A STUDY ON MANAGING IT PROFESSIONALS TURNOVER INTENTION IN INDONESIA

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1 International Journal of Civil Engineering and Technology (IJCIET) Volume 8, Issue 9, September 2017, pp , Article ID: IJCIET_08_09_025 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed A STUDY ON MANAGING IT PROFESSIONALS TURNOVER INTENTION IN INDONESIA Mohammad Ziad Anwar, Heru Kurnianto Tjahjono, Fauziyah Universitas Muhammadiyah Yogyakarta Majang Palupi Universitas Islam Indonesia ABSTRACT This research was aimed at examining effects of career procedural justice and career distributive justice towards IT professional turnover intention and IT professional engagement as mediator. The respondents of this research were 135 IT professionals who work in private firms in Yogyakarta Special Region until This reseach employed survey model and convenience sampling method as the sampling technique. In addition, this research also used Structural Equation Modelling as analysis technique with AMOS as data analysis instrument. Based on the result of data examination on this research, it showed that; 1) Career procedural justice and career distributive justice have effects on IT professional turnover intention through IT professional engagement, 2) career procedural justice and career distributive justice have positive effects towards IT professional engagement, 3) IT professional engagement has negative effects towards IT professional turnover intention Key words: Career Procedural Justice, Career Distributive Justice, IT Professional Engagement, and IT Professional Turnover Intention. Cite this Article: Mohammad Ziad Anwar, Heru Kurnianto Tjahjono, Fauziyah, Majang Palupi, A Study on Managing IT Professionals Turnover Intention in Indonesia. International Journal of Civil Engineering and Technology, 8(9), 2017, pp INTRODUCTION Nowadays a phenomenon shows that industries have globally optimalized the utilization of human resources in information technology or known as IT professionals. It is because IT professionals have an important role to create a system for an organization in order to be more effective and efficient in achieving goals. One of the tangible proofs that IT professionals become a strategic tool in a business unit is the number of companies which have made use of IT professionals to do global marketing so that the products they produce will be better known and widely accessed by consumers in the world editor@iaeme.com

2 Mohammad Ziad Anwar, Heru Kurnianto Tjahjono, Fauziyah, Majang Palupi Based on that phenomenon, there is a perception that IT professionals have a very high sale value, since all industrial fields nowadays compete to recruit and maintain qualified IT professionals who are expected to incerase company performance. However, despite the strategic role of IT professionals in an organization, problems about uncertain organization policies related to welfare guarantee of IT professionals often occur. Consequently, the performance of IT professionals tend to decrease and their trust to the organization fades, even they decide to leave it the organization. Welfare guarantee that becomes an important concern for IT professionals is related to career guarantee. In some organizations, career guarantee becomes a factor that often causes turnover intention due to procedures and career distribution which are approved by IT professionals do not have certainty aspect nor clarity which will trigger behaviors that can be detrimental to the organization. Therefore, the more important role IT professionals have, it is expected that it will be the basis of thought for businessmen to make effective step in order to minimize turnover intention of IT professionals. Some relevant researches were previously conducted to find out effects or correlation among the issues stated above. As explained by Cohen and Spector (2001), Handi and Suhariadi (2003), and Shuck (2010), there is a negative effect of distributive justice and procedural justice towards turnover intention. According to Cohen and Spector (2001), procedural justice has the biggest effect towards turnover intention compared to other justice dimensions of organization. Unlike Handi and Suhariadi (2003), their research argues that distributive justice has a bigger effect towards turnover intention. Therefore Saks (2006), Shuck (2010), and Rasheed, et.al. (2015) in their research found out that there is positive effect of procedural justice and distributive justice towards employee engagement. Besides, the research conducted by Sask (2006) and Loice (2015) shows that employee engagement has a negative effect towards turnover intention. 2. THEORETICAL REVIEW 2.1. Turnover Intention Hamoto (2002) defines turnover intention as a level or intensity of willingnes to leave an organization, in which turnover intention itself is caused by various reasons, that is willingness to get a better job. Hamoto (2002) also states that turnnover intention is indicated by several employee behaviors, among others are: improved employee attendance, employees laziness when working, employees bravery in breaking rules of work, increased disobedience or protest of employees to leaders, and employees seriousness to do their duties which tend to be different than usual Employee Engagement According to Khan (1990), employee engagement is a form of multidimension from employees emotional, cognitive, and physical aspects which are interconnected. As stated by Khan (1990), emotional aspect is connected to how an employee feels to the organization and leaders. On the other hand, Schaufeli and Bakker (2003) argue that engagement has three characteristics known as: vigor, dedication, and absorption. Vigor characteristic is indicated with high level of energy, resilience, willingness to try, and not giving up when facing challenges. Dedication is indicated with feeling worthy, enthusiasm, inspiration, feeling editor@iaeme.com

