A Study to Identify the Challenges in Talent Management in Indian It Sector

INTRODUCTION

Human resources contain the most important element of the organization with the help of which the functioning of the organization goes smoothly. The effective placements of talented human resources frame the success of an organization; 'Talent' means the perfection knowledge and ability of a person to occupy a designated position in a specific area. In this regard talent management considered to be the management of talent in an organization. Talent management gained popularity in the 1990s to manage human resources in a proper and advance way. The function of talent management is handled by the HR departments of the organization to set up a transparent space for the upcoming success. These are the deferential impact of talent management practice on the performance of the organization. Talent management is a new stage of managing human resources. Talent management does not only mean to appoint deserving people at the right place but also to make them capable enough to support the strategic advancement and face the competition and challenges coming in their way. The talent management process includes the selection, retention, and development of highly skilled employees in an organization. Talent management also lay stress on the shortage of talent and skills of employees which may occur in the future. In the present situation, the main aim of talent management is to build such an environment that can support the skills of the employees to face the competition. Talent management identifies the qualities and capabilities of an employee and assigns the right task to him as per his expertise. Everyone has a particular skill, which makes him fit for a particular task, assigning him a different job will affect his performance. The job of the HR department is to place the person with the right qualification and as per the interest of the person at a suitable place. Talent management takes all the necessary actions to motivate the employees. Arrangements for the improvements of exiting employees are made in all the organizations. So, it becomes essential to study the talent management practices which are practiced by the companies. A proper analysis is required in this regards the analysis of the practices of talent management which are adopted by IT companies reveals the positive and negative aspects of the existing system. The IT industry is a new area and may get growth in the future. IT industry has shown tremendous growth in the Indian market from the year 2010, which was calculated as 24 billion domestic utilization while 50 billion as export income, further the growth of IT industry is shown as an improvement of 32 billion for domestic while 69 billion global income in the year 2012. The same way growths from 37 billion graduates to 44 million were found to be there from 2010 to 2012 in the talent pool case. This data signifies the equation of demand and supply assessment as well as quantitative management program in Delhi/NCR region referencing the small as well as medium companies of IT sector.

Thunnissen and Gallardo (2019) addressed the key aspects and challenges in the research prospects pertaining talent management. The study revealed that incoherent and diverse community stifled with the new comers; lack of transparency in defining the research methodology in context to the talent management; carelessness in relocating and reshaping the core aspects related to the talent management; inappropriate research designs; inability to trace the respondents of the research; less academic interest to define the core aspects and inadequately embedded context relating the talent management research as the Shamim et al., (2019) propounded that the big data decision-making abilities of the big firms plays an imperative role in enhancing the efficacy and effectiveness of its decisions. The instable culture of the organization has been regarded as the biggest challenge for the big data management that influence the strategical decisions with regard to the employee development and organizational stability. Dhiman (2018) conducted a case study of 50 employees working at INFOSYS, Chandigarh to identify the various gauntlets and strengths in context to the talent management programs. The organization introduced the program to enhance the employer-employee relationships; create the working ambience for the employees and enable them to overcome the cumbersome activities. The study highlighted the lack of job security on the part of employees; whereas inability on the part of domestic employers to retain talented employees, tough competitive environment at global level, complexity of the global operations; lack of compliance with the technological transformations; poor practices at the organizational level; improper consortium with the cultural aspects and cost of failure born in the dynamic environment. Tamilciu and Dugan (2017) have discussed various gauntlets and opportunities in context to the talent management due to the transformations caused by the economic crisis. The study highlighted the lack of competency on the part of managers to ascertain the talent of the employees and retain them for long in the organizations; tough competitive environment due to mushrooming Multinational Companies culture; corporate downsizing; greater off shoring, more part-time and less full time work load; inability to deliver the operational efficacies as well as the changes in the employment models, which create nuisances for the development of flair among the employees. Tafti et al., (2017) conducted a study to identify the various gauntlets hindrances and success factors pertaining to the talent management. The study has segmented the challenges and environmental success barriers. Makarius and Srinivasan (2017) addressed that the employers encountered a major problem these days in terms of uncertainty in the demand as well as supply of the talented employees in the organization. The study revealed that lack of strategic planning, inability to identify the problems and finding a suitable mechanism to deal with the major challenge to facilitate the collaborative arrangement of the employees with flair at regular intervals of time. Moreover, the lack of initiative on the part of managers and improper utilization of resources to get the fruitful outcomes are the other challenges that act as hindrance in the flawless application of talent management strategies. Hejase et al., (2016) conducted a study to explore the various challenges related to the execution of the talent management practices among the large esteem organizations. The constantly changing and demanding environment poses a big challenge for the employers to identify and concoct the relevant flair. The study was undertaken with the senior managers and the professionals from the 35 Lebanese companies for the period of two months. The study depicted the lack of effective execution of integrated talented management practices in the organizations. Moreover, the study revealed the inappropriate use of human capital in accordance with the business strategies, inconsistency in the implementation of the programs, absence of answerability, accountability and competencies on the part of Human Resource department to yield effective outcomes. The study suggested that the organizations must concoct the talent management programs by aligning the talent management strategies with the business policies to benefit the whole organization as well as it employees. Aguinis et al., (2012) drew the attention towards the major challenge faced by the organizations in the present era, which are the lack of adequate talented employees and the inability of organization to retain them. Moreover, losing the top performers, seeking the attention of workers, inattentive attitude on the part of workers and insufficiently valued human capital are also other problems being faced by employers in the organizations. The study also suggested that there is dire need to create and maintain the adequate development plans for the individuals; making that the work is more challenging; making provision of the crystal clear opportunities of talent; execute a fair system of rewards and non-economic benefits and keeping a close association with the employees in order to get the feedback from them in order to make essential changes in the various programs to improve their abilities and talent. Nilsson and Ellstrom (2012) in their research highlighted the problems and challenges in context to the talent management practices. The major challenge for the human resource development strategies is the transitional phase in the organization from task-

