A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED IT ORGANIZATIONS IN CHENNAI

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International Journal of Management (IJM)
Volume 11, Issue 9, September 2020, pp.1951-1966, Article ID: IJM_11_09_186
Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=9
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.34218/IJM.11.9.2020.186
© IAEME Publication Scopus Indexed
A STUDY ON TALENT MANAGEMENT AND ITS
IMPACT ON EMPLOYEE RETENTION IN
SELECTED IT ORGANIZATIONS IN CHENNAI
Jothi Priya. R
Research Scholar, PG and Research Department of Management,
Rajagiri Dawood Batcha College of Arts and Science,
(Affiliated to Bharathidasan University), Papanasam, Tamil Nadu, India.
Dr. K. Balasaravanan
Assistant Professor, PG and Research Department of Management,
Rajagiri Dawood Batcha College of Arts and Science,
(Affiliated to Bharathidasan University), Papanasam, Tamil Nadu, India
ABSTRACT
The goal of this study was to see how talent management affected employee retention
in the selected IT organizations in Chennai. The fundamental issue was the difficulty to
attract, hire, and retain talented personnel who perform well and the gap between
supply and demand of talent acquisition and retaining them within the firms. The study's
main goals were to determine the impact of talent management on employee retention
in IT companies in Chennai, investigate talent management strategies that IT companies
could use to improve talent acquisition, performance management, career planning and
formulate retention strategies that the IT firms could use. The respondents were given
a structured close-ended questionnaire with the 5 Point Likert Scale as part of the
study's quantitative research design. The target population consisted of 289 IT
professionals. The questionnaires were distributed and collected by the researcher
directly. The Statistical Package for Social Sciences (SPSS) was used to collect and
analyse the questionnaire responses. Hypotheses that were formulated for the various
areas of the study were tested using a variety of statistical tests. The key findings of the
study suggested that talent management had an impact on employee retention. The
studies also found that there is a clear link between the implementation of talent
management and retention measures. Management should provide enough training and
development for employees, clarify job responsibilities, provide adequate remuneration
packages, and recognise employees for exceptional performance.

A Study on Talent Management and its Impact on Employee Retention in Selected it
Organizations in Chennai
Key words: Talent Management, Employee Retention, IT organization, Performance
Management, Retention Strategies.
Cite this Article: Jothi Priya R and K. Balasaravanan, A Study on Talent Management
and its Impact on Employee Retention in Selected it Organizations in Chennai,
International Journal of Management (IJM), 11(9), 2020, pp. 1951-1966.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=9
1. INTRODUCTION
One of the most important management tools in the twenty-first century is talent management.
It is a valuable tool for both employees as well as organizations. It improves the organization's
efficiency and helps people enhance their own abilities. Talent management is the process of
identifying an employee's unique skills and competencies and matching them with a suitable
position. Human resource management (HRM) is in charge of placing the right people in the
right jobs. It also improves the organization's productivity and quality of work. Thus, talent
management is critical for both the company and its employees. Globalization has raised rivalry
among businesses while also opening up new doors of opportunity.
The current economic scenario has raised the demand for talent management, which is
fuelled by a worldwide trend that includes a competitive market, advanced technology, and
business expansion, all of which necessitate a variety of abilities. Human capital is a critical
resource for organisations to adapt to global rivals; as a result, organisations have issues in
retaining exceptional individuals in order to maintain operations and continue to grow. The
capacity to have the appropriate people in the right location at the right time is critical to an
organization's growth potential. Talent management ensures that the appropriate people with
the right talents are in the right place at the right time. The ability to retain highly talented
employees is critical for an organization's future survival. This necessitates the development of
talent management practices in order to assist in the retention of talented employees who could
play a significant role in improving the quality of IT services in Chennai.
2. BACKGROUND OF THE STUDY
Due to developments in the corporate environment, huge improvements in technology have
happened in recent years, necessitating the introduction of computers into enterprises. It has
established the essential human resource capabilities and performance around the globe in the
globalised business. Globalization provides a platform for young people to pursue a variety of
employment options. As a result, globalisation will need to adopt a new strategy to manage
people in organisations. However, in the context of globalisation, firms face difficulty in
exploring the potential of qualified individuals. It is the only method to maintain a competitive
advantage in the workforce through managing promising employees, also known as talent
management. Organizations' main difficulty is not finding the appropriate individual for the
right job, but keeping the competent employee. Therefore, the goal of talent management is to
attract, develop, employ, and retain the greatest minds in order to meet company needs. Thus,
the researcher wants to learn more about talent management and how it affects employee
retention in a few IT companies in Chennai.
3. TALENT MANAGEMENT – CONCEPT AND DEFINITION
The concept of talent management has become so important that it has become the focal point
of many firms' HR strategies. Companies have learned that their employees' abilities and skills
are the driving force behind their performance and commercial success. These businesses
devise strategies and procedures for tracking and managing their staff talent. A company with

