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Page 1: 1 Attracting, Developing and Retaining IT Professionals Presented by: Eve DaysHenry Daniels John Mayes Kelly Richter

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Attracting, Developing and Attracting, Developing and Retaining IT ProfessionalsRetaining IT Professionals

Presented by:Presented by:

Eve DaysEve Days Henry DanielsHenry Daniels

John Mayes John Mayes Kelly RichterKelly Richter

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Will Cover:Will Cover:

Current trends of employment for Current trends of employment for Information Technology professionals in Information Technology professionals in the U.S.the U.S.Attracting IT professionals to your Attracting IT professionals to your organizationorganizationDeveloping the skills and expertise of IT Developing the skills and expertise of IT professionals within your organizationprofessionals within your organizationSuggestions for retaining IT professionals Suggestions for retaining IT professionals with your organizationwith your organization

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Main ThoughtsMain Thoughts

Common senseCommon sense pay well, interesting work, current knowledgepay well, interesting work, current knowledge

AwarenessAwareness Goals of organization and individualsGoals of organization and individuals CompetitionCompetition

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Background on InterviewsBackground on Interviews

Robert Bence, CIORobert Bence, CIO

St. Louis County Gov’tSt. Louis County Gov’t

Public organizationPublic organization

25 employees, plus 25 employees, plus 25-50 outsourced25-50 outsourced

Michael Garcia, CPOMichael Garcia, CPO

Nexstar Financial Corp.Nexstar Financial Corp.

Private organizationPrivate organization

25 in St. Louis, 65 in 25 in St. Louis, 65 in ColoradoColorado

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Current SituationCurrent Situation

As of 2000, there was a shortage of As of 2000, there was a shortage of 400,000 IT professionals in the US 400,000 IT professionals in the US alone alone (1)(1)

The US Department of Commerce The US Department of Commerce estimates that the US will require estimates that the US will require more than 1.3 million new and highly more than 1.3 million new and highly skilled IT workers through 2007 skilled IT workers through 2007 (2)(2)

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Perception and QualificationsPerception and Qualifications

Nerds or Not? Nerds or Not? (4)(4)

Spectrum of skills—what can Spectrum of skills—what can you do for us? you do for us? (5)(5)

Programming languages, database skills, Programming languages, database skills, operating systems, networking skillsoperating systems, networking skills

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Beginning the Attainment ProcessBeginning the Attainment ProcessTradition is not working any more Tradition is not working any more (6)(6)

Recruitment from all angles Recruitment from all angles (7)(7)

Recruiting Methods (survey of 150 executives from 1000 largest Recruiting Methods (survey of 150 executives from 1000 largest US firms) US firms) (3)(3)

Staffing/Recruiting Staffing/Recruiting 70% 70%

Posting Job on Company Website Posting Job on Company Website 57% 57%

Classified Advertising Classified Advertising 35% 35%

Job Fairs Job Fairs 32% 32%

Electronic Matching Services Electronic Matching Services 29% 29%

ReferralsReferrals 21%21%

InternshipsInternships 2%2%

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What Organizations Are Looking ForWhat Organizations Are Looking Forand How They Hope to Get Itand How They Hope to Get It

Characteristics of the individualCharacteristics of the individual (6)(6) Agreeableness, extroversion, conscientiousness, Agreeableness, extroversion, conscientiousness,

emotional stability, openness to experienceemotional stability, openness to experience

Stealing from the competition—Greener pasturesStealing from the competition—Greener pastures (8) (8)

““IT professionals with the most valued competencies are IT professionals with the most valued competencies are heavily recruited by organizations offering employment heavily recruited by organizations offering employment contracts with better salaries, along with signing contracts with better salaries, along with signing bonuses, stock options and work culture inducements, bonuses, stock options and work culture inducements, including enhanced work arrangements and lifestyle including enhanced work arrangements and lifestyle accommodations.”accommodations.”

