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 : firstname.lastname@example.org , email@example.com
A MODEL FOR EFFECTIVE TALENT MANAGEMENT PRACTICE IN
INDIAN INFORMATION TECHNOLOGY COMPANIES
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.
METHODOLOGY OF THE STUDY
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.
PREDICTOR VARIABLES OF EFFECTIVE TALENT MANAGEMENT
Engagement & Retention Drivers, Best practices in Talent Management and Employees’
commitment and credibility are taken as independent variables (shown in the table 4.58)
Regression analysis for effective Talent Management
Predictor Variables R2
Beta F-statistics t- value
Track and develop
Recognize and reward
Engagement & Retention Drivers
Best practices in Talent Management
Employees commitment and credibility
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
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.
MODEL FOR EFFECTIVE TALENT MANAGEMENT IN INDIAN INFORMATION
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.
TEN ESSENTIAL P’S FOR A SUCCESSFUL TALENT MANAGEMENT SYSTEM
1.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.
2.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.
3.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.
4.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.
5.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.
6.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.
7.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.
9.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.
10.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.
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