Talent management in Indian corporate sector


Mr. gopi nambiar says talent can be best described as combination of abilities and attitudes. The real trick is to match the right motivated talent to the right role, individually and collectively, harnessing and harmonizing this crucial attribute to achieve the objective of the company. Today, companies have become fiercely competitive when it comes to attracting and retaining talent

Intense competition being the key to the market development and success, organisation have failed to identified some of the major reasons which highlight why" good performer" leave.


Talent management is a process that emerged in th 1990s and continues to be adopted, as more companies come to realize that their employees' talents and skills drive their business success. Companies that have put into practice talent management have done so to solve an employee retention problem. The issue with many companies today is that many organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. A talent management system must be worked into the business strategy and implemented in daily processes throughout the company as a whole. It cannot be left solely to the human resources department to attract and retain employees, but rather must be practiced at all levels of the organization. The business strategy must include responsibilities for line managers to develop the skills of their immediate subordinates. Divisions within the company should be openly sharing information with other departments in order for employees to gain knowledge of the overall organizational objectives. Companies that focus on developing their talent integrate plans and processes to track and manage their employee talent, including the following:

  • Sourcing, attracting and recruiting qualified candidates with competitive backgrounds
  • Managing and defining competitive salaries
  • Training and development opportunities
  • Performance management processes
  • Retention programs
  • Promotion and transitioning
  • Salaries
  • Training and development opportunities
  • Performance management processes
  • Retention programs


" Talent Management refers to that integrating n importance ew workers, developing and retaining current workers, and attracting highly skilled workers to work for your company. Talent management[1] in this context does not refer to the management of entertainers. The term was coined by David Watkins of Softscape[2] published in an article in 1998[3]. The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic has come to be known as "the war for talent

A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organizational needs. Talent management involves individual and organizational development in response to a changing and complex operating environment. It includes the creation and maintenance of a supportive, people oriented organization culture.

Why Talent Management?

  • To detect talents
  • To make talents more mobile
  • To develop talents
  • To promote talents to strategic projects or to higher positions
  • To retain talents with company or Group
  • To built talents'network

Key Business Processes

The following matrix appropriately defines key business processes for an organization:

What data do we have for TM?

  • Annual appraisal dialogue - assessment of goals and competences
  • Annual development dialogue - interests and ambitions
  • Past selection procedures data (as a student or candidate)
  • Participation in projects and assessment
  • Salary system data - promotions and rewards
  • Individual innovations
  • Individual training plan
  • Talent Management v/s Traditional HR Approach

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

The focus of talent management:-

At the heart of talent management is developing the following intrinsic human capacities:

  1. Capacity to learn (measured as learning quotient LQ)
  2. Enhancing an individual's capacity to learn improves the person's awareness. It adds to the person's quest to know more and delve into newer areas. This capacity is developed by holistic education that teaches how to learn, an enabling environment and good mentoring. Capacity to learn comprises of the following:

    • Introspection is the individual's willingness to look back and learn ability to learn from mistakes and identifying areas of improvement.
    • Reflection and contemplation is the individual's ability to observe his own thoughts, actions and emotions/feelings and using the awareness to improve further and perform better.
    • Getting into the flow is the individual's ability to get into a new experience and flow with the experience. It is the person's child-like ability to derive joy out of learning.
  3. Capacity to think (measured as conceptual quotient CQ)
  4. An individual's quest to know more leads his mind to create images. Enhancing an individual's capacity to think helps the person not only take learning to a higher level of intellect but also improves creativity.

    Capacity to think comprises of the following

    • Analysis is about asking the right questions and breaking complex things into simpler elements.
    • Creativity is about generating new thoughts and breaking the existing patterns of thought.
    • Judgment requires both. This is what helps an individual take quality decisions.
  5. Capacity to relate (measured as relationship quotient RQ)
  6. It is important for an individual to be able to relate to his learning and thoughts. This leads the person to be able to relate to other individuals and the environment around him. The outcome is indeed a sense of belongingness and an environment of trust at the organizational level and team spirit at the individual level. Capacity to relate comprises of the following:

    • Listening is the individual's ability to listen with warmth and respect. Active listening is free of biases, evaluation and pre-conceived notions.
    • Empathizing is the ability to put self in someone else's shoes and getting out of one's own shoes.
    • Trust requires a combination of both empathizing and listening. It is about authenticity, openness and genuineness.
  7. Capacity to act (measured as action quotient AQ)
  8. Action is how the above three capacities of an individual are manifested. It is the individual's ability to enact his intentions.

