Open Access Open Access  Restricted Access Subscription or Fee Access
Total views : 163

Herzberg’s Motivation-Hygiene Theory and Employee Retention : Evidence from the IT & ITES Industry

Affiliations

  • Research Scholar (Corresponding Author), Department of Business Management, Rashtrasant Tukadoji Maharaj Nagpur University, Amravati Road, Ravi Nagar, Near Law College Square, Nagpur - 440 001, Maharashtra, India
  • Assistant Professor, Department of Business Management, C. P. and Berar College, Opp. C. P. Club, Ravinagar, Nagpur - 440 001, Maharashtra, India
  • Research Supervisor, Department of Business Management, Rashtrasant Tukadoji Maharaj Nagpur University, Amravati Road, Ravi Nagar, Near Law College Square, Nagpur - 440 001, Maharashtra, India

Abstract


Purpose : The present study aimed to evaluate the impact of “motivators and hygiene factors” (mentioned in Herzberg's theory of workplace motivation) on the job satisfaction of the employees working in the Information Technology (IT) industry in Nagpur, MH, India. The researchers also wished to understand whether the “job satisfaction” of the employees influenced their retention in the company.

Methodology : A sample survey of 1,019 employees working in IT and ITES companies in Nagpur was conducted. Analysis was performed using structural equation modeling and multiple regression techniques using SmartPLS and SPSS software. Purposive and snowball sampling techniques were used to select the respondents.

Findings : Motivating and hygiene factors were found to have positive and significant impacts on the job satisfaction of IT professionals. Moreover, job satisfaction also impacted employee retention positively and significantly. The results revealed that hygiene factors affected job satisfaction more than motivating factors.

Practical Implications : This research has significant implications for professionals and human resource managers working in IT companies. They obtained useful and scientific information on the factors affecting the job satisfaction of employees. The results helped them plan, devise, and revise their employee retention strategies.

Originality : Unlike prior research on “Herzberg's theory,” the present work evaluated the impact of “motivators and hygiene factors” on “job satisfaction” and “employee retention” in the IT & ITES industry in Nagpur, India.


Keywords

Herzberg’s theory, hygiene factors, employee retention, job satisfaction, motivation

JEL Classification Codes : D23, J28, M15, O15

Paper Submission Date : July 20, 2024 ; Paper sent back for Revision : March 3, 2025 ; Paper Acceptance Date : March 20, 2025 ; Paper Published Online : April 15, 2025


Full Text:

 |  (PDF views: 0)

References


  • Abbasi, S. M., & Hollman, K. W. (2000). Turnover: The real bottom line. Public Personnel Management, 29(3), 333–342. https://doi.org/10.1177/009102600002900303

  • Ahmed, S., Taskin, N., Pauleen, D. J., & Parker, J. (2017). Motivating information technology professionals: The case of New Zealand. Australasian Journal of Information Systems, 21, 1–30. https://doi.org/10.3127/ajis.v21i0.1421

  • Banerjee, A. (2018). Relationship between employees motivation & turnover intention in information technology sector. International Journal for Scientific Research & Development, 6(09), 1832013191. https://www.ijsrd.com/Article.php?manuscript=IJSRDV6I90145

  • Banthia, J. (2022). Infosys' attrition highest among top 4 IT majors in Q2FY23. Mint. https://www.livemint.com/companies/news/infosys-attrition-highest-among-top-4-it-majors-in-q2fy23-11665671440475.html

  • Barpanda, S., & Athira, S. (2022). Cause of attrition in an information technology-enabled services company: A triangulation approach. International Journal of Human Capital and Information Technology Professionals, 13(1), 1–22. https://doi.org/10.4018/IJHCITP.296691

  • Basha, M. M., Kaur, A., & Kethan, M. (2022). A study on the factors affecting employee retention in information technology sector. The Journal of Contemporary Issues in Business and Government, 28(4), 980–996. https://cibgp.com/au/index.php/1323-6903/article/view/2624

  • Bentler, P. M., & Chou, C.-P. (1987). Practical issues in structural modelling. Sociological Methods & Research, 16(1), 78–117. https://doi.org/10.1177/0049124187016001004

  • Chimote, N. K., & Malhotra, A. (2020). Understanding work motivation for employees working in the information technology industry from Herzberg's perspective. International Journal of Management, 11(12), 955–981. https://doi.org/10.34218/ijm.11.12.2020.086

  • Dartey-Baah, K., & Amoako, G. K. (2011). Application of Frederick Herzberg's two-factor theory in assessing and understanding employee motivation at work: A Ghanaian perspective. European Journal of Business and Management, 3(9), 1–8. https://www.researchgate.net/publication/230823567

  • Deshpande, P., Srivastava, A., Kulkarni, M., & Lenka, R. (2024). Impact of green transformational leadership on employee green behavior: A PLS-SEM approach. Prabandhan: Indian Journal of Management, 17(2), 24–43. https://doi.org/10.17010/pijom/2024/v17i2/173139

