talent management during recession

8/8/2019 Talent Management During Recession

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TALENT MANAGEMENTduring

CHALLENGES TRENDS

A Study on the IT Sector: HP & Delloite

Submitted by

GROUP 9

Div E, MBA Core (1st year), NMIMS

Members:Sayantani Chanda (405)

Subhojit Chatterjee (406)

Deepak Kumar Goel (425)

Radha Mehta (428)

Sameer Saurabh (440)

Anil Shenoy (445)

Shubhangi Joshi (454)

RECESSION



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INTRODUCTION

Talent Management is a professional term that gained popularity in the late 1990s. The

definition of talent makes it clear that it is one of the most important assets in an organization.

Managing the talent effectively is of utmost importanceand it allows a company to increase

the value provided by their human capital. In simpler terms, talent Management is the process

of attracting and developing new workers through on boarding (talent acquisition) and

developing and keeping current workers (talent retention).

TALENT MANAGEMENT DRIVERS

The entire process along with the major Talent

Management drivers can be represented by the schematic

diagram as under:

Education &

Development

Designing

appropriate

recruitment and

selectionprocedures

CompetencyMapping

Acquiring Talent

Assessing demand and

supply & organization

readiness

Job analysis

Position analysis

Define key

successfactorsHandling grievances

Identifying Low,Average, Highperformers

Assessing new

and current

Talent Career devleopment- horizontal growth

plans

Succession Planning

Mentoring not just

managing

Job Stretch and

Mobility

Team Building and

Leadership Programs

Balanced work

environment

Developing

Talent

Retention strategies

PerformanceAppraisals

Incentives and Pay

schemes

Compensation to

maintain a decentlifestyle

Senior Placement

programs

Retirement Planning

Transitioning

Talent ->

Retention

Talent -³ identifiable ability that is perceived to add immediate or future value to any prescribed activity.´ (Maurice)



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Thus Talent Management is just another synonym for competency based human resource

management practices ± the strategically thought of process of managing human capital

throughout the career cycle: recruitment, development, promotion and retention of people

planned and executed in line with an organization¶s current and future business.

RECESSION HITS...

However a new phenomenon which hit

the globe lately is recession. With a

deep recession sweeping across, we

witnessed cost cutting exercises and

vanishing jobs across most

organizations.

In India, despite strong immunity to

the crisis in the form domestic demand, millions of jobs

have disappeared in few months and widespread salary

cuts became the talk of the town. Especially, the Indian

IT sector due to its overdependence on the US economy

has been hit badly. Software multinationals in India have

started to freeze wage increases, slash salaries and

postpone merit based hikes.

A study by an Indian consulting firm Zinnov has shown

revealed ³Of the 30 representative multinationals

surveyed in three cities (Bangalore, Pune and Chennai),

27 per cent of them said they have frozen salary increases this year, while 42 per cent saidthey would provide salary increases and 15 per cent have postponed their merit increase cycle

to take a call at a later stage if the economic scenario changes´. 2008 was a year with more

jeers than cheers for the country's over $50 billion IT sector, which has seen nearly a decade

of uninterrupted boom.



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To add to the woes was the Satyam saga which resulted in loss of face and hit the long

nurtured reputation of the Indian IT sector to the world outside.

End of Talent Management....or is it a new chapter?

Though apparently it might seem that Talent Management has taken a back seat, the reality of

today¶s post recession era means that recruiting, keeping and motivating the best employees

have never been more crucial.

While reducing the headcount or employee cost, it is extremely important for organizations to

keep in mind the effect of their actions on their Brand Equity as an employer.Organizations

must not forget that Recession or Boom, talent shortage will continue to haunt them and

growth will be paralysed especially in post recessionary times if there is shortage of highly

motivated and talented workforce. Thus a long term strategy is required to intelligently

strengthen the value proposition being offered to current and potential employees and also

ensure survival during the downturn.

