CHAPTER 3: RESEARCH METHODOLOGY

This chapter projects the research objectives, hypothesis and research methodology
incorporated in this study. The chapter gives a detail description of research design used in
this research. This chapter also reflects the answer to the research questions i.e.
―What is the impact of Talent Management initiatives on Employee Engagement of the
employees in the BFSI Vertical of the IT Sector‖
and
―What are the areas of Talent Management which impacts Employee Engagement in the
BFSI Vertical of the IT Sector?‖

The chapter defines the operational definitions of the constructs selected for the research and
discusses in detail methods used to integrate these constructs and answer the research
question by testing the hypothesis developed from objectives of the research.

The present study attempts to develop a research design to find answer to the research
question and test the hypothesis. The chapter discusses in detail the methods used in the study
and justifies the usage of the same to resolve an objective of developing a conceptual
framework for talent management practices impacting the employee engagement.

3.1. Research Gap

Taking the perspectives from the above literature and other relevant items, this study
identifies the prevalent areas of Talent Management that impacts employee engagement
for the employees of the BFSI Vertical of the IT Sector in Pune Region. There is a need to
study which prevalent areas of Talent Management brings about employee engagement,
which is a clear research gap from the literature review. Filling in the knowledge gap by
sketching theoretical and practical framework of Talent Management.

3.2. Formation of the Conceptual Framework

As McGaghie et al. (2001) put it: The conceptual framework ―sets the stage‖ for the
presentation of the particular research question that drives the investigation being reported

94
based on the problem statement. The problem statement of a thesis presents the context and
the issues that caused the researcher to conduct the study.

The conceptual framework lies within a much broader framework called theoretical
framework. The latter draws support from time-tested theories that embody the findings of
many researchers on why and how a particular phenomenon occurs.

The following steps were used to build the 9 constructs

Step 1: The Research area was finalized as Talent Management and its impact on Employee
engagement.

Step 2: Literature Review: All the research papers pertaining to this topic was reviewed and
analysis was drawn based on all the variables of Talent Management which impact Employee
Engagement. This stage was very important as the variables used in Talent Management were
studied thoroughly. Only after studying these variables limited areas of Talent Management
were identified and the variables were extracted for further study and building the conceptual
framework.

Step 3: Formal and Informal discussion with the employees of the BFSI sector. This included
the HR Heads, HR Managers and also the employees who worked in different capacities
like Developers, Testers, Business Analyst, Project Managers, and Delivery Managers etc.

Step 4: Identifying of important variables some limited variables were identified after the
process of Literature Review and discussions with the employees. There were 9 variables of
Talent Management which were identified for the purpose of this study.

Step 5: Generating the conceptual framework. Conceptual framework was built using mix of
the variables from the research papers and articles. The research question served as a
reference in constructing the conceptual framework. In effect, the study will attempt to
answer questions that other researchers have not explained yet.

95
 3.3. Proposed Framework of Research

Figure 10 Proposed Framework of Research

96
 3.4. Operational Definitions of the Constructs

Table 6 Operational Definitions of the Constructs

Constructs Operational Definition Dimensions of the Construct Source

Talent Talent development Talent Development would Treffinger,
Development focuses on the planning, include aspects like D. J., &
selection and Feldhusen,
implementation of  Encouraging J. F.
development strategies for development in an (1996)
the entire talent pool to employee
ensure that the  Diversity training Bloom, B.
organization has both the  Adequate training to do S., &
current and future supply the job Sosniak,
of talent are met.  Inputs for training are L. A.
given timely (1981).
 Applying learnings of
training to the job Wang, C.
 Feedback on K., Pyun,
developmental needs D. Y., Li,
C., & Lee,
M. S.
(2016)

Gagné, F.
(2015).

Garavan,
T. N.,
Carbery,
R., &
Rock, A.
(2012).
Work Place A work environment is Workplace Environment Watanabe,
Environment marked by attributes as would include aspects like K.,
physical conditions, trust Otsuka,
between the employees  Encouraging new ideas Y.,
and management, fairness in workplace Shimazu,
for everyone, and a  Conducive for women A., &
sensible work load with to work Kawakami
challenging yet achievable  Equipment‘s and , N.
goals. material needed for the (2016).
work Kay, R. E.
 Opinions count (2015).
 Opportunity to do the
Underhill,
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 best in the workplace E. (2013)

Miller, N.
B. (2014).

Samaranay
ake, S. U.,
& De
Silva, S.
(2013)

Performance Performance management Performance Management Haas, E.

Management is a much broader and a System would include aspects J., &
System complicated function of like Yorio, P.
HR, as it encompasses (2016),
activities such as joint goal  Measuring the progress
setting, continuous of employee s work Sutheewas
progress review and  Setting innon, P.,
frequent communication goals/objectives of the Hoque, Z.,
and feedback for improved employees &
performance.  Understanding of the Nyamori,
different levels of R. O.
performance (2015)
 Understanding of the
criteria of the Decramer,
performance A. et al,
 Process of performance (2012), De
appraisal Waal, A.
(2013).
Aguinis,
H., Joo,
H., &
Gottfredso
n, R. K.
(2011)
Talent Talent acquisition is the Talent Acquisition would Ruggs, E.
Acquisition process of finding and include aspects like N.,
acquiring skilled human Walker, S.
labor for organizational  Ways of attracting S.,

needs and to meet any talent Blanchard,

labor requirement.  Fair and transparent A., & Gur,
decision process S. (2016)

98
  Attract the best talent Tech, M.
(2014).

Staines, G.
M. (2012)

Singh, K.,
& Sharma,
S. (2014)
Talent Talent Induction is a Talent Induction would Lincoln,
Induction technique by which a new include aspects like M. M.
employee is rehabilitated (2015), Le,
into his surroundings and  Support for the new P. T.
introduced to practices, Joinee (2014),
policies and purpose of the  Warm/friendly Prasad, R.
organization and a process welcome S. (2013).
of acquainting new  Understanding of

employees with the culture/structure/of the

organization. company

Co-Worker Co-worker relationships Co-Worker Relationship McTernan,

Relationship are unique interpersonal would include aspects like W. P.,
relationships with their Dollard,
peers/colleagues and the  Commitment of work M. F.,
organizations in which the with peers Tuckey,
relationships exist and  Friend at workplace M. R., &
develop.  Feel free to express Vandenber
opinions g, R. J.
 Openly discussion of (2016)
issues
 Feeling of trust and Vera, M.,
support towards co- Martínez,
I. M.,

99
 worker Lorente,
L., &
Chambel,
M. J.
(2015)

