help this organization to be successful

I talk up this organization to my friends as a great place to work forI would accept almost any type of assignment in order to keep working for this organization

I find that my values and the organization’s values are similar

I am proud to tell others that I am part of this organization My company inspires me to do my best in the way of job performance…

Supported HypothesesHypothesis From To Sig.

H01 Satisfaction Burnout -.510 .000

H02 Satisfaction Turnover -.190 .007H03 Satisfaction Commitment .681 .000

H04 Commitment Loyalty .878 .000

H05 Loyalty Turnover -.526 .000

H06 Burnout Turnover .346 .000

H07 Satisfaction Loyalty .159 .000

H02 not supported when LISREL used instead of Path

Findings

Satisfaction has continuously shown to be an important factor in Employee retention:

• Many kinds of satisfaction exist –– Hackman & Oldham: I must be happy, I have …– Important Antecedent to Commitment & Loyalty

• Organizations are really interested in Loyalty

• Cheaper to retain employees than replace

How Do You Build Loyalty ?

Some feel thru the appropriate introduction of technologies

• What is the association of Technology innovation with Loyalty, Satisfaction, Commitment, Burnout …

• Large number of employees feel undervalued• Train those that want it• Allow those that do NOT, to continue in legacy areas

Survey

A) Innovations Please list things that you Want to learn and/or are being Required to learn. In the appropriate columns circle ALL the ICONs that indicate your feelings 

Description Use the back of sheet for additional Items

Feelings about Item

Want to w Required r

HappyUnhappy

  w r

  w r

  w r

  w r