TALENT MANAGEMENT

during

RECESSION

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)

horizontal growth plans Succession Planning Mentoring not just managing Job Stretch and Mobility Team Building and Leadership Programs Balanced work environment Transitioning Talent -> Retention Developing Talent Retention strategies Performance Appraisals Incentives and Pay schemes Compensation to maintain a decent lifestyle Senior Placement programs Retirement Planning [Type text] Page 2 . Average. talent Management is the proces s of attracting and developing new workers through on boarding (talent acquisition) and developing and keeping current workers (talent retention). Managing the talent effectively is of utmost importance and it allows a company to increase the value provided by their human capital. 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 selection procedures Competency Mapping Assessing new and current Talent Acquiring Talent Assessing demand and supply & organization readiness Job analysis Position analysis Define key successfactors Handling grievances Identifying Low. High performers Career devleopment . In simpler terms.´ (Maurice) INTRODUCTION Talent Management is a professional term that gained popularity in the late 1990s.Talent -³identifiable ability that is perceived to add immediate or future value to any prescribed activity. The definition of talent makes it clear that it is one of the most important assets in an organization.

2008 was a year with more jeers than cheers for the country's over $50 billion IT sector. millions of jobs have disappeared in few months and widespread salary cuts became the talk of the town. while 42 per cent said they 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´.. development. despite strong immunity to jobs across most the crisis in the form domestic demand. RECESSION HITS. A study by an Indian consulting firm Zinnov has shown revealed ³Of the 30 representative multinationals surveyed in three cities (Bangalore. With a deep recession sweeping across. which has seen nearly a deca de of uninterrupted boom. we witnessed cost cutting exercises and vanishing organizations. [Type text] Page 3 . 27 per cent of them said they have frozen salary increases this year. slash salaries and postpone merit based hikes.. Especially. the Indian IT sector due to its overdependence on the US economy has been hit badly. Pune and Chennai). promotion and retention of people planned and executed in line with an organization¶s current and future business. Software multinationals in India have started to freeze wage increases. In India. However a new phenomenon which hit the globe lately is recession.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.

the reality of today¶s post recession era means that recruiting. Especially in a service industry like IT. 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. it can spoil the work culture and the future of the organization. After all it is very difficult to re-establish brand strength as a potential employer! Further if the morale. Thus a balanced approach should be taken to improve the productivity level and counter the negative impact of down turn. 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.. End of Talent Management. workforce and human capital are the greatest strengths and requirements for an IT organization to survive.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. efficiency and motivation level of the existing workforce is reduced. 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.or is it a new chapter? Though apparently it might seem that Talent Management has taken a back seat. 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. While reducing the headcount or employee cost.. The careful step!! [Type text] Page 4 . keeping and m otivating the best employees have never been more crucial. maintain the morale of existing employees and thereby reduce the out-flow of valuable contributor which is an unavoidable element of any downsizing exercise.. it is extremely important for organizations to keep in mind the effect of their actions on their Brand Equity as an employer.

In the globalized business environment. EXPERT TALKS: Literature Review (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. the author points out. As per Talent Management Trend Survey by BPM Forum. as they do not have enough bandwidth to execute. Needless to say. 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. historical sources of advantage have diminished in value to the point that they are now fast becoming irrelevant. In a nutshell. 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´. The old rules of business are outdated. Companies that have fired employees in the past are already feeling the pinch. And today¶s organizations do realize that. Additionally considering the nature of the IT industry . a difficult road ahead in the ³War of Talent´. Sustainable competitive advantages.Post recessions the economies (read BRIC IT sector) are recovering gradually. and new skills and competencies are required to grow and I prosper. innovative thinking. more comprehensive efforts. Talent Management hence has become an even greater challenge for the HR now. New out-of-thebox solutions. the demand for both the quantity and the quality of talented employees will grow worldwide. especially during recessionary times when organizations are fast striving to maintain [Type text] Page 5 .

However for most of the organi ations a wide gap exists between strategies and practices which need to be filled up fast in this war of survival. flexible and talent sourcing. Talent is increasingly becoming scarce. In the face of slashing salaries and job cuts and now gradual recovery of the economy ± the survival stint in this War [Type text    Tucker. A new generation of practices are required with stress on workforce monitoring and talent decision making. this study is an attempt to understand Talent Management as practiced in the IT industry of India. The workforce is in the middle of a dramatic transformation. and Nidhi Verma (Hewitt Associates) demographic trends. distributed and influential leadership and unified and compassionate cultures. work/life h paper emphasi es on the fact that a major corporate change is in PRE ENT ST Y P e6 . Hence a radical shift in thinking is required in the strategy of managing talent. di ersit . Ti Kao. customi ed rewards and communications. Due to global mobilit issues and technology changes organi ations are confronted with a lot of challenges.t i i ti t t li i t t i l i t t i t i ti ti t t l l t it iliti t i i t lt t i i l i i li t t i i t t t l l t t i t l t i i t l i l ll lt t t t i i R ti i ll t t t i l t i il i ti R i i t ll t ti l t t l t t l t t l t it it t l t t iti i i i li t l t l t t i i t t i i ti i i t i (ii Next-Generati n Talent Management Insights on How Workforce Trends Are Changing the Face of Talent Management ¡¢ ¡ - by Eli Thi progress. Taking the thought forward.

work life balance. the war for talent is now global. recessionary measures and talent retention. and a continuous supply of information and resources they can use to solve business problems. a great work culture and friendly HR policies. DESIGN. The questionnaire was designed keeping in mind the areas like employee engagement procedures. 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. work culture. And needless to say. Initially the questionnaire had only open ended questions. [Type text £ P e7 . DATA COLLECTION AND ANALYSIS TOOLS Desi n and Analysis Tools We prepared a questionnaire (attached in the Annexure) covering the major areas of Talent Management which are gaining more and more predominance in recent times. performance evaluation systems. This study is an attempt to understand the war and the accompanying. The report analyses two of the major multinational IT firms HP and Delloite to understand their process of talent management during recessionary times and the roadblocks they faced in the process. METHODOLOGY We believe the best persons to help us in this study will be the professionals who have been framing the Talent Management procedures. In today¶s global and highly competitive economy. We spoke with the HR professionals from HP and Delloite to better understand Talent Management. However on request from the HR of the organi ations we modified and included both open ended and objective type questions. they will in return demand more lucrative and effective compensations. Hence we chose the policy framers for our study. 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. not local.of Talent by the IT companies can give a very useful insight to Talent Management.

ANALYSIS & FINDINGS [Type text P e8 . Later we sent across the objective type questionnaire which they filled and mailed us back. This mainly comprised of open ended questions.Data Collection The responses were collected through telephonic interviews and online filling of the questionnaire. We initially spoke to them over phone regarding the major policies and practices followed at their organi ation.

REFERENCES 1.com/ [Type text P e9 .jp3. http://talent-management.

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