A Study to Compare the Talent Management Practices in Indian It Sector

INTRODUCTION

There is a large contribution to the IT industry in the development of the economy of India. The main reason for the growth of the IT industry in India is the use of swiftly growing social and economic facilities. The IT industry can hold an impartial contest between employer and employee. The major aspect of IT organizations is human capital. The main focus of the IT industry is to acquire and place the right talent pool, so they search the skilled talent, develop them and retain them in the organization. The toughest task in the IT industry is talent management. Talent management deals with appointing the right person in the right position and the targets and expectations of the organizations are made very clear to them so that they can perform accordingly. The success story of the Indian information sector is very impressive; the image of this industry is transformed from a slow bureaucratic economy to innovative entrepreneurs. The evolution of the IT industry began in 1974 when the manufacturer of mainframe "Burroughs" enquired from one of the Indian sales agents from Tata Consultancy services about exporting the programmers who could install system software for one of the US clients. The beginning phase of the India IT sector did not face favorable situations. But in 1991 after the economic reforms, the IT industry of India started providing services throughout the world. Recently, the project ―Digital India‖ which is initiated by our worthy Prime Minister Mr. Narender Modi is basically to safeguard the position of IT industry inside and outside India. The IT sector has contributed a remarkable share in Indian GDP, the result of which has shown the generation of a large number of employment opportunities. In addition to that, the IT sector of India provides the largest export services of information technology as this sector has a rich talent pool of highly skilled and English-speaking people. According to a report presented by India brand equity foundation the talent pool of the IT sector of India has well-qualified talented people. The growth of this talent pool in India has shown a remarkable record from 3.7 million in the year 2010 to 5.8 million in 2015. The IT sector of India is on way of growth and is growing smoothly with a rapid growth rate. Although the IT industry is growing at a very fast rate still it is facing a shortage of skilled and talented workforce to grab the opportunities available in the market. According to a literature review, this is the biggest shortcoming of the Indian IT sector. To overcome this problem, it becomes necessary that it is not only sufficient to attract the talent pool but, it is also required to retain them in the organization for a long time period. The major problem which is being faced by the IT companies in India is the attrition rate, which is increasing day by day. The majority of the talent pool belongs to the employees of the young generation. Whereas at the top level, the attrition rate is static though the employees have so many reasons to leave the organization as mentioned in an article published in

new things. The main focus of IT companies is to spot the talented employees who can execute the demands of the clients, but the problem which a company has to force is the retention of these employees.