Government problemsGovernment problems –salary, image, and advancement –salary, image, and advancement (9)(9)

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What Organizations Are Looking ForWhat Organizations Are Looking Forand How They Hope to Get Itand How They Hope to Get It

Human Resources as a partner Human Resources as a partner (10)(10) Managing legal risks, skills Managing legal risks, skills

assessments, skills tracking, assessments, skills tracking, awareness of current trendsawareness of current trends

Moving toward a business Moving toward a business orientation orientation (11)(11)

Blending technology and businessBlending technology and business

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Attainment: RecruitingAttainment: Recruiting

R. Bence (gov’t)R. Bence (gov’t)

All positions open to All positions open to public (required)public (required)

General requirementsGeneral requirements

M. Garcia (private)M. Garcia (private)

In-house servicesIn-house services

Specific requirementsSpecific requirements

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What IT Professionals Need To BeWhat IT Professionals Need To Be

Big PictureBig PictureSkills Skills (12)(12)

Interpersonal, technical, businessInterpersonal, technical, businessActivities Activities (13)(13)

““identifying promising application targets, deciding identifying promising application targets, deciding the systems processes and modes of use, and the systems processes and modes of use, and assessing the systems risks and potential financial assessing the systems risks and potential financial losses”losses”

Aspects Aspects (11)(11) Diplomacy; political, interpersonal and business Diplomacy; political, interpersonal and business

skills; reconsideration of traditional avenues of skills; reconsideration of traditional avenues of career developmentcareer development

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Salary and EducationSalary and EducationComputer Systems Analysts and Scientists in 2004 (mean Computer Systems Analysts and Scientists in 2004 (mean average) average) (14)(14)

Annual earnings: $63,694 average; $70,744 privateAnnual earnings: $63,694 average; $70,744 private Hours worked: 2,079 average; 2,083 privateHours worked: 2,079 average; 2,083 private Hourly wage: $30.67Hourly wage: $30.67

Education, 1999-2002 graduates in U.S. Education, 1999-2002 graduates in U.S. (15)(15)

IT IT BachelorBachelor

Bus. Bus. BachelorBachelor

IT MasterIT Master Bus. Bus. MasterMaster

IT IT DoctoratDoctorat

ee

Bus. Bus. DoctorateDoctorate

1999-1999-0000

36,19536,195

<3%<3%

257,709257,709

21%21%

14,26414,264

3%3%

112,258112,258

24.5%24.5%

777777

<2%<2%

1,1961,196

<3%<3%

2000-2000-0101

41,95441,954

>3%>3%

265,746265,746

21%21%

16,03816,038

3%3%

116,475116,475

25%25%

768768

<2%<2%

1,1801,180

<3%<3%

2001-2001-0202

47,29947,299

<4%<4%

281,330281,330

22%22%

16,11316,113

3%3%

120,785120,785

25%25%

750750

<2%<2%

1,1581,158

<3%<3%

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Developing Through Developing Through TrainingTraining

Training is a consistently crucial factor Training is a consistently crucial factor in the field of IT. Due to:in the field of IT. Due to: Constant changes in societyConstant changes in society The ability to keeps costs low The ability to keeps costs low

and stay competitiveand stay competitive

““Organizations have found increases in Organizations have found increases in employees job satisfaction, productivity employees job satisfaction, productivity and profitability” and profitability” (16)(16)

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To Train or Not to TrainTo Train or Not to Train

Benefits of Training Benefits of Training Gives employees a sense of value and Gives employees a sense of value and

motivationmotivation Understanding how their role effects the Understanding how their role effects the

organization organization Transfer learning to applicationTransfer learning to application Employee attitudes: “An individual might Employee attitudes: “An individual might

believe that acquiring object-oriented skills believe that acquiring object-oriented skills would likely provide a reward of being more would likely provide a reward of being more marketable or earning a higher salary.” marketable or earning a higher salary.” (16)(16)

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Costs of TrainingCosts of Training

Keeping up to date in respect to technology Keeping up to date in respect to technology can be very expensivecan be very expensive (16)(16)

Explicit costs – Explicit costs – additional funding for off-site training additional funding for off-site training and on-site training and on-site training

In 1995, the average cost of retraining a programmer In 1995, the average cost of retraining a programmer that earns $50,000 a year to be approximately that earns $50,000 a year to be approximately

$18,000 $18,000 (17)(17) Implicit costs – Implicit costs – Lost hours of projected productivityLost hours of projected productivity Potential for the training not to “pay off”, referred to as Potential for the training not to “pay off”, referred to as

transfer learningtransfer learning Employee AttitudeEmployee Attitude – the individual might also believe – the individual might also believe

that acquiring the object-oriented skills would be overly that acquiring the object-oriented skills would be overly time consuming, requiring a significant amount of after time consuming, requiring a significant amount of after hours study.hours study.

