Mangement Trends Vol: 4, No.

2 April -2007 September - 2007

RECENT TRENDS IN TALENT ACQUISITION AND RETENTION

DK Ribfia Jain
ABSTRACT Talented employees in India never had the premium that they enjoy today. This has resulted in organizations looking at newer ways to attract employees and once a recruit walks its portals, focus on building loyalty. This whole portfolio of how to attract and retain employees is now called by a body of knowledge "talent management". Employee attrition is costly dilemma for all organizations. In today's taxing business climate, managing company's competent and skilled human capital is vital for success. Faced with a tough proposition in attracting talent, HR heads of companies have started applying the Segmenting- Targeting-Positioning (STP) approach of marketing, better known as 'employer branding' strategies. In the turbulent scenario where talent is continuously depleting , HR managers are facing problem in retaining their knowledgeable resource . Here are discussed some of the latest retaining strategies adopted by companies these days. Another objective of performance appraisal as put by the company is to identify employees with high potential, but there is no section in the form where the level of potential of the employee may be identified as high, low or moderate. Planning and organizing are two different abilities but are rated in the form as one factor. The new age economy, with its attendant paradigm shifts in relation to the human capital, in terms of its acquisition, utilization, development and! retention, has placed a heavy demand on today's HR profession. Today HR is expected to comprehend, conceptualize, innovate, implement and sustain relevant strategies and contribute effectively towards giving the company its winning edge. These efforts on the part of the company have resulted in recognizing talent as priority of the company to maintain competitive edge and talent becoming a strategic priority.

Mckinsey and company consultants Michaels,] handfield Jones and Axelrod define "talent" as the) "the sum of a person's abilities- his or her intrinsic gifts, skills, knowledge, experience, intelligence judgement, attitude, character and drive. It also includes his or her ability to learn and grow. "Talent Management implies recognizing person's inherent skills, traits, personality anal offering him a matching job." While there are no magic formulae to manage talent, the trick is to locate it and encourage ill Talent management is beneficial to both the organization and the employees. Essentials of Talent Management I Talent management is the activity of identifying, realizing, and guiding untapped potential in people. It means nurturing and developing those people identified of having ability ana potential and it should form part of any organizations recruitment and retention strategy. It involves individual and organizction development in response to a changing and complex operating environment. includes the creation and maintenance of supportive people oriented organizational culture. Talent management is a cor deliberate approach undertaken to

Introduction
Modern organizations are operating in an unprecedented, highly competitive and turbulent business environment which is characterized by the globalization of business. Further, today's global workforce is more mobile than ever before. With a dynamically changing and volatile demand-supply equation, especially against erratic attrition trend and cutthroat competition no longer restricted to local or regional boundaries, a need for strategizing & putting in place a robust mechanism for attracting and retaining top talent becomes vital for the company's very survival and growth.

Asst. Professor, Om Kothari Institute of Management 8. Research, Kota 324005 ((Raj.)

attract, develop and retain people with the aptitude and abilities to meet current and future organizational needs. Talent management brings together a number of important human resources and management initiatives. Organizations that, formally decide to manage their talent undertake a strategic analysis of their current HR process. Talent management approach is adopted and focused on coordinating and integrating the following. Recruitment: ensuring right people ore attracted to the organization. Retention: developing and implementing practices that reward and support employees. Employee development: ensuring continuous formal and informal learning and development. Recent trends in talent management with respect to Attracting

talent

Attracting qualified talent is the critical first step in the talent management cycle. Jobs are plenty, finding the right candidate is the challenge. The need is to "sell a job". Having sold the job well, retaining good employees is the next challenge that arises. And the company's brand image makes these tasks easier. Hence the marriage of compulsion arises between HR and marketing principles-employer branding. As we know that we get good customers with a good brand. In the same way companies must develop their image in the society by implementing the best practices in each and every aspect. Employer branding therefore helps a company attract, recruit, and retain employees | that if wants and is becoming increasingly important in attracting and retaining star performers in a talent-tight market. Employer branding is not different from (branding a product or service and the payoff are identical. Some of them areproduct /service branding customer acquisition is easier Increased retention possible Loyal customers Less "price sensitive" customers Employer branding Recruiting people is easier Reduced employee churn Committed employees Less "CTC sensitive" employees

