talent management during recession
TRANSCRIPT
8/8/2019 Talent Management During Recession
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TALENT MANAGEMENTduring
CHALLENGES TRENDS
A Study on the IT Sector: HP & Delloite
Submitted by
GROUP 9
Div E, MBA Core (1st year), NMIMS
Members:Sayantani Chanda (405)
Subhojit Chatterjee (406)
Deepak Kumar Goel (425)
Radha Mehta (428)
Sameer Saurabh (440)
Anil Shenoy (445)
Shubhangi Joshi (454)
RECESSION
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INTRODUCTION
Talent Management is a professional term that gained popularity in the late 1990s. The
definition of talent makes it clear that it is one of the most important assets in an organization.
Managing the talent effectively is of utmost importanceand it allows a company to increase
the value provided by their human capital. In simpler terms, talent Management is the process
of attracting and developing new workers through on boarding (talent acquisition) and
developing and keeping current workers (talent retention).
TALENT MANAGEMENT DRIVERS
The entire process along with the major Talent
Management drivers can be represented by the schematic
diagram as under:
Education &
Development
Designing
appropriate
recruitment and
selectionprocedures
CompetencyMapping
Acquiring Talent
Assessing demand and
supply & organization
readiness
Job analysis
Position analysis
Define key
successfactorsHandling grievances
Identifying Low,Average, Highperformers
Assessing new
and current
Talent Career devleopment- horizontal growth
plans
Succession Planning
Mentoring not just
managing
Job Stretch and
Mobility
Team Building and
Leadership Programs
Balanced work
environment
Developing
Talent
Retention strategies
PerformanceAppraisals
Incentives and Pay
schemes
Compensation to
maintain a decentlifestyle
Senior Placement
programs
Retirement Planning
Transitioning
Talent ->
Retention
Talent -³ identifiable ability that is perceived to add immediate or future value to any prescribed activity.´ (Maurice)
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Thus Talent Management is just another synonym for competency based human resource
management practices ± the strategically thought of process of managing human capital
throughout the career cycle: recruitment, development, promotion and retention of people
planned and executed in line with an organization¶s current and future business.
RECESSION HITS...
However a new phenomenon which hit
the globe lately is recession. With a
deep recession sweeping across, we
witnessed cost cutting exercises and
vanishing jobs across most
organizations.
In India, despite strong immunity to
the crisis in the form domestic demand, millions of jobs
have disappeared in few months and widespread salary
cuts became the talk of the town. Especially, the Indian
IT sector due to its overdependence on the US economy
has been hit badly. Software multinationals in India have
started to freeze wage increases, slash salaries and
postpone merit based hikes.
A study by an Indian consulting firm Zinnov has shown
revealed ³Of the 30 representative multinationals
surveyed in three cities (Bangalore, Pune and Chennai),
27 per cent of them said they have frozen salary increases this year, while 42 per cent saidthey would provide salary increases and 15 per cent have postponed their merit increase cycle
to take a call at a later stage if the economic scenario changes´. 2008 was a year with more
jeers than cheers for the country's over $50 billion IT sector, which has seen nearly a decade
of uninterrupted boom.
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To add to the woes was the Satyam saga which resulted in loss of face and hit the long
nurtured reputation of the Indian IT sector to the world outside.
End of Talent Management....or is it a new chapter?
Though apparently it might seem that Talent Management has taken a back seat, the reality of
today¶s post recession era means that recruiting, keeping and motivating the best employees
have never been more crucial.
While reducing the headcount or employee cost, it is extremely important for organizations to
keep in mind the effect of their actions on their Brand Equity as an employer.Organizations
must not forget that Recession or Boom, talent shortage will continue to haunt them and
growth will be paralysed especially in post recessionary times if there is shortage of highly
motivated and talented workforce. Thus a long term strategy is required to intelligently
strengthen the value proposition being offered to current and potential employees and also
ensure survival during the downturn.