Jothi Priya R and K. Balasaravanan
a skilled and successful workforce can earn a reputation as a wonderful place to work, which
encourages current employees to stay. Talented individuals will also want to work for a
company that values its employees and provides them with opportunities for advancement. It is
tough to keep high-performing employees, which is why HR has grown increasingly important
in this area.[1]
Talent management, according to Mohaimen (2015) [2], entails human resource techniques
aimed at acquiring and retaining the right people for the right position at the right time. In other
words, talent management is the process of acquiring, developing, implementing, engaging,
retaining, and employing a valued employee. As a result, talent management differs
significantly from traditional HRM, which combines fresh information with new technology
and skills rather than repackaging old ideas under a new label. Jyoti (2014) [3] acknowledged
that talent management is one of the methods for attracting and absorbing new personnel, as
well as blossoming and motivating ultra-talented individuals to achieve an organization's total
goals.
3.1 Benefits of Talent Management
In order for a firm to succeed, it is essential that talent management practices are implemented
by that firm. It is a complex collection of human resource operations that generate benefits for
every company.
A better understanding of Employees: Employee evaluations provide managers with in-
depth information on their staff. Their development needs, career goals, strengths and
weaknesses, abilities, and likes and dislikes are all factors to consider. It is so easy to determine
what motivates people to contribute significantly to the job enrichment process.
Development of professional decision-making skills: When an employer is aware of an
employee's great potential, investing in their professional growth becomes easier. Because
development necessitates investment decisions in the individual's learning, training, and
development, whether for growth, succession planning, or performance management, an
organisation is unsure where to make this investment, and talent management simply makes it
easy for them.
Retaining top talent: Despite global economic developments, attrition remains a big worry
for businesses. Retaining excellent people is critical to market leadership and expansion.
Companies that fail to retain their best employees risk losing out to the competition. The
emphasis now shifts to developing employee retention programmes and tactics in order to
recruit, develop, retain, and engage top talent.
Hiring suitable candidates: An organization's quality is determined by the quality of its
staff. Recruiting talent from the bottom up is the best approach to having talent at the top. It's
no surprise, then, that talent management programmes and training, as well as recruiting
assessments, have become an important part of HR operations in recent years.
Right Person in the Right Job: People decisions gain a strategic agenda when their talents
and strengths are properly assessed. The skill or competency mapping helps the employee to
assess the organization's skill inventories. This is particularly significant from both the
organization's and employee's perspectives, because the correct individual is placed in the right
position, and employee productivity is boosted.
3.2 Retention of Employees
Employee Retention refers to an organization's capacity to retain its staff. A simple statistic can
be used to indicate employee retention. Employee retention, on the other hand, is often thought
to refer to businesses' efforts to keep employees in their workforce. In this way, retention