  • Deshpande, R., & Chakraborty, D. (2023). Impact of work stressors on career commitment-A study of Indian IT sector employees. Prabandhan: Indian Journal of Management, 16(11), 27–42. https://doi.org/10.17010/pijom/2023/v16i11/173214

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104

  • Gedam, R. K., Mehta, N., & Date, H. (2022). Antecedents of career decision-making self-efficacy and its impact on job satisfaction: A study in the Indian IT industry. Prabandhan: Indian Journal of Management, 15(11), 43–62. https://doi.org/10.17010/pijom/2022/v15i11/172522

  • Guimaraes, T., & Igbaria, M. (1992). Determinants of turnover intentions: Comparing IC and IS personnel. Information Systems Research, 3(3), 273–303. https://doi.org/10.1287/isre.3.3.273

  • Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis: A global perspective (7th ed.). Pearson.

  • Hair Jr., J. F., da Silva Gabriel, M. L., & Patel, V. K. (2014). Modeling of structural equations based on covariance (CB-SEM) with AMOS: Guidelines on its application as a marketing research tool. Brazilian Journal of Marketing, 13(2), 44–55. https://doi.org/10.5585/remark.v13i2.2718

  • Hair Jr., J. F., Hult, G. T., Ringle, C. M., & Sarstedt, M., (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications, Inc.

  • Hair Jr., J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202

  • Hair Jr., J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

  • Hemavathi, G. P., & Justus, F. S. (2023). Flexibility culture, personal' job fit, and job benefits as predictors of eudaimonic workplace wellbeing and turnover intention of employees. Prabandhan: Indian Journal of Management, 16(10), 46–60. https://doi.org/10.17010/pijom/2023/v16i10/171900

  • Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382

  • Henseler, J., Ringle, C. M., & Sarstedt, M. (2016). Testing measurement invariance of composites using partial least squares. International Marketing Review, 33(3), 405–431. https://doi.org/10.1108/IMR-09-2014-0304

  • Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics, & P. N. Ghauri (eds.), New challenges to international marketing (Vol. 20, pp. 277–319). Emerald Group Publishing Limited. https://doi.org/10.1108/S1474-7979(2009)0000020014

  • Hoffmaster, K. A. (2020). Job-leisure conflict: Moderation effect on job satisfaction and turnover intention in information technology professionals (Doctoral dissertation, Trident University International). ProQuest Dissertations & Theses. https://www.proquest.com/openview/6e921bfd7a129a8a2a3320d9ee66a290/1.pdf?cbl=51922&diss=y&pq-origsite=gscholar

  • Hu, L.-T., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to underparameterized model misspecification. Psychological Methods, 3(4), 424–453. https://doi.org/10.1037/1082-989X.3.4.424

  • Islam, N., & Saha, G. (2016). Job satisfaction of bank officers in Bangladesh. SSRN. https://doi.org/10.2139/ssrn.2856224

  • Jehanzeb, K., Rasheed, M. F., Rasheed, A., & Aamir, A. (2012). Impact of rewards and motivation on job satisfaction in the banking sector of Saudi Arabia. International Journal of Business and Social Science, 3(21), 272–278. https://www.researchgate.net/publication/235644076

  • Jnaneswar, K. (2019). Can work engagement and job satisfaction predict employee innovation? Case of Indian telecom employees. Prabandhan: Indian Journal of Management, 12(10), 7–19. https://doi.org/10.17010/pijom/2019/v12i10/147813

  • Jones, T. L. (2011). Effects of motivating and hygiene factors on job satisfaction among school nurses (Doctoral dissertation, Walden University). ProQuest Dissertations & Theses. https://www.proquest.com/docview/879043135/

  • Joshi, A., Kumar, D., & Shabnam. (2024). Work-life balance as mediator between workplace spirituality, organizational commitment, and job satisfaction. Prabandhan: Indian Journal of Management, 17(11), 23–40. https://doi.org/10.17010/pijom/2024/v17i11/174021

  • Keung, W. T. (2014). The effects of employment opportunity on the impact of organizational commitment and job satisfaction on intention to quit: The perception of IT outsourcing professionals in China (Doctoral dissertation, The University of Newcastle). Doctor of Business Administration.