This is perhaps the start of a new chapter of Talent Management for the organizations where

a rational approach is called for where selective hiring and training and development

programs might be a major factor. After all it is very difficult to re-establish brand strength as

a potential employer! Further if the morale, efficiency and motivation level of the existing

workforce is reduced, it can spoil the work culture and the future of

the organization.

Thus rightly a very careful step must be taken by ± in the form of a

new chapter in Talent Management to balance the cost cutting and

the brand equity of an organization. Especially in a service industry

like IT, workforce and human capital are the greatest strengths and

requirements for an IT organization to survive. Thus a balanced

approach should be taken to improve the productivity level and

counter the negative impact of down turn, maintain the morale of existing employees andthereby reduce the out-flow of valuable contributor which is an unavoidable element of any

downsizing exercise.

The careful step!!



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Post recessions the economies (read BRIC IT sector) are recovering gradually. Talent

Management hence has become an even greater challenge for the HR now.

The old rules of business are outdated. New out-of-the-

box solutions, more comprehensive efforts, innovative thinking,

and new skills and competencies are required to grow and

prosper. Needless to say, the demand for both the quantity and

the quality of talented employees will grow worldwide.

Additionally considering the nature of the IT industry,

the practices introduced should be able to overcome the

challenges of distance and culture since IT firms work based on

the concept of virtual teams.

Companies that have fired employees in the past are already feeling the pinch, as they do not

have enough bandwidth to execute. In a nutshell, a difficult road ahead in the ³War of

Talent .́

And today¶s organizations do realize that. As per Talent Management Trend Survey by BPM

Forum, Success Factors and Human Capital Institute ³Talent Management is top of mind ±

72% respondents say that talent management is a strategic focus area in their organization´.

EXPERT TALKS: Literature R eview

(i) Managing Talent in the Flat World: An Infosys Perspective as Practitioner

and Consultant ± by Nandish Patil

Patil here talks about how Infosys keeps on ³winning in the flat world´ by

believing that progressive HR is much more than a support function. In the

globalized business environment,

the author points out, historical

sources of advantage have diminished

in value to the point that they are now

fast becoming irrelevant. Sustainable competitive advantages, especially

during recessionary times when organizations are fast striving to maintain

I



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of Talent by the IT companies can give a very useful insight to Talent Management. A

study by Accenture has found that more than two-thirds of executives are now deeply

concerned about not being able to recruit and retain the best talent. In today¶s global

and highly competitive economy, the war for talent is now global, not local. This

study is an attempt to understand the war and the accompanying.

The repor t analyses two of the ma jor multinational IT f irms HP and Delloite to

understand their process of talent management dur ing recessionary times and the

roadblocks they faced in the process.

METHODOLOGY

We believe the best persons to hel p us in this study will be the professionals who have

been framing the Talent Management procedures. The key to retain and get the best talent lies in HR policies and practices. Talented employees continuously need new

challenges and goals they can achieve, and a continuous supply of information and

resources they can use to solve business problems. And needless to say, they will in

return demand more lucrative and effective compensations, a great work culture and

fr iendly HR policies.

Hence we chose the policy framers for our study. We spoke with the HR professionals

from HP and Delloite to better understand Talent Management.

DESIGN, DATA COLLECTION AND ANALYSIS TOOLS

Desi £ n and Anal ysi s Tool s

We prepared a questionnaire (attached in the Annexure) cover ing the ma jor

areas of Talent Management which are gaining more and more predominance

in recent times. Initially the questionnaire had only open ended questions.

However on request from the HR of the organi ations we modif ied and

included both open ended and ob jective type questions. The questionnaire was

designed keeping in mind the areas like employee engagement procedures,

performance evaluation systems, work culture, work life balance, recessionary

measures and talent retention.



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Dat a Coll ecti on

The responses were collected through telephonic interviews and online f illing

of the questionnaire. We initially spoke to them over phone regarding the

ma jor policies and practices followed at their organi ation. This mainly

compr ised of open ended questions. Later we sent across the ob jective type

questionnaire which they f illed and mailed us back.

ANALYSIS & FINDINGS



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R EFER ENCES

1. htt p://talent-management. j p3.com/

talent management during recession

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