Following are components of capacity to act:

  • Organizing refers to the individual's ability to organize his time and resources so as to enable him to convert intentions into reality.
  • Implementing means delegating, attention to detail, and focus on the right process.
  • Perform under pressure means the ability to work under pressure and time constraints and handle multiple tasks without negative stress.

The individual's values help in discriminating amongst alternatives and act as the bedrock for decisions. They act as multipliers in enhancing the individual's capacities, a sigma of which reflects the individual's true talent.


(LQ + CQ + RQ + AQ) X Values = Talent

Organizations provide individuals the opportunity and space for physically manifesting their talent into performance for achieving individual and organizational vision. Talent manifests into performance as follows:

Skills & Competencies
Role & structure
Encouragement & Recognition
Training & Development
Action Plan & Goals


Thus the domain of talent management focuses not only on development of individual's intrinsic capacities, but also on culture building and change management to provide the other elements listed above for manifestation of talent into performance.

The service and consulting areas of talent management that thus emerge are:

  • Talent appreciation
  • Potential enhancement
  • Acquisition of talent
  • Knowledge management


The idea of developing talent is not a new concept in any business. In facte very successful company that has 'stood the test of time' has done so because of their ability to attract, retain and get the best out of their talent. Today we read of a 'war for talent'. This has emerged, not because companies have forgotten about talent, or allowed it drop off of the radar but, because in some fundamental ways, the talent has changed.

Attracting and recruiting Talent:

In order to effectively attract and recruit talented employees they need to understand what talent is looking for in a career and how they will view your business in terms of fitting in with their needs. Your approach to each one of your potential recruits needs to be altered to suit who they are. By examining this through the perspectives of the different generations, we are able to look at their attitudes to work, what kind of career, organisation and benefits they are looking for and know what kind of techniques will ensure that your recruitment process is successful in each generational context.

Retaining and developing Talent

In order to effectively retain and develop Talent you need to understand what the generations are looking in a future career and in an organisation. Their approaches to each of their employees need to be altered to fit individual goals and personal needs.

This focus on the following:-

  • work ethics and values
  • career planning
  • work environments and culture
  • benefits and reward systems
  • ways of motivating

Managing Talent

An in depth look at how the generations internalise authority will enable you to adjust your management style to fit in with who they are. We are able to look at the attitudes of the different generations to leadership and management; what kind of management approaches will ensure that you gain maximum loyalty, productivity and job satisfaction from each of your employees.

This focus unit looks at the following:

  • attitudes to authority
  • management styles for the different generations including conflict management
  • leadership styles used by the different generations
  • specific techniques to help you manage different generations including communication and feedback preferences
  • coaching and mentoring preferences including
    • The role of coach
    • The coaching process
    • How to plan for and create conversations
  • customising your style

How can you recognize a top talent?

  • Gives sharp remarks
  • Shows will power
  • Varying interest in teamwork
  • Gives a demanding impression
  • Puts the job before everything
  • High intelligence
  • Broad thinking style
  • Has a unique perception of occupation
  • Is very time conscious
  • Shows independence
  • Has a high level of commitment
  • Has a phenomenal amount of energy
  • Shows a vibrant sense of creativity
  • Strives for continuous improvement

Problem identification

It takes talent to spot talent! A tone deaf will never be able to appreciate the music of maestros. Only a seasoned jeweller would know that all that glitters is not real and only those who can recognoze the worth of the diamond can value it, for others its just a stone !talent is doing easily what others find difficult.

In an organisation ,there is nothing more crucial than fitting the rights employees in the right position or else you would be trying to fit a square peg in around hole.when people do jobs that just don't suit their liking,inclination or temperament, the result, or rather the lack of them will be disastrously obvious. Low productivity, dissatisfaction, low morale, absenteeism and other negative behaviour will become typical till the employee is shown the door. Or perhaps, there is another option- talent management.

"A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organizational need''

Organization need to have a vision and a well defined strategy on hiring for the future. India has become the outsourcing capital of the world and this has created its own set of HR challenges. India's biggest problem is that qualified graduates are becoming scarce. Despite the large population, the supply of engineers cannot keep up with the sharply increased demand. So, do we have the right talent within to attract and retain the best available talent?


The supply side discussed puts pressure on companies to attract the best talent and ensure that employees join the company and choose to stay in the organization rather than look for opportunities elsewhere. Present study is supposed to find out the existing Indian talent scenario so as to analyze its emerging challenges and trends.



For the purpose of collection of primary data two web administered questionnaire were prepared. One questionnaire was made for HR professionals or the people involve with the talent management in the organization and other one was for the employees of the organizations.




