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Talent Impacts/Challenges on Organization – Especially in IT Domain


This is a short article about definitions, perspectives and relative impacts/challenges of talent and talent management on organization


Talent and talent management are terminologies that we hear often nowadays. Most of everyone who hear these terms might believe that he/she knows what they mean, and potentially know their impacts on company/organization that he/she works for or own. This article synthesizes definitions, perspectives and relative organizational impacts/challenges of talent and talent management.

What is Talent? (Talent = Human Capital)

Talent is the company key staff and high potential employee (Altman, 2008); it is the base of the company business, core competency, and the representation of the real product (Bingham & Galagan, 2012). Talent is also referred to as human capital (Marthur, 1999). Human capital are the skills, knowledge and experience possessed by individual which are often measured in years of education through formal or informal training (Marthur, 1999). According to Gultekin, Abdan & Kilic (2012), human capital represents an organization creativity and technical skills; it is the combination of attitudes, skills and abilities of company associates to contribute to the organization growth and development.

What is Talent Management?

Talent Management is a practice of the professional area, job title and a sub-function that has been incorporated within the organization development in many companies to manage valuable employees and key performing individuals (Church, 2013). Glenn (2012) defined talent management as an approach of hiring the right person for the right position, and at the right time. It is the ability to find, recruit, train, and retain highly trained and qualified individual (Glenn, 2012).

Talent and Talent Management  Impacts/challenges on Organizational Level

“Firm is like a tree,” fruits are the company products, and the root are the company talents; as the root is effectively nourished and cared, the tree will be consistently fruitful in majority of environmental change (Todericiu & Muscalu, 2008, pg. 1). The composition starts with the group of key people, and it begins from the top; chief executive to the managing director and manager (Altman, 2008). The root composition is the recruitment of the right people; those who understand others and willing to serve (Bingham & Galagan, 2012).

Key talent is hard to find, and training talent involves considerable cost in time and a substantial amount of money; therefore, it’s a great challenge for any organizations to effectively managing talent (Gultekin, Abdan & Kilic, 2012). Young talents are openly recruited by head hunter for a higher position in different company when the current the company has limited spot for promotion (Altman, 2008). Thus, companies seek and acquire each other’s talents to fill in the required talent spot, and