Selecting Talent
An effective retention strategy begins at the earlier stages of the recruitment & selection process. This is true because most of the employee turnover happens due to poor chemistry or bed fit.The research indicates that most of the people leave organizations due to he mistakes made during the hiring phase. For this reason some smart companies are adopting the strategy of " hire for attitude & train for skill." They have realized that it is easier to develop the skills & capabilities that an employee needs than to attempt to change the employee's personality or mindset. For instance, although infosys receives about twice the number of application as its competitors it is very selective in recruiting employees. In the financial for 2004-2005, it received close to one million resumes which went through rigorous selection process and offers were made to about 1.5% of the applicants. Infosys looks at candidates who display a high degree of "learnability". The company looks for candidates with good analytical ability, team work and leadership potential besides innovation skills and structured approach for problem solving. Some companies go to even extraordinary lengths before hiring somebody. According to a study, Hewitt, a leading Indian company, was selecting a senior marketing manager after the candidate had gone through several rounds of interviews. The company had identified the person they thought was the right one for the job and was on the verge of making an offer. The HR head took him out for dinner and, during the meal, the Prospective marketing manager was particularly rude to a waiter in front of his potential employer and peer. The company reversed its decision to recruit him. If he could be rude to the waiter in such a setting, how would his behavior reflect the company image and culture if he were in-charge of marketing? Besides getting the right people in the door, recruiting has an important symbolic aspect. When a prospective employee undergoes rigorous selection process, the person feels that he or she is joining an elite organization. This creates high expectations and gives an impression that people matter the most to the organization.

Retaining Talent
The time is tough. There is no denial to the fact that in today's fast pace and knowledge boom, one of the most important factors for today's organization is talent. Its viewed that the availability of suitable and competent talent inside any organization determines the excellence of the same. Most companies today would acknowledge that their human resources are most important asset. But since companies can't own employees the way they own factories or product your success or failure hinges on the quality and duration of the relationship you form with your people. In present scenario people choose companies which have congenial atmosphere and prefer change if they don't get desirable, as it may hinder the growth and success of the company. Hence retention is vital than recruitment. The attrition rate of employees in organization is alarming. Take any industry, any sector, any organization and you can find more than enough examples of employees joining and leaving their workplace. All this adds to the worry of HR managers who are only left with the option of scratching their heads and singing no mercy's all-time hit-"where do you go?" Thus it is an organization's ability not only to recruit, but also to cultivate and retain, talent that will ultimately determine its longevity. Two major trends point to the growing importance of employee retention as an important HR issue. One is the constant rise in turnover in virtually every economic sector and left Unaddressed it can have an adverse impact on organizational effectiveness. The other is the ever raising cost of turnover, especially when it involves high performers.

Cost of Employee Turnover

Turnover is important because it costs the organization money in direct expenses to recruit and train new hires and indirect expenses to pay overtime for remaining workers, when necessary, and in opportunity cost of lost production. Estimates vary widely (as does the true expense), but several authors have placed total cost (which include various aspects of recruitment, hiring, training and lost productivity) at somewhere in the vicinity of the one to two times the yearly pay of the one who leaves. That means a thousand-person company) with a 10 percent turnover rate per year and on average individual pay level of $40,000 might be expected to spend between $ 4 million and $ 8 million per year on turnover-related costs.

Strategies for Retaining Talent

The problem of attrition continue to escalate. Today talented professionals are increasingly mobile, have highly transferable skills, are internet literate, well informed and above all, sought after. Organizations are constantly struggling to keep Sustained competitive advantage in the Knowledge economy. Employees. Retention inevitable our basic components that a retention. Strategy must address in order to infuse confidence among

1 Effective performance managemen 2

Career development opportunities

Work-life balance

Retention of talent is fundamentallyrecognition ) Compensation and talent continuity. We must manage our human assets with the same rigor we devote to our financial assets.
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therefore it is crucial for every organization to retain talented people by developing appropriate talent retention strategy. Following are some of the key talent retention strategy.

20:80 rule Applying the 20:80 rule, organization must identify the top 20% star performers who contribute to 80% growth of the organization. Retaining star employees is a continuous struggle, because top performers will always be in demand. Quitting by high performers constitutes "dysfunctional turnover " that can pose a large threat to business success. That's why it is rightly said If you don't embrace your stars, someone else will.

two years. In reality these are at best, average increases in a scenario where 30 % hikes are not uncommon. These still don't stem attrition. Its not just the best performing employees who are switching jobs; even mediocre employees who benefit from salary hikes of 30% leave their organizations.' Surely, as an organization you have to pay at least hygiene-level salaries. It is the cost of doing and staying in business. 5. Work-life balance Work-life balance has important consequences for employee attitudes towards their organizations as well as for the lives of employees. With the economy on a roll and globle work practices becoming the norm in India as well, the educated Indian workforce is suddenly discovering that hefty pay cheques come at a price- long working hours, stress stiff targets and intense competition. And 'Zero personal life'. Employers should realize their role in helping their employees strike a balance in their lives, before they burn out. In an attempt to help its employees tide over this problem, IBM India has appointed a person to specifically look into work-life management issues. It has introduced work-life balance initiatives like parenting workshops, an in-home care project, a daycare center and access to a work-life essentials web site that offers work-life balance tips.

