Role of Talent Management in Job Satisfaction and Employee Engagement in Information Technology Industry

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1 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 Role of Talent Management in Job Satisfaction and Engagement in Information Technology Industry Mr.T.NareshBabu Research Scholar in Business Management, MBA,(Ph.D), Dravidian University, Assistant professor, K.S.R.M. College of Management Studies, KADAPA A.P. Dr.N.Suhasini MBA, M.Phil, Ph.D., Assistant professor, K.S.R.M. College of Management Studies, KADAPA A.P. Dr.G.L.Narayanappa M.Com, MBA, Ph.D., Dean & Chairman, BOS, School of Commerce & Management, Dravidian University, KUPPAM. A.P. ABSTRACT INTRODUCTION In highly competitive environment IT companies are unable to obtain and retain talent for driving business results. To tackle these challenges companies are implementing talent management which consists of three building blocks: attract, develop and retain. Effective execution of talent management blocks require mortar to stick together i.e., employee engagement and job satisfaction. Talent management practices like reward management, training and development, career growth, performance management and employee empowerment are considered for study. The employee s opinion regarding employee engagement and job satisfaction also analysed with the help of structured questionnaire. The research aims to find out the relation between talent management practices and employee engagement& job satisfaction. Talent management may be a successful instrument to strengthen employee engagement and job satisfaction. Sample size taken for research is 2 but 5 completed questionnaires were obtained. Data was analysed using SPSS 2. version. The findings of the study indicate a positive relationship between talent management and employee engagement & job satisfaction. Research recommends the importance of talent management to strengthen employee KEYWORDS - Talent Management, engagement, Job satisfaction. In present business scenario organisations seeking to build competitive advantage through engaged and satisfied employees. engagement is a key to the retention of talent. Talented people need to feel valued and that their contribution is making a difference. By feeling appreciated, recognised and valued, the identified talent will not only be motivated, but highly engaged and aligned to the organisation s goals and objectives. Angeline (2) showed employee engagement to be related to organizational outcomes such as employees productivity, creativity and innovativeness. They found strong relationships between employees perceptions of supervisor support, organizational justice and employees participation in decision-making processes. engagement measures helps to keep employees more satisfied with their jobs, more committed to their organization, have lower intention to quit and exhibit increased citizenship behaviour. According to Lyon (2), it is important to recognize the skills and knowledge that employees bring to their organisations and it is vital for organisations of all sectors and sizes to identify, develop, deploy and retain key talent. Talent management is the systematic effort to recruit, develop and retain highly productive and promotable people (Davies & Davies, 2) Society for Human Resource Management s (22) Job Satisfaction and Engagement Survey ranked relationship with immediate supervisor, opportunities to use skills and abilities, and ISSN: Page