becomes a strategy rather than an end result. Employee retention is the practise of persuading
employees, particularly high-skilled individuals who add value to the organisation, to stay with
the company for a long time. Employee retention did not become popular in the business world
until the 1970s and early 1980s, when job mobility and voluntary job change became
increasingly common. The most significant transfer in power from management to employees,
whom the employers failed to recognise, was the shift in power from management to
employees. The most significant requirement on today's management is to retain the most
important and dynamic human resource motivated and dedicated. It's crucial to monitor not
only who the company hires, but also how they keep their core personnel. Managing and
retaining talented personnel is a critical component of gaining a competitive advantage.
3.3 Impact of Talent Management on Employee Retention
Although talent management is a relatively young field, many firms have made it a priority to
guarantee that they can recruit and retain people. The need to develop talent management
expertise can be seen in both corporate and academic studies. When the Boston consultancy
group and the World Federation of People Management Association asked HR professionals
from around the world to rank their most important priorities in 2012, they discovered that
managing talent, improving leadership, and strategic workforce planning were the three most
pressing areas. It implies that every employer must be prepared to fulfil future business
demands, which may be managed effectively through talent management. Employee attraction,
retention, and development have all been connected to the effectiveness of implementing talent
management. Employee retention increases the likelihood that employees will think long term
and avoid making short-sighted decisions. Because retaining high potential employees is a
difficult task, employers must devise strategies to keep them as the organisation pursues high
performance and retention of employees with improved skills. Talent management
encompasses a variety of human resource features, such as various methods for employees to
grow and achieve organisational goals, and it has become critical to the survival of today's
profit-driven competitive company climate.
3.4 Employee Retention and Talent Management Relationship
One of the most significant issues that management faces today is developing and retaining a
workforce that contributes to the organization's performance. Every organization's key goal in
order to expand and progress in this competitive market is to perform consistently and on a
regular basis. Effective talent management is critical for organisations' success and long-term
growth in the present day’s complicated and dynamic business environment, as it allows them
to retain top employees while enhancing productivity. Any company's most valuable asset is
the right talent. Indeed, one of HR's most essential responsibilities is to ensure that employees
with the appropriate abilities remain with the company for a long period. It is critical that a
talent management system is integrated into all parts of human resource management; this will
aid in the recruitment and retention of key people who will contribute to the organization's
success and long-term growth. Talent management and recruitment, development, diversity,
retention, and succession planning approaches all have clear interdependencies. Organizations
may successfully hire and keep necessary talented individuals with effective talent
management.
4. REVIEW OF LITERATURE
Companies should establish and develop talent management in order to recruit and retain staff.
Kumar and Munjal (2021) [4] examined the role of talent management practices in retaining
employees. To determine the influence of talent management practices on employee retention,

a descriptive study was done. The association between the variable of talent management and
employee retention was investigated using a multiple regression model. Personnel like to stay
in a company that allows them to advance and grow in their careers, and pay plans are also
highly beneficial in attracting and retaining employees. Talent management, according to
Zulaecha Ngiu et al (2021) [5] focused on talent, which is described as high performance with
developed skills. To investigate the impact of talent management on employee performance, a
quantitative methodology will be used to collect data from 100 respondents. The findings
demonstrated that the more talent management initiatives are adopted, the greater the retention
rate and performance will be. As per Kamal Abdi Yousuf (2019) [6] talent management is a
common retention approach for talented people in the present business environment. Talent
management is a relatively new idea in Somalia, both in the public and commercial sectors, as
many businesses have yet to adopt its content and face significant issues in retaining bright
personnel. The influence of talent management and its influencing elements on retaining
talented people in the Somali banking sector were explored in this study. The purpose of this
study is to assess the efficiency of talent management in retaining personnel in the banking
sector, as well as to identify a research need in Somalia.
5. RESEARCH GAP
Because of the widespread talent shortages, talent management has become a vital business
activity in organisations and a critical decision area for managers (Sparrow & Makram,
2015).[7] Despite practitioners' keen interest in Talent Management, theoretical research has
not progressed at the same rate. Bolander et al. (2014) [8] suggested that the strategic focus on
Talent Management, in particular, has yet to make an impact on practice because of the absence
of empirical studies in the sector. Many researchers state that, despite the focus on Talent
Management, there has been a lack of theoretical advancement due to a lack of practical study.
As a result, more empirical research is needed, as there appears to be a disconnection between
the practitioner and academic interests (Cappelli & Keller, 2014) [9], as well as a paucity of
empirical evidence on existing conceptual models and theories on the issue of Talent
Management. Specifically, there is a little theoretical study on the alignment of Talent
Management with strategy, despite the strategic importance of Talent Management being
emphasised by numerous researchers and practitioners. Hence, this thesis aims to contribute to
the empirical study on Talent Management in order to bridge not only the gap between
practitioners and academics but also the theoretical gap between Talent Management and
strategy.
6. STATEMENT OF THE PROBLEM
There was a bubble in this technological era that caused the most brilliant to transfer from
traditional to information technology. However, they are now returning to their old economy
enterprises. The recession widened the gap between talent supply and demand, resulting in an
oversupply of technical workers compared to demand and an undersupply of multi-talented
workers compared to demand. As a result of this predicament, organisations began to engage
in poaching. To address this issue, businesses must employ the most effective retention
techniques. A talent management strategy can help organisations enhance their performance by
better identifying, sourcing, developing, rewarding, motivating, and retaining the people that
keeps them ahead of the competition. To remain competitive, a company must be able to
function efficiently in the absence of key employees, which can only be accomplished if talent
management and retention policies are implemented. Consequently, every employee will be
involved in the organization's activities, and their efforts will ultimately contribute to the
organization's overall performance. Organizations, according to Khadka (2011) (10), must
employ retention tactics in order to compete. However, no previous study encompassing the

