Solving talent management issues realted to Gen Y in the EFCS backdrop

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Solving talent management issues realted to Gen Y in the EFCS backdrop

  1. 1. „Solving Talent Management Issues related to Gen Y in the EFCS backdrop‟ By, Vijay G Padaguri Faculty, Management Studies New Horizon College of Engineering B’lore-87 Ph: +91 9886630503, E-mail: vijaypadaguri@gmail.com www.vjbreathes.blogspot.com, www.vjcomms.wetpaint.com
  2. 2. INTRODUCTION:According to Derek Stockley, talent management is “a conscious, deliberate approachundertaken to attract, develop and retain people with the aptitude and abilities to meet currentand future organizational needs.”Talent management involves individual and organizational development in response to achanging and complex operating environment. It includes the creation and maintenance of asupportive, people oriented organisation culture.1On the other hand, Gen Y refers to Y‟ refers to those employees born after 1980‟s who aremostly now in their 20‟s. They comprise of a majority of workforce in India in most companies.„Gen Y‟ is a different kind of workforce and have a certain element of uniqueness in terms oftheir expectations and the kind of mindset and psychology. Further, Gen Y is extremely scatteredin terms of their skill sets and also specializations.2Solving talent management issues related to Gen Y is proving to be the most challenging task forhuman resources management professionals across the globe. Further, sectors like IT, ITES,BPO, KPO and emerging media have Gen Y employees constituting majority of their keyworkforce. Issues like innovation culture, employer branding, leadership and motivation havebeen acting as stumble blocks for the Gen Y employees to perform to their optimum potential,making HR folk across sectors to contemplate on talent management solutions for the Gen Ytalent bank. This situation has aggravated because of increasing tendency of recruiters to gettalent on board, by hook or crook, using poaching, referrals and headhunting techniques amongother evolving recruiting practices. According to a study conducted by MyHiringClub.com, theIT and ITES sectors saw the highest attrition rate of 23 per cent in the first quarter of 2010-113.The war for talent amongst corporate houses has taken a toll on talent management practices aswe know it today, and forced a re-think on traditional talent management practices.The paper tries to integrate four factors: GEN Y TALENT MGT EFCS CONCEPT MKT REALITYEssentially the paper tries to unravel the issues Gen Y face towards giving optimum performancein an organization. From the organizational perspective, the paper tries to look at talentmanagement issues considering market reality. Further, the paper tries to adapt the EFCSphilosophy in terms of proposed a model that can act as a guideline towards effective talentmanagement and is practical and adaptable. EFCS being an evolving and progressive philosophycan contribute to the effective management of the Gen Y in terms of concepts like trust throughtransparency and inverting the organizational pyramid.
  3. 3. LITERATURE REVIEW:Integral Talent Systems Inc., in 1997 suggested that the companies must continuously focus ontheir critical talent to ensure that their skills, interests and capabilities evolve in line withstrategic objectives, and listed out various retention practicesIn the book, War for talent, by Michael Williams (2000)4 asks a critical question, “Why wouldpeople of outstanding talent want to join our company? The book tries to give answers in termsof developing and retaining talent. Further, the concept of „talent‟ in terms of coaching,mentoring, empowering and sponsoring has been discussed. The talent management hand-book,edited by Lancea Berger and Dorothy R Berger(2004), focus on creating organizationalexcellence by identifying, developing and promoting the best people in the organization. In otherwords, „talent‟ as an essence of future organizational prospects is debated.In the book „Leadership and talent in Asia‟ by, Mick Benet and Andrew Bell(2005)5, one of themost prominent topic discussed is that of talent retention and the effects on business results. Theauthors stress on identifying and mobilizing the Team A in the company to achieve big goals. Astudy by Aberdeen group, in 2005 found that 85% of the HR executives reported that the singlegreatest challenge in workforce management is creating or maintaining their company‟s ability tocompete for top talent.John et al (2009) found out that retaining the top grade talent has become a big concern forseveral top rated organizations. In the book: Employees first, Customers second, Vineet Nayar(2010) talks about Gen Y employees as the ones who are „transformers‟, who behaveddifferently and the ones who did „real work‟.OBJECTIVES OF THE STUDY:The objectives of the research are as follows: To understand talent management issues with related to Gen Y. To find out, if talent management issues related to Gen Y are different from that of others. To have an inclusive study on talent management issues from across sectors. To suggest an inclusive model to solve talent management issues related to Gen Y in the employees first, customers second background.RESEARCH METHODOLOGYThe sources of primary data for the research carried out were: a) Responses for questionnaire filled online through a free source software. The sample size in this case was 100 consisting of employees from the Gen X and Gen Y pool divided equally b) Responses of a focused group discussion carried out for 10 participants of the Gen Y pool.