the dynamic bearers, which possess the requirement to update their skills and abilities at regular intervals of time. Schuler et al., (2011) study emphasized that there is dire need to execute the effective strategies and practices for managing in the dynamic economic environment as well as operate precisely in the competitive environment on quotidian basis. Matouschek at al. (2011) revealed that the major challenge for the smooth execution of talent management initiatives is the asymmetric information at the ends of organizations as well as employees. Lack of information about the employees, their talents and potential, their availability and skill levels as well as inability on the part of employers to ascertain the labour shortage and skill deficiency among them as the big challenges being faced by the organizations at the time of forming and implementing the stress management as well as talent management practices. Ward (2011) has defined that the main criterion behind the human resource management strategies is the shortage of skilled manpower in the present competitive environment. The major gauntlet faced by the human resource managers is the defining the contours of the talent management programs, proper execution to get most benediction from them and readjusting as well as remodelling the practices to support the perceptions of the employers as well as employees. Mellahi and Collings (2010) conducted a study to examine the various barriers related to the advancement of flair and potential among the employees. The lack of perspective related to global diversification, social as well as geographical distances and project assignment experiences among the team members also act as the core gauntlets act as the various hindrances that put halt over the execution of talent management practices. Weitzel et al., (2010) highlighted the need to recognize the difference between the less creative and more creative individuals in the organization for the better functioning of the organization. There is the higher impact of negative externalities and altruism under risk on the entrepreneurial talent in the current epoch. The study highlighted the inability of the employer to make distinction between the productive and destructive activities among their employees. The negative association between these gender specific and major specific talent management programs; lack of consistency; low level of self-interests and inadequate knowledge about the transformation in the environment put the major hurdles before the formation of strategies by the employers. Tarique and Schuler (2010) highlighted that the present epoch demands the fairly talents and extremely swift employees having suitable knowledge to render their responsibilities at the work place. The major challenge the multinational companies have to face is to be global, systematic and dynamic in order to manage their human capital in order to muster and gain the Beechler and Woodward (2009) in their study ascertained the various challenges before the execution of talent management practices. Requisition of talent is the need of the hour due to the inception of the evolutionary paradigm. The recent paradigm demands for the innovativeness, cooperative organizational resources and a more strategic approach to provide solutions to ever changing expectations and demands of the work place as well as the business environment. Many strategies are undertaken by the employers to make the employees to meet the ever-changing demands of the changing environment. Mellahi and Wilkinson (2004) have addressed the highly talented employees as the bedrock of every organizational setup in the challenging work environment. It is corroborated that the failures of the organization are the result of lack of adequate performance on the part of its employees. The study revealed that lack of resources with the headquarter level managers, lack of proper analysis, inappropriate information and lack of conscious efforts act as the numerous challenges that jeopardize their ability to carry out the talent management initiatives in a well manner. Cappelli (2003) emphasized on switching towards the outside hiring of the new employees at regular intervals of time in order to attain the higher turnover in the organization in United States. Moreover, the research also highlighted the proliferating challenges faced by the employers in terms of pressure from global environment; demographic shifts; changes in the nature of employer-employee associations; inadequate abilities among the human resources to meet the changes in the environment and trouble to retain the employees in the organization. Pfeffer (2001) highlighted the problem in managing the talent and ability of employees who are at distant places working to complete the international assignments of the particular organization. The demand for the talented employees has been acknowledged throughout the world for durability, longevity and sustainability of the business enterprises.