3 A Study on Managing IT Professionals Turnover Intention in Indonesia valuabe, and challenging. Absortion is indicated with full concentration in doing a certain task (Schaufeli and Bakker, 2003) Effects of career procedural justice towards IT professional turnover intention and engagement The purpose of employees working for a company is to improve long term welfare. Procedural justice aspect plays an important role in explaining whether employees want to have a long term relatiionship with a company or decide to quit (Tjahjono, 2011; Palupi & Tjahjono, 2016; Badawi et al., 2017). A number of studies shows that procedural justice has negative effect on outcome which is negative (Skarlicky & Folger, 1997; Colquitt et al., 2001; Palupi et al., 2014; Palupi & Tjahjono, 2016). Therefore, in the context of IT professional turn over, procedural justice has negative effect on turnover. H 1 : Career procedural justice has negative effect on IT professional turnover intention. On the other aspect, the study explains that procedural justice has positive effect on positive outcome, such as employee engagement (Tjahjono, 2008; 2010; 2011; 2017; Colquitt, 2001; Sweeney & McFarlin, 1993). H 2 : Career procedural justice has positive effect on IT professional engagement The effect of career distributive justice on IT professional turnover intention According to the concept of prosperity, employees are expecting some outcome allocation such as career. Distributive justice deals with the perception of justice related to outcome allocation, of which in this case is the career. Several studies have explained that distributive justice has negative effect on the negative outcome (Skarlicky & Folger, 1997; Colquitt et al., 2001; Tjahjono, 2008; Palupi et al., 2014; Palupi & Tjahjono, 2016).Therefore, distributive justice has negative effect on the turnover intention in the context of professional IT. H 3 : Career distributive justice has negative effect on the IT professional turnover intention. From the positive point of view, procedural justice has significant effect on the employee s positive responses (Tjahjono, 2008; 2010; 2011; 2017; Colquitt, 2001; Sweeney & McFarlin, 1993). H 4 : Career procedural justice has positive effect on the IT professional engagement The effect of IT professional engagement on IT professional turnover intention Based on the study conducted by Loice (2015), it is found that employee engagement has negative effect on turnover intention. If an employee has a strong employee engagement, the tendency of performing a turnover intention will become low. In line with the result of study by Saks (2006), employee engagement has negative effect on turnover intention. This statement is emphasized by Rachmawati (2013), stating that if a company owns employees that have high engagement, working convenience and satisfaction will be improving. From the elaboration, an alternative hypothesis has been formulated: H 5 : IT professional engagement has negative effect on IT professional turnover intention editor@iaeme.com

