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. INTRODUCTION:
According to Derek Stockley, talent management is “a conscious, deliberate approach
undertaken to attract, develop and retain people with the aptitude and abilities to meet current
and future organizational needs.”
Talent management involves individual and organizational development in response to a
changing and complex operating environment. It includes the creation and maintenance of a
supportive, people oriented organisation culture.1
On the other hand, Gen Y refers to Y‟ refers to those employees born after 1980‟s who are
mostly 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 of
their expectations and the kind of mindset and psychology. Further, Gen Y is extremely scattered
in terms of their skill sets and also specializations.2
Solving talent management issues related to Gen Y is proving to be the most challenging task for
human resources management professionals across the globe. Further, sectors like IT, ITES,
BPO, KPO and emerging media have Gen Y employees constituting majority of their key
workforce. Issues like innovation culture, employer branding, leadership and motivation have
been 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 Y
talent bank. This situation has aggravated because of increasing tendency of recruiters to get
talent on board, by hook or crook, using poaching, referrals and headhunting techniques among
other evolving recruiting practices. According to a study conducted by MyHiringClub.com, the
IT 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 as
we 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 REALITY
Essentially the paper tries to unravel the issues Gen Y face towards giving optimum performance
in an organization. From the organizational perspective, the paper tries to look at talent
management issues considering market reality. Further, the paper tries to adapt the EFCS
philosophy in terms of proposed a model that can act as a guideline towards effective talent
management and is practical and adaptable. EFCS being an evolving and progressive philosophy
can contribute to the effective management of the Gen Y in terms of concepts like trust through
transparency and inverting the organizational pyramid.

3. LITERATURE REVIEW:
Integral Talent Systems Inc., in 1997 suggested that the companies must continuously focus on
their critical talent to ensure that their skills, interests and capabilities evolve in line with
strategic objectives, and listed out various retention practices
In the book, War for talent, by Michael Williams (2000)4 asks a critical question, “Why would
people of outstanding talent want to join our company? The book tries to give answers in terms
of 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 organizational
excellence by identifying, developing and promoting the best people in the organization. In other
words, „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 the
most prominent topic discussed is that of talent retention and the effects on business results. The
authors stress on identifying and mobilizing the Team A in the company to achieve big goals. A
study by Aberdeen group, in 2005 found that 85% of the HR executives reported that the single
greatest challenge in workforce management is creating or maintaining their company‟s ability to
compete for top talent.
John et al (2009) found out that retaining the top grade talent has become a big concern for
several 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 behaved
differently 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 METHODOLOGY
The 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. 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 as
follows:
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. 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 Sure
3. Do you think 5 years in an organization, means: Time to move on?
Yes , very much Depends on the company No
18 72 10
4. Is "Employees First, Customers Second" a relevant concept, considering Gen Y?
Yes No Only in some cases
67 12 21
5. 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 15
6. Should age/experience be criteria to measure ability?
Yes No, not at all Only for some jobs
13 77 10

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 18
Most of the respondents opined that money is a great motivator to perform, only to certain
extent. Majority of the respondents felt that they needed higher levels of empowerment than they
currently have in the organization. Further, the responses indicate that the duration of the
employees in the company depends on the nature and operations of the company, and that there
is no duration or juncture at which employees would want to shift companies. Most of the
responses indicate that, “Employees First Customers Second” is a relevant concept considering
Gen Y. Further, most responses suggest that employers put more efforts into recognizing skill
sets of employees and giving them "choice" in terms of work/tasks. A majority of respondents
felt 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. Several
respondents felt that uniformity of assessment of employees good for employees. Several
responses indicate that a „targets‟ culture limits them in terms of ability to do things. Most
respondents felt that talent management issues related to Gen Y can be solved using the EFCS
concept.
The focus group discussion was carried out for a sample of 50 people. The sample was divided
into five groups of ten people each and was carried out online. The emphasis of most of the
groups was on empowerment and „space‟ at workplace. People felt that they lacked the
empowerment and the space to do things more innovatively and creatively. Some of the
respondents opined that companies should be more liberal in terms of allowing them to
collaborate and also explore new possibilities at workplace. Further, they also opined that
allowing social networking at the workplace was important for people to keep connected and
also improve their skills and collaborate. Some of them felt that top management should trust
Gen Y with responsibilities to be handled and encourage open and constant communication
channels. Most of the respondents wanted interventions to happen at the right time and were not
averse to right interventions. Several people felt that a younger leadership could go a long way to
determine 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. optimum levels. Gen Y employees feel that human resources vertical should have an empathetic
approach towards their personal life and help them cope up with the turbulence that they go
through in their personal lives. The respondents also felt that companies sometimes stress on
unrealistic targets which hinders their performance many a times and leads to contributes to
higher attrition levels amongst the Gen Y population. They also opined that the human resources
vertical should look at customization of rules and regulations and also give scope for other
interests like music, sports and reading. The participants of the focus group discussion, stressed
on 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 talent
management process related to Gen Y
H1: Factors like empowerment, communication and flexibility are not important in case of talent
management process related to Gen Y
ANOVA TABLE for factors affecting talent management related to Gen Y
A B C D E F G H I J
1* 32 14 36 43 11 28 31 27 35 29
2* 6 27 4 3 24 9 4 13 6 14
3* 12 6 8 3 8 6 6 8 4 4
4* 0 3 2 1 7 7 9 2 5 3
Total 50 50 50 50 50 50 50 50 50 50
*1- Very important, 2-Important, 3-Important to a certain extent, 4-Not important
Wherein 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 represent
Empowerment, rule of exception, right and timely intervention, monetary benefits and perks,
designations/titles, collaborations/right teams, space for interests other than work, younger
leadership, socialization/social network and trust respectively.
RSS=11606
TSS=RSS-CF=11606-6250=5356
BSS=LSS=0
WSS=TSS-BSS=5356
Variation ratio (F) = 0
Variation ratio value to be accepted = <2.21, Observed value =0
Therefore, H0 is accepted ie; Factors like empowerment, communication and flexibility are
important in case of talent management process related to Gen Y

