The Effects of Internal Marketing on Turnover Intentions in Knowledge Workers in the IT Sector

Abstract

This study suggests applying the concept of internal marketing to combat turnover intentions in knowledge workers in the IT sector. Internal marketing sees all employees as the firm's customers. The major hypothesis examined here is that when employees feel that a firm considers and treats them like customers, it increases employment commitment and reduces turnover intentions. A multivariate hierarchical regression analysis and structural equation modelling (SEM) incorporating demographic, personal, organizational and external variables were used to identify the unique contribution of internal marketing to turnover intentions. The findings showed a negative correlation between internal marketing and turnover intention that contributed significantly to the explained variance beyond the effects of other independent variables. These results are discussed in the light of their theoretical and practical implications and in particular that IT organizations should consider adopting internal-marketing practices to reduce turnover intention and hence voluntary turnover.