talent management practices in the context of determining its effect on employee retention
among IT organizations in Chennai has been conducted. Subsequently, Chennai city was
selected as the research's study area.
7. OBJECTIVES OF THE STUDY
• To find out the current employee retention strategies being used in IT industries of
Chennai city
• To investigate the factors that could lead to improved employee retention strategies
• To identify the impact of talent management practices on employees in IT industries of
Chennai city
• To provide suitable suggestions for enhancing talent management strategies that can be
used by IT industries of Chennai city
8. NEED FOR THE STUDY
The concept of talent management is not new; there has always been a demand for talented
personnel. However, due to the shifting paradigms of the workforce in the modern period, the
corporate sector has just recently experienced a talent shortage. A thorough review of the
literature demonstrates that in today's competitive environment, organisations are confronting
a talent shortage, putting pressure on them to attract the best individuals. Corporate leaders must
ensure that talented employees join the organisation and opt to stay rather than seek
employment elsewhere. Many academics have defined talent management in various ways in
the literature reviewed, but few studies have empirically tested the notion. None of the studies
looked into the many aspects of talent management in depth. There have been few studies that
have looked into the relative value of talent management for employees. Besides that, previous
studies have failed to address the problem of determining the worth of various talent
management components and the weight they carry for employees. From the standpoint of
employees and management, the question of the effectiveness of talent management strategies
has also gone unaddressed. In the present study, employees' perceptions of the relative
importance of various aspects of talent management are assessed, and the success of talent
management strategies is measured by assessing the factors such as talent acquisition, career
planning, performance management, talent strategy and employee retention in the perspective
of the IT employees.
9. SCOPE OF THE STUDY
This study will benefit organizations in Chennai’s IT industry in the areas of talent management
and employee retention. The organisation, personnel, and other researchers would all benefit
from this research. Subsequently, the findings of this study will be beneficial to IT firms, as it
will aid management in their efforts to ensure that talent management practices are fully
understood as specified by policies, procedures, and processes. Thus, IT companies in Chennai
will be able to retain their employees and improve their overall performance. The outcomes of
this investigation will also be added to the existing body of knowledge.
10. RESEARCH METHODOLOGY
The specification of the research design, questionnaire design, sample design, data collection,
and statistical techniques that are used to analyse the acquired data are all part of the
methodology utilised to conduct the study.

Research design: The research design for this study is a descriptive research design. The
features of a relevant group are described in a descriptive research design. The information in
descriptive research is precisely defined because it is characterised by the creation of specific
hypotheses.
Study area: Due to time and budgetary constraints on the part of the researcher, the study
was limited to Chennai.
Study units: Through descriptive research approaches, the current study intends to
investigate talent management strategy and its impact on employee retention among the
employees (team members, team leads and project managers) at chosen IT organizations (i.e.
TCS, Infosys, Wipro, and HCL Technologies) based in Chennai city.
Sample Population: The employees at selected IT companies (i.e. TCS, Infosys, Wipro,
and HCL Technologies) in Chennai city are the sample population for the current study.
Research Instrument: To examine the talent management strategies and their influence on
employee retention within TCS, Infosys, Wipro, and HCL Technologies, a self-structured
questionnaire was created. The survey questionnaire was designed in such a way that the
responses reflected the respondents' opinions and thoughts. The Likert 5 point scale (• Strongly
Disagree. • Disagree • Neither agree nor disagree • Agree • Strongly Agree) was used to
evaluate the questions. HR professionals took the talent management initiative, but the
repercussions of this endeavour are related to employees. These questionnaires assisted in
determining the efficiency of such management initiatives as well as employee satisfaction
levels.
Sampling Technique: Because the population is only a few hundred, the sampling
approach used for this study is a simple random sample strategy. Simple random sampling is
another name for probability sampling. Every element has an equal chance of being included
in the sample under this sampling design.
Sample Size: The current study has a sample size of 289 people. For the current study, 356
respondents were approached from four different IT firms in Chennai, and 289 of them
answered relevantly, resulting in a sample size of 289 respondents (team members, team leads
and project managers) from four different IT companies in Chennai being chosen for the final
study.
Table 1 Sample Size Estimation
SL. No. Selected IT companies in
Chennai
No. of respondents
approached
No. of populations responded
with complete data
1 TCS 96 80
2 INFOSYS 89 70
3 WIPRO 90 73
4 HCL TECHNOLOGY 81 66
Total 356 289
Source: Primary Data
Variables in the study
Independent Variables: Talent Acquisition, Career Planning, Performance Management
Dependent Variables: Talent Strategy & Employee Retention