Salau et al., (2018) conducted a study to examine the various talent management practices and their impact on the academic staff. The sample size of the study was 313 respondents who were the academic staff members of technology-driven private University. The study highlighted the job security, loan facilities, amicable work environment, job rotation, succession planning, coaching, outsourcing, word-of-mouth, in-house development initiatives, job enrichment, regular promotional prospects, housing benefits, career growth, performance appraisal, head hunter, employee referral, internal as well as external acceptance, employees‘ branding and the online business groups as the major talent development strategies initiated by the University to groom and boost the performance of their employees. Moreover, the study also elucidated the positive impact of these practices on the employee performance and productivity in the organization. Human resource managers must formulate effective strategies to boost their employees in a well manner. Kichuk (2017) elucidated the experiences of the employees with regard to the numerous talent management practices introduced by their respective organizations. The sample size of the study was 15 respondents including 7 managers as well as the 8 working employees in a Malaysian chain of hotels. The findings of the study contended that precise reward and remuneration system, better employer-employee relationships, probability of promotion, regular monetary and non-monetary benefits as the most significant talent management practices being preferred by the individual employees in the organization. Moreover, it was also found in the study that the sound employer-employee association was highly preferred by majority of the respondents to retain them with the organization and provide them with the feel of satisfaction in order to withstand the highly challenging environment. Hence, it was suggested that the employers should formulate suitable talent management practices to groom the skills and potentials of the employees. Mohapatra (2017) elucidated various talent management initiatives in the Indian business service organizations. The management of flair, potential and talent among the employees has been regarded as the constant commitment towards hiring; assorting; deploying and retaining the efficient and effective employees within the particular organization. The corporate sector strives at getting the best and fittest individuals as their employees with in the particular organization. The study was highlighted that hiring the best employees; onboarding them with the orientation process; providing the employees with the adequate remuneration and non-monetary benefits like housing and loan facilities, job enrichment and job recognition as the best strategies to greet their current requirements and enhance their career growth prospects in the near future. Akar and Sharma (2017) illuminated that talent management practices have been introduced and employed by numerous organizations pertaining to several domains in India. Banking sector is one of the recognized sectors as it provides numerous financial services to the economy. The research stated that attracting the best talent for the concerned organization, hiring the individuals to the organizations on the basis of requirements of business environment, enabling the employees grooming themselves by adequate training and development programs to meet the challenges in the business environment and retaining the employees by way of appropriate award system, remuneration benefits as well as the non-economic benefits. Therefore, it was suggested that the government must actively participate by providing the enabling environment and infrastructural facilities to the employers by understanding and considering the workplace requirement as well as framing the appropriate mechanisms for preparing the employees to prove to the mark. Bolander et al., (2017) acknowledged the management of employee talent is the foremost requisite to enable the employees to sustain in the highly competitive and dynamic environment. Most of the organizations have adopted best talent management practices as per their suitable requirements in order to get the maximum benefits out of them. The study was undertaken with the 56 respondents who were the employees working as the organizational representatives in Sweden. The study highlighted that identification of talent and talent retention are the foundations to keep the best talent with the concerned organizations to yield the maximum benefits in the highly competitive business environment. The study highlighted that scientific training of the employees at regular intervals of time, career planning, management of employee retention with the organization as the effective talent management practices being implemented by the numerous organizations as per their changing requirements. Singh and Pooja (2017) conducted a study to examine the talent management strategies in the private insurance companies and financial institutions. The study was conducted with the 102 respondents who were the Human Resource managers working with the insurance companies and financial institutions in Delhi and Haryana in India. The study supported that training of the employees in their regional local language at of the organizations in the present contemporary environment. The study also revealed that the employees were very well sentient about the career upliftment and advancement, as they have been provided with the adequate access to the various amenities to rejuvenate and refresh themselves. Therefore, it was emphasized that the Human Resource managers must formulate the employee development programs by keeping the goals of the organizations and the needs of the employees into the consideration. Kaewsaeng-on (2016) ascertained the best talent management practices in the business environment in the contemporary era. The study was undertaken with the 38 respondents who were the employees in the hospitality industry in Thailand. It was found in the study that adequate recruitment of the talented employees and development of potential among them through scientific training and development programs have been regarded as the best talent management practices in the hospitality industry. The study also revealed that major concept behind such human resource development practices is the retention of best talent, which is necessary for the growth and development of the organization as well as the employees. Moreover, the study also depicted that forming a culture of collective society and making sound relationships between employers as well as employees act as the foundational aspect of the building sound talent among the various employees. Dhanlakshmi et al. (2016) conducted a study to investigate the talent management strategies, which are undertaken the employees in the business organizations. Talent is the ability of the employee to make their survival possible in the challenging environment. The study was undertaken with the 500 respondents who were the employees working in the IT domain in Chennai, India. The research highlighted that better communication among the employees, sound employer-employee association, suitable cooperative ties as well as engagement of the employees in the significant decisions of the organization act as the best practices to enable the employees develop their best talent and abilities to withstand the gauntlets in the contemporary environment. However, the research also illuminated the insignificant effect of the economic benefits such as compensation, reward and bonus as a way to enhance their skills and work abilities of the employees in the organization.

To establish effective talent management strategies to avert increasing staff turnover rates of IT companies.

management strategies of the IT companies. 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; one-way ANOVA, percentage, and frequency, along with the descriptive analysis.

NULL HYPOTHESIS:

There is no significant difference in the perceived effectiveness of the talent management strategies by the employers of selected IT companies.

Comparative analysis using Anova and Descriptive method has been conducted and shown in the tabular forms along with the detailed interpretation thereof in this section.