  4. 4. The observations in terms of opinion of the sample, on the different talent management issues like empowerment, communication, recognition etc which are detrimental in terms of distinguishing the critical factors have been considered. Simple random sampling technique was used in this case, and the questionnaires were filled online through a questionnaire tool designed by Surveymonkey. The responses have been mapped and graphically represented to underline critical factors in the process. Talent management issues have also been recognized by the focus group discussion responses, consisting of ten participants. There was a relevant hypothesis tested because of the factors in consideration and applicability issue, the data representation was found to be satisfactory because of the usage of co-relation analysis. The percentage method was used to analyze the dominant issues related to Gen Y in the talent management area. An ANOVA test between the dominant factors and job satisfaction as a predictor to proper talent management considering Gen Y, to determine retention has also been used.DATA ANALYSIS:The responses to the questionnaire on “Talent Management Issues related to Gen Y” are asfollows: 1. Is money a great motivator to perform? Is money a great motivator to perform? Yes 39% No 50% 11% To a certain extent
  5. 5. 2. Do you expect higher levels of empowerment than you currently have in your organization? Do you expect higher levels of empowerment than you currently have in your organization? 10% 15% Yes 75% No Not Sure3. Do you think 5 years in an organization, means: Time to move on? Yes , very much Depends on the company No 18 72 104. Is "Employees First, Customers Second" a relevant concept, considering Gen Y? Yes No Only in some cases 67 12 215. Should employers put more efforts into recognizing skill sets of employees and giving them "choice" in terms of work/tasks? Yes No Depends on size of Depends on the company employee 64 7 14 156. Should age/experience be criteria to measure ability? Yes No, not at all Only for some jobs 13 77 10
  6. 6. 7. Does an "Approvals" culture bind you from doing innovative/creative things at workplace? Yes, many a times No Sometimes Always 44 16 35 5 8. Is "uniformity of assessment of employees" good for employees? Yes No Sometimes Not at all 63 14 12 11 9. Does a "targets" culture limit you, in terms of your ability to do things? Yes, always Sometimes No ways Its good 20 49 13 18 10. Can talent management issues be solved, using Employees First, Customers Second concept? Yes No Not at all Maybe 60 9 13 18Most of the respondents opined that money is a great motivator to perform, only to certainextent. Majority of the respondents felt that they needed higher levels of empowerment than theycurrently have in the organization. Further, the responses indicate that the duration of theemployees in the company depends on the nature and operations of the company, and that thereis no duration or juncture at which employees would want to shift companies. Most of theresponses indicate that, “Employees First Customers Second” is a relevant concept consideringGen Y. Further, most responses suggest that employers put more efforts into recognizing skillsets of employees and giving them "choice" in terms of work/tasks. A majority of respondentsfelt that age/experience should not be criteria to measure ability. Many respondents felt that an„Approvals‟ culture binds them from doing innovative/creative things at workplace. Severalrespondents felt that uniformity of assessment of employees good for employees. Severalresponses indicate that a „targets‟ culture limits them in terms of ability to do things. Mostrespondents felt that talent management issues related to Gen Y can be solved using the EFCSconcept.The focus group discussion was carried out for a sample of 50 people. The sample was dividedinto five groups of ten people each and was carried out online. The emphasis of most of thegroups was on empowerment and „space‟ at workplace. People felt that they lacked theempowerment and the space to do things more innovatively and creatively. Some of therespondents opined that companies should be more liberal in terms of allowing them tocollaborate and also explore new possibilities at workplace. Further, they also opined thatallowing social networking at the workplace was important for people to keep connected andalso improve their skills and collaborate. Some of them felt that top management should trustGen Y with responsibilities to be handled and encourage open and constant communicationchannels. Most of the respondents wanted interventions to happen at the right time and were notaverse to right interventions. Several people felt that a younger leadership could go a long way todetermine their career success stories and mentor them effectively. Most of them also stressed on„flexibility‟ as being important in terms of having proper work life and ability to perform at their