Data Collection
Primary data: A structured questionnaire was used to conduct a survey among the employees
of four IT firms in Chennai to acquire primary data. The participants were asked to rate several
items on a 5-point Likert Scale, from 5 representing Strongly Agree to 1 representing Strongly
Disagree. The survey asked questions about talent management and how it affects employee
retention. The researcher followed all of the research ethical principles.
Secondary information: Journals, reports, publications, books, newspapers, magazines,
working papers, research papers, relevant websites, company publications, and manuals were
used to gather secondary data.
Reliability: Reliability is the term used to describe the result consistency across time. The
results of the questionnaire under investigation are regarded to be reliable if they can be
replicated using the same approach. The two most critical characteristics of any research are
validity and reliability. Internal consistency is measured using Cronbach's alpha. Cronbach's
Alpha was used to assess the questionnaire's reliability, with an estimate of 0.7 and above
indicating that the data was reliable. The outcomes are displayed below:
Table 2 Reliability
Factors Cronbach’s Alpha Number of Items
Talent Acquisition 0.910 3
Career Planning 0.723 3
Performance Management 0.754 3
Talent Strategy 0.717 3
Employee Retention 0.744 3
Overall value 0.836 15
Source –SPSS Output
Validity: Validity refers to the quality of the research technique utilised. Validity
determines whether or not the procedures utilised are appropriate. The content validity and item
validity of the statements/items of the questionnaire schedule utilised for the research project
are satisfied following a systematic inspection. The questionnaire was modified with required
revisions and the data collecting tool was made contently legitimate based on the comments
and recommendations of specialists in the field of HRM. After scrutinising the items and
deleting the invalid ones based on the suggestions, only valid items are retained.
Data Analysis and Statistical Tools: Simple percentages, One-way ANOVA and SEM
were used to analyse the primary data gathered using a questionnaire. Various statistical and
mathematical techniques were used to compute and analyse the acquired data. The data were
analysed with IBM SPSS 20 software. The AMOS -20 Software was used to test the models.
11. OVERVIEW OF INFORMATION TECHNOLOGY
Information technology is a broad term that refers to all aspects of organising and processing
data, particularly within a large organisation or business. IT is a term that is frequently used to
describe computers and computer networks. It encompasses all levels of a company's systems,
from physical hardware to operating systems, applications, databases, storage, servers, and
much more. In recent years, the contribution of IT industries to economic growth has been
enormous. This is due to the reliance of western firms on outsourcing work to India. The IT
industry, as a hotbed of innovators, provides world-class technology to people all over the
world. This allows the Indian economy to transition from an agriculturally based economy to a
knowledge-based economy.

12. PROFILE OF STUDY UNITS - SELECTED IT COMPANIES IN
CHENNAI
• TCS - Tata Consultancy Services: Tata Consultancy Services, located in Mumbai,
India, was founded in 1968. TCS is one of the most valued 'Big4' IT service brands in
the world, employing over three lakh employees. It is the face of the Indian IT industry
and a well-known name in the worldwide IT industry. In Chennai, there are 11 branches
of the TCS office.
• Infosys: Infosys is an Indian software company that was founded in 1981 and is based
in Bengaluru. It is home to around 175000 individuals, including many well-known
Indian personalities such as Mr Narayan Murthy and Nandan Nilekani, to name a few.
There are 4 branches of Infosys in Chennai.
• Wipro: Wipro, founded in 1945, joined the IT-sphere in 1980 and has since grown to
become one of the world's largest IT companies. It is led by Azim Premji and is
headquartered in Bengaluru, India. It was the first software company to receive SEI
CMMI Level 5 certification in 2002. It has a long list of firsts in the IT industry,
including introducing Lean Management to the service industry. Including BPO offices,
there are 7 branches for Wipro in Chennai.
• HCL Technologies: Mr Shiv Nadar created HCL Technologies in the year 1976, and
the company is headquartered in Noida, India. HCL employs hundreds of thousands of
individuals in 35 countries around the world. Business Services, Custom Application
Services, Engineering R&D, Enterprise Transformation Services, and IT Infrastructure
Management Services are some of the business lines where HCL has a presence. There
are about 9 offices in Chennai, operated by HCL Technologies.
13. DATA ANALYSIS
13.1 Demographic Profile of the Respondents
The demographic profile of the respondents may be gleaned from table 3. 67.5 percent of the
responders in the sample are men, while 32.5 percent are women. 62.3 percent of workers are
between the ages of 26 and 35 years, 22.1 percent are between the ages of 36 and 45 years, 12.1
percent are between the ages of 46 and 55 years, and just 3.5 percent are beyond 55 years old.
78 (27%) of the 289 respondents are graduates, 132 (45.7%) are postgraduates, 49 (17%) are
certificate holders, and 30 (10.4%) of their education falls into the other group. In IT firms, 15.6
percent of workers are system engineers, 56.1 percent are senior system engineers, 24.6 percent
are team leaders, and 3.8 percent are project managers. In terms of experience, 102 (35.2
percent) of them have 1–5 years in the IT industry, 114 (39.5 percent) have 6–10 years, 43 (14.9
percent) have 11–13 years, and just 30 (10.4 percent) have more than 15 years. According to
the table below, 10.4 percent of them earn between Rs. 4,00,000 and Rs. 8,00,000 per year, 60.2
percent earn between Rs. 8,00,001 and Rs. 12,00,000 per year, 22.5 percent earn between Rs.
12,00,000 and Rs. 16,00,000 per year, and 6.9 percent earn more than Rs. 16,00,000 per year
from IT companies.
Table 3 Demographic Profile
Factors Frequency(n) Percentage (%)
Gender
Male 195 67.5
Female 94 32.5