Scott, K.
L.,
Zagenczyk
, T. J.,
Schippers,
M., Purvis,
R. L., &
Cruz, K.
S. (2014)
Supervisor Supervisor support is Supervisor Support would Alfes, K.,
Support defined as the extent to include aspects like Truss, C.,
which leaders value their Soane, E.,
employees' contributions  Supervisor supports his Rees, C.,

and care about their well- employees &

being. A leader with high  Supervisor cares for his Gatenby,

supervisor support is one employees M. (2013)

that makes employees feel  Supervisor promotes

heard, valued, and cared. participation to take Dysvik,

decisions A.,

 Supervisor coaches and Kuvaas,

supports his team B., &

members Buch, R.
(2014)

Wei Tian,
A.,
Cordery,
100
 J., &
Gamble, J.
(2016)

Biron, M.,
&
Bamberger
, P.
(2012).
Compensation Compensation and benefits Comp & Ben would include Kaur, S.
& Benefits refers to the aspects like (2016),
compensation/salary and
other monetary and non-  Satisfied with the Taylor, S.
compensation (2016).
monetary benefits passed
on by a firm to its  Compensation
Tangthong
employees. practices are in line
, S.,
with the industry
Trimetsoo
practice
ntorn, J.,
 Transparency in
&
reward and pay system
Rojnirunti
 Benefits are designed
kul, N.
to meet changing needs
(2014)
 Employee Related
services are delivered Weldon,
on time D. (2012).

Opportunity Opportunity for Career Opportunity for Career Garcia, E.

for Career Growth can be defined as a Growth would include aspects V. (2016)
Growth way of success where like
McElroy,
atevery regular interval
you must have a new  Opportunities to learn J. C., &
and grow Weng, Q.
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 challenges to  Plan towards long term (2016).
career goals
face, new activity to do, Wang, Q.,
 Varied career
new responsibilities to Weng, Q.,
development
handle and McElroy,
opportunities
J. C.,
most importantly new  Nurturing in early
Ashkanasy
process to learn career stages
, N. M., &
 Equal career
Lievens,
opportunities to all
F. (2014)

Weng, Q.
X., & Xi,
Y. M.
(2013)
Employee Employee engagement is Employee Engagement would Shuck, B.,
Engagement the extent to which include aspects like Nimon,
employees feel passionate K., &
about their jobs, are  Job inspires the Zigarmi,

committed to the employees D. (2016)

organization, and put  At work employees

discretionary effort into feel bursting with Albrecht,

energy S. L.,A.
their work
 Feeling of being strong M. (2015).
and vigorous
Saks, A.
 Proud of one`s work
M. (2006)
 Enthusiastic about
one`s work
 Working with full
dedication

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 3.5. Research Questions

1. What is the impact of Talent Management initiatives on Employee Engagement of the

employees in the BFSI Vertical of IT Sector?

2. What are the areas of Talent Management which impacts Employee Engagement
employees in the BFSI Vertical of IT Sector?

3.6. Research Objectives

1. To develop a theoretical framework to study the impact of Talent Management

practices on Employee Engagement

2. To Empirically validate the theoretical framework of Talent Management which

impacts Employee Engagement

3. Identify the areas of Talent Management that impact Employee Engagement of the
employees in the BFSI Vertical of IT Sector.

4. To recommend a framework to industry practitioners and policy makers in

determining the areas of Talent Management practices that have an impact on
Employee Engagement.

3.7. Formulation of Hypothesis

Main Hypothesis

H0: There is no relationship between talent management practices and employee

engagement

H1: There is a positive relationship between talent management practices and

employee engagement

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 Sub- Hypothesis
H0: There is no relationship between talent development and employee engagement

H1: There is a positive relationship between talent development and employee

engagement
H0: There is no relationship between Workplace environment and employee engagement

H1: There is a positive relationship between Workplace environment and employee

engagement
H0: There is no relationship between Performance Management System and employee
engagement

H1: There is a positive relationship between Performance Management System and

employee engagement
H0: There is no relationship between Opportunity for career growth and employee
engagement

H1:: There is a positive relationship between Opportunity for career growth and
employee engagement
H0: There is no relationship between Talent Acquisition and employee engagement

H1: There is a positive relationship between Talent Acquisition and employee

engagement
H0: There is no relationship between Talent Induction and employee engagement

H1: There is a positive relationship between Talent Induction and employee engagement
H0: There is no relationship between Co-worker relationships and employee engagement

H1: There is a positive relationship between Co-worker relationships and employee

engagement
H0: There is no relationship between Supervisor support and employee engagement

H1: There is a positive relationship between Supervisor support and employee

engagement
H0: There is no relationship between Comp/Ben and employee engagement

H1: There is a positive relationship between Comp/Ben and employee engagement

3.8. Research Design and Sampling

This study primarily is focused on the talent management practices which impact the
employee engagement specifically looking at the BFSI Vertical of IT Sector in Pune. The

104
purpose of this study is to identify those areas which impact the engagement of the
employees. This study is Casual in nature. There were two methods adopted for this study.

1. Qualitative Study which primarily looked at Focused Group Expert Interviews

from the Industry Experts and HR Heads and few employees working in
different domains of few companies in the BFSI Vertical of IT Sector.
2. Quantitative Study which used Questionnaires as a tool to measure the Talent
Management practices impacting Employee Engagement

During the course of this research study, it was taken into consideration that a sampling frame
need to be created that would include each and every item of the targeted population
(employees from BFSI companies from Pune) would be a difficult proposition in terms of the
limitations of both money and time involved for an individual researcher. Hence for the
purpose of this study the Sample Design was created and is outlined below

To study a representative sample of the targeted population the technique of Probability

Sampling was used by the researcher. For the purpose of this research a mixed sample design
technique was used. At the initial stage simple random sampling was adopted, implying use
of technique that worked on convenient availability of the targeted population for research
study and data collection. Following this outline, the researcher chose to conduct the study in
Pune. There is a cluster of BFSI companies in Pune. The prime reason for selection of Pune
as a representative sample of the BFSI is based on the following reasons.

Pune is already a well-established IT destination, and has been giving the likes of Bangalore
and Hyderabad very tough competition. The burgeoning IT industry in areas like Kharadi,
Hinjewadi, Magarpatta and Tathawade are drawing massive amounts of information
technology business into the city. This has also had a major impact on the city‘s real estate
sector. Pune has over 50 established and prominent IT companies who have their main
offices in the city, including organizations such as Accenture, Amdocs, AtoS, Capgemini,
Cognizant, Deloitte, GlobalLogic, Hexaware Technologies, Infosys, Larsen & Toubro
Infotech, Mastek, Mphasis, SunGard and Symantec. These companies are generating scores
of jobs for Pune‘s highly qualified software professionals each year, in addition to hundreds

105
of BPO jobs. It is by now a well-established fact that Pune is one of the most preferred
software and business-process outsourcing destinations in the country.

