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Department of Marketing, College of Business and Economics, University of Wisconsin, 800 West Main Street,
Whitewater, WI 53190-1790, USA
b
Department of Management Information Systems, University of Central Florida,
P.O. Box 161400, Orlando, FL 32816-1400, USA
c
College of Business and Administration, University of Colorado at Colorado Springs,
1420 Austin Bluffs Parkway, Colorado Springs, CO 80933-7150, USA
d
Department of Computer Information Systems, College of Administration and Business,
Louisiana Tech University, Ruston, LA 71272, USA
Accepted 9 February 2002
Abstract
Turnover is a major concern of human resource (HR) managers working with information systems (IS) personnel. Aspects of
career incentives, as perceived by the IS employees, are important in their decisions to leave or stay with the organization. We
utilize a framework of various job anchors to examine how a sample of IS personnel regard incentives provided by employers
and the importance of these in assessing the employees intent to leave. Job security and a service incentive are most important in
reducing this intent. Organizations must address their ability to provide such incentives in order to retain their IS employees.
# 2002 Elsevier Science B.V. All rights reserved.
Keywords: IS personnel; Turnover; Career anchors; Job incentives
1. Introduction
In the information systems (IS) field, hiring, training, and keeping good employees is important in
gaining and retaining competitive advantage. It is a
challenge for human resource (HR) professionals to
*
Corresponding author. Present address: College of Business,
Tennessee State University, 330 10th Avenue North, K-34,
Nashville, TN 37203, USA. Tel.: 1-615-963-7132;
fax: 1-615-309-8239.
E-mail addresses: mhsu@tnstate.edu (M.K. Hsu),
james.jiang@bus.ucf.edu (J.J. Jiang), gklein@computer.org
(G. Klein), ztang@cab.latech.edu (Z. Tang).
1
Tel.: 1-407-823-3174; fax: 1-407-823-2389.
2
Tel.: 1-719-262-3157; fax: 1-719-262-3494.
3
Fax: 1-318-257-4253.
0378-7206/02/$ see front matter # 2002 Elsevier Science B.V. All rights reserved.
PII: S 0 3 7 8 - 7 2 0 6 ( 0 2 ) 0 0 0 1 8 - 6
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As a matter of fact, the technical and managerial dualcareer ladder has been the common practice for
employers to attract, retain, and motivate employees
[7,15]. More recently, Cole-Gomolski suggested that
the practice of dual-career paths in information technology departments is enabling companies to build
more efficient IT groups [8]. Since organizations are
said to have provided the dual-career ladder for IS
personnel, it would be interesting to examine whether
companies are providing what the literature says.
Because of this, we propose the following hypothesis.
H1. It is perceived by IS personnel that organizations
provide higher levels of technical and managerial
career incentives than other external career incentives.
Ginzberg and Baroudi argued that internal career
desires must be satisfied and that organizations must
attempt to provide work conditions to match underlying
internal career anchors. Echoing Ginzberg and Baroudis study, Igbaria et al. [21] examined aspects of the
internal career anchors of MIS personnel and found that
employees whose career anchors were compatible
with their job setting reported . . . low intentions to
leave their organization. A lack of employee-job fit
may lead to anxiety, strain, job dissatisfaction, turnover,
or other negative outcome [6,11,17].
Van Maanen and Schein [34] pointed out that both
internal career anchors and organizational career
incentives influence career satisfaction. That is, in
order to retain an employee who is happy to work
in the organization, favorably perceived career incentives are at least as important as the well-studied
internal career anchors. Past research indicated that
IS professional are more satisfied with their career
when they feel that an adequate range of career
opportunities exist within the organization. Motivation theory maintains that employees who work in a
rewarding environment that match their needs find
reasons that justify the work effort to themselves, their
peers, and their families [19]. Thus, an individual will
be most motivated by being given what is desired. In
addition, closely related to the employee turnover, is
Maslows hierarchy of needs [29], in which five
hierarchical needs are identified: physiological, safety,
social, esteem, and self-actualization. If the unmet
need is strong and could be satisfied by changing jobs,
the employee may quit and switch to the company
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3. Methodology
3.1. Sample
Questionnaires were mailed to 500 randomly
selected IS professionals from the roster of the American Institute for Technology Professionals (AITP) in
the United States. We used a version of the wellestablished career orientation scale to develop our
questionnaire. Still, the responses were submitted to
rigorous validation described later in the measurement
section. AITP members represent a wide variety of
organizational settings and have been subjects in other
IS personnel management research [2,24]. Selfaddressed, stamped return envelopes for each questionnaire were provided to the subjects. All respondents were assured confidentiality of their responses.