2.Let them know that you want to keep them

Many organizations have deliberately not told talented people that they were special in many ways for fear of alienating the average performers. But this practice makes it difficult to retain top performers. To retain top talent in the future , executive will need to clearly identify, develop involve and recognize key people.

3. Employee engagement
The best way to retain is to provide work motivation. 6 . P r o v i d i n g r e c o g n i t i o n , r e w a r d & rejoice Challenge, job satisfaction, treating the employee with significance, being It is crucial to understand what drives key talents. predictable with systems and practices that are lot The major reasons talented people leave organization bent or changed to accommodate any individual at are lack of involvement, and poor management. any time may help retention. Task force could be Providing recognition helps to retain key talent and also constituted to examine the sources of attrition. When yields great feedback and generate ideas for talent employees are adequately engaged and adequate retention. Every individual is delighted with recognition social and financial security is provided retention and reward amongst masses. These days few companies are working on fun filled trips and for offgoes up on its own. sites their employees to maintain their interest and rejuvenating them. Companies are creating the 4.adequate and competitive pay positions of CFO i.e. Chief Fun Officer for arranging packages these fun filled activities. salaries are going up. It is widely reported that salary hikes in India are amongst the highest in the world 4% to 15% increases are reported in the last

7. Career Counselors in the office

In the knowledge economy CC are a new retention tool. It has become customary for the IT, BPO and other service industries to have career counsellors for guiding junior staff in particular. This helps to motivate them. Some firms have trained

counselors, but many other prefer senior officials to act as career counselors for their juniors. The role of career counselors is to work independently to find people for the right role for the organization and this finally turns out to be a good retention tool. Companies reckon that mentors can guide and motivate staff and somewhere counselors are now-adays working aS MENTORS A career counselors helps employees on the professional and personal front, and find a work-life balance. 8. Take a NAP Motivated by the saying " After lunch sleep a while, after dinner walk a mile". Some companies have devised a new concept to relax their employees on the job by providing napping facility in office post lunch. Calm and soothing atmosphere is provided during this time to relax their mental cobwebs.

that new retention tools could be adopted. Today when companies recruit people they often focus attracting precisely those people who will be the most difficult to retain. Though attrition can not be completely eradicated but it can be reduced to drastic level by being innovative. Companies the" days are emphasizing not only on physical emotional benefits also. They have to develop new ideas to touch the emotions of their employees make them loyal towards their organizations. Companies involved in designing strategies such napping, internal job posting, flexi-time are being more successful.

2) 3)

9. Internal job posting

4) This is one of the latest retention tool adopted by various companies to retain talent. This implies that if someone wants to leave for changing the role, he can switch within the company for similar role. For instance a salesperson wants to come in HR or Operations can switch within the company at similar ranks.

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6) 7)

Day-to-day

home
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Companies have initiated a new concept of hiring an individual at company pay rolls to cater to the need of their employees home related work. This is a very good initiative to avoid wastage of precious Man-hours and relaxing employees to focus on their area of expertise. Companies keep a person on their rolls to generate faith of employees. This person bank their checks, deposit fees of their children in school, book cinema tickets and restaurant for them. CONCLUSION

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B e r g e r, D o r o t h y R .2004. T a l e n t Management Handbook, Tata McGrow-Hill Publication, New Delhi. GuruSwamy K., Ramani VV, "Talent Management-Concepts & Cases", Vol I, ICFAI University Press. Dasari Ravi, 2006, "Ret ai ni ng High performers-Issues & Imperatives", The ICFAI University Press. Mathews B, Sarita B, "Talent Management Change New face of HR", HRD Newsletter, Jan 2007, Issue 10, Vol: 22. Sharma, E.J. "Make them stay forever", Human Capital Vol: 8, pp 30-34. Rao Sabitha, "Touch points on attraction & Retention", NHRD Journal, May 2007, Vol:l, Issue 3, Pg no. 30. Bose Praveen, 2007 "Career Counselors in the Office", The Economic Times, 13 June 2007, pp 15 Parishwad Rajesh, "Balancing act" "The week - Struggle for work-life balance" March 11,2007 Goldsmith Marshall, Paper on "Retain your top performer" smith communication partners, www.google.com Trevor Charlie "Reach for the stars-managing & retaining top performer", www.google.com

The environment is very volatile and attrition is increasing day-by-day. It poses a challenge before HR managers, they need to be very innovative so