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Transfer LearningTransfer Learning

Motivation to transfer involves the drive or inspiration of Motivation to transfer involves the drive or inspiration of an individual to reassign knowledge gained from formal an individual to reassign knowledge gained from formal or informal learning to job-specific contextor informal learning to job-specific contextTraining is most effective when the employee feels that Training is most effective when the employee feels that the employer will expect them to use that information in the employer will expect them to use that information in the near futurethe near futureThe organization has a learning cultureThe organization has a learning cultureTrainees reported stronger transfer intentions when Trainees reported stronger transfer intentions when engaged in learning activities in which follow-up from engaged in learning activities in which follow-up from their manager was anticipated or when employees were their manager was anticipated or when employees were involved in training that was mandatory involved in training that was mandatory Other factors: Environmental, the utility of that which was Other factors: Environmental, the utility of that which was learned, peer support, supervisor sanction and support learned, peer support, supervisor sanction and support (16)(16)

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Learning Organization Learning Organization Oticon: “Spaghetti Organization”Oticon: “Spaghetti Organization”

Overall objective: Increase Overall objective: Increase productivity by 30%productivity by 30%

The organization only supported three The organization only supported three roles:roles:

Project managers – with overall Project managers – with overall responsibility for projectsresponsibility for projects

Senior Specialists – providing Senior Specialists – providing professional expertise in functional professional expertise in functional areas areas

Coaches/Mentors – mentoring and Coaches/Mentors – mentoring and other HR-related rolesother HR-related roles

IT professionals learned through IT professionals learned through experience experience diplomacy, political, interpersonal, diplomacy, political, interpersonal, business business (19)(19)

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Developing Through EvaluationDeveloping Through Evaluation

Benefits:Benefits: Evaluations are a very effective way to Evaluations are a very effective way to develop your employees. To get them off the develop your employees. To get them off the wrong path and onto the right one.wrong path and onto the right one.

Cost:Cost: Evaluations, when done correctly, are time Evaluations, when done correctly, are time consuming.consuming.

Focus on a game plan for the future, instead of the Focus on a game plan for the future, instead of the past.past.

When possible, get feedback from employeesWhen possible, get feedback from employees

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Developing Through EvaluationsDeveloping Through Evaluations

Be Be “S.M.A.R.T.”“S.M.A.R.T.”

SSpecificpecific

MMeasurable easurable

AAttainable ttainable

RReflectiveeflective

TTime boundime bound

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Developing Careers: PathDeveloping Careers: Path

R. Bence (gov’t)R. Bence (gov’t)

Primarily technicalPrimarily technical

Silos…for nowSilos…for now

Career and phaseCareer and phase

M. Garcia (private)M. Garcia (private)

Management vs. Management vs. technicaltechnical

TeamsTeams

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Developing Careers: TrainingDeveloping Careers: Training

R. Bence (gov’t)R. Bence (gov’t)

Budget issuesBudget issues

Status quoStatus quo

Direct reportsDirect reports

M. Garcia (private)M. Garcia (private)

SpecificSpecific

Tuition Tuition reimbursementreimbursement

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Developing Careers: Developing Careers: Performance AssessmentsPerformance Assessments

R. Bence (gov’t)R. Bence (gov’t)

AnnualAnnual

FormalFormal

Future of Future of assessmentsassessments

M. Garcia (private)M. Garcia (private)

Every 6 monthsEvery 6 months

FormalFormal

Coverage Coverage

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Tommorow’s JobsTommorow’s Jobs

Between 2002 and 2012 total U. S. employment Between 2002 and 2012 total U. S. employment expected to increase by 14.8 percentexpected to increase by 14.8 percent

Equates to 21 million more jobsEquates to 21 million more jobs

Growth in professional, scientific, and technical Growth in professional, scientific, and technical services by 27.8 percent/1.9 million new jobs by services by 27.8 percent/1.9 million new jobs by 20122012

(21)(21)

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Tomorrow’s JobsTomorrow’s Jobs

Projections are that computer systems design Projections are that computer systems design and related services employment will increase and related services employment will increase 54.6 percent. This increase amounts to more 54.6 percent. This increase amounts to more than a third of all new jobs in the professional, than a third of all new jobs in the professional, scientific, and technical services job category. scientific, and technical services job category.

