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International Research Journal of Human Resources and Social Sciences Impact Factor- 3.866

Vol. 3, Issue 3, March 2016 ISSN(O): (2349-4085) ISSN(P): (2394-4218)

© Associated Asia Research Foundation (AARF)

Website: www.aarf.asia Email : editor@aarf.asia , editoraarf@gmail.com



Dr. M. Maya

Assistant Professor, Department of Management Studies Sathyabama University


“Organizations that don’t measure and benchmark their Talent Management strategies have a

far less solid basis for judging the overall effectiveness and success of those strategies than those

who do,” states Tony Marzulli, Vice President, Product Management, ADP Talent Management

Solutions, U.S. India contributes more for multinational Information Technology Companies

with a comparatively young population and a highly educated workforce. Owing to high

competition for talent, existing corruption and bureaucracy and various cultural differences,

organizations face several changes. It is difficult for employers to understand such challenges

when leveraging the Indian workforce. In the shade of these challenges, the researcher tries to

provide valuable insight for employers for handling these hurdles and describe the effective ways

followed by some of India’s top Information Technology companies and also includes a model

for implementing successful talent management strategies. Gaining an understanding of the

Indian workforce and applying this force for right management solutions are crucial, while

considering organisational growth in India.

Keywords: Talent Management, Information Technology, India, Employees.


Employee retention is a global challenge and it is compounded by the fact that attrition


burgeoning growth of the IT/ITES sector. The study reveals that there are two types of employee

turnover, namely functional and dysfunctional. Dysfunctional turnover is the situation in which

productive and potential employees leave the organization. On the other hand when poor

performers leave, it is said to be functional turnover. According to available studies, a minimum

of eight weeks is required to replace the right talent due to dysfunctional turnover and needless to

say, the lead-in period invariably affects productivity and performance of the organization.


Sylvia Vorhauser (2012) the research report explored the opportunities unique to the

Indian markets, which showed consistent growth while other economies around the world have

stalled. The survey was conducted in page up people, a Multi national Talent Management

solution provider. The key findings of the research include

India has the largest youth market in the world, and this young workforce expects

competitive compensation, professional development, fast track career opportunities, Mobility

options and work-life balance.

Employee attrition in India is high due to strong competition for talent and other factors

such as inexperienced leadership and failure on part of the organizations in meeting the needs of

the young workforce. Enhancing key employer branding is key to improve retention.

Indian industries and employees in India display comparatively lower productivity levels

compared to other markets, which can be improved through enhanced capability development.

The research of RajpreetKaur (2013) was focused on highlighting the way in which the

organizations should embrace Talent Management to attract and retain the best talent available

for their organization. His paper also documented the impacts of Talent Management program

on employees. From the analysis, it was found that almost all of the respondents were satisfied

with the result of the Talent Management program and agreed that the Talent Management

program not only created a good work culture and but also enhanced the values of employees,


HuubRuël (2013) The purpose of Ruel’s study is to highlight how global Talent

Management (GTM) assumes significance in the context of global business challenges

particularly with multinational corporations (MNCs). Social networking platforms have become

key channels for global communication and collaboration. An effective use of social media can

help MNCs attain GTM and thus maintain competitive edge. The study presents a GTM model

for MNCs based on the combined findings from the lit erature review and the Delphi study.

The HR managers and HR researchers have agreed on the areas of focus and instruments that

are essential for implementation of a successful GTM system. However, with regard to the

application of social networks, groups have different views.

Dr. ParulSaxena’s (2013) paper emphasizes on Talent Management as a strategic move to

achieve competitive advantage and organizational excellence in the globalized business

scenario. In his study, he throws light on various strategies to source, attract and retain the best

talent in the company. The study also explains the top retention techniques and the degree of

their effectiveness. The paper concludes that Talent Management is the deciding factor of any

organization’s success and the failure to recognize the importance of Talent Management will

push the organizations to face talent crunch and ultimately become a loser in the talent war.


The research consists of data collected through both quantitative survey and qualitative

interviews. To achieve the objectives of the study five Indian Information Technology

companies were selected based on the employers rank list for the year 2010 - 2011 announced by

National Association of Software and Services Companies (NASSCOM). Employees working in

each corporate were randomly selected. Multiple regression analysis was applied on factors of

effective Talent Management practices. Finally a model was developed using analysis of

moment structure (AMOS 16.1), to ensure the effective Talent Management in Indian

Information Technology industry.



