The Grass is Always Greener on The Other Side: A Test of Present and Alternative Job Utility on IT Professionals’ Turnover

Abstract

The costs associated with the turnover of information technology (IT) professionals continue to draw the attention of IT managers and researchers. Although a weak labor market has limited the quantity of turnover, organizations' most skilled IT personnel are still coveted and valuable resources. These IT professionals are also those most equipped to leave their firm and find new work. In order to reduce costs, retain key employees, and manage turnover, managers need to understand the factors that drive quitting behavior. The research model suggests that the utility of present and alternative IT work are key cognitive influences on an IT professional's decision to search for new employment, intention to quit, and, ultimately, turnover. We test the research model using longitudinal data that include actual turnover behavior. The research model explains 44% of the variance in intention to quit and 13% of the variance in actual turnover. After establishing the influence of utility on the quitting process, we conduct additional analyses to identify the elements of present and alternative job utility that are the most salient for IT professionals' quitting processes. From the additional analyses, we derive specific guidance to practice on the management of IT professionals.