Age
26 - 35 Years 180 62.3
36 - 45 Years 64 22.1
46 - 55 Years 35 12.1
Above 55 Years 10 3.5
Education
Graduate 78 27.0
Post Graduate 132 45.7
Diploma 49 17.0
Others 30 10.4
Designation
System Engineer 45 15.6
Senior System Engineer 162 56.1
Team Lead 71 24.6
Project Manager 11 3.8
Experience
1 - 5 Years 102 35.3
6 - 10 Years 114 39.4
11 - 15 Years 43 14.9
Above 15 Years 30 10.4
Annual Income
Rs. 4,00,001- Rs. 8,00,000 30 10.4
Rs. 8,00,001- Rs. 12,00,000 174 60.2
Rs. 12,00,001 - Rs. 16,00,000 65 22.5
Rs. 16,00,000 and Above 20 6.9
Total 289 100.0
Source – SPSS Output
Result:
According to the above data, the majority of the workers who took part in the survey were men
between the ages of 26 and 35. The bulk of the responders were post-graduates with a senior
system engineer title and 6–10 years of experience. The majority of workers have a yearly
income of between 8,00,000 to 12,00,000.
13.2 Structural Equation Modelling (SEM)
The Observed, endogenous variables:
Talent Strategy & Employee Retention
The Observed, exogenous variables:
Talent Acquisition, Career Planning & Performance Management

The Unobserved, exogenous variables:
e1 (Customer Satisfaction) & e2 (Customer Retention)
Variable counts (Group number 1)
Number of variables in your model: 7
Number of observed variables: 5
Number of unobserved variables: 2
Number of exogenous variables: 5
Number of endogenous variables: 2
Figure 1 SEM model Assessment of talent management and its impact on employee retention
Source: AMOS output
Table 2 Results of Testing of Hypothesis
Variables Relationship Estimation SE CR P-Value
Talent Strategy <--- Talent Acquisition 0.195 0.076 2.567 0.010
Talent Strategy <--- Career Planning 0.412 0.079 5.242 0.000
Talent Strategy <--- Performance Management 0.441 0.075 5.906 0.000
Employee Retention <--- Talent Strategy 0.754 0.034 22.286 0.000
Source: AMOS output
Hypothesis Discussion:
H01 – Talent acquisition has no significant impact on Talent strategy
The null hypothesis is rejected since the p-value (0.10) is smaller than the significant value
(0.01), as indicated in table 4. As a result, talent acquisition has a major influence on talent
strategy.