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
000
The dual pentagon model talks about the ten critical factors that need to be concentrated on , in
terms of designing policies, formulating and executing human resources strategies, linking HR
goals to business goals, and also convincing top management to have a liberal view in terms of
changes and overhauls that need to be done in the organizational systems and process to ensure
better talent management in turn ensuring better recruitment, placement, training, ensuring
optimal performance, development and more importantly retention. At the heart of this model is
the EFCS approach towards championing the cause of complete commitment to employees,
turning conventional management upside down. The model talks about a cyclical approach to the
ten prime „factors‟ which are critical in terms of talent management related to the Gen Y talent
pool. The EFCS backdrop has been considered because it‟s a holistic concept and also takes the
employers perspective in terms of issues like facing stark market reality, balancing stakeholder
interests, hunger to grow and retention of employees as well as customers. Further, HCLT has
carried out several interventions successfully in this domain giving us a laboratory scenario snap
shot into practically adapting these practices considering the fact that EFCS is an evolving
philosophy which has garnered global attention.

9. F1 (Empowerment)
Empowerment is one of the most important factors in terms of deciding how a
creative/innovative Gen Y employee perceives a job. Companies having high empowerment
culture like Google get excellent results from their Gen Y pool of employees and have an
empowerment embracement culture. No wonder, most information technology wizards dream of
a job at such work places and create magic at the workplace with stunning and diverse work
profiles.
F2 (Rule of exceptions)
Rule of exception refers to the „flexibility‟ factor and expect the companies to be flexible in
terms of deliverables, policies and framework in an organization. Rule of exception emphasizes
on 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 to
organizational goals and dimensions by choice and many times being an „exception‟ to rules like
prior experience, age and geographical boundaries. Like the grant of „work from home‟ is
restricted 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 the
management and the reporting authority. In several cases, interventions happen as a necessity in
terms of documentation or periodicity which is considered as a hindrance by most Gen Y
employees. 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 time
intervention‟ 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 of
talent management. As aspirations of this talent pool are very high, the employees look at
monetary benefits like better allowances, insurance cover for the family. Gen Y employees also
look 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 attach
a lot of importance to the designation part, there are several employees who would perform to
their optimum and would like to stay in the company longer in case they get desired designations
or titles as they believe, that designations or titles could as well be pre-cursors in terms of the
kind of tasks they would carry out and the leadership capacity that they could get a chance to
demonstrate.8

10. F6 (Collaboration/Right teams):
Majority of the Gen Y employees believe very strongly in the concept of collation and team
work. Since the level of team participation is very high in colleges and even in their personal
space. 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 the
success 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 interests
could be social responsibility projects, music, arts and gaming. Though MNC‟s and large
corporate are having this on their agenda, there are several companies which are yet to get into
the bandwagon. This could be „differentiator‟ in terms of employer brands and could go a long
way to ensure better talent management as it contributes immensely to the job satisfaction
phenomenon9. For ex: Deloitte gives its employees two days every year to engage in corporate
social responsibility activities of their choice.
F8 (Younger leadership)
A younger leadership is favored by Gen Y employees and they consider important in terms of
ensuring better empathy and connect. Younger leadership could also mean that Gen Y employees
have 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 the
Gen Y employees in terms of sharing common interests and characteristics. This would in turn
contribute 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 social
networks are now being given a thought in terms of being allowed at the workplace, at least
selectively. The Gen Y employees are hugely addicted to socialization and social networks and
prefer to have an active online social network. Companies are trying to cope up with this issue by
finding innovative ways like post lunch social networks being allowed or company‟s internal
social network being active and propagated by the company. It very well seems that FB and
other social networks are becoming basic needs of people. Therefore allowing socialization and
social 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. Employees
want their companies to „trust‟ them and corporate houses are striving to build high trust levels
amongst the employees and want to inculcate „trust‟ as a prime ingredient in terms of
determining 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. CONCLUSION:
Talent management issues related to Gen Y are different from that of other employee pool and
need to be dealt with exclusively. Talent management variables have also changed over time and
need innovative and creative solutions in the permissible limits. Companies need to concentrate
on ensuring that talent management variables in relation to Gen Y are given due importance to
ensure that the „delivery line‟ of the company is strengthened. This could go a very long way in
ensuring 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.