Faculty Turnover And Salary Compression In Business Schools: Comparing Teaching And Research Missions

Abstract

Excessive employee turnover has plagued industry and higher education, increasing the cost of manufacturing a product, delivering a service or providing quality education. Most research conducted in this area has concentrated on industry. The few studies that have investigated turnover in higher education were done at the university level while this paper focuses on faculty turnover in business schools. Another difference that distinguishes this paper is that actual turnover figures were used, rather than intentions to leave. Salary compression was also explored, an issue that concerns many faculty members. This occurs when new doctorates are hired at salaries almost equal to that of existing faculty. Our research found that turnover rates are higher in small, teaching institutions, as anticipated. An unexpected result was that salary compression was greater in one of the research institutions. This may be due to abnormal hiring practices of that school.