A total of 98 questionnaires were returned in the first
round for a response rate of approximately 20%.
The same questionnaires were mailed to those who
did not respond in the first round to attempt to increase
the sample size. An additional 55 responses were
received for an overall response rate of 31%. Chisquare tests were employed to examine differences in
demographic background (e.g. gender, age, work
experience, position) between those who responded
earlier and later. No significant difference was found
between the two groups, so they were combined for
further data analysis. Table 1 presents the general
demographics of the respondents.
3.2. Measurements
3.2.1. Intent to leave
Intent to leave was measured by the three-item scale
of Mobley et al. [32]. I think a lot about leaving this
organization; I am actively searching for an acceptable
Table 1
Sample demographics
Position
Top management
Manager/project leader
Programmer/system analysts
Technical support staff
3
90
44
12
66
27
23
19
10
5
10
9
19
32
29
51
Gender
Female
Male
39
112
Age
2530
3135
3640
4145
4650
5155
5660
61 and over
4
7
12
22
22
55
20
9
Education
Graduate
Bachelor
Associate degree
High school
56
63
28
4
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Table 2
Set of items measuring perceived career incentives
Item number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
The process of supervising, influencing, leading, and controlling people at all levels
The chance to do things my own way and not to be constrained by the rules of an organization
An employer who will provide security through guaranteed work, benefits, a good retirement program, etc.
Working on problems that are almost insoluble
Remaining in my specialized area as opposed to being promoted out of my area of expertise
To be in charge of a whole organization
A career that is free from organization restrictions
An organization that will give me long-run stability
Using my skills to make the world a better place to live and work
Developing a career that permits to continue to pursue my own lifestyle
Building a new business enterprise
Remaining in my area of expertise throughout my career
A rise to a high position in general management
Remaining in one geographical area rather than moving because of a promotion
Being able to use my skills and talents in the service of an important cause
The only real challenge in my career, which has been confronting and solving tough problems, no matter what area they were
Being on the lookout for ideas that would permit me to start and build my own enterprise
Remaining in my present geographical location rather than receiving a promotion or new job assignment in another location
A career that enables me to lead my life in my own way
A management position only if it is in my area of expertise
Being constrained by either an organization or the business world
A career in which I can be committed and devoted to an important cause
Success by being constantly challenged by a tough problem or a competitive situation
Choosing and maintaining a certain lifestyle, which is more important than career success
Building a business of my own
in Igbaria and Baroudis study. Only minor adjustments were made to extract the perceptions of the
external career incentives as opposed to the internal
anchors. The career incentives scale includes 25 items,
shown in Table 2. Individuals were asked to indicate
their opinion on what their career delivers relative to
each of the 25-item statements using a five-point
Likert-type scale, where 1 strongly disagree,
3 neutral, and 5 strongly agree.
A confirmatory factor analysis (CFA) was undertaken to assess the convergent and discriminant validity of the career incentives construct. Empirically,
convergent validity (i.e. the degree of association
between measures of a construct) was assessed by
reviewing the t-tests for the factor loadings. In terms of
the parameter estimates (factor loadings), the loading
items for each factor were set exactly as suggested by
Igbaria and Baroudi. The criteria value used to identify
a given loading item is 0.45 or higher. In fact, except
for item 2 with a loading of 0.49 and item 20 with a
loading of 0.46, the remaining items all have a loading
higher than 0.59 with the highest being 0.92. The fact
that all t-tests are statistically significant (see Table 3)
showed that all indicator variables provide good measures to their respective construct [1]. These results
generally supported the convergent validity of the
model.
The discriminant validity (i.e. the degree to which
items of constructs are distinct) was empirically
assessed by using the variance-extracted test. Discriminant validity is said to be satisfied if the variance
shared between measures of two different constructs
(the squared correlation) is less than the amount of
variance extracted by the items measuring each construct. Empirical results (see Table 4) indicated that
the discriminant validity is achieved in this study.