2 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 autonomy and independence as top drivers for both employee satisfaction and employee REVIEW OF SELECTED LITERATURE According to Wellins, Bernthal, and Phelps (29), engagement does not just materialize. Organizations must hire employees who fit the job requirements i.e. with the right talent, develop them into leaders with the right skills, and provide support through strong systems and strategies. More and more organisations are looking for a winwin solution that meets their needs and those of their employees. Gubman (24), states that engagement is varied and clearly distinguishable from satisfaction. That engagement means a heightened emotional connection to a job and organisation that goes beyond satisfaction. This in essence means that for organisations to have engaged employees that feel connected to their organisation, the organisations should ensure that the employees are satisfied first and this can be achieved when employees feel their career is given priority and effort is being put in to add on the talent in existence as well as manage it. Becker, Ulrich and Huselid (2) found out that there is a strong correlation between highperformance human resource management systems and practices like talent management, and Vazirani (27) also found out that organisations with high levels of engagement provide employees with reliable opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential (talent management). This equally requires consolidated and well coordinated efforts geared towards ensuring that a number of key elements or building blocks are in place and that the same seek to promote employee NEED FOR THE STUDY In recent years the organizations paid high attention towards various changes in business environment. Organizations focus has been shifted towards analyzing industry competitive strengths, weaknesses, products, clients and processes. Based on the changes in the industry companies need to develop core competences of employees to attain competitive advantage. The pressure to attract and retain key talent has led organizations to expend increased energy and resources on talent-related initiatives over the past half-decade. Talent management needs attention to reduce employee turnover, increasing productivity, facilitate smooth functioning of organizations, better utilization of human resources, enhance employee satisfaction and achieve edge over the competitor. Along with financial and non-financial outcomes again presses the importance of talent management. Companies are facing uncertainties in terms of market forces, customer loyalty etc..,. External forces have an impact on how talent is acquired, nurtured and retained. This paper is an attempt to identify the key aspects of talent management and discusses how it helps to enhance employee engagement and job satisfaction in IT companies. Present research is carried out with the following objectives to enhance the talent management in IT industry. OBJECTIVES OF THE STUDY To assess the employee opinion towards Talent management practices in IT sector. To find out the relation between Talent management practices and employee engagement in organisation. To test the relation between talent management practices and employee job satisfaction in organisation. To suggest ways and means for employee engagement and satisfaction. HYPOTHESES TESTING H :Reward system influences employee H 2 : engagement is a response to training and development programs in organisation. H 3 :Career growth and development influences employee engagement H 4 :Performance management enhances employee H 5 : empowerment influences employee H 6 :Reward system influences employee job satisfaction. H 7 : Job satisfaction is a response to training and development programs in organisation. H 8 :Careergrowth and development influences job satisfaction. H 9 :Performance management enhances employee job satisfaction. H : empowerment influences employee job satisfaction. H : Job satisfaction is a response to employee ISSN: Page 2

3 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 RESEARCH FRAMEWORK Reward system H Training & Career Performance Management H 3 H 4 H 2 H 7 H 8 H 6 Engagement H Empowerment H 5 H 9 H Job Satisfaction RESEARCH METHODOLOGY Research design, sample and measures This research comprised a survey undertaken with a sample of 5 employees randomly selected from software companies located in Bengaluru, of the 2 questionnaires distributed, 5 valid responses were returned for statistical analysis. The data collected were analysed using the SPSS 2. Version. A five-point Likert scale developed by Saks (26) was used to measure employee engagement, Job satisfaction and talent management practices. Talent management practices considered for study are Reward system, training and development, career growth and development, performance management and employee empowerment. RELIABILITY Three measurements were used in this study: Talent management practices(tm), engagement (EE) and job satisfaction (JS). Table No: Reliability results of all constructs Dimension Cronobach alpha Talent management.88 practices 2 engagement Job satisfaction.62 Table No: 2 Demographic profiles of respondents Total Sample size = 5 Demographic Profile of Respondents Variable Profile No. of Percentage Gender Age Respondents Male Female Table No: 3 Descriptive Statistics of talent management practices, engagement, Job satisfaction Descriptive Statistics N Mean Std. Deviation Training and development Performance management empowerment Reward system Job satisfaction engagement Career growth and development Valid N (list wise) 5 Talent management practices are explained with mean and standard deviation scores as follows: Training and development Mean = 3.7 & SD =.59, Performance management Mean = 3.46 & SD =.656, empowerment Mean ISSN: Page 3