Engagement & Retention Drivers, Best practices in Talent Management and Employees’

commitment and credibility are taken as independent variables (shown in the table 4.58)

Table 4.58

Regression analysis for effective Talent Management

Predictor Variables R2


Beta F-statistics t- value

Execution strategy

Track and develop

Recognize and reward

Engagement & Retention Drivers

Best practices in Talent Management

Employees commitment and credibility

0.319 1.166

0.046 0.839 0.964 0.036 1.064 14.387** 3.802** 1.064 3.913** 3.859** 1.007 4.431** Adjusted R2 0.307

** Significant at 1% level

It is observed from the table 4.58, the regression model’s F value is 14.387 and it is significant at 1% level. The regression model’s coefficient of determination (R2

) is 0.319 and its

adjusted R2 is 0.307, which is a healthy coefficient. One unit increase in Execution strategy

leads to an increase of 1.166 units in effective Talent Management. The value shows that

Execution strategy is one of the main reasons for improving effective Talent Management. One

unit increase in Recognize and reward leads to an increase of 0.839 units in effective Talent

Management. The value shows that Recognize and reward improves effectiveness in Talent

Management. Engagement & Retention Drivers serves as significant predictor and increases

0.964 units in effective Talent Management. The value shows that Engagement & Retention

Drivers improves Effectiveness in Talent Management. Employees’ commitment and credibility

serves as a significant predictor and increasing effectiveness in Talent Management by 1.064

units. The value shows that Employees’ commitment and credibility improves Effectiveness in

Talent Management. Track and develop and Best practices in Talent Management are not serving

as significant predictors for Effectiveness in Talent Management. The regression equation for


Effective Talent Management = 3.889 + 1.166 (Execution strategy) + 0.839 (Recognize and

reward) + 0.964 (Engagement and Retention Drivers) + 1.064 (Employees’ commitment

and credibility)

Hence Execution strategy, Recognize and reward, Engagement and Retention Drivers, and

Employees’ commitment and credibility serves as significant predictors of Effective Talent

Management in Indian Information Technology industry.



A model was developed by using analysis of moment structure (AMOS 16.1). A model

is fit to ensure the Effective Talent Management in Indian Information Technology. In the model

Implementation factor, Talent Management challenges, Characteristics of Talent Management,

Dimensions of Talent Management (Develop Strategy dimension, Attract and Retain, Motivate

and develop, Deploy and Manage dimension, Connect and Enable dimension, Transform and

Sustain dimension), Core Talent Management, Best practices in Talent Management,

Engagement and Retention, Commitment and credibility and Effective Talent Management are

taken as observed variables. e1, e2, e3, e4, e5, e6, e7, e8, e9, e10, e11, e12, e13 and e14 are


Figure 4.1: Model for effective Talent Management

Model fit Summary

The model fit Chi-square 2/df = 3.123 and it is significant at 1% level. Chi- square is

sensitive to larger sample size and power of the test. Therefore it is suggested to use the ratio of

Chi-square to degrees of freedom. Carmines&Mclver (1981) suggested that 2 to 1 or 3to 1 is

indicative of acceptable model between hypothetical model and sample data. Ratio

approximately equal to five or less is considered to be reasonable (Wheaton, Muthen, Alwin&

Summers 1977). The goodness of fit index (GFI) is .920 of the model, shows reasonably good

fit, and its adjusted goodness of fit (AGFI) is .906. The Root Mean Square Error of

Approximation (RMSEA) is .084, a smaller value indicates better model, and Expected Cross

Validation Index (ECVI) is .772, which are within the acceptable range indicating a better model



The principal factor that contributes to the success and sustainability of corporates

depends on managing, developing and retaining the critical resource known as Human Capital.

The headcount of manpower does not guarantee the quality of work. Developing economy

emphasizes that availability of right talent in an organisation is advantageous than any other

available material resources.

The study revealed that different companies are planning to implement different Talent

Management practices. Designing and implementing a Talent Management system depends on

dimensions against which all the organisations could be mapped implying that they are common

to all Talent Management systems.

Appealing talent is a key aspect and the corporation needs to market itself to acquire its

talent requirements. Companies need to differentiate themselves from their competitors to appeal

employees with the right skills and attitudes. They should take significant steps to enhance its

name recognition, brand attraction and should fill its talent pipeline by combining global

branding activities with efforts in local communities.