Only corporate sector acknowledges the enhancement of employee talent but it remains segment specific in terms of the areas, which are specifically under the charge of the private indices. Moreover, a scientific, close and comprehensive examination of the capabilities needed to attain the higher level of performance is substantial. Hence, there is dire need to channelize the various talent management strategies to meet the demands of the present business environment in the highly challenging global arena. The present study would

To identify the challenges of talent management both for the organization as well as for employees with respect to IT sector.

The current study aims to measure the challenges being faced by the IT companies related to talent management. For this purpose, 60 managers of HR department who were working in the top five Indian IT companies, namely; TCS, Infosys, Tech Mahindra, HCL, and Wipro, were approached to collect the data using questionnaire developed by the researcher specifically for the study. The instrument was gone through the reliability and validity testing phase before finalization and then served to the actual respondents. Different statistical tools used to achieve the objectives of the study were mainly; factor analysis, one-way ANOVA, percentage, frequency, and graphical representation along with the descriptive analysis.

NULL HYPOTHESIS:

There is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

This section contains the factors or challenges contributing to the talent management in IT companies using factor analysis method.

The initial testing of data using KMO (KMO = 0.714) and Bartlettřs (Chi = 2679.821, df = 435, p = 0.00) method, showed that variables are sufficient and data is large enough to run the factor analysis. Further, data is normal and variance is there in the responses of the respondents and it can be adequately categorized into heterogenous factors. Communalities are the values which describes the variation caused by all the factors in the particular statement of the questionnaire or the variable. Here the initial value of the communality for each of the statement was taken one, and later on the extracted value or the withdrawal value of communality is given in table 4.124.

Based on the variance results, and the eigen values total six statements or variables were having value more than one for eigen value, and hence total six factors or components were extracted using the EFA method. These six heterogenous factors are responsible for causing 88 percent variance in the effectiveness of content marketing. First component caused 18 percent variance, while second, third and fourth factors caused 15, 15, and 14 percent variance respectively. The least variance was caused by last factor i.e. 11 percent.

extracted factors as per their loadings. The first challenge named as risk factors which mainly includes the statements related to the risk due to cultural unfitness, job unfitness, risk of spoiled relations with customers etc. Second challenge named as Ŗcost factorsŗ which is associated to the cost incurred due to induction training, cost for development programs, cost of new hiring etc. Third factor named as ŖCulture and working environmentŗ which is related to the creation of culture which can attract the employees, which can value employeesř work, make employees stay with company for long time. Fourth factor named as ŖCompetition and external factorsŗ related to the competitors HR policies, and attracting competitorsř employees. Fifth factor named ŖEmployeesř related factorŗ which includes the challenges related to employees working in the company, while last factor named as Ŗindividual related factorsŗ includes the statement related to an individual. Challenges related to the risk factors were perceived to higher than other challenges which shows that IT companies relatively perceiving risk associated to the unfitness of culture, job unfitness, restricted or limited data sharing and the spoiled relations with customers. Employees related challenges were perceived as low or not much challenges when compared to other challenges which are mainly; Locating the kind of qualified professionals needed, identifying gaps in current employee and candidate competency levels, assessing candidatesř skills earlier in the hiring process and Creating policies that encourage career growth and development opportunities.

Company wise comparison of the challenges faced by the employers related to the talent management has been done using Anova, and results with their shown in this section. Null Hypothesis: There is no significant difference in the challenges faced by the employers of

Highest average value for Ŗrisk factorsŗ was 4.80 of TCS and lowest value was 2.72 of Infosys. Employers of TCS company have perceived the ŖRisk factorsŗ high in comparison to other companies, as a challenge for talent management in IT companies. Risk of job unfitness, risk of cultural unfitness etc. while Infosys company have not perceived the risk factors as a challenge for talent management. Further, the value of the standard deviation signified that there is a huge variation in the responses of the employers towards the Ŗrisk factorsŗ as a challenge in talent management.