Succession planning: The average value of the Infosys was 4.40, while the least average value was 1.30, which indicates that the Infosys Company have perceived high importance of the ―Succession Planning‖ as a strategy for talent management while Tech Mahindra employers have not perceived the ―Succession planning‖ as a important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 25.367, p =0.000), indicates a significant difference in the perceived effectiveness of ―Succession planning‖ as a talent management strategy. Succession planning is vital to prepare and develop an employee for the future higher post in same company. Hence, it is an important strategy for the talent management. Result oriented Reward System: The average value of the Infosys was 4.10, while the least average value was 1.80, which indicates that the Infosys company have perceived high importance of the ―Result oriented reward system‖ as a strategy for talent management while TCS employers have not perceived the ―Result oriented reward system‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 11.049, p =0.000), indicates a significant difference in the perceived effectiveness of ―Result oriented reward system‖ as a talent management strategy. Result oriented reward system is vital to identify and retain the best and hardworking employees in the company. Hence, it is an important strategy for the talent management. Leadership Quality: The average value of the Infosys was 4.00, while the least average value was 1.80, which indicates that the Infosys company have perceived high importance of the ―Leadership Quality‖ as a strategy for talent management while TCS employers have not perceived the ―Leadership Quality‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 14.784, p =0.000), indicates a significant difference in the perceived effectiveness of ―Leadership Quality‖ as a talent management strategy. Upgrading the leadership quality in a Effective Appraisal System: The average value of the Infosys was 3.80, while the least average value was 1.80, which indicates that the Infosys company have perceived high importance of the ―Effective Appraisal System‖ as a strategy for talent management while TCS employers have not perceived the ―Effective Appraisal System‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 11.699, p =0.000), indicates that different companies have perceived effectiveness level of ―Effective Appraisal System‖ as a talent management strategy, differently. Transparent, unbiased and timeliness of performance appraisal can ensure the retention and management of talent in the company effectively. Talent recognition and Reward: The average value of the Infosys was 4.10, while the least average value was 1.40, which indicates that the Infosys company have perceived high importance of the ―Talent recognition and reward‖ as a strategy for talent management while Tech Mahindra employers have not perceived the ―Talent recognition and reward‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 22.076, p =0.000), indicates that different companies have perceived effectiveness level of ―Talent recognition and reward‖ as a talent management strategy, differently. Recognition of the talented employees based on their performance or the contribution in the growth of the company, and then rewarding the talented employees actually reflects the best talent management strategies of the company. Learning opportunities to employees: The average value of the TCS was 3.20, while the least average value was 1.80, which indicates that the TCS company have perceived high importance of the ―Learning opportunities‖ as a strategy for talent management while Infosys employers have not perceived the ―Learning opportunities‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 4.527, p =0.03), indicates that different companies have perceived effectiveness level of ―Learning opportunities‖ as a talent management strategy, differently. Learning opportunities in the company, raise a feeling among employees that company actually thinking about their development and higher learning opportunities increases their future worth. Hence, it is an important talent management strategy. which indicates that the TCS company have perceived high importance of the ―Matching competency of the employees with the job requirements‖ as a strategy for talent management while Wipro employers have not perceived the ―Matching competency of the employees with the job requirements‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 2.901, p =0.03), indicates that different companies have perceived effectiveness level of ―Matching competency of the employees with the job requirements‖ as a talent management strategy, differently. Job or task allotted to the employees as per their competencies or skills can help in being more productive and ensures the optimum utilization of intellectual resources by the company. When the skills or competencies matches with the job of an individual, it makes them more efficient and satisfied with their job, which helps in talent management. Effective Recruitment and Selection: The average value of the TCS was 3.13, while the least average value was 2.06, which indicates that the TCS company have perceived high importance of the ―Effective Recruitment and Selection‖ as a strategy for talent management while Wipro employers have not perceived the ―Effective Recruitment and Selection‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 2.750, p =0.037), indicates that different companies have perceived effectiveness level of ―Effective Recruitment and Selection‖ as a talent management strategy, differently. Recruitment and selection, if done in an effective way, can be proved as best strategies for the talent management. Attractive incentive plans: The average value of the TCS was 3.53, while the least average value was 2.30, which indicates that the TCS company have perceived high importance of the ―Attractive incentive plans‖ as a strategy for talent management while Infosys employers have not perceived the ―Attractive incentive plans‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 3.730, p =0.009), indicates that different companies have perceived effectiveness level of ―Attractive incentive plans‖ as a talent management strategy, differently. Attractive incentive plans can help in attracting and retaining the employees for long term in the company, and reflects an effective talent management in the company. Career growth and development practices: The average value of the TCS was 3.53, while the least average value was 2.10, which indicates that the TCS company have perceived high importance of the ―Career growth and development practices‖ as a strategy for talent management while Infosys applied to check for the differences in the average value shown (f-value = 3.792, p =0.009), indicates that different companies have perceived effectiveness level of ―Career growth and development practices‖ as a talent management strategy, differently. Career growth and development practices can help in attracting and retaining the employees for long term in the company, and reflects an effective talent management in the company. Training and development practices: The average value of the TCS was 3.40, while the least average value was 2.00, which indicates that the TCS company have perceived high importance of the ―Training and development practices‖ as a strategy for talent management while Infosys employers have not perceived the ―Training and development practices‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 3.620, p =0.011), indicates that different companies have perceived effectiveness level of ―Training and development practices‖ as a talent management strategy, differently. Training and development practices can help in the development of the existing employees which can prove worthy for the company in long term and retaining the employees for long term in the company. It reflects an effective talent management in the company. Competitive Compensation system: The average value of the TCS was 3.13, while the least average value was 2.46, which indicates that the TCS company have perceived high importance of the ―Competitive Compensation system‖ as a strategy for talent management while Wipro employers have not perceived the ―Competitive Compensation system‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 0.780, p = 0.543), indicates that different companies have perceived an equal level of effectiveness of ―Competitive Compensation system‖ as a talent management strategy. Competitive Compensation system can help in creation of pool of best employees and attracting the best employees from competitors‘ company as well. It reflects an effective talent management in the company. Conducting Exit interviews: The average value of the TCS was 3.50, while the least average value was 2.86, which indicates that the TCS company have perceived high importance of the ―Conducting exit interviews‖ as a strategy for talent management while Wipro employers have not perceived the ―Conducting exit interviews‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value =