There are many reasons for this beyond the wealth of IT professionals that it produces from
its various top-notch educational institutions every year. Information technology companies
prefer Pune over a city Bangalore because of the lower real estate costs involved in setting up
operations here. In fact, the more rational real estate costs in Pune provide another major
plus-point. This is the fact that IT employees who are looking at buying their own homes can
easily avail of home loans and buy properties in the city which are conveniently close to the
companies they work in, even on entry salaries. Moreover, the city is replete with attractive
rental options. In fact, Pune has the highest incidence of IT professionals who start out in
rented homes and graduate to purchasing homes in the city later on. Pune‘s affordable
housing rates are not the only factor at play in this dynamic. The city is also far more
attractive in terms of the overall lifestyle quotient it offers, where it once again beats
Bangalore hands down.

Another factor which is very important from an attrition management point of view is that
commuting is not a big problem when compared to cities like Mumbai, Bangalore and Delhi
NCR. Pune is a relatively compact city, and this ensures that employees can travel to and
from work easily. This plays a very significant role in talent retention and overall employee
satisfaction. Pune‘s IT professionals are a far more contented lot than in any other Indian city.

Finally, IT firms are attracted to Pune because it offers significant cost arbitrage on salary
outgoings, specifically in terms of the dearness allowances payable to employees in various
cities. In this respect, Pune presents a favorable proposition as it does not max out on the cost
of living index the way cities like Bangalore and Mumbai do. For example, housing rental
costs in Bangalore are 13.5% higher than in Pune. Though individual purchasing power in
Bangalore is higher by around 3.5%, a large part of an employee‘s income is spent on paying
rent.(MoneyControl.com, 2015)

3.9. About the IT Sector

India is the world's largest sourcing destination, accounting for approximately 55 per cent of
the US$ 146 billion market. The country's cost competitiveness in providing Information
106
Technology (IT) services, which is approximately 3-4 times cheaper than the US, continues
to be its Unique Selling Proposition (USP) in the global sourcing market.

India‘s highly qualified talent pool of technical graduates is one of the largest in the world
and is available at a cost saving of 60-70 per cent to source countries. This large pool of
qualified skilled workforce has enabled Indian IT companies to help clients to save US$ 200
billion in the last five years.

India‘s IT industry amounts to 12.3 per cent of the global market, largely due to exports.
Export of IT services accounted for 56.12 per cent of total IT exports (including hardware)
from India. The Business Process Management (BPM) segment accounted for 23.46 per cent
of total IT exports during FY15.

Figure 11 Market Size of IT Industry in India

The IT-BPM sector in India grew at a Compound Annual Growth rate (CAGR) of 15 per cent
over 2010-15, which is 3-4 times higher than the global IT-BPM spend, and is estimated to
expand at a CAGR of 9.5 per cent to US$ 300 billion by 2020.The Government of India has
extended tax holidays to the IT sector for software technology parks of India (STPI) and
Special Economic Zones (SEZs). Further, the country is providing procedural ease and single
window clearance for setting up facilities.

107
Figure 12 Graduates addition to talent pool in India

India‘s technology and BPM sector is estimated to have generated US$ 146 billion in
revenue during FY15 compared to US$ 118 billion in FY14, implying a growth rate of
23.72 per cent.• The contribution of the IT sector to India‘s GDP rose to approximately 9.5
per cent in FY15 from 1.2 per cent in FY98

• The top six firms contribute around 36 per cent to the total industry revenue, indicating the
market is fairly competitive, with TCS being the leader accounting for about 10.1 per
centThe Banking Finance Service and Insurance (BFSI) vertical of the IT Sector companies
based in Pune are considered and studied for the purpose of this research.

3.10. About the BFSI Vertical

India is the world‘s largest sourcing destination for the information technology industry,
accounting for approximately 52% of the USD 125-130 Billion dollar industry. The industry
employs more than 10 million Indians and continues to contribute significantly to the social
and economic transformation in the country. (IBEF, 2016)

The IT-BPM sector in India expanded at a CAGR of 15 percent over 2010–15, which is 3–4
times higher than the global IT-BPM growth, and is estimated to expand at a CAGR of 9.5
percent to USD 300 billion by 2020. (CII & PWC Report, 2016).India‘s highly qualified
talent pool of technical graduates is one of the largest in the world ,facilitating its emergence
as a preferred destination for outsourcing , computer science / information technology

108
accounts for the biggest chunk of India 'fresh engineering talent pool , with more than 98
percent of the colleges offering this stream.

Figure 13 Export Revenue Growth of IT Sector in India

Source: ibef, 2015 report

The sector ranks fourth in India‘s total FDI share and accounts for approximately 37 percent
of total Private Equity and Venture investments in the country. IT firms in India have
delivery centres across the world; as of 2015, IT firms had a total of 640 centres in more than
78 countries. India‘s IT industry amounts to 12.3 per cent of the global market, largely due to
exports IT & ITeS industry is well diversified across verticals such as BFSI, telecom and
retail.

BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of
around USD31 billion during FY13, accounting for 41.0 per cent of total IT-BPM exports
from India. Approximately 85 per cent of total IT-BPM exports from India are across four
sectors: BFSI, telecom, manufacturing and retail. (IBEF, 2016)

This research study is conceptualized with an objective to understand how practices of Talent
Management impact Employee Engagement. This research work is anconscious attempt to
give an insights to industry practitioners/Human Resources Heads and Trainers about how
practices of Talent Management can bring about an affect in the engagement of the
employees.

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The working population in the BFSI Sector in Pune is the research criteria for this survey.
Both demographics of male and female with a work experience starting from 1 to 15 years in
the BFSI companies. Hence, it was appropriate to use the Simple Random Sampling
technique which is a suitable technique for availing sample data which are difficult to reach
respondents or for populations wherein the size is huge. A simple random sampling was used
due to the convenient accessibility and proximity to the researcher. The important aspect of
this sampling method is the use of referential sources for acquiring sensitive data that would
otherwise not be easily available to the concerned researcher. This technique seemed
appropriate in case of this research study as the study was related in understanding the
perceptions of the employees of organization practices and workplace support, which remains
a delicate area for employees; employees being apprehensive of discussing/outlining their
opinions on the practices of Talent Management in the organizational setting.

During the initial pilot survey phase it was realized that the topic was sensitive and
confidential for the respondents as this was gauged by the researcher. Therefore during the
collection of the data during the main survey study, the researcher chose to route the survey
instrument through formal channels of Department Heads/Managers and Human Resources
teams. The researcher also adopted the informal ways of reaching out to employees of the
BFSI vertical companies working in Pune through referential route/networking route. Hence
Simple Random Sampling seemed appropriate for this study. The researcher further designed
the questionnaire (survey instrument) on an online platform through Google Docs, wherein
the respondents were mailed the link to the survey instrument enabling them to respond to the
survey outside the organizational settings through their personal internet connectivity. The
link was only sent to the employees working in the BFSI companies in Pune namely
Barclays, BNY Mellon, Capgemini, Credit Suisse, UBS, Deutshe Bank, HSBC, IBM, Wipro
Technologies. These companies were a mix of process based companies and financial
captives.