  7. 7. optimum levels. Gen Y employees feel that human resources vertical should have an empatheticapproach towards their personal life and help them cope up with the turbulence that they gothrough in their personal lives. The respondents also felt that companies sometimes stress onunrealistic targets which hinders their performance many a times and leads to contributes tohigher attrition levels amongst the Gen Y population. They also opined that the human resourcesvertical should look at customization of rules and regulations and also give scope for otherinterests like music, sports and reading. The participants of the focus group discussion, stressedon the importance of „fair credit‟ to given to the employees.ANOVA test was carried out to test the hypothesis:Ho: Factors like empowerment, communication and flexibility are important in case of talentmanagement process related to Gen YH1: Factors like empowerment, communication and flexibility are not important in case of talentmanagement process related to Gen YANOVA TABLE for factors affecting talent management related to Gen Y A B C D E F G H I J1* 32 14 36 43 11 28 31 27 35 292* 6 27 4 3 24 9 4 13 6 143* 12 6 8 3 8 6 6 8 4 44* 0 3 2 1 7 7 9 2 5 3Total 50 50 50 50 50 50 50 50 50 50*1- Very important, 2-Important, 3-Important to a certain extent, 4-Not importantWherein A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y and Z representEmpowerment, rule of exception, right and timely intervention, monetary benefits and perks,designations/titles, collaborations/right teams, space for interests other than work, youngerleadership, socialization/social network and trust respectively.RSS=11606TSS=RSS-CF=11606-6250=5356BSS=LSS=0WSS=TSS-BSS=5356Variation ratio (F) = 0Variation ratio value to be accepted = <2.21, Observed value =0Therefore, H0 is accepted ie; Factors like empowerment, communication and flexibility areimportant in case of talent management process related to Gen Y
  8. 8. THE DUAL PENTAGON MODEL F2 F5 F6 F1 F3 F4 F2 1 EFCS 1 1 GEN Y FOCUS GEN Y FOCUS & & WILLINGNESS OF MGT WILLINGNESS OF MGT F10 F9 F8 F7 000The dual pentagon model talks about the ten critical factors that need to be concentrated on , interms of designing policies, formulating and executing human resources strategies, linking HRgoals to business goals, and also convincing top management to have a liberal view in terms ofchanges and overhauls that need to be done in the organizational systems and process to ensurebetter talent management in turn ensuring better recruitment, placement, training, ensuringoptimal performance, development and more importantly retention. At the heart of this model isthe EFCS approach towards championing the cause of complete commitment to employees,turning conventional management upside down. The model talks about a cyclical approach to theten prime „factors‟ which are critical in terms of talent management related to the Gen Y talentpool. The EFCS backdrop has been considered because it‟s a holistic concept and also takes theemployers perspective in terms of issues like facing stark market reality, balancing stakeholderinterests, hunger to grow and retention of employees as well as customers. Further, HCLT hascarried out several interventions successfully in this domain giving us a laboratory scenario snapshot into practically adapting these practices considering the fact that EFCS is an evolvingphilosophy which has garnered global attention.
  9. 9. F1 (Empowerment)Empowerment is one of the most important factors in terms of deciding how acreative/innovative Gen Y employee perceives a job. Companies having high empowermentculture like Google get excellent results from their Gen Y pool of employees and have anempowerment embracement culture. No wonder, most information technology wizards dream ofa job at such work places and create magic at the workplace with stunning and diverse workprofiles.F2 (Rule of exceptions)Rule of exception refers to the „flexibility‟ factor and expect the companies to be flexible interms of deliverables, policies and framework in an organization. Rule of exception emphasizeson ensuring that there is no „rigidity‟ in terms of deciding issues like allocation of assignments,clients, projects and teams. This rule is about the fact that employees would like to contribute toorganizational goals and dimensions by choice and many times being an „exception‟ to rules likeprior experience, age and geographical boundaries. Like the grant of „work from home‟ isrestricted for a certain cadre of employees in some companies which could act as a hindrance.F3 (Right and timely intervention)Gen Y employees are not averse to interventions, but prefer right and timely interventions, by themanagement and the reporting authority. In several cases, interventions happen as a necessity interms of documentation or periodicity which is considered as a hindrance by most Gen Yemployees. This pool of employees expects a clear demarcation between „interference‟ and„intervention‟7. Right and timely intervention goes a long way in terms of ensuring non-conventional and cutting edge practices at workplace. For example 3M believes in „right timeintervention‟ for all levels of employees, making a great brand to work with.F4 (Monetary benefits and perks)Gen Y employees definitely rate monetary benefits and perks as being very important in terms oftalent management. As aspirations of this talent pool are very high, the employees look atmonetary benefits like better allowances, insurance cover for the family. Gen Y employees alsolook at perks like coupons, bonus and performance linked incentives as being significant.F5 (Designations and titles):Designations and titles also play an important role in determining if the „recognition‟ and „status‟needs of the Gen Y employees are met. Though there are several employees who may not attacha lot of importance to the designation part, there are several employees who would perform totheir optimum and would like to stay in the company longer in case they get desired designationsor titles as they believe, that designations or titles could as well be pre-cursors in terms of thekind of tasks they would carry out and the leadership capacity that they could get a chance todemonstrate.8