strategy. Conducting exit interviews can help in improvement of various aspects from the point of view employees who exit the company, and it can help the company for retaining the employees for long term. Conducting Regular Employee Surveys: The average value of the TCS was 3.33, while the least average value was 2.66, which indicates that the TCS company have perceived high importance of the ―Conducting regular employee surveys‖ as a strategy for talent management while Wipro employers have not perceived the ―Conducting regular employee surveys‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 0.805, p = 0.527), indicates that different companies have perceived an equal level of effectiveness of ―Conducting regular employee surveys‖ as a talent management strategy. Conducting regular employee surveys can help in knowing the aspects on which company are not doing well, or as per the expectations of the employees. It‘s a strategy for increase in customer satisfaction and it can help the company for retaining the employees for long term. Proactively attempt to recruit employees from competitors: The average value of the HCL was 3.40, while the least average value was 2.73, which indicates that the HCL company have perceived high importance of the ―Recruiting competitors‘ employees‖ as a strategy for talent management while Wipro employers have not perceived the ―Recruiting competitors‘ employees‖ as an important strategy for talent management. Further, the results of test applied to check for the differences in the average value shown (f-value = 0.621, p = 0.649), indicates that different companies have perceived an equal level of effectiveness of ―Recruiting competitors‘ employees‖ as a talent management strategy. Recruiting competitors‘ employees can help in having best talent pool for the company.

Exit interviews, hiring competitors‘ employees and regular employees survey were considered to be best effective strategies for the talent management while rest of the strategies were perceived as moderately effective. Further, the perceptions of the employers towards the effectiveness of the talent management strategies were different except for the few strategies namely; competitive salary structure, exit interviews, competitors‘ employees and employees survey. Management Strategies in Banking Sector of India‖, International Journal of Technical Research and Sciences, Vol. 2, Issue XII, January 2017, pp. 783-789. Bolander, P., Andreas Werr, Kajsa Asplund (2017), ―The Practice of Talent Management: A Framework and Typology‖, Personal Review, Vol. 46, Issue 8, 2017, pp. 1523-1551. Dhanlakshmi, R., Kubendran, Balnaga and Vijayakumar, A. (2016), ―A Study on talent Management Practices and Its Imapct on Employee Retention in IT Industry in Chennai District‖, Asian Journal of Research in Social Sciences and Humanities, vol. 6, Issue 2, 2016, pp. 34-50. Kaewasaeng-on, Rudsada (2016), ―Talent Management: A Critical Investigation in the Thai Hospitality Industry‖, Thesis submitted in Salford Business School, UK, February 2016, pp. 1-398. Kaewsaeng-on, R., Kevin J. Kane and Sinini Vundla (2015), ―Talent: It‘s Application to the Thai Hospitality Industry‖, International Journal of Innovation, Management and Technology, Vol. 6, Issue 6, December 2015, pp. 1-7. Kichuk, A. (2017), ―Understanding Talent Management in the Hotel Sector: Employees‘ Narratives of Personal Career Development‖, Thesis submitted in Doctor of Philosophy, January 2017, pp. 1-325. Mohapatra, Mamta (2017), ―Talent Management Practices in a Business Service Organization‖, International Management Institute, 2017, also available at http://researchgate .net/publication/319242871. Salau, Odunayo, Adewale Osibanjo, Anthonia Adenji, Olumuyiwa Oludayo, Hezekiah Falola, E. Igbinoba and Opeyemi Ogueyungbo (2018), ―Data Regarding Talent Management Practices and Innovation Performance of Academic Staff in a Technology-Driven Private University‖, Journal Data in Brief, vol. 19, pp. 1040-1045.

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