4 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 = 3.7 & SD =.468, Reward system Mean = 3.73 & SD =.563, Career growth development Mean = 3.56 & SD =.48. engagement explained with mean score of 3.62 and SD =.458. Job satisfaction explained with mean score of 3.55 and SD =.55. ROLE OF TALENT MANAGEMENT PRACTICES IN EMPLOYEE ENGAGEMENT Talent management practices considered for study as follows: training and development, performance management, employee empowerment, reward system and career growth and development. Pearson correlation coefficient was calculated to evaluate relationships between variables. Talent management practices are considered as independent variable and employee engagement as dependent variable. As demonstrated in table no:4 there are significant relationships between the dimensions of talent management practices and employee engagement: Training and development (r =.39, P<.), Performance management (r=.32, P<.), empowerment (r=.72, P<.), Reward system (r=.578,p<.), Career growth and development(r= o.68, p<.). Correlation results proved there is a relation between talent management practices and employee Hence H, H 2, H 3, H 4, H 5 are accepted. Table No: 4 Correlation results of Talent management practices and employee engagement Correlations Employ ee engage ment Pearso n Correla tion Sig. (- tailed) N E E 5 TD PM EE T RS CD ** 2 ** 2 ** 8 ** 8 ** **. Correlation is significant at the. level (- tailed). EE engagement, TD Training & PM Performance management, EET- empowerment RS Reward System, CD Career growth & ROLE OF TALENT MANAGEMENT PRACTICES IN JOB SATISFACTION Talent management practices considered for study as follows: training and development, performance management, employee empowerment, reward system and career growth and development. Pearson correlation coefficient was calculated to evaluate relationships between variables. Talent management practices are considered as independent variable and employee job satisfaction as dependent variable. As demonstrated in table no:5 there are significant relationships between the dimensions of talent management practices and employee engagement: Reward system (r=.235,p<.), Training and development (r=.453,p<.),career growth and development(r=.339,p<.).performance management(r=.559,p<.), empowerment (r=.649, P<.), Correlation results proved there is a relation between talent management practices and employee job satisfaction. Hence H 6, H 7, H 8 H 9, H are accepted. Table No: 5 Correlation results of Talent management practices and Job satisfaction Job Satisfac tion Pearson Correla tion Sig. (- tailed) N Correlations J TD PM EE RS CD S ** 9 ** 9 ** 5 ** 9 ** **. Correlation is significant at the. level (- tailed). JS Job satisfaction, TD Training & PM Performance Management, EE Empowerment RS Reward System, CD Career growth & JOB SATISFACTION AND EMPLOYEE ENGAGEMENT Talent management practices in organisation are helpful to enhance both employee engagement and job satisfaction. engagement and job satisfaction are related with each other as follows with r value of.653. Hence H is accepted. ISSN: Page 4

5 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 Table No: 6 Correlation results of Job satisfaction and employee engagement Job Satisfaction Engagement Correlations JS EE Pearson Correlation.653 ** Sig. (-tailed). N 5 5 Pearson Correlation.653 ** Sig. (-tailed). N 5 5 **. Correlation is significant at the. level (- tailed). JS - Job satisfaction EE Engagement DISCUSSION AND CONCLUSION In present scenario IT organizations recognize the critical role that training and development, careerpaths, and the opportunity for career advancement play in employee At IT companies training and development often involve some combination of formalized on-the-job training, structured job rotations, effective mentoring programs and e-learning. In order to improve employee engagement, organizations must make a strong effort to train and develop employees and provide them with meaningful career paths that will keep them excited, challenged, productive and motivated. Provide customized reward, recognition and retention practices to high potential employees. The integration of employee engagement with talent management practices allows employers to maximize and reinforce their engagement efforts at multiple employee touch points, which in turn will translate into happier, more loyal employees, and positive organizational outcomes. REFERENCES []. Becker, B.E., Huselid, M.A. & Ulrich, D. (2). The HR Scorecard Linking People, Strategy and Performance. Boston, MA: Harvard Business School Press. [2].Gubman, E. (24). From Engagement to Passion For Work: The Search For The Missing Person. Human Resource Planning, 27 (3), [3].Vazirani, N. (27) SIES College of Management Studies Working Paper Series. Retrieved from: http// [4].Wellins, S.R., Bernthal, P., & Phelps, M. (29). Engagement: The Key to realising Competitive Advantage. ISSN: Page 5

6 SSRG International Journal of Economics and Management Studies (ICEEMST-27) - Special Issue- March 27 ISSN: Page 6

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