Since the sample data consists of the employees working in the IT sector and their presence
in the online and web based prefer through these platforms, online/web based method of data
collection was used. For few cases data of the respondents who didn‘t have access to internet
connectivity or were unable to do so were given hard copy of the survey forms were
administered and collected.
110
The sample size of this research study was determined in accordance to the following.
According to Nascomm Report 2015, the total employees working in IT sector 3.5 million
(approx. 210000 in Pune). It is estimated that 10% of employees work in BFSI segment
within IT industry. Taking a confidence interval at 95% with an error margin of +-7%, a
sample size of 500 employees was found to be appropriate for the study.

A total of 525 respondents were collected from the employees of BFSI Vertical of IT
companies in Pune. Both online as well as off line (hard copy) of the questionnaire was used
to collect the data. After elimination of some half-filled survey forms, the final respondent
tally stood at 502 filled survey forms.

3.11. Designing of Survey Instrument (Tool)

The data collected for this research is cross sectional in nature. The idea behind choosing
cross sectional research is because it captures the experiences, opinions, beliefs of the
respondents accurately (Yin, 2013; Sauders et. al, 2011; Zikmund, 2003).

The questionnaire approach offers a much closer picture of the actual population and the
results collected from the sample respondents can be extrapolated to the population as a
whole. (Zikmund et. al, 2012; Hair et. al, 2008; Zikmund, 2003).

Schwab (1980) has suggested 3 stages of scale development

1. Item Generation – Item generation procedure resembles what Hinkin (1995)

terms as ―deductive approach‖ wherein few of the acquaintances have being
working in the BFSI sector so cue was taken from them. Also it was ensured that
none of the items matched with any other item included in the scale. There were 5
heads of HR, 5 Project Managers, 5 Delivery Managers, 15 Developers and
Testers participated in several discussions for generating items. These people
came from 4 different companies of the BFSI Vertical of IT Sector. All the items
generated by the practitioners were combined with the items generated through
Literature Review. The combined pool thus generated 52 items. Item Generation
procedure followed deductive approach suggested by Hinkin (1995).

111
 2. Scale Development- the scale was developed by using 50 items of Talent
Management and other descriptive questions on each of the Talent Management
practice.
3. Scale Evaluation- the Evaluation of the scale was done using 2 techniques. The
Content Validity included careful specification of the constructs, review of scaling
procedures by content validity and consultation with the experts and also the samples.
It‘s a subjective evaluation for the scale for its ability to measure what it is supposed
to measure. There were 10 experts from the industry and 5 experts from academics
which conducted this face validity for the Talent Management Scale. Some items
were deleted and added based on the recommendations of the experts.
The Construct Validity was tested using Exploratory Factor Analysis. Exploratory
Factor Analysis (EFA) was used to study the dimension of each factor of the multi-
dimensional construct i.e. Talent Management. This test helps in exploring linkages
between the factors of Talent Management.
The Confirmatory Factor Analysis was used to study to test whether measures of
the Talent Management construct are consistent with a researcher's understanding of
the nature of that construct (or factor). As such, the objective of confirmatory factor
analysis is to test whether the data fit a hypothesized measurement model.

To capture opinions and inputs on various quantifiable parameters Questionnaire were

designed. The data for Survey Instrument was collected via Google Docs, wherein the
respondents were mailed the link to the Survey Instrument enabling them to respond to the
survey. The links were only sent to the employees of the selected BFSI companies based in
Pune. At the beginning of the Online Survey, the aspect of assurance related to
Confidentiality of the data was clearly mentioned at the beginning of the Online Survey.
Questionnaire mentioned that this data was being purely collected for academic research and
will not be shared for any other purpose. The aim of this clause was to reduce apprehension
of the employees and maintain confidentiality of the data specifically for research purposes.

There were two scales of data used to collect data.

112
  Talent Management Scale- A 50 items survey Questionnaire was designed to
study the Talent Management dimensions viz Talent development,
Workplace environment, Performance Management System, Opportunity for
career growth, Talent Acquisition, Talent induction, Co-worker relationships/
Supervisor support and Compensation & Benefits. This instrument measured
all the dimensions of Talent Management with employee engagement. This
scale was developed by carefully studying the literature review and by taking
interviews from the subject matter experts both the industry as well as
academics.
 Employee Engagement Scale- Gallop`s scale of Employee Engagement
consisting of 7 items was used to measure Engagement of the employees.

The questionnaire is in line with the research objectives and developed hypothesis from the
conceptual model. It comprises of questions relating to demographic data hence, the
descriptive association could be easily studied. The framing of the questions incorporated
simple words which were mostly positive in nature. Also, special care was taken such that the
questions were short and did not lead to ambiguous answers (Dilamn, 2000; Zikmund, 2003;
Rattray & Jones, 2007; Sanchez, 1992).

The questionnaire helped in collecting nominal and ordinal data. The nominal data which was
basically a demographic data was collected using closed-ended questions while the ordinal
data which recorded the beliefs of the target group was collected using a Likert Scale.

3.12. Pre-testing and Pilot Study

Before the survey, the questionnaire was pretested with a small sample size so as to revise
and reform it (Lancaster et. al, 2004; Collins, 2003). Therefore, pre-test and pilot study forms
an integral part of research design, especially if the study is quantitative in nature (Blair et. al,
2013; Wills, 2004). Pre-test and pilot study is conducted before the actual data collection is
done as it ensures the validity and the non-ambiguity of the instrument. It gives a rough idea
about the questionnaire in terms of its‘ content, layout, framing and positioning of the
questions (Wills, 2004; Beatty & Willis, 2007; Blair et. al, 2013).

113
The questionnaire was distributed to a group of 50 employees from BFSI companies in Pune.
The idea was to obtain genuine and relevant responses from the small set of respondents. The
comments received from the experts were critically discussed with them (Bowden et. al,
2002). While, whatever feasible and relevant with respect to this research was incorporated.
The questionnaire went through minor changes mainly relating to positioning and
restructuring.

The final questionnaire after pre-testing was pilot tested in two different companies namely
HSBC and Credit Suisse. The two Companies; HSBC and Credit Suisse, were randomly
selected and were chosen purposely so as to ensure representation of the sample. The
duration of the pilot study was done over a span of 2 weeks. The data collected was
interpreted. The pilot test helped in testing the reliability of the instrument. The final version
of the questionnaire was then prepared after the elimination of 2 items from the Talent
Management Scale as they were not very valid. So the Talent Management Questionnaire had
50 items in the scale.