  10. 10. F6 (Collaboration/Right teams):Majority of the Gen Y employees believe very strongly in the concept of collation and teamwork. Since the level of team participation is very high in colleges and even in their personalspace. Companies have to give scope for team work and collaboration, wherever feasible.Placing the employees in the right teams can also go a long way in terms of determining thesuccess of the employees, teams and the organizations in turn.F7 (Space for interests other than work):Gen Y pool of employees also expect scope for other interests at the workplace. The interestscould be social responsibility projects, music, arts and gaming. Though MNC‟s and largecorporate are having this on their agenda, there are several companies which are yet to get intothe bandwagon. This could be „differentiator‟ in terms of employer brands and could go a longway to ensure better talent management as it contributes immensely to the job satisfactionphenomenon9. For ex: Deloitte gives its employees two days every year to engage in corporatesocial responsibility activities of their choice.F8 (Younger leadership)A younger leadership is favored by Gen Y employees and they consider important in terms ofensuring better empathy and connect. Younger leadership could also mean that Gen Y employeeshave role models at the top and conveying ideas and plans becomes easier in this case10.Therefore a younger leadership could also mean a greater level of emotional connect with theGen Y employees in terms of sharing common interests and characteristics. This would in turncontribute to having better talent management in place.F9 (Socialization/Social Network)Being one of the hugely debated issues of the modern work place, socialization and socialnetworks are now being given a thought in terms of being allowed at the workplace, at leastselectively. The Gen Y employees are hugely addicted to socialization and social networks andprefer to have an active online social network. Companies are trying to cope up with this issue byfinding innovative ways like post lunch social networks being allowed or company‟s internalsocial network being active and propagated by the company. It very well seems that FB andother social networks are becoming basic needs of people. Therefore allowing socialization andsocial networks in the workplace may also be one of the answers to effective talent management.F10 (Trust)Trust is another dominant factor in terms of talent management with regard to Gen Y. Employeeswant their companies to „trust‟ them and corporate houses are striving to build high trust levelsamongst the employees and want to inculcate „trust‟ as a prime ingredient in terms ofdetermining longevity of their career assignments11. Gen Y employees also see trust as a„reciprocating‟ value and look at it as an essential factor and not as a „virtue‟12.
  11. 11. CONCLUSION:Talent management issues related to Gen Y are different from that of other employee pool andneed to be dealt with exclusively. Talent management variables have also changed over time andneed innovative and creative solutions in the permissible limits. Companies need to concentrateon ensuring that talent management variables in relation to Gen Y are given due importance toensure that the „delivery line‟ of the company is strengthened. This could go a very long way inensuring that companies grow and meet their goals at all levels.REFERENCES: 1) Derek Stockley(2009), “Talent Management Newsletter”, www.derekstockley.com.au/newsletters-05/020-talent-management.html 2) Carina Paine Schofield and Sue Honoré, “Generation Y and learning”, www.ashridge.org.uk/website/content.nsf 3) Economics Times report, “ Attrition rate affected by Salary Hikes”, articles.economictimes.indiatimes.com/2011-07-19/news/29790871_1_attrition-rate-cent- salary-hike-sectors 4) Michael Williams(2000), “War For Talent” 2nd Edition WPI 5) Mick Benet and Andrew Bell(2005) , „Leadership and talent in Asia‟ : Hewitt 6) Vineet Nayar (2010), “Employees First, Customers Second, Harvard Business Press 7) Cheese Peter, Thomas Robert J and Elizabeth C (2008), The Talent Powered Organization: Strategies for Globalization, Talent Management and High Performance, Kogan Page Ltd 8) Kumar Rupali (2007), “War for talent Hunt”, Management Effigy, Vol 2 9) Pandit YVL(2007), “Talent Retention Strategies in a competitive Environment”, NHRD Journal 10) Honoré, S. and Paine Schofi eld, C. (2009) Generation Y: Inside Out. Ashridge. 11) Vygotsky, L. (1978) Mind in Society, Harvard University Press, London 12) Tapscott, D. (2009) Grown up digital: How the net generation is changing the world. McGraw-Hill: London.

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