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The Effect Of Job Satisfaction On It Employees Turnover Intention In Israel

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  • Ladelsky Limor

    (UBB,)

Abstract

Employee voluntary turnover is very costly for companies, particularly for the Hi-Tech sector, where the costs of their IT labor force is expensive. Employees\' voluntary turnover has substantial negative impacts on the companies especially costs, potential loss of valuable knowledge, skills and organizational knowledge.That is why it becomes a critical issue to take address. Studies have been carried out on the reasons which lead to this tendency, however the ability to explain and predict it remains restricted.The objective of this paper is to present the reasons for voluntary turnover of employees in the IT sector in Israel from the IT employees` perspective. A broad analysis of the field literature led to the following groups of causes affecting voluntary turnover: organizational causes: Human Resource Management (HRM) related, organizational culture, job related, leadership and internal marketing related; extra organizational causes: individual and, respectively, labor market related causes. This could be approached as n light of this review this article will focus on one of the extra organizational causes of voluntary turnover, i.e. the effect of job satisfaction on voluntary turnover intention among IT employees in Hi-Tech companies in Israel. This correlation was researched in an extensive empirical study among two population groups: IT employees and IT managers and by using mixed method research (combination of quantitative and qualitative research).The findings that supported the literature show job satisfaction has a negative effect on voluntary turnover intention among IT employees in Hi-Tech companies in Israel. Additionally, it was found that job satisfaction indirectly affects voluntary turnover intentions and that emotional variables such as commitment, motivation and loyalty mediate voluntary turnover intention.This finding is supported partially in the literature which only pointed out commitment as a mediating factor in the relationship betwen job satisfaction and voluntary turnover intention. The finding in this research should be adopted by IT organizations and managements who should develop a way to prevent voluntary turnover among IT employees and develop a route to increase their employees\' job satisfaction and from that point to reduce voluntary turnover intention and retain this expensive IT human resource in Hi-Tech companies.

Suggested Citation

  • Ladelsky Limor, 2014. "The Effect Of Job Satisfaction On It Employees Turnover Intention In Israel," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1028-1038, July.
    • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:1028-1038
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    References listed on IDEAS

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    1. Judge, Timothy A. & Hulin, Charles L., 1993. "Job Satisfaction as a Reflection of Disposition: A Multiple Source Causal Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 56(3), pages 388-421, December.
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    More about this item

    Keywords

    Voluntary turnover intentions; commitment; IT sector employees in Israel; Job satisfaction; internal marketing (IM); loyalty (NPS);
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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