Talent Management as an
Employee Retention Strategy in IT Sector
Dr. Akhila Udupa
Associate Professor in Sheshadripuram Institute of Management Studies
January-2016; Money Wise ;
‘Talent’ in an organization refers to the current employees and their valuable Knowledge, skills and competencies. Talent management (or succession management) is the ongoing process of analyzing, developing and effectively utilizing talent to meet Business needs. It involves a specific process that compares current talent in a department to the strategic business needs of that department. The implementation of a talent management process that is transparent and equitable is expected to create an environment for people to develop their skills in preparation for a range of future possibilities thereby preparing the workplace for changing roles.
Talent management has a number of benefits to offer such as employee retention, aligning to strategic goals in order to identify the future leadership of the organization, increased productivity, culture of excellence and much more. Hence this study is taken up to find out the employee retention process in IT industries. Talent Management can be used as a tool for employee retention and employee motivation. There is always scope for improvement in Talent Management process and accuracy and quality of work of employees can be measured and improved by talent management procedures.
Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization – government, business, education, health, recreation, or social action. Getting and keeping good people is critical to the success of every organization, whether profit or nonprofit, public or private.
Those organizations that are able to acquire, develop, stimulate, and keep outstanding workers will be both effective (able to achieve their goals) and efficient (expending the least amount of resources necessary). Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Survival of an organization requires competent managers and workers coordinating their efforts towards an ultimate goal. While successful coordination cannot guarantee success, organizations that are unsuccessful in getting such coordination from managers and workers will ultimately fail. Talent management implies recognizing a person’s inherent skills, traits, personality and offering him a matching job. Every person has a unique talent that suits a particular job profile and any other position will cause discomfort. It is the job of the Management, particularly the HR Department, to place candidates with prudence and caution.
A wrong fit will result in further hiring, re-training and other wasteful activities. Talent Management is beneficial to both the organization and the employees. The organization benefits from: Increased productivity and capability; a better linkage between individuals’ efforts and business goals; commitment of valued employees; reduced turnover; increased bench strength and a better fit between people’s jobs and skills. Employees benefit from: Higher motivation and commitment; career development; increased knowledge about and contribution to company goals; sustained motivation and job satisfaction. In these days of highly competitive world, where change is the only constant factor, it is important for an organization to develop the most important resource of all – the Human Resource. In this globalize world, it is only the Human Resource that can provide an organization the competitive edge because under the new trade agreements, technology can be easily transferred from one country to another and there is no dearth for sources of cheap finance. But it is the talented workforce that is very hard to find. The biggest problem is how to retain the present workforce and stop them from quitting.
Importance of Talent Management
First, let us look at some of the reasons for the importance of talent management.
Now for any jobseeker the whole world is the potential place to find employment. One can know the opportunities available in any part of the world easily and the number of talent seekers has also increased.
- Increased Competition:
[Increased competition in the market place has necessitated the need for consistently good performance on the side of organizations. These have made the companies to put in all efforts to hire and retain the best talent in the respective field of operation.
- Increasing Knowledge:
The knowledge era has necessitated the retaining of those talents which have the ability to assimilate new technologies and knowledge, which are growing at a pace never seen before.
How Talent Management is important for an Organization:
- Cost cutting: One experienced & skilled employee can replace instead of two or more employees. Organization can save hundreds of thousands of dollars.
- Maximum Output: Organization can make maximum output in minimum resources.
- Time Saving technique: It is a time saving technique. Because for every job a skilled person can be placed. It’s helpful to complete job in minimum time
- Perfection increase: Due to skilled employee Perfection in work is increase. There is low probability of mistakes.
It involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problem in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for talented person. There are many organizations which are looking for such employees.
- Identify areas and activities that have the greatest potential benefits in retaining employees.
- Allow you to create measurements and metrics to track your progress over time.
- Discover what is of most concern to your employees, and therefore the greatest risks to losing them.
- Learn the reasons your employees stay to continue and improve in these areas.
- Improve your organization with the specific feedback from the tools, and become more attractive to current and potential employees.
According to Robert E. Lewis, and Robert J. Heckmana – Personnel Decisions International, USA, Traditional HR systems approach people development from the perspective of developing competencies in the organization. This can actually be a risk-prone approach, especially for companies operating in fast evolving industries, since competencies become redundant with time and new competencies need to be developed. Thus, over time, the entire approach to development of people might be rendered obsolete calling for rethinking the entire development initiative. Talent management on the other hand focuses on enhancing the potential of people by developing capacities. Capacities are the basic DNA of an organization and also of individual potential.
In fact, the following appropriately describes the role of talent management:
- Translating organizational vision into goals and mapping the required level of capacities and competencies to achieve goals aligning individual values and vision with organizational values and vision.
- Clear understanding of the varied roles within the organization and appreciation of the value-addition from self and others leading to building a culture of trust, sharing and team orientation.
- Assessment of talent to profile the level of capacities and set of competencies possessed within the organization.
- Enhancing capacities to learn, think relate and act through development initiatives.
- Individual growth to meet and accept varied incremental and transformational roles in an overall scenario of acknowledged need for change.