Results of Anova (f = 10.228, p =0.000) clearly depicted that the challenges faced by the five IT companies are significantly different. Employers of selected IT companies have perceived ŖRisk factorsŗ differently as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to risk factors are not same in intensity and hypothesis get rejected which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

Ŗcost factorsŗ high in comparison to other companies, as a challenge for talent management in IT companies. Cost of searching, attracting and retaining the talented employees, cost of training, cost of development of the employees etc. While TCS company have not perceived the cost factors as a challenge for talent management. Further, the value of the standard deviation signified that there is a huge variation in the responses of the employers towards the ŖCost factorsŗ as a challenge in talent management.

Results of Anova (f = 8.292, p =0.000) clearly depicted that the challenges faced by the five IT companies are significantly different. Employers of selected IT companies have perceived ŖCost factorsŗ differently as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to Cost factors are not same in intensity and hypothesis get rejected which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

Highest average value for ŖCulture and working environmentŗ was 3.26 of Wipro and lowest value was 2.68 of Infosys. Employers of Wipro company have perceived the ŖCulture and working environmentŗ high in comparison to other companies, as a challenge for talent management in IT companies. Culture and working environment include creating a culture that makes employees want to stay with the organization, creating an environment where employees are excited to come to work each day and Creating a culture that values employeesř work etc. While Infosys company have not perceived the Culture and working environment as a challenge for talent management. Further, the

challenge in talent management.

Results of Anova (f = 0.433, p =0.784) clearly depicted that the challenges faced by the five IT companies are significantly indifferent. Employers of selected IT companies have perceived ŖCulture and working environmentŗ equally as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to Culture and working environment are same in intensity and hypothesis get accepted which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

Highest average value for ŖCompetitors and external factorsŗ was 3.16 of TCS and lowest value was 2.96 of Infosys. Employers of TCS company have perceived the ŖCompetitors and external factorsŗ high in comparison to other companies, as a challenge for talent management in IT companies. Competitors and external factors include pressure to maintain the standard of competitive salary structure, and Word of mouth marketing by existing employees etc. While Infosys company have not perceived the Competitors and external factors as a challenge for talent management. Further, the value of the standard deviation signified that there is a huge variation in the responses of the employers towards the ŖCompetitors and external factorsŗ as a challenge in talent management.

Results of Anova (f = 0.063, p =0.992) clearly depicted that the challenges faced by the five IT companies are significantly indifferent. Employers of selected IT companies have perceived ŖCompetitors and external factorsŗ equally, as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to Competitors and external factors are same in intensity and hypothesis get accepted which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

Highest average value for ŖEmployees related factorsŗ was 2.95 of TCS and lowest value was 1.60 of Infosys. Employers of TCS company have perceived the ŖEmployees related factorsŗ high in comparison to other companies, as a challenge for talent management in IT companies. Employees related factors include Assessing candidatesř skills earlier in the hiring process, and Creating policies that encourage career growth and development opportunities etc. While Infosys company have not perceived the Employees related factors as a challenge for talent management. Further, the value of the standard deviation signified that there is a huge variation in the responses of the employers towards the ŖEmployees related factorsŗ as a challenge in talent management.

Results of Anova (f = 3.509, p =0.013) clearly depicted that the challenges faced by the five IT companies are significantly different. Employers of selected IT companies have perceived ŖEmployees related factorsŗ differently as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to Employees related factors are not same in intensity and hypothesis get rejected which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

Highest average value for ŖIndividual related factorsŗ was 3.63 of TCS and lowest value was 2.67 of Infosys. Employers of TCS company have perceived the ŖIndividual related factorsŗ high in comparison to other companies, as a challenge for talent management in IT companies. Individual related factors include Lack of supervision or Leadership quality, and Internal political issues etc. While Infosys company have not perceived the Individual related factors as a challenge for talent management. Further, the value of the standard deviation signified that there is a huge variation in the responses of the employers towards the ŖIndividual related factorsŗ as a challenge in talent management.

selected IT companies have perceived ŖIndividual related factorsŗ differently as a challenge to the talent management. Hence, company wise the challenges occurred to talent management due to Individual related factors are not same in intensity and hypothesis get rejected which states that there is no significant difference in the challenges faced by the employers of selected IT companies related to talent management.

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