3.13. Validity of the Talent Management Scale

The Content Validity included careful specification of the constructs, review of

scaling procedures by content validity and consultation with the experts and also the
samples. It‘s a subjective evaluation for the scale for its ability to measure what it is
supposed to measure. There were 10 experts from the industry and 5 experts from
academics which conducted this face validity for the Talent Management Scale. Some
items were deleted and added based on the recommendations of the experts.
The Construct Validity was tested using Exploratory Factor Analysis. Exploratory
Factor Analysis (EFA) was conducted to study the dimension of each factor of the
multi-dimensional construct i.e. Talent Management. This test helps in exploring
linkages between the factors of Talent Management.
Confirmatory Factor Analysis was used to study to test whether measures of a
construct are consistent with a researcher's understanding of the nature of that
construct (or factor). As such, the objective of confirmatory factor analysis is to test
whether the data fit a hypothesized measurement model.

114
 3.13.1. KMO and Bartlett’s Test of Sphericity – Pre condition for Factor
Analysis

KMO & Bartlett‘s Test of Sphericity is a measure of sampling adequacy that is recommended
to check the case to the variable ratio for the analysis being conducted. KMO & Bartlett‘s test
is used for accepting the sample adequacy in any study. The Bartlett‘s Test of Sphericity
relates to the significance of the study and thereby shows the validity and suitability of the
responses collected to the problem being addressed through the study. The results of these
tests form the foundation for factor analysis. The suitability of the Bartlett‘s Test of
Sphericity is judged at a significance level of less than 0.05 which is seen from the results.

The results from Table 7 below reveal that the Kaiser-Meyer-Olkin Measure of Sampling
Adequacy has a value 0.762. The table also shows that Bartlett‘s test of sphericity was (p
<.001). The results reveal that the sample data is fit to perform factor analysis. The results
also indicate a way forward towards the validity of the construct. Therefore, the results
confirm that the analysis should be taken to the next level.

Table 7 KMO statistics and Bartlett`s test of Sphericity

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .762
Bartlett's Test of Sphericity Approx. Chi-Square 16461.339
df 1225
Sig. .000

3.13.2. Exploratory Factor Analysis

Exploratory factor analysis (EFA) is used to uncover the underlying structure of a relatively
large set of variables in this research. The eight variables which lead to employee engagement
can be studied using EFA as it gives a basic structure of the relationship between the
variables. EFA is based on the common factor model in this study. Within the common factor
model, a function of common factors, unique factors, and errors of measurements expresses
measured variables are calculated for the study. Table 8 presents results of factors‘ extraction
on the basis of the Eigen values greater than 1 criterion, which resulted in the identification of
nine factors. The first factor explained 13.178% of the total variance and other eight factors
115
explained the remaining variance in the model. The results also show that the nine variables
explain about 73 % of that model which indicates that the factors explored are close in
indicating the true model.

Table 8 Number of factors extracted and variance explained in EFA Model

Total Variance Explained

Extraction Sums of Squared Rotation Sums of
Initial Eigen values
Loadings Squared Loadings
Cu
Component % of % of % of
Cumulativ Cumul mul
Total Varianc Total Varianc Total Varianc
e% ative % ativ
e e e
e%

Talent 10.4
6.589 13.178 13.178 6.589 13.178 13.178 5.208 10.415
Development 15

Workplace 19.8
5.137 10.274 23.452 5.137 10.274 23.452 4.725 9.450
Environment 65

Perf Mgt 29.3

4.705 9.409 32.861 4.705 9.409 32.861 4.723 9.447
System 12

Opportunity
38.1
For Career 4.575 9.150 42.011 4.575 9.150 42.011 4.400 8.800
11
Growth
Talent 45.7
3.717 7.434 49.445 3.717 7.434 49.445 3.822 7.643
Acquisition 55

Talent 53.3
3.443 6.885 56.330 3.443 6.885 56.330 3.810 7.619
Induction 74

Co-Worker 60.9
2.939 5.877 62.207 2.939 5.877 62.207 3.776 7.552
Relationships 26

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 Supervisor 67.1
2.787 5.574 67.781 2.787 5.574 67.781 3.113 6.226
Support 53

70.1
Comp/Benefits 1.404 2.809 70.590 1.404 2.809 70.590 1.484 2.968
21
Employee 73.0
1.208 2.417 73.007 1.208 2.417 73.007 1.443 2.886
Engagement 07

The scree plot of the factors extracted is shown in Figure 14. The factors extracted are having
Eigen values greater than one. The scree plot indicates that there are nine factors which
follow Eigen values greater than 0.5. A scree plot is a pictorial representation of Table 21
and, therefore, the plot confirms the data and its distribution in the pictorial form. It is
important to Understand and analyze the point where the curve bends because the point
indicates the last factor derived from the Eigen values.

Figure 14 Scree Plot of the ten variables

3.13.3. Loadings of measured items

This section gives a glimpse of testing the divergent and convergent constructs and their
respective measures items. Table 9 refers to the data of rotated component matrix which
represents the loadings of each of the measured items on the derived latent factors. The nine
factors indicate that the measured items bear high loading on the constructs involved in the

117
hypothesized relationships. The minimum criteria of 0.50 were observed between the
constructs which confirm that the factor loading was well justified.

The high loadings could be due to the impact of these variables while measuring the
constructs. The loading values also denote that the variables identified from the literature
review were aptly found out and, therefore, it is important to include all the variables in
developing the theoretical framework.

Table 9 Rotated Component Matrix

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8 9 10
Talent Development 0.873

Talent Development 0.625

Talent Development 0.867

Talent Development 0.739

Talent Development 0.831

Talent Development 0.7

Workplace 0.781
Environment
Workplace 0.716
Environment
Workplace 0.746
Environment
Workplace 0.807
Environment
Workplace 0.821
Environment
Workplace 0.835
Environment
Perf Mgt System 0.733

Perf Mgt System 0.799

118
Perf Mgt System 0.821

Perf Mgt System 0.855

Perf Mgt System 0.85

Perf Mgt System 0.67

Perf Mgt System 0.921

Career Growth 0.837

Career Growth 0.893

Career Growth 0.845

Career Growth 0.87

Career Growth 0.782

Career Growth 0.843

Talent Acquisition 0.73

Talent Acquisition 0.74

Talent Induction 0.836

Talent Induction 0.918

Talent Induction 0.825

Talent Induction 0.852

Talent Induction 0.854

Co-Worker 0.866
Relationships
Co-Worker 0.807
Relationships
Co-Worker 0.898
Relationships
Co-Worker 0.904
Relationships
Co-Worker 0.788
Relationships

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 Co-Worker 0.85
Relationships
Co-Worker 0.857
Relationships
Supervisor support 0.853

Supervisor support 0.87

Supervisor support 0.93

Supervisor support 0.833

Supervisor support 0.91

Supervisor support 0.849

Compensation/Benefits 0.891

Compensation/Benefits 0.888

Compensation/Benefits 0.895

Compensation/Benefits 0.731

Compensation/Benefits 0.792

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a

a. Rotation converged in 8 iterations.