  • Linge, A. A., Chaudhari, T., Kakde, B. B., & Singh, M. (2023). Analysis of factors affecting use behavior towards mobile payment Apps: A SEM approach. Human Behavior and Emerging Technologies. https://doi.org/10.1155/2023/3327994

  • Lohmöller, J.-B. (1989). Latent variable path modeling with partial least squares. Springer. https://doi.org/10.1007/978-3-642-52512-4

  • Madhushani, M. D., & Mudalige, D. M. (2020). Impact of knowledge management practices on job satisfaction and employee retention in banking and IT industries in Sri Lanka. Sri Lanka Journal of Management Studies, 2(1), 63–86. https://doi.org/10.4038/sljms.v2i1.28

  • Madueke, C. V., & Emerole, I. C. (2017). Organizational culture and employee retention of selected commercial banks in Anambra State. Saudi Journal of Business and Management Studies, 2(3), 244–252. https://doi.org/10.21276/sjbms.2017.2.3.16

  • Mathi, K. M., & Malathi, G. (2012). Analyzing the causes of attrition in IT industries - Opinion of employee and employer. Asian Pacific Journal of Research, 1(4).

  • Mulema, S. (2019). Employee motivation on organizational performance in selected information technology support service companies in Kampala, Uganda. International Journal of Science and Business, 3(4), 161–174. https://doi.org/10.5281/zenodo.3362940

  • Nunnally, J. C. (1978). Psychometric theory. McGraw-Hill Inc. https://www.amazon.in/Psychometric-Theory-McGraw-Hill-Psychology-Nunnally/dp/0070474656

  • Nunnally, J., & Bernstein, I. (1994). The assessment of reliability. Psychometric Theory, 3, 248–292. https://www.scirp.org/reference/ReferencesPapers?ReferenceID=1960143

  • Ramaprasad, B. S., Rao, S., & Prabhu, K. P. (2020). Commitment profiles and voluntary turnover intentions: An empirical assessment of 'two-faces' conceptualization of normative commitment. Prabandhan: Indian Journal of Management, 13(5–7), 7–25. https://doi.org/10.17010/pijom/2020/v13i5-7/153078

  • Schulz, S., & Steyn, T. (2003). Educators' motivation: Differences related to gender, age and experience. Acta Academica, 35(3), 138–160. https://hdl.handle.net/10520/EJC15273

  • Sengupta, S., & Gupta, A. (2012). Exploring the dimensions of attrition in Indian BPOs. The International Journal of Human Resource Management, 23(6), 1259–1288. https://doi.org/10.1080/09585192.2011.561211

  • Sharma, P. K., Misra, R. K., & Mishra, P. (2017). Job satisfaction scale: Adaptation and validation among Indian IT (information technology) employees. Global Business Review, 18(3), 703–718. https://doi.org/10.1177/0972150917692186

  • Singh, S., Sharma, G. D., & Mahendru, M. (2010). A study of employee retention in ITeS industry: A case of North India. SSRN. https://ssrn.com/abstract=1827482

  • Sonia, J. (2010). Organizational commitment and job satisfaction: A study of employees in the information technology industry in Bangalore, India (Doctoral dissertation, Christ University). Department of Management Studies. https://archives.christuniversity.in/items/show/1255

  • Sowmya, K. R., & Panchanatham, N. (2011). Employees' perception of organisational politics in banking sector. International Journal of Research in Commerce and Management, 2(2), 27–31. https://www.researchgate.net/profile/Sandhya-Mehta/publication/303277274

  • Steil, A. V., Bello, J. D., de Cuffa, D., & de Freitas, A. F. (2022). Job satisfaction and employee retention by public and private IT organizations. Revista de Administraçao da UFSM, 15(2), 354–369. https://doi.org/10.5902/1983465968850

  • Tan, T. H., & Waheed, A. (2011). Herzberg's motivation-hygiene theory and job satisfaction in the Malaysian retail sector: The mediating effect of love of money. Asian Academy of Management Journal, 16(1), 73–94. https://mpra.ub.uni-muenchen.de/30419/

  • Thulaseedharan, A., & Nair, V. K. (2015). Factors affecting job satisfaction of women employees in IT sector. BVIMSR's Journal of Management Research, 7(2), 112–118.

  • TopDev. (2022). Vietnam IT market report - Tech hiring 2022. https://topdev.vn/TopDev_VietnamITMarketReport_TechHiring_2022_EN.pdf

  • Trivedi, V., & Agarwala, T. (2021). Standing in my way nine to five: Investigating bullying behaviours prevalent among IT professionals in India. Prabandhan: Indian Journal of Management, 14(9), 8–21. https://doi.org/10.17010/pijom/2021/v14i9/166293

  • Truong, N. T. (2023). The investigation of the factors that affect job satisfaction in the Vietnam IT industry (Doctoral dissertation, Dublin, National College of Ireland). https://norma.ncirl.ie/id/eprint/6951

  • Warrier, A. G., & Prasad, R. (2018). Motivators, hygiene factors and job satisfaction of employees in IT sector in India. In 2018 International Conference on Advances in Computing, Communications and Informatics (ICACCI) (pp. 477–481). IEEE. https://doi.org/10.1109/ICACCI.2018.8554403


Refbacks

  • There are currently no refbacks.


Bookmark and Share