Organisations are acclaimed to develop a brand campaign that should last at least for two

years. This can be achieved through various efforts such as:

 Engaging with local governments and universities to advance education and computer


 Conducting global internship program appealing the attention of top talents from various

universities around the world.

 Capitalizing on employment brand and reputation through regular news releases and media

events at key recruitment locations.

 Celebrating profits/achievements with employees making them feel working in a great place.

 Making everyone a brand ambassador to attract talent by providing a fact sheet about what it

means to be part of your company, what your company stands for and more.

 Building the talent brand of the organization and ensuring the expected behavior from


These investments may not work immediately, but they lay a foundation in countries that see

hundreds of foreign companies visiting each year. But these efforts help the company attract

more potential candidates inside and outside of India and step into the worldwide talent pool.



Procure Talent: Employ a right mix of build and buy mechanism in talent management

practice. A buy strategy fetches people from outside who facilitate change and the build

strategy adds smart, enthusiastic and flexible people on their payroll by nurturing talent.


Prosperity: Promote a healthy workforce by identifying the key performers who make daily

miracles and incredible outputs. Ensure stimulation exercise in place to help employees

overcome work stress which can have adverse influence on quality of work.


Pleasant work environment: Create a collaborative and participative work ambience that

boosts, motivates and prevents the negative influence evolving due to cognitive conflicts. Job

sculpting is the best way to fit the job to the individual.


Participative management: Treat employees with dignity at all levels of the organization. Valuing employee’s views and ideas in decision-making process effectively improves employee’s self-esteem and makes them to be more participative.


Personal Association: Make employees realize the importance and value of their work in the

organization. The organization needs to create a rational connection with the individual

through the formal or instrumental rationality mode.


Passionate connection: The combination of rational and emotional relationship plays a

major role in employee commitment and performance. The level to which an employee

values, enjoys, and believes in his/her job, only to that extent he/she can be passionate about

the job. Passionate involvement plays a significant role in establishing connection and

commitment with the organization.


Planned action: Organizationsneed to havea system for regular review and re-evaluation of

the existing human resource competencies and talent profiles, and developing a plan for

enhancing employees’ skills based on the talent needs, gaps and demands, both internally and



(Influence), perspire (setting examples) and inspire their employees to instill trust and

confidence among them.


Proper mentoring and counseling: Through proper mentoring, employees can be made to

understand that quitting is not the solution and there are other ways to handle the situation

and get required solutions.Conductingregular and periodic surveys can help the organization

assess the satisfaction levels of employees. The regular surveys will further avoid the

employee turnover, increase morale of the employees and thus their productivity.


Professional membership: The most effective strategy for realizing employee potential relates to employees’ interpersonal connections and the importance of professional,

information-rich networks to high-potential employee development cannot be ignored. It is

observed that employees want to add value to society by involving in volunteering

programmes and/or in corporate social responsibility programmes.


1. Edward, G, Carmines., and John, P, McIver. (1981), “Analyzing models with unobserved

variable”, In Bohrnstedt G, W. and Borgatta, E. F (ed), Social Measurement: Sage, Beverly

Hills. pp. 65-115.

2. Wheaton, B., Muthen, B., Alwin, D. F., and Summers, G. F. (1977), “Assessing reliability

and stability in panel models”, In Heise, D.R. (ed.), Sociological Methodology, Joessey-Bas,

San Francisco. pp. 84-136.

3. Saxena, Parul. (2012), “Talent Management: A strategic perspective”, Anveshanam – A

national Journal of Management, Vol. No. 1(1), pp. 49-55.

4. HuubRuel, Tanya, Bondarouk., and Lena, Dresselhaus. (2013), “Global Talent Management

in multinational corporations and the role of social networks”, Master Thesis, University of


5. Kaur, R. (2013), “Empirical study of Talent Management program and its impact on the

employee’s retainment and performance in Indian supermarket Big Bazaar”, Human

Resource Management Research, Vol. No. 3(3), pp. 61-70.

6. James, Leena., and Mathew, Lissy. (2012), “Employees retention strategies: IT industry”,


Table 4.58
Table 4 58 . View in document p.4
Figure 4.1: Model for effective Talent Management
Figure 4 1 Model for effective Talent Management . View in document p.6