3.13.4. Confirmatory Factor Analysis (Convergent Validity)

I) TALENT DEVELOPMENT

Table 10 Definition and measured indicators of Talent Development

Definition Measured Indicators

Talent development focuses on the planning, There is someone at work who encourages my
selection and implementation of development
development In my business, employees are trained/taught
how to interact with people from different
strategies to ensure that the organization has cultures.
both the current and future supply of talent I have received adequate training necessary to
to meet strategic objectives and that do my job well.
120
development activities are aligned The training and development inputs given to
me are timely.
With organizational talent management I am able to effectively apply my learnings on
processes. the job from the training programmes I attend.
The appraisal/performance feedback by my
manager gives adequate emphasis to my
developmental needs.

Figure 15 Convergent Validity of Talent Development

Table 11 Convergent Validity of Talent Development (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 3.969 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.914 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.879 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.972 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.025 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.
121
They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Talent Development and have a factor loading above the threshold level of 0.5 expect. Hence
validity is supported for Talent Development.

Assessing the significance of the Constructs

Strengths and the significance of constructs were assessed using Standardized Regression
weights and p value.

Table 12 Standardized Regression Weights of Talent Development

Sr. Indicators Factor P

No Loadings value
1 TD1 .954 0.000
2 TD2 .754 0.000
3 TD3 .726 0.000
4 TD4 .815 0.000
5 TD5 .809 0.000
6 TD6 .808 0.000

II) WORKPLACE ENVIRONMENT

Table 13 Definition and measured indicators of Workplace Environment

Definition Measured Indicators

A workplace environment is marked by My company is a conducive place for women
attributes as physical conditions, trust to work.
between the employees and management, My business encourages new ideas and ways
fairness for everyone, and a sensible work of working.
load with challenging yet achievable goals. I know what is expected of me at work.
I have the materials and equipment I need to
do my work right.
At work, I have the opportunity to do what I
do best every day.
At work, my opinions seem to count.

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Figure 16 Convergent Validity of Workplace Environment

Table 14 Convergent Validity of Workplace Environment (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 3.823 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.906 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.844 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit

GFI (Goodness of 0.932 More than 0.9 Acceptable Fit

fit index)
RMSEA (Root 0.027 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Workplace Environment and have a factor loading above the threshold level of 0.5 expect.
Hence validity is supported for Workplace Environment.

123
Assessing the significance of the Constructs

Strengths and the significance of constructs was assessed using Standardized Regression
weights and p value.

Table 15 Standardized Regression Weights of Workplace Environment

Sr. Indicators Factor P

No Loadings value
1 WP1 .878 0.000
2 WP2 .863 0.000
3 WP3 .832 0.000
4 WP4 .814 0.000
5 WP5 .839 0.000
6 WP6 .871 0.000

III Performance Management System

Table 16 Definition and measured indicators of Performance Management System

Definition Measured Indicators

Performance management encompasses In the last six months, someone at work has
activities such as joint goal setting, talked to me about my progress.
continuous progress review and frequent I have a clear understanding of the
communication and feedback for improved promotion/upgradation policy linked to job
performance, implementation of employee bands.
development programmes and rewarding There is adequate planning of work in my
achievements. department to reach goals/targets effectively.
My manager takes the performance appraisal
responsibility seriously.
I am clear about the criteria on which my
performance is evaluated
The appraisal processes in my company
clearly distinguishes between different levels
of performance (average from good/good from
exceptional).
The appraisal/performance feedback by my
manager gives adequate emphasis to my
developmental needs.

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Figure 17 Convergent Validity of Performance Management System

Table 17 Convergent Validity of Performance Management System (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 2.801 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.996 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.953 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit

GFI (Goodness of 0.982 More than 0.9 Acceptable Fit

fit index)
RMSEA (Root 0.072 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Performance Management System and have a factor loading above the threshold level of 0.5
expect. Hence validity is supported for Performance Management System

125
Assessing the significance of the Constructs

Strengths and the significance of constructs was assessed using Standardized Regression
weights and p value.

Table 18 Standardized Regression Weights of Performance Management System

Sr. Indicators Factor P

No Loadings value
1 PMS1 .942 0.000
2 PMS2 .966 0.000
3 PMS3 .884 0.000
4 PMS4 .953 0.000
5 PMS5 .916 0.000
6 PMS6 .825 0.000
7 PMS7 .721 0.000

IV Opportunity for Career Growth

Table 19 Definition and measured indicators of Career Growth

Definition Measured Indicators

Opportunity for Career Growth can be This last year, I have had opportunities at
defined as a way of success where at every work to learn and grow
regular interval you must have a new I see a clear plan towards achieving the long
challenges to face, new activity to do, new term goals of my business
responsibilities to handle and most I believe my company offers varied career
importantly new process to learn opportunities to its employees.
My company has processes to support and
nurture employees who are in early career
stages.
I am clear about what is required of me to
move to the next level in my career.

126
 My company offers equal career
opportunity to all employees irrespective of
gender, nationality, religion, etc.

Figure 18 Convergent Validity of Career Growth

Table 20 Convergent Validity of Career Growth (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 3.462 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.998 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.954 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit

GFI (Goodness of 0.951 More than 0.9 Acceptable Fit

fit index)
RMSEA (Root 0.027 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

127
They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Career Growth and have a factor loading above the threshold level of 0.5 expect. Hence
validity is supported for Career Growth.

Assessing the significance of the Constructs

Strengths and the significance of constructs were assessed using Standardized Regression
weights and p value.

Table 21 Standardized Regression Weights of Career Growth

Sr. Indicators Factor P

No Loadings value
1 CG1 .682 0.000
2 CG2 .793 0.000
3 CG3 .683 0.000
4 CG4 .929 0.000
5 CG5 .822 0.000
6 CG6 .680 0.000

V Talent Acquisition

Table 22 Definition and measured indicators of Talent Acquisition

Definition Measured Indicators

Talent acquisition is the process of finding and My company is able to attract the best talent.
acquiring skilled human labor for organizational My company is fair and transparent in its
needs and to meet any labor requirement. Selection Process

128
Figure 19 Convergent Validity of Talent Acquisition

Table 23 Convergent Validity of Talent Acquisition (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 2.346 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.89 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.86 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.91 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.05 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Talent Acquisition and Orientation have a factor loading above the threshold level of 0.5
expect. Hence validity is supported for Talent Acquisition.
129
Assessing the significance of the Construct

Strengths and the significance of constructs was assessed using Standardized Regression
weights and p value.