To assess the overall measurement model, we
reviewed a number of CFA goodness-of-fit indices.
Specifically, the measurement model was found to
have a root-mean-square error (RMSR) of 0.07, a
normed comparative fit index (CFI) of 0.92, a goodness-of-fit index (GFI) of 0.85, a non-normed index
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Table 3
Properties of the measurement model: perceived career incentives
Construct
and indicators
Entrepreneurship
11
17
25
Service
9
15
22
Lifestyle
10
19
24
Managerial
1
6
13
Autonomy
2
7
21
Pure challenge
4
16
23
Technical
5
12
20
Geographic security
14
18
Job security
3
8
Standardized
loading
t-Statistics
0.85
0.79
0.75
11.59
11.49
9.64
0.77
0.85
0.70
10.04
11.74
8.96
0.81
0.80
0.69
10.70
10.49
8.65
0.61
0.75
0.82
7.20
9.50
10.76
0.49
0.63
0.62
5.51
7.31
7.18
0.63
0.81
0.64
7.60
11.33
7.68
0.59
0.78
0.46
6.80
9.36
5.12
0.66
0.72
10.57
8.25
0.66
0.92
7.96
11.36
Composite
reliability
0.84
4. Empirical results
In examining H1, we compared the means on the
nine perceived external career incentives perceived by
IS personnel. The means of the nine perceived career
incentives are shown in Table 4. Statistical analysis
indicated that geographic and job security are significantly (P 0:01) higher than other perceived career
incentives and these results do not lend support to H1.
Organizations appear not to follow the expectation
that they are providing high levels of career opportunities in terms of managerial and technical incentives.
In examining H2, we employed a multiple regression model relating the nine identified factors with the
intent to leave variable. Table 4 again presents descriptive statistics and correlations between the external
career incentives and the intent to leave construct and
Table 5 shows the regression results. At the 0.05
significance level, intent to leave was found to be
negatively associated with both job security and the
service incentive. Our findings suggested that, in
general, IS personnel whose jobs have a higher level
of job security and service incentive are less likely to
leave. Job security was one of the top two perceived
external career incentives, indicating a partial support
for H2. In addition, the service incentive ranked third
in perceived incentives.
0.82
0.81
0.77
0.61
0.74
0.65
0.64
0.78
Entrepreneurship
Service
Lifestyle
Managerial
Autonomy
Pure challenge
Technical
Geographic security
Job security
2.31
3.30
3.03
3.09
2.74
3.11
3.12
3.63a
3.67a
1.09
0.92
0.82
0.95
0.86
0.80
0.79
1.00
0.91
0.84
0.80
0.79
0.77
0.62
0.74
0.59
0.66
0.75
0.63
0.37
0.44
0.53
0.50
0.40
0.31
0.15
0.23
Service
Lifestyle
0.60
0.56
0.48
0.33
0.55
0.45
0.46
0.51
0.59
0.12
0.37
0.50
0.45
0.49
0.41
Geographic
security
Job
security
0.53
0.37
0.42
0.44
0.19
0.38
0.47
0.46
0.64
0.34
0.46
0.43
0.26
0.30
0.48
0.41
0.43
0.42
0.39
0.38
0.33
Note: the diagonals represent the total amount of variance explained, while the other matrix entities represent the intercorrelations.
a
Statistically significant higher than all other perceived career incentives at the 0.05 level.
Regression coefficient
Entrepreneurship
Service
Lifestyle
Managerial
Autonomy
Pure challenge
Technical
Geographic security
Job security
0.09
0.28a
0.13
0.04
0.03
0.09
0.16
0.04
0.21a
5. Discussion
Instead of the commonly touted and documented
managerial and technical career incentives, IS companies are perceived as providing better geographic
security and job security in our sample of IS employees. We related the career incentives to IS employees
intent to leave because it is crucial for IS managers to
recognize the most influential catalysts that may retain
valued employees. The incidence of employee turnover increases personnel costs and may cause problems even after an equally qualified employee has
been found, e.g. the new employee may slow organizational learning by making mistakes. Even more
serious is the loss of competitive position as the
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