The researcher focused on a comprehensive set of workplace practices that influence employee motivation, commitment and willingness and desire to achieve at work. The researcher identified these practices and a deep understanding of typical organizational programs to ensure that the questionnaire covered the broadest spectrum of tangible and intangible aspects of the work environment. As a result, the questionnaire included items about the full range of rewards practices, leadership and management effectiveness, communication, culture and attributes related to these tangible and intangible aspects. Respondents came from a range of industries, including telecommunications and technology, financial services, education, health care, energy, retail, transportation, consumer products and manufacturing




The prime focus of this questionnaire was to compare with the responses obtained by above questionnaire. The talent management initiative is taken by the HR professionals but the implication of this initiative is on the employees. By this questionnaire, the researcher tried to find out the effectiveness of such talent management initiative as well as the satisfaction level of the employees.

These questionnaire links were mailed to the respective respondent and data was collected through the website. The researcher created an account with the hosting website

www.surveyspro.com for uploading as well as assessing the response database


  • Journals and Research Paper
  • Newsletters
  • HR websites


Pie charts

  • Bar graphs
  • Averages
  • Correlation


Judgmental Sampling

What are the areas your organization needs to improve in terms of talent management initiatives?


Aligning employees with the mission and vision of your organization.
Assessing candidates skills earlier in the hiring process.
Creating a culture that makes employees want to stay with the organization
Creating a culture that makes individuals want to join the organization
Creating a culture that values employees work
Creating an environment where employees are excited to come to work each day
Creating an environment where employees ideas are listened to and valued
Creating policies that encourage career growth and development opportunities
Identifying gaps in current employees and candidate competency levels



  • Most of the covered companies have talent specific initiative in place and they give them top priority in their organization .They also have exclusive staff member for managing talent initiative.
  • In most of the companies the talent is identified by competencies and the HR professional view to increase career growth opportunity
  • HR staffs as well as the department heads are responsible for recruiting individuals .
  • Retaining the current talent is top priority for the organization.
  • Sales and business development are the two areas where retaining talent is most difficult.
  • Class room workshop, mentoring and coaching are usually used by the organization to carry out talent development activities.
  • More than 60% of the respondent view organizational culture as a main driving force for the new talent and for the existing talent. Even rewarding plays a important role
  • Base pay and Job security are the two main areas for retaining talent in coming years. Other than this, training plays an important role in motivating the employee.
  • Organizations are using certification for improving the training programs.
  • In more than 90% of the organizations budget for recruiting developing and retaining employees is going to increase over the next three year


  • Most the employees have a clear knowledge about the company's vision, mission and objectives. And they know how to achieve these objectives .
  • They are clear about their role and responsibility and they know about other staff members also.
  • Most of the respondent are satisfied by job description, salary review, health care benefits etc.
  • Base pay and Job security are in top priority for the employees in coming years.
  • Apart from financial benefits, employee emphasis more on career growth, work culture and international opportunities.
  • some of the employees want more training in their specified job.
  • The employees have a mix response on benefits like Medical insurance package, Company savings plan, Retirement plan, Holiday Entitlement, Job market etc.
  • many of the employees are satisfied with the company's personnel policies where as they are neither satisfied nor dissatisfied


  • Organizations must have meaningful descriptions of the capabilities (skills, behaviors, abilities and knowledge) required throughout the organization.
  • Organizations must be able to relate those skills and capabilities to a role or a center of demand, such as a job position, project or leadership role.
  • Talent management processes must create a comprehensive profile of their talent. They must be able to track meaningful talent related information about all of their people - employees, contractors, or candidates.
  • The working culture of the organization should be improved and maintained to retain talent in long run.
  • More certified training should be given to the employee to boost their effectiveness and efficiency. It should be used as a tool of motivation
  • The organization should identify the crucial talent initiative to attract and retain the employee. They should know which talent management elements can have the greatest impact on the business and therefore provide a better basis for prioritization and implementation.
  • To create a sophisticated talent management environment, organizations must:
    • Define a clear vision for talent management
    • Develop a roadmap for technology and process integration
    • Integrate and optimize processes
    • Apply robust technology to enable processes
    • Prepare the workforce for changes associated with the new environment


The importance of talent management starts with ensuring right people in the right place at the right time. In today's changing scenario , meeting the organizational personnel demand and supply becomes an increasingly difficult task.

It is very important for every corporate to have parity between organizational needs of human capital and the process of recruiting competent and talented workforce. For this talent management needs to have a holistic approach which should consider not only recruiting human capital but also retaining them and updating them to work in the changing scenario through proper training programmes.

The organization need to identify the crucial talent initiative to attract and retain employees . They should have the knowledge that which talent management element can have the greatest impact on business and therefore should create a sophisticated talent management , having a clear vision and roadmap of technology and process integration.


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