H02 – Career planning has no significant impact on Talent strategy
From table – 4 it is shown that the p-value (0.000) is lesser than the significant value (0.01),
thus the null hypothesis is rejected. So, career planning has a significant impact on talent
strategy.
H03 – Performance management has no significant impact on Talent strategy
As indicated in Table – 4, the p-value (0.000) is less than the significance level (0.01), indicating
that the null hypothesis is rejected. As a result, performance management has a substantial
influence on talent strategy.
H04 – Talent strategy has no significant impact on Employee Retention
Table – 4 demonstrates that the p-value (0.000) is smaller than the significant value (0.01), and
as a result, the null hypothesis is rejected. As an outcome, it can be argued that talent
strategy has a major influence on employee retention.
Table 5 Summary of Major Model Fit Indices
Parameters Acceptable Good Fit values Values of the Research Model
GFI >0.9 0.973
AGFI >0.9 0.966
CFI >0.9 0.976
RMSEA <0.06 0.036
RMR <0.10 0.066
Source: AMOS output
Interpretation:
The research looked at criteria such as absolute goodness of fit (GFI = 0.973), comparative fit
indices (CFI=0.976), adjusted goodness of fit (ACFI=0.966), root mean square error of
approximation (RMSEA= 0.036), and root mean square residual (RMR= 0.066) to assess the
overall model's suitability. Though no uniform figures exist for these SEM fit metrics,
recommendations may be derived from a variety of sources to arrive at the final conclusion. As
a result, the aforementioned number indicates that the model is a perfect fit.
13.3 One-way ANOVA Analysis
One Way ANOVA between Age and Study Variables
H04 – There is no significant relationship between the age of the respondents and study variables
Table 6 Age and Study variables
Factors F-Value P-value Inference Result
Talent Acquisition 0.125 0.945 NS Accepted
Career Planning 2.590 0.043 S Rejected
Performance management 2.497 0.050 S Rejected
Talent Strategy 3.346 0.020 S Rejected
Employee Retention 1.897 0.130 NS Accepted
Source – SPSS output, NS – Not Significant, S – Significant

Interpretation and Inference
The above table shows that since the significant value is lesser than 5% level, for career
planning, performance management and talent strategy the null hypothesis is rejected for age
factor and the variables career planning, performance management and talent strategy. The
significant value is higher than the 5% level for the variables talent acquisition and employee
retention; here we accept the null hypothesis. So, there is a significant relationship between age
factors and career planning, performance management and talent strategy. There is no
significant relationship between the age factor and the study variables like talent acquisition
and employee retention.
One Way ANOVA between Education and Study Variables
H05 – There is no significant relationship between the education of the respondents and study
variables
Table 6 Education and Study variables
Factors F-Value P-value Inference Result
Talent Acquisition 0.718 0.542 NS Accepted
Career Planning 2.377 0.070 NS Accepted
Performance management 3.361 0.019 S Rejected
Talent Strategy 5.013 0.002 S Rejected
Employee Retention 3.371 0.019 S Accepted
Source – SPSS output, NS – Not Significant, S – Significant
Interpretation and Inference
The above table shows that since the significant value is lesser than 5% level, for, performance
management, talent strategy and employee retention the null hypothesis is rejected for
education factor and the variables performance management, talent strategy and employee
retention. The significant value is higher than the 5% level for the variables talent acquisition
and career planning; here we accept the null hypothesis. So, there is a significant relationship
between education factors and performance management, talent strategy and employee
retention. There is no significant relationship between the education factor and the study
variables like talent acquisition and career planning.
14. MAJOR FINDINGS
• The demographic information of the respondents depicts that the majority of the
employees who took part in the poll were males between the ages of 26 and 35,
according to the aforementioned statistics. The majority of those who responded were
post-graduates with a designation of the senior system engineer and 6–10 years of
experience. The bulk of employees earns between 8,00,000 to 12,00,000. per year.
• SEM analysis portrays that the Goodness-of-fit index: GFI = 0.973, CFI = 0.976, ACFI
= 0.966, RMSEA = 0.036, and RMR = 0.066 were used to judge the model's overall
suitability by looking at things like the root mean square error of approximation
(RMSEA = 0.036) and the root mean square residual (RMR = 0.066). These SEM fit
metrics don't have a set number for them, but recommendations can come from a variety
of sources to get to the end result. As a result, the number above shows that the model
is the appropriate fit.
• ANOVA result shows that there is a significant relationship between age factors and
career planning, performance management and talent strategy. There is no significant

