The Importance of Talent Management Framework of a Company

The large scale creation and availability of jobs with a similar profile and the burgeoning trend of switching companies have created a major problem of talent retention and management in the IT industry in India. Talent is defined as “Individuals who can make a difference to organizational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential”. In order to effectively promote and contain talent, several companies have created and adopted “Talent Management Frameworks”. As per Cappelli, “Talent Management is a process through which employers anticipate and meet their needs for human capital” (2008). The degree of employee engagement in the company is both a factor and an outcome of the Talent Management Framework of a company. Kahn defines personal engagement as "the harnessing of organization members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances" (1990).

We are conducting our research on the topic “Talent Management Framework for a company” as we want to find what strategies and tools the IT companies adopt in hiring its employees from a huge talent pool available. We want to analyze and compare the talent management tools of our organization with the methods adopted by the other competitor IT companies. We hope to find out how the companies focus on retention of their employees and how do they fulfil their needs for unique skills and talents in this ever changing business scenario. We plan to adopt a mixed qualitative as well as quantitative research methodology by floating questionnaires to the employees in our organization and other IT companies. We would then gather and analyse the results from the companies and compare them.

The lack of industry readiness in Indian IT industry and the availability of huge number of job seekers have created a huge gap which has resulted in increasing attrition rates and poaching. An effective talent management framework could help minimize this gap. So through this investigation we aim to study how effective Talent Management Framework of Indian IT companies are and we are taking Wipro as our principal organization under study. We plan to benchmark the tools to evaluate and plot talent pool and also benchmark and review the process. We aim to gather data from the employees of Wipro as well as from the employees of the other IT companies by designing and floating questionnaires in order to compare it with Wipro’s TMF, analyze and gain insights about the framework’s effectiveness.

Few conclusive studies have been conducted on factors that employees perceive as leading to higher engagement and efficient talent management in Indian IT sector. A research on Indian IT organization having headquarters Southern Indian city of Bangalore and they suggests that the current young generation aspires continual learning and progressive opportunities. So the study proposes that instead of concentrating on acquisition, organizations should focus on talent development and take necessary steps to nurture the employees’ competencies and skills. To do so, organization should adopt practices as mentoring, engaging employees with the help social media, knowledge sharing, and non-monetary incentives such as stock plans.

Another study focuses on mixed blessings of talent management. On one hand, the talent tag can increase an individual’s confidence, motivation and opportunities. On the other hand it exhibits continuous pressure on individuals .It can expose one individual to higher expectations and provide an opportunity to exhibit his/her ambition and drive to take responsibility towards organizational changes and to challenge the organization’s status quo. But this study also shows that this approach can be understood against the foreground of an organization’s corporate culture of commercialism, competitiveness, and clientelism.

A literature review on talent management identified and classified the critical success factors, challenges and barriers that the Automotive industry in Iran has to face into structural, behavioral, managerial and environmental categories. The industry identifies talent through competency model wherein competency is defined as “a combination of knowledge, personal attributes, interests, experiences and capabilities related to the job which enables their owners to play a role above the average level.’’ The participants identified talent acquisition, talent development and talent retention as fundamental constituents of talent management.

A study by the chief human resource officer at Maersk underlines and elaborates on the key principles from his experience of managing talent in various organizations. He differentiates talent management from people’s management saying that talent is not commonplace and generic, and business leaders rather than HR implement talent decisions. If administered prudently, HR is conceptually fascinating. HR’s bottom-line is making the right hire and then appropriating talent.

A literature review is done to examine the correlation between the type of Global talent management (GTM) instrument used and the employer attractiveness taking into account the culture (individualistic vs. collective). In highly individualistic homogenous societies, career oriented global talent management instruments lead to greatest increase in employer attractiveness levels. Conversely, a steep reduction is seen among less individualistic people making it imperative to correctly identify culture and accordingly select framework. Compensation based GTM shows a significant effect only in strongly individualistic societies.

There is a positive relationship between the HRM practices and employee-perceived talent inducements. The results show that the differential treatment of employees has a positive influence on employee motivation. Talent management is integral to an organization and it is built upon talent intelligence. This talent intelligence acts as a broken foundation. Most businesses are unaware of the fact that their efforts to produce better talent intelligence are ineffective.

Effective talent management system has helped BHEL to retain talent. BHEL focuses on training and development much more than any other company in India. At BHEL, people are hired keeping in balance youth and experience. BHEL is retaining employees through recognition. It gives away productivity award. An e-bulletin is in place to display the company’s star performers. At BHEL, talent retention is a business priority and not an HR intervention. To build competencies, sophisticated development processes are used.

Talent management is an important part of Human Capital Management (HCM). It involves hiring and managing the right people, developing strong policies and making strategic business decisions. Talent management proves effective in various ways. Recruiting right kind of people forms the foundation of the talent management process. It involves designing job descriptions, making use of applicant tracking systems and interviewing various candidates. Regular reviews are conducted to keep track of the employees’ performance and give them feedback on what they are doing well in the organization. Annual reviews provide companies with the information on the employees’ strengths and weaknesses. This is helpful in creating a long term career development plan for them. Talent management always takes place with company level commitment. HR team makes it possible by recognizing talent management as a priority. Talent management framework is integral to many organizations as it helps in managing talent effectively.

According to the study on employability and talent management, the process of identifying, developing, and managing organization’s key talent is important to satisfy the long-term business and strategic requirements of an organization and to improve short-term productivity. A complete understanding of how to adapt and develop reasonable development and training practices is required in creating a foundation for an organization’s success, as inappropriate decisions can have severe consequences and can result in considerable strategic and financial costs. Organizations must develop frameworks and practices to promote the talents in demand. This development requires analysis of the existing supply and demand of talent in an organization.