Is Your Degree Worth It? Education-Job Transferability and Job Satisfaction of ICT Workers

Abstract

Education-job match is known to affect employee job satisfaction, as well as their intention to leave the role. Job satisfaction is a critical part of an employee’s motivation to remain loyal to and employed within a company. However, ICT sector faces significant skill gaps, driven by college education lagging behind ICT employers’ expectations of job skills and experience needed in practice. This article hypothesizes that perceived effectiveness of ICT education in learning job skills (“education-job transferability”) in ICT industries can enhance employee job satisfaction and reduce employee turnover. Using a unique dataset extracted from the Labor Force Survey of ICT Workers in South Korea, this article empirically examines the status quo of education-job transferability in ICT industries and its impact on job satisfaction. This article reveals that ICT education is perceived as less effective for learning job skills than other disciplines’ education. Moreover, a significant stake of ICT graduates plan to do vocational training, suggesting that higher education is not enough to secure ICT-specialized jobs. Consistent with our hypotheses, we found that an education-job transferability enhances employees’ job satisfaction and reduces their intention to leave their current jobs. This article suggests that education-job transferability in Information, Communication and Technology (ICT) industries has a long-lasting effect on both employees and employers, by enhancing employee job satisfaction and potentially mitigating employee turnover.