Abstract
One of the characteristics of the knowledge economy is the high level of mobility of knowledge workers. The cost of labour turnover of these key resources is high in both financial and non-financial terms. There is a need to understand what the factors are that underpin the retention cognitions of knowledge workers in order that organisations may try to reduce the labour turnover of these key employees or to minimise its effects.
Literature Research
The review of pertinent literature was grouped under the following headings: the new world of work in a knowledge based economy; labour turnover (including its antecedents and consequences); retention; and demographic differences. The review revealed: the high costs associated with the turnover of knowledge workers; the low level of predictive ability of the antecedents of organisational withdrawal; and the wide range of variables considered to impact on knowledge workers’ retention cognitions. The literature also showed that most research had been carried out in single industries and had focused on one or two variables. No literature was found that used multivariate approaches to the problem of knowledge worker retention.
Empirical Research Objectives
The primary research aim was to determine what factors are important to knowledge workers when they decide to stay with or leave their employing organisation. A secondary aim was to determine if the sample was homogeneous in terms of these retention cognitions or whether they could be segmented into meaningful sub-groupings.
Participants
In the pilot study, 30 knowledge workers who had recently changed employer were used to determine the independent variables of retention. In the second phase, data was collected from 306 knowledge workers in full time employment. A wide range of demographic and industry groupings were represented by the participants.
The Measuring Instrument
A quantitative questionnaire was developed. It consisted of questions covering: demographic data, an international scale of job satisfaction factors, job mobility, intentions with regard to future length of service and organisational commitment. Forty three variables relating to retention cognitions, which had been developed through the pilot study, were then presented, with Likert scales used to determine their relative degree of importance.
The Research Procedure
The data was gathered while the knowledge workers attended a wide variety of courses at a university business school. The data was collected under lecture room conditions to ensure standardisation of the process.
Statistical Analysis
A wide variety of statistics were used to address the research questions. The data was processed using the Statistical Package for Social Sciences and the Number Cruncher Statistical System computer packages. Descriptive statistics, correlation analyses, CHAID, factor analysis, Mann Whitney U tests, Kruskal Wallis Analysis of Variance, and cluster analysis were used to analyse the data.
Conclusions and Recommendations
The findings revealed the high level of mobility of the sample. The study showed that job satisfaction and organisational commitment do not predict proposed future length of employment with an organisation but merely co-vary with it. The high levels of individualism, egocentricity, and focus on personal development amongst these workers were demonstrated.
Factor analysis revealed seven underlying dimensions of retention cognitions of the respondents, five of which are viewed as important in determining retention. These were: the need for independence; career development provision by the organisation; egocentricity and challenge within the organisation; the organisational setting; and performance related rewards. The two factors found to have a low impact on retention were the desire for a career change and issues related to personal comfort. The latter finding explains the lack of effectiveness of traditional retention devices. A model was offered that consolidates the factors affecting the retention cognitions of knowledge workers.
Uni-variate analyses examining differences based on demographic variables detected only 20 significant differences out of the 172 tests. Hence a multivariate approach was used to look at sample segmentation. A cluster analysis revealed a segmentation of these knowledge workers and their retention cognitions into nine distinct categories, termed respectively: the salon culture; the seekers; the groupies; the disengaged; the self sufficient; the depressives; the contented new-agers; the co-dependents and the self starters.
Recommendations to academic researchers were offered based mainly on the need to understand the characteristics of knowledge workers operating in the new world of work and, in particular, the drivers of mobility of this important population. Recommendations to management were largely twofold. Firstly, to adapt to the mobility of knowledge workers as this is a defining characteristic of the new world of work. Secondly, to develop compelling employee propositions that highlight challenging work, career development opportunities as well as rewards based on individual performance in order to improve the retention rate of these key employees.
Prof. Chris Welman