Table 24 Standardized Regression Weights of Talent Acquisition

Sr. Indicators Factor P

No Loadings value
1 TA1 .870 0.000
2 TA2 .790 0.000

VI Talent Induction

Table 25 Definition and measured indicators of Talent Induction

Definition Measured Indicators

Talent Induction is a technique by which a My company provides adequate support for a
new employee is rehabilitated into his new joinee and his/her family to settle down
surroundings and introduced to practices, quickly.
policies and purpose of the organization and My Company provides a warm and friendly
a process of acquainting new employees with welcome to the new Joinee
the organization. My Company provides adequate skills and
training to the New Joinee during induction
My Organization `s induction provides an
understanding of the company culture,
structure, products and services
The induction includes setting out work
objectives : Department and company goals

130
Figure 20 Convergent Validity of Talent Induction

Table 26 Convergent Validity of Talent Induction (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 3.723 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.996 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.944 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.9 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.02 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

All the above fit indices suggest a good fit between sample data and hypothetical model.
Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity. They range between +1 and -1. The threshold value for
factor loading is 0.5. High loadings on factor indicate that the items converge on some
common point. All measured indicators of Talent Induction and Orientation have a factor
loading above the threshold level of 0.5 expect. Hence validity is supported for Talent

131
Induction and Orientation. Assessing the significance of the Construct: Strengths and the
significance of constructs was assessed using Standardized Regression weights and p value.

Table 27 Standardized Regression Weights of Talent Induction

Sr. Indicators Factor P

No Loadings value
1 TI1 .939 0.000
2 TI2 .940 0.000
3 TI3 .901 0.000
4 TI4 .942 0.000
5 TI5 .901 0.000

VII Co-Worker Relationships

Table 28 Definition and measured indicators of Co-Worker Relationships

Definition Measured Indicators

Co-worker relationships are unique My associates or team members are
interpersonal relationships with their committed to doing quality work.
peers/colleagues and the organizations in I have a best friend at work.
which the relationships exist and develop. My team members help, trust and support
each other
My team members show consideration for
needs and feelings of other team members.
I feel free to express my opinions in my
team.
No individual, group or gender dominates
the team activities.
My team members can openly discuss their
own problems and issues.

132
Figure 21 Convergent Validity of Co-Worker Relationships

Table 29 Convergent Validity of Co-Worker Relationships (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 4.046 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.953 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.946 More than 0.9 for Acceptable Fit
Fitness Index) good fit, 0.9 to 0.8
border line fit
GFI (Goodness of 0.926 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.033 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

All the above fit indices suggest a good fit between sample data and hypothetical model.

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Co-Worker Relationship have a factor loading above the threshold level of 0.5 expect. Hence
validity is supported for Co-Worker Relationship

133
Assessing the significance of the Construct :Strengths and the significance of constructs was
assessed using Standardized Regression weights and p value.

Table 30 Standardized Regression Weights of Co-Worker Relationships

Sr. Indicators Factor P

No Loadings value
1 CW1 .876 0.000
2 CW2 .817 0.000
3 CW3 .845 0.000
4 CW4 .784 0.000
5 CW5 .836 0.000
6 CW6 .769 0.000
7 CW7 .677 0.000

VIII Supervisor Support

Table 31 Definition and measured indicators of Supervisor Support

Definition Measured Indicators

Supervisor support is defined as the extent to My supervisor, or someone at work, seems to
which supervisors value their employees' care about me as a person
contributions and care about their well-being. My supervisor shares his responsibility with
An employee with high supervisor support is his team members
one that makes employees feel heard, valued, My supervisor promotes individual problem
and cared. solving and intelligent risk taking.
My supervisor focuses on building each
employee`s technical and interpersonal skills.
My supervisor promotes participation by the
team in key decisions.
My supervisor coaches and supports
individual team members.

134
Figure 22 Convergent Validity of Supervisor Support

Table 32 Convergent Validity of Supervisor Support (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 1.165 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.982 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.926 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.915 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.016 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

All the above fit indices suggest a good fit between sample data and hypothetical model.

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity. They range between +1 and -1. The threshold value for
factor loading is 0.5. High loadings on factor indicate that the items converge on some
common point. All measured indicators of Supervisor Support have a factor loading above
the threshold level of 0.5 expect. Hence validity is supported for Supervisor Support.
135
Assessing the significance of the Construct: Strengths and the significance of constructs was
assessed using Standardized Regression weights and p value.

Table 33 Standardized Regression Weights of Supervisor Support

Sr. Indicators Factor P

No Loadings value
1 SS1 .833 0.000
2 SS2 .721 0.000
3 SS3 .727 0.000
4 SS4 .735 0.000
5 SS5 .810 0.000
6 SS6 .722 0.000

IX Compensation and Benefits

Table 34 Definition and measured indicators of Compensation and Benefits

Definition Measured Indicators

Compensation and benefits refers to the I am satisfied with my compensation in this
compensation/salary and other monetary and company
non-monetary benefits passed on by a firm to My Company's compensation practices are in
its employees. line with industry practice.
In my company, rewards and pay increase
are decided in a systematic and transparent
way.
In my company, Employee-related services
(Medical, Insurance, Reimbursements,
Travel, etc.) are delivered on time
The employee benefits offered by my
company are designed to meet changing
employee needs

136
Figure 23 Convergent Validity of Compensation and Benefits

Table 35 Convergent Validity of Compensation and Benefits (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 4.023 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.945 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.93 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.987 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.031 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

All the above fit indices suggest a good fit between sample data and hypothetical model.

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Compensation & Benefits have a factor loading above the threshold level of 0.5 expect.
137
Hence validity is supported for Compensation & Benefits. Assessing the significance of the
Construct. Strengths and the significance of constructs was assessed using Standardized
Regression weights and p value.

Table 36 Standardized Regression Weights of Compensation and Benefits

Sr. Indicators Factor P

No Loadings value
1 CB1 .960 0.000
2 CB2 .936 0.000
3 CB3 .967 0.000
4 CB4 .903 0.000
5 CB5 .912 0.000

3.13.5. Confirmatory Factor Analysis (Discriminant Validity)

The discriminant validity of the constructs is assessed by comparing average variance

extracted (AVE) and its corresponding squared inter-construct correlation (SIC). The results
for each of the constructs are tabulated in Table 37 and Table 38.

Table 37 Inter-construct correlations

TD WP PMS CG TA TI COW SS CB
TD 1
WP 0.63 1
PMS 0.423 0.341 1
CG 0.51 0.438 0.431 1
TA 0.367 0.572 0.325 0.392 1
TI 0.251 0.297 0.314 0.213 0.062 1
COW 0.287 0.283 0.298 0.351 0.113 0.214 1
SS 0.4 0.298 0.351 0.294 0.405 0.162 0.072 1
CB 0.557 0.583 0.342 0.281 0.362 0.321 0.241 0.293 1

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Table 38 Discriminant Validity

TD WP PMS CG TA TI COW SS CB
TD 0.762
WP 0.383 0.723
PMS 0.226 0.113 0.788
CG 0.244 0.199 0.183 0.772
TA 0.129 0.346 0.101 0.176 0.901
TI 0.063 0.083 0.121 0.061 0.014 0.789
COW 0.072 0.063 0.099 0.149 0.046 0.082 0.752
SS 0.156 0.081 0.142 0.104 0.201 0.025 0.014 0.825
CB 0.314 0.341 0.135 0.113 0.113 0.135 0.074 0.052 0.736

Note: Diagonal values are AVE and off diagonal are inter-construct squared correlations

The comparison between the two values indicates that the estimates of AVE for each of the
constructs have a higher value than its corresponding SIC estimates. This demonstrates a high
level of discriminant validity for the constructs. The results also indicate that the derived
measures set of constructs have a high similarity with the latent constructs with which they
were associated. These results favor a strong and significant value of discriminant validity.

