Employers’ preferences for IT-retrainees: evidence from a discrete choice experiment

Abstract

Purpose -The purpose of this paper is to present the results of a discrete choice experiment (DCE) on the competencies of potential information technology (IT)-retrainees. The results give insights in the monetary value and relative returns to both soft and hard skills. Design/methodology/approach -The authors apply a DCE in which the authors propose seven pairs of hypothetical candidates to employers based in the municipality of Amsterdam, the Netherlands. These hypothetical candidates differ on six observable skill attributes and have different starting wages. The authors use the inference from the DCE to calculate the marginal rates of substitution (MRS). The MRS gives an indication of the monetary value of each skill attribute. Findings -Employers prefer a candidate who possesses a degree in an exact field over a similar candidate from another discipline. Programming experience from previous jobs is the most highly valued characteristic for an IT-retrainee. Employers would pay a candidate with basic programming experience a 53 percent higher starting wage. The most high-valued soft skill is listening skills, for which employers are willing to pay a 46 percent higher wage. The results of this paper show that both hard and soft skills are important, but not all soft skills are equally important. Originality/value -The results on the returns to skills provide guidelines to tailor IT training and retraining programs to the needs of the business environment. A key strength of this paper is that the authors have information on the preference orderings for different skills and kinds of experience.

Make IT Work: The Labor Market Effects of Information Technology Retraining in the Netherlands

“…Based on column 2, it seems that although the selection is based primarily on ability scores, it takes into account personality scores, including problem analysis and team-working skills. This was also found in a discrete choice experiment described in Vooren et al (2019b), investigating preferences for IT retraining candidates. The results of the experiment also show strong preferences for team-working skills among employers.…”

An assessment of students’ job preference using a discrete choice experiment: a postgraduate case study

“…Random utility theory underpins a DCE, which assumes that individuals maximise utility (Vooren et al , 2019); where utilities of an individual can be summarised by two components, namely, systematic; and random. The systematic component is made up of attributes that impact an individual’s choice whereas random components consists of all unidentified factors that influence the choice (Louviere et al , 2010).…”

Empirical Assessment of the Long-Term Impact of an Embedded Systems Programming Requalification Programme

“…Another research from Kovacs and Davis [16], based in the analysis of digital job posting in Pittsburg, discovered that communication skills were next to programming as the most demanded skills. In a study from Vooren et al [2], in the Netherlands, based in a discrete choice experiment, the authors figured out that non-cognitive skills, such as listening and teamworking, are in the employers' preferences for IT-retrainees, affecting their willing to pay them a 46 percent higher wage.…”

“…Traditional college courses have not been able to comply with this high demand of IT skilled professionals, forcing industry to search for these skills using non-traditional approaches, namely by retraining professional from other areas. In fact, from the IT industry perspective, short courses, such as coding boot camps, are quite effective in inducing software development skills, both hard and soft, compared to traditional 4-year college courses [1,2].…”