632,000 new jobs are expected in the 632,000 new jobs are expected in the information supersector by 2012. This job sector information supersector by 2012. This job sector includes software publishers, internet publishers, includes software publishers, internet publishers, data processing services and internet service data processing services and internet service providers.providers.

(21)(21)

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What This May Mean To What This May Mean To Organizations With IT Organizations With IT

ProfessionalsProfessionals

Continued high turnover rates for IT Continued high turnover rates for IT professionals professionals (22)(22)

Turnover rates of 25% - 33% in 1997-2001 periodTurnover rates of 25% - 33% in 1997-2001 periodAverage tenure in IT went down from 18 months in 1998 to Average tenure in IT went down from 18 months in 1998 to 13 months13 months

Increased Competitiveness to fill IT positions Increased Competitiveness to fill IT positions (3)(3)

Poaching or brain snatchingPoaching or brain snatchingHeadhuntersHeadhunters

Negative effects on innovation, productivity and Negative effects on innovation, productivity and competitiveness in world markets competitiveness in world markets (27)(27)

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Turnover Percentages In Turnover Percentages In ComparisonComparison(By Industry)(By Industry)

Information technologyInformation technology 25-33%25-33%ServicesServices 13.513.5Health careHealth care 12.812.8Banking and financeBanking and finance 13.213.2InsuranceInsurance 7.6 7.6

(23)(23)

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Turnover Percentages At the Best Turnover Percentages At the Best Companies To Work ForCompanies To Work For

(24)(24)

RankRank LocationLocation PercentagePercentage

11 Wegman’s Food MarketsWegman’s Food Markets 66

22 StarbucksStarbucks 1212

33 Valero EnergyValero Energy 2929

44 Cisco SystemsCisco Systems 33

55 Whole Food MarketWhole Food Market 3232

1313 A. G. EdwardsA. G. Edwards 99

1414 MicrosoftMicrosoft 55

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Managing IT ProfessionalsManaging IT Professionals

Are IT professionals substantially different from Are IT professionals substantially different from other employees firms seek?other employees firms seek?

Best practices for others good enoughBest practices for others good enough Differences IT vs. othersDifferences IT vs. others

IT skills and business skillsIT skills and business skillsDemand/supply constantly in fluxDemand/supply constantly in fluxHalf-life of specific skills is short resulting in constant need Half-life of specific skills is short resulting in constant need for skill renewal and developmentfor skill renewal and development

(7)(7)

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What Successful IT Organizations What Successful IT Organizations DoDo

Study of 32 organizations to determine Study of 32 organizations to determine what successful organizations do to what successful organizations do to recruit, develop and retain IT professionalsrecruit, develop and retain IT professionalsSuccessful organizations being those Successful organizations being those successful in IT use, business successful in IT use, business performance or managing IT human performance or managing IT human resources resources (7)(7)

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Sample Demographics Sample Demographics (7)(7)

Staff of Companies Included in Case Study:Staff of Companies Included in Case Study:

Number of IT EmployeesNumber of IT Employees Percentage of Percentage of CompaniesCompanies

100-1,000100-1,000 50%50%

<100<100 25%25%

>1,000>1,000 25%25%

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Recruiting Practices Recruiting Practices (7)(7)

Practice CategoryPractice Category FrequencyFrequency

SourcingSourcing 7272

Skills SoughtSkills Sought 88

Competitive Competitive Differentiation ElementsDifferentiation Elements

3636

One-Time InducementsOne-Time Inducements 66

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Common Themes in IT Human Common Themes in IT Human Resource TrendsResource Trends

Dedicated person or staff supporting IT Human Dedicated person or staff supporting IT Human Resource ActivitiesResource Activities

Existence of diverse organizational cultures with Existence of diverse organizational cultures with two distinct dimensions being nurtured to some two distinct dimensions being nurtured to some degreedegree Productivity concerns dimensionProductivity concerns dimension Interpersonal DimensionInterpersonal Dimension

(7)(7)

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Retention PracticesRetention Practices