3.14. Reliability of the Questionnaire

The reliability of any questionnaire can be tested by checking the internal consistency of the
measured items using a Cronbach‘s alpha test. The test generates a number in the range 0 to 1
of which any score greater than 0.7 is ideally considered as significantly acceptable (Bland &
Altman, 1997; Nunally, 1978). Any score lesser than 0.6 should be discarded while scores
greater than 0.8 are considered to be highly acceptable (Sekaran, 2000). Therefore, scores
closer to 1 indicates a higher level of reliability. Table 39 indicates the list of coefficients of
Cronbach alpha for the pilot study.

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Table 39 Cronbach’s Alpha Coefficients for Variables of Talent Management

Construct Cronbach’s Alpha

Talent development .874

Workplace environment .878

Performance Management System .913

Opportunity for career growth .916

Talent Acquisition .718

Talent induction .912

Co-worker relationships .930

Supervisor support .942

Compensation and Benefits .856

Overall .849

3.15. Validity for Employee Engagement Scale

3.15.1. Exploratory Factor Analysis

Since this was a pre-tested questionnaire only Exploratory Factor Analysis was performed.
Exploratory Factor Analysis (EFA) was conducted to study the dimension of each factor of
the multi-dimensional construct i.e. Employee Engagement.

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Table 40 KMO statistics and Bartlett`s test of Sphericity Employee Engagement

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.872
Adequacy.
Bartlett's Test ofApprox. Chi-Square 4996.825
Sphericity df 21
Sig. .000

The results from Table 40 reveal that the Kaiser-Meyer-Olkin Measure of Sampling
Adequacy has a value 0.872. The table also shows that Bartlett‘s test of sphericity was (p
<.001). The results reveal that the sample data is fit to perform factor analysis. The results
also indicate a way forward towards the validity of the construct. Therefore, the results
confirm that the analysis should be taken to the next level.

Table 41 Component Matrix of Employee Engagement

Component
EE
K1 .962
K2 .963
K3 .951
K4 .804
K5 .861
K6 .962
K7 .978
Extraction Method:
Principal
Component
Analysis.

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a. 1 components
extracted.

Table 41 refers to the data of rotated component matrix which represents the loadings of the
measured items on the employee engagement items. All the items were loaded under 1
component.

The loading values also denote that the variables identified from the literature review were
aptly found out and, therefore, it is important to include all the variables in developing the
theoretical framework.

Table 42 Number of factors extracted and variance explained in EFA Model

Total Variance Explained

Employee Initial Eigen values Extraction Sums of Squared Loadings

Engagement Total % of Variance Cumulative % Total % of Variance Cumulative %
1 6.028 86.108 86.108 6.028 86.108 86.108
2 .406 5.800 91.908
3 .316 4.510 96.418
4 .119 1.707 98.125
5 .069 .985 99.110
6 .052 .737 99.847
7 .011 .153 100.000
Extraction Method: Principal Component Analysis.

The results from the table 42 show that first factor explained 86.10% of the total variance and
the other 6 factors explain the remaining variance in the model.

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Figure 24 Scree Plot of the Seven variables of Employee Engagement

The scree plot of the factors extracted is shown in Figure 24. The factors extracted are having
eigen values greater than one. The scree plot indicates that there are nine factors which follow
Eigen values greater than 0.5. A scree plot is a pictorial representation of Table 21 and,
therefore, the plot confirms the data and its distribution in the pictorial form. It is important to
Understand and analyze the point where the curve bends because the point indicates the last
factor derived from the Eigen values.

3.15.2. Confirmatory Factor Analysis (Employee Engagement)

Table 43 Definition and measured indicators of Employee Engagement

Definition Measured Indicators

Employee engagement is the extent to which When I get up in the morning, I feel like
employees feel passionate about their jobs, going to my work.
are committed to the organization, and put I am enthusiastic about my job.
discretionary effort into their work I am proud of the work that I do.
My job inspires me.
When I am working, I forget everything else
around me.
At my work I feel strong and vigorous.
At my work, I feel bursting with energy

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Figure 25 Convergent Validity of Employee Engagement

Table 44 Convergent Validity of Employee Engagement (Fit Indices)

Fit Indices Observed Criteria of Results

acceptance
CMIN/DF 3.934 Less than 5 Acceptable Fit
(Minimum
Discrepancy as
indexed Chi-
Square)
AGFI (Adjusted 0.928 More than 0.9 Acceptable Fit
Goodness of Fit)
CFI (Comparative 0.914 More than 0.9 for Acceptable Fit
Fitness Index) good fit,
0.9 to 0.8 border
line fit
GFI (Goodness of 0.964 More than 0.9 Acceptable Fit
fit index)
RMSEA (Root 0.078 Less than 0.1 Acceptable Fit
Mean Square Error
of Approximation)

All the above fit indices suggest a good fit between sample data and hypothetical model.

Construct Validity was assessed using factor loadings. The factor loadings are a good
indication of convergent validity.

They range between +1 and -1. The threshold value for factor loading is 0.5. High loadings
on factor indicate that the items converge on some common point. All measured indicators of
Employee Engagement have a factor loading above the threshold level of 0.5 expect. Hence
validity is supported for Employee Engagement.

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Assessing the significance of the Constructs. Strengths and the significance of constructs was
assessed using Standardized Regression weights and p value.

Table 45 Standardized Regression Weights of Employee Engagement

Sr. Indicators Factor P

No Loadings value
1 EE1 .964 0.000
2 EE2 .945 0.000
3 EE3 .929 0.000
4 EE4 .728 0.000
5 EE5 .812 0.000
6 EE6 .975 0.000
7 EE7 .997 0.000

3.16. Reliability of the Employee Engagement Scale

Table 46 Cronbach’s Alpha Coefficients for Variables of Employee Engagement

Cronbach's
Alpha N of Items
.939 7

The reliability of any questionnaire can be tested by checking the internal consistency of the
measured items using a Cronbach‘s alpha test. The test generates a number in the range 0 to 1
of which any score greater than 0.7 is ideally considered as significantly acceptable (Bland &
Altman, 1997; Nunally, 1978). Any score lesser than 0.6 should be discarded while scores
greater than 0.8 are considered to be highly acceptable (Sekaran, 2000). Therefore, scores
closer to 1 indicates a higher level of reliability. The Cronbach alpha of Employee
Engagement Scale is .939 which is desirable.

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