4 Mohammad Ziad Anwar, Heru Kurnianto Tjahjono, Fauziyah, Majang Palupi 3. RESEARCH METHOD Sample used in this study were IT professionalswho work in privatecompanies in the Special Region of Yogyakarta. The data gathering of this study used survey model and convenience sampling technique. On the final stage of the study, AMOS was used as the tool for data analysis. According to Harnoto (2002), turnover intention is the intensity of one s intention in leaving his or her company. There are many reasons underlying the factors causing turnover intention, one of them is to get a better job. Greenberg (1990) defines procedural justice as a justice perception of decision making in an organization. This variable is measured by seven indicators which have been developed by Tjahjono (2008). Career distributive justice is a justice perception which is dealing with the resource distribution as well as the criteria used in determining the employee s career allocation. This variable is measured by five indicators which have been developed by Tjahjono (2008). Schaufeli, et. al. (2002) state that employee engagement refers to an assumption that is characterized by the optimistic perception in accomplishing certain duties. This variable is measured by the three dimensional indicators (vigor, dedication and absorption) which has been developed by Schaufeli and Bakker (2003). 4. RESULT AND DISCUSSION Source: 2017 Data Processing. Figure 2 Full Model SEM Table 1 Hypothesis Test Estimate S.E. C.R. P IPE <-- CPJ *** IPE <-- CDJ *** IPT <-- IPE IPT <-- CPJ IPT <-- CDJ Source: 2017 Data Processing editor@iaeme.com

5 A Study on Managing IT Professionals Turnover Intention in Indonesia Table 2 Standarized Direct Effect Test Variabel CDJ CPJ IPE IPT IPE IPT Source: 2017 Data Processing. Table 3 Standarized Indirect Effect Test Variabel CDJ CPJ IPE IPT IPE IPT Source: 2017 Data Processing. First Hypothesis Testing Based on the above table, there is probability value that does not meet the requirement of < 0.05, the C.R value is of which it does not meet the requirement of > Therefore, first hypothesis is denied. Second Hypothesis Testing Based on the above table, there is probability value *** that meets the requirement of < 0.05, C.R value is of which it meets the requirement of > 1,96, Therefore, second hypothesis is accepted. Third Hypothesis Testing Based on the above table, there is probability value 0,217 that does not the requirement of < 0.05, C.R value is -1,233 of which it does not the requirement of > Therefore, third hypothesis is denied. Fourth Hypothesis Testing Based on the above table, there is probability value *** that meets the requirement of < 0.05, C.R value is 4,122 of which it meets the requirement of > 1,96, Therefore, fourth hypothesis is accepted. Fifth Hypothesis Testing Based on the above table, there is probability value 0,002 that meets the requirement of < 0.05, C.R value is -3,061 of which it meets the requirement of > Therefore, fifth hypothesis is accepted. Sixth Hypothesis Testing Based on the hypothesis testing, career procedural justice has more significant indirect effect than direct effect on IT professional turnover intention through IT professional engagement. Therefore, IT professional engagement becomes a mediation between career procedural justice and IT professional turnover intention. Seventh Hypothesis Testing Based on the hypothesis testing, career distributive justice has more significant indirect effect than direct effect on IT professional turnover intention through IT professional engagement editor@iaeme.com

6 Mohammad Ziad Anwar, Heru Kurnianto Tjahjono, Fauziyah, Majang Palupi Therefore, IT professional engagement becomes a mediation between career distributive justice and IT professional turnover intention. 5. DISCUSSION The result of the study explained that both career procedural justice and career distributive justice have an effect on the level of IT professional turnover intention yet it should have IT professional involvement. When IT professionals perceive that career procedures and career distribution they receive have met the aspects of justice, it will create positive behaviour among IT professionals that will improve the productivity of the organization. This positive behaviour is the manifestation of engagement that demonstrates high level of strength, enthusiasm and deep feelings of IT professionals toward their work. The stronger engagement IT professionals have, the lower turnover intention they will have. Career procedural justice of an organization for its all members creates a sense of trust and comfort to the organization that will strengthen the employees engagement. This condition is caused by positive perception of prosperity procedures especially related to career procedures. Careers are the main thing to consider when one decides to affiliate in a long period of time with a company. This statement is in line with the findings of Saks (2006) and Shucks (2010). They stated that procedural justice has positive effect toward employee engagement indicating that the more employees perceive that the procedures in the company fair, the better engagement they tend to have toward the company. IT professionals feel that the career distribution or allocation in theirworkplace has equally fulfilled applicable aspects of justice for all employees. The positive perception of justice triggers the existence of strong engagement from IT professionals to their work or workplace. This statement is in line with Sask (2006) in his research arguing that distributive justice has a positive effect on employee engagement. The higher employees perception of justice on the allocation given by a company, the stronger engagement the employees will give to the company. Employees with a high sense of engagement to the company tend to exhibit common behaviors, one of them is staying. In other words, the employees will continue working in the organization despite having opportunities to work in other companies (Baumruk and Gorman, 2006). Furthermore, Park and Gursoy (2012) argue that when employees are tied to work, this condition will affect their psychological characteristic such as confidence and optimism. This condition will encourage employees to work better and encourage satisfaction resulted in low turnover intention among employees. In addition, it can minimize the risk of negative behaviors of the employees that will harm the company such as: working ineffectively and less efficiently, having low commitment to their work, having no interest in doing organizational change, and committing fraud. The welfare aspect often becomes a stimulus tool for the companies to strengthen the engagement of their employees, such as increasing the assurances of career and promotion, health, and compensation payments, as well as other forms of assurances. It is assumed that when the employees feel that all the needs becoming their priority and main goal have been fully met, they tend to give more efforts to the company editor@iaeme.com

