Self-efficacy and organizational efficacy effect on employee attrition in IT sector

Abstract

PurposeInformation technology (IT) plays a major part in the economy growth of any country. Attrition has been an important issue that influences the performance of the company. The increasing levels of attrition are the most immediate concern that IT companies are facing. The present study will help in knowing the influence of self-efficacy (SE) and organizational efficacy (OE) on the turnover of an organization.Design/methodology/approachThis study employed an online survey method for data collection using a sample size of 250. Reliability and validity of the measurement scales were ensured, and hypotheses developed were tested through PLS-SEM using SMART PLS.FindingsA large number of employees are the youth of age group 20–40 years. Work satisfaction within the organization is the main cause of attrition. Lack of contentment along with the biasness in the organizations hampers the dissatisfaction with the nature of work between employees. Thus, effective, timely communication of organizational policies and goals helps to pound satisfaction with work within the organization, which could result in lower employee attrition.Research limitations/implicationsThe research has been conducted as not much research works have been found that show the relationship between SE and OE on employee attrition in the IT sector. The present study will help in further theory development and finding new aspects.Originality/valueThe research is the first of its kind, to the best of the authors’ knowledge, that shows the relationship of SE and OE to employee attrition.