Increased frequency of performance appraisals with Increased frequency of performance appraisals with financial incentivesfinancial incentivesWork arrangements with interesting and challenging Work arrangements with interesting and challenging projectsprojectsWork arrangements that allowed rotation across jobs Work arrangements that allowed rotation across jobs and projectsand projectsUse of cross-functional teams and modifying work Use of cross-functional teams and modifying work spaces to accommodate team workspaces to accommodate team workProcesses for identifying training and development Processes for identifying training and development needs and addressing those needsneeds and addressing those needs

(7)(7)

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Retention PracticesRetention Practices

Providing persistent and accurate Providing persistent and accurate counseling and feedbackcounseling and feedback

Flexible work arrangementsFlexible work arrangements

Providing recognition and tangiable Providing recognition and tangiable awards all through the performance periodawards all through the performance period Birthday cardsBirthday cards Welcome basketsWelcome baskets Lunch or dinner outLunch or dinner out

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Detailed IT Retention Practices Detailed IT Retention Practices (7)(7)

Practice CategoryPractice Category Frequency (totaling 230)Frequency (totaling 230)Performance MeasurementPerformance Measurement 19 instances19 instances

Compensation and Benefits Compensation and Benefits SystemsSystems

4444

Work ArrangementsWork Arrangements 2727

Employability Training and Dev.Employability Training and Dev. 3333

Longer-Term Career DevelopmentLonger-Term Career Development 99

Opportunities for AdvancementOpportunities for Advancement 1414

Opportunities for RecognitionOpportunities for Recognition 1515

Quality of LeadershipQuality of Leadership 2121

Sense of CommunitySense of Community 3232

Lifestyle AccommodationsLifestyle Accommodations 1313

Org. Stability and Employment Org. Stability and Employment SecuritySecurity

33

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Using The Recruitment and Using The Recruitment and Retention Practice CategoriesRetention Practice Categories

Examine current practices – benchmarking Examine current practices – benchmarking current practices against exemplary firmscurrent practices against exemplary firms Helps to identify gaps in existing practiceHelps to identify gaps in existing practice

Use practice categories to determine set of Use practice categories to determine set of practices to expend resources on to recruit practices to expend resources on to recruit and retain IT professionalsand retain IT professionals

(7)(7)

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RetainingRetaining

R. Bence (gov’t)R. Bence (gov’t)

AutonomyAutonomy

TurnoverTurnover

Complaints Complaints

M. Garcia (private)M. Garcia (private)

AutonomyAutonomy

TurnoverTurnover

ComplaintsComplaints

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Retaining: AttractionsRetaining: Attractions

R. Bence (gov’t)R. Bence (gov’t)

SecuritySecurity

CommitmentCommitment

Visibility Visibility

M. Garcia (private)M. Garcia (private)

VarietyVariety

TeamTeam

IncentivesIncentives

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The “Strategic Star” The “Strategic Star” (7)(7)

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Closing ThoughtsClosing Thoughts

Common senseCommon sense pay well, interesting work, current knowledgepay well, interesting work, current knowledge

AwarenessAwareness Goals of organization and individualsGoals of organization and individuals CompetitionCompetition

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ReferencesReferences

1. Kakabadse, Andrew and Nada Korac-Kakabadse, “Future Role of IS/IT 1. Kakabadse, Andrew and Nada Korac-Kakabadse, “Future Role of IS/IT Professionals,” Professionals,” The Journal of Management DevelopmentThe Journal of Management Development; 2000; 19, 2.; 2000; 19, 2.

2. Kamal, Mustafa, “Information Technology Workforce—Planning for the 2. Kamal, Mustafa, “Information Technology Workforce—Planning for the Future,” Future,” Journal of American Academy of BusinessJournal of American Academy of Business; Sep 2005; 7. ; Sep 2005; 7.

3. Amaram, Donatus I., “Issues in Recruitment and Retention for the IT 3. Amaram, Donatus I., “Issues in Recruitment and Retention for the IT Workforce,” Workforce,” The Journal of American Academy of BusinessThe Journal of American Academy of Business; Mar 2005; 6, ; Mar 2005; 6, 2.2.