7 A Study on Managing IT Professionals Turnover Intention in Indonesia 6. CONCLUSIONS It can be concluded from the result of the discussion that: Career procedural justice and career distributive justice have an effecttowards professional intentions level of professional turnover with IT professional involvement. When IT professionals perceive that career procedures and career distribution they receive have met the aspects of justice, it will create positive behaviour among IT professional that will improve the productivity of the company. The stronger engagement the IT professionals have as result of their perception of justice and career distribution, the lower turnover intention they will have. Careerprocedural justice and career distributive justice have positive effect on IT professional engagement. Career procedural justice of a company for its all employees creates a sense of trust and comfort to the company that will strengthen the employees engagement. This condition can be achieved if there is positive perception on the procedures of justice in a company with its related procedures and career distribution. IT professional engagement has negative effect on IT professionals turnover. It happens because they have stronger engagement to the company resulting in positive impacts to the company. It will minimize the employees bad behaviors, such as: working ineffectively and less efficiently, having low commitment to their work, having no interest in doing organizational change, committing fraud, and resigning. Professional engagement can fully mediate the effects of procedural justice and career distributive justice toward IT professional turnover intention. On the other hand, there are limitations of this research. One of them is the number of the respondents since there were only 135 respondents from Yogyakarta participating in this research. SUGGESTIONS It s expected that there will be improvements in other researches to extend the areas of the research and the industry sectors as well as the improvement on the model or the sample of the research to achieve more diverse research result. REFERENCES [1] Abelson, M., A., 1987, Examination of Avoidable an Unavoidable Turnover, Journal of Applied Psychology (72), pp, [2] Badawi, Tjahjono, H.K., Muafi The role of corporate reputation moderation of banking services. Polish Journal of Management studies, 15(1):15-25 [3] Baumruk, R., and Gorman, B., 2006, Why Managers are Crucial to Increasing Engagement, Strategic HR Review, pp, [4] Cohen, C., Y., and Spector, P., E., 2001, The Role of Justice in Organizations: A Meta- Analysis, Organizational Behavior and Human Decision Processes 86.2: [5] Colquitt, J. A., 2001, On The Dimensionality of Organizational Justice: A Construct Validation of A Measure, Journal of Applied Psychology, 108: [6] Colquitt, J., A., Conlon, D., E., Wesson, M., J., Porter, C., and Ng, K., Y., 2001, Justice at The Millennium: a Meta-Analytic Review of 25 Years of Organizational Justice Research, Journal of Applied Psychology, 86(3); [7] Greenberg, J., 1990, Organizational Justice: Yesterday, Today and Tomorrow, Journal of Management, 16(2): [8] Handi, S., dan Suhariadi, F., 2003, Pengaruh Persepsi Karyawan tentang Keadilan Organisasi terhadap Intensi Turnover di PT. ENG Gresik, Jurnal Psikologi UNAIR, Vol. 5, No editor@iaeme.com

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