This is perhaps the start of a new chapter of Talent Management for the organizations where
a rational approach is called for where selective hiring and training and development
programs might be a major factor. After all it is very difficult to re-establish brand strength as
a potential employer! Further if the morale, efficiency and motivation level of the existing
workforce is reduced, it can spoil the work culture and the future of
the organization.
Thus rightly a very careful step must be taken by ± in the form of a
new chapter in Talent Management to balance the cost cutting and
the brand equity of an organization. Especially in a service industry
like IT, workforce and human capital are the greatest strengths and
requirements for an IT organization to survive. Thus a balanced
approach should be taken to improve the productivity level and
counter the negative impact of down turn, maintain the morale of existing employees andthereby reduce the out-flow of valuable contributor which is an unavoidable element of any
downsizing exercise.
The careful step!!
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Post recessions the economies (read BRIC IT sector) are recovering gradually. Talent
Management hence has become an even greater challenge for the HR now.
The old rules of business are outdated. New out-of-the-
box solutions, more comprehensive efforts, innovative thinking,
and new skills and competencies are required to grow and
prosper. Needless to say, the demand for both the quantity and
the quality of talented employees will grow worldwide.
Additionally considering the nature of the IT industry,
the practices introduced should be able to overcome the
challenges of distance and culture since IT firms work based on
the concept of virtual teams.
Companies that have fired employees in the past are already feeling the pinch, as they do not
have enough bandwidth to execute. In a nutshell, a difficult road ahead in the ³War of
Talent .́
And today¶s organizations do realize that. As per Talent Management Trend Survey by BPM
Forum, Success Factors and Human Capital Institute ³Talent Management is top of mind ±
72% respondents say that talent management is a strategic focus area in their organization´.
EXPERT TALKS: Literature R eview
(i) Managing Talent in the Flat World: An Infosys Perspective as Practitioner
and Consultant ± by Nandish Patil
Patil here talks about how Infosys keeps on ³winning in the flat world´ by
believing that progressive HR is much more than a support function. In the
globalized business environment,
the author points out, historical
sources of advantage have diminished
in value to the point that they are now
fast becoming irrelevant. Sustainable competitive advantages, especially
during recessionary times when organizations are fast striving to maintain
I
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of Talent by the IT companies can give a very useful insight to Talent Management. A
study by Accenture has found that more than two-thirds of executives are now deeply
concerned about not being able to recruit and retain the best talent. In today¶s global
and highly competitive economy, the war for talent is now global, not local. This
study is an attempt to understand the war and the accompanying.
The repor t analyses two of the ma jor multinational IT f irms HP and Delloite to
understand their process of talent management dur ing recessionary times and the
roadblocks they faced in the process.
METHODOLOGY
We believe the best persons to hel p us in this study will be the professionals who have
been framing the Talent Management procedures. The key to retain and get the best talent lies in HR policies and practices. Talented employees continuously need new
challenges and goals they can achieve, and a continuous supply of information and
resources they can use to solve business problems. And needless to say, they will in
return demand more lucrative and effective compensations, a great work culture and
fr iendly HR policies.
Hence we chose the policy framers for our study. We spoke with the HR professionals
from HP and Delloite to better understand Talent Management.
DESIGN, DATA COLLECTION AND ANALYSIS TOOLS
Desi £ n and Anal ysi s Tool s
We prepared a questionnaire (attached in the Annexure) cover ing the ma jor
areas of Talent Management which are gaining more and more predominance
in recent times. Initially the questionnaire had only open ended questions.
However on request from the HR of the organi ations we modif ied and
included both open ended and ob jective type questions. The questionnaire was
designed keeping in mind the areas like employee engagement procedures,
performance evaluation systems, work culture, work life balance, recessionary
measures and talent retention.
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Dat a Coll ecti on
The responses were collected through telephonic interviews and online f illing
of the questionnaire. We initially spoke to them over phone regarding the
ma jor policies and practices followed at their organi ation. This mainly
compr ised of open ended questions. Later we sent across the ob jective type
questionnaire which they f illed and mailed us back.
ANALYSIS & FINDINGS
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R EFER ENCES
1. htt p://talent-management. j p3.com/