4. Kamal, Mustafa, “Information Technology Workforce—Planning for 4. Kamal, Mustafa, “Information Technology Workforce—Planning for the Future,” the Future,” Journal of American Academy of BusinessJournal of American Academy of Business; Sep ; Sep 2005; 7, 2.2005; 7, 2.

5. Athey, Susan and John Plotnicki, “The Evaluation of Job 5. Athey, Susan and John Plotnicki, “The Evaluation of Job Opportunities for IT Professionals,” Opportunities for IT Professionals,” The Journal of Computer The Journal of Computer Information SystemsInformation Systems; Spring 1998; 38, 3.; Spring 1998; 38, 3.

6. Witt, L.A. and L.A. Burke, “Selecting High-Performing Information 6. Witt, L.A. and L.A. Burke, “Selecting High-Performing Information Technology Professionals,” Technology Professionals,” Journal of End User ComputingJournal of End User Computing; Oct-Dec ; Oct-Dec 2002; 14, 4. 2002; 14, 4.

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ReferencesReferences7. Agarwal, Ritu and Thomas W. Ferratt, “Enduring Practices for Managing IT 7. Agarwal, Ritu and Thomas W. Ferratt, “Enduring Practices for Managing IT

Professionals,” Professionals,” Communications of the ACMCommunications of the ACM; Sep 2002; 45, 9. ; Sep 2002; 45, 9.

8. Schambach, Thomas and J. Ellis Blanton, “The Professional Development 8. Schambach, Thomas and J. Ellis Blanton, “The Professional Development Challenge for IT Professionals,” Challenge for IT Professionals,” Communications of the ACMCommunications of the ACM; Apr 2002; ; Apr 2002; 35, 4.35, 4.

9. Pawlowski, Suzanne D., Pratim Datta and Andrea L. Houston, “The 9. Pawlowski, Suzanne D., Pratim Datta and Andrea L. Houston, “The (Gradually) Changing Face of State IT Jobs,” (Gradually) Changing Face of State IT Jobs,” Communications of the Communications of the ACMACM; May 2005; 48, 5.; May 2005; 48, 5.

10. Schwarzkopf, Albert B., Roberto J. Mejia, Jon Jasperson, Carol S. 10. Schwarzkopf, Albert B., Roberto J. Mejia, Jon Jasperson, Carol S. Saunders and Hermann Gruenwald, “Effective Practices for IT Skills Saunders and Hermann Gruenwald, “Effective Practices for IT Skills Staffing,” Staffing,” Communications of the ACMCommunications of the ACM; Jan 2004; 7, 1.; Jan 2004; 7, 1.

11. Kakabadse, Andrew and Nada Korac-Kakabadse, “Future Role of IS/IT 11. Kakabadse, Andrew and Nada Korac-Kakabadse, “Future Role of IS/IT Professionals,” Professionals,” The Journal of Management DevelopmentThe Journal of Management Development; 2000; 19, 2.; 2000; 19, 2.

12. Agarwal, Ritu and Thomas W. Ferratt, “Enduring Practices for Managing IT 12. Agarwal, Ritu and Thomas W. Ferratt, “Enduring Practices for Managing IT Professionals,” Professionals,” Communications of the ACMCommunications of the ACM; Sep 2002; 45, 9.; Sep 2002; 45, 9.

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ReferencesReferences13. Pawlowski, Suzanne D., Pratim Datta and Andrea L. Houston, “The 13. Pawlowski, Suzanne D., Pratim Datta and Andrea L. Houston, “The

(Gradually) Changing Face of State IT Jobs,” (Gradually) Changing Face of State IT Jobs,” Communications of the ACMCommunications of the ACM; ; May 2005; 48, 5.May 2005; 48, 5.

14. St. Louis National Compensation Survey, June 200414. St. Louis National Compensation Survey, June 200415. US Department of Education15. US Department of Education16. Ryan, Sherry D., “A Model of the Motivation for IT Retraining,” 16. Ryan, Sherry D., “A Model of the Motivation for IT Retraining,” Information Information

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Organizational Learning Culture and Job Satisfaction on Motivation to Organizational Learning Culture and Job Satisfaction on Motivation to Transfer Learning and Turnover Intention,” Transfer Learning and Turnover Intention,” Human Resource Development Human Resource Development QuarterlyQuarterly; Fall 2004; 15, 3.; Fall 2004; 15, 3.

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