relationship between the age factor and the study variables like talent acquisition and
employee retention.
• One-way ANOVA between education and study variables depicts that there is a
significant relationship between education factors and performance management, talent
strategy and employee retention. There is no significant relationship between the
education factor and the study variables like talent acquisition and career planning.
15. SUGGESTIONS
• It is possible to provide managers with training, skills, and knowledge, as well as
encourage them to engage and conduct regular conversations with employees,
particularly about their career aspirations and developmental needs, in order to ensure
the proper assignment of work assignments to high-potential employees, thereby
increasing their retention within the IT organisation.
• Employees can be retained if adequate opportunities for career growth opportunities are
provided. Employees must be treated fairly – through compensation, rewards and
recognition schemes, an open environment and culture are created, competitive
remuneration packages are provided, job responsibilities are clarified, and continuous
training opportunities for skill up-gradation are provided.
• Employees will become more entwined with the organisation if their thoughts and
opinions are valued, resulting in a better retention rate. Employees are also more likely
to perform well when their opinions and ideas are valued, therefore employee
performance will improve.
• To create a sophisticated talent management environment, an organisation must develop
a roadmap for technology and process integration; define a clear vision for talent
management; integrate and optimise processes; use robust technology to enable
processes, and prepare the workforce for the changes that will occur as a result of the
new environment.
16. LIMITATIONS OF THE STUDY
• The views and opinions of employees from 5 different IT organisations were included
in this study. It is possible that participants' responses to certain questions are skewed.
It could be due to a lack of interest or bias in relation to the questions.
• Due to a lack of time and financial resources, the data for this study was only obtained
from 5 IT firms in Chennai city.
• A time span of just 3 to 4 months was available to conduct and complete the study,
indicating a time constraint. Therefore, more detailed studies, such as in terms of
employee satisfaction, organizational culture and other related factors were not
analyzed.
• The study also has a limitation in terms of the generalizability of its findings. The sample
data pertains to only the IT sector, hence the conclusions may not be totally
generalizable to other industries.
• Interrupted interviews were another stumbling block. Because some of the participants
were highly busy and had limited time, their concentration and the natural flow of the
interviews suffered as a result. This study, however, used observation and recording
methods to triangulate the data in order to improve the validity (and reduce bias) of the
findings.

17. IMPLICATIONS OF THE STUDY
One of the most essential consequences for management is that talent is inextricably related to
strategy, and building Talent Management techniques and processes necessitates an awareness
of the unique requirements that arise from the strategy to guide talent description. Management
should, however, assess whether talent could play a role in establishing the strategy's direction.
Because talent is inherently dynamic, it can shift fast and frequently. When talent requirements
change, the managerial impact is to evaluate how to keep Talent Management operations
current and functional. Furthermore, realising the benefits of Talent Management takes time,
and implementing Talent Management systems is both time-consuming and expensive. It might
be said that measuring Talent Management actions is difficult; generating relative
measurements for the performance of procedures and practises, or measures of recognising
talented individuals, can be difficult, but necessary. Disparities in strategy, talent perceptions,
and Talent Management activities can lead to demotivation and communication problems,
making it difficult to realise the benefits of Talent Management. Thus, strong leadership is
required to ensure that the processes run smoothly and that the potential value of Talent
Management is realised. As a result, managers must comprehend their position in the
formulation and implementation of successful Talent Management.
18. CONCLUSION
The requirement for human capital drives talent management, which improves the integration
of newcomers, employee retention, and development. The goal of the study was to look into
the effect of talent management practices on employee retention in a few IT companies in
Chennai. 289 respondents were chosen for this study from various IT organisations in Chennai,
including HCL, TCS, Wipro, and Infosys. Various levels and sectors will have different talent
management strategies, therefore adequate attention must be made to ensure that the right
strategy is followed for better results. With rising competition, a scarcity of talent, globalisation,
and an ever-increasing need to manage talent, the study of talent management practice is
becoming more important. As a result, it is critical to provide training and development in
conjunction with a long-term career development plan, as well as to practise performance
appraisal by providing accurate feedback in a timely manner so that employees can benefit from
the rewards and remunerations that come with good performance. Talent acquisition, Career
planning, Performance management, Talent Strategy and Employee retention will all improve
as a result of this. According to the findings of this study, by implementing these talent
management techniques in the selected IT organisations, employee retention can be improved
while the organisation remains competitive and successful.
REFERENCES
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International Journal of Management Concepts and Philosophy, 8(5), 220-248.
[4] Sourabh Kumar and Sourabh Munjal (2021) The impact of talent management practices on
employee turnover and retention intentions, Global Business and Organizational Excellence

[5] ZulaechaNgiu, Aruzhan K. Jussibaliyeva, Sarfraz Hussain,BotagozDuisenbayeva, Edwin
Ramirez Asis,Guillermo Napoleon Pelaez- Diaz (2021) The Impact of Talent Management on
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A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED IT ORGANIZATIONS IN CHENNAI

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A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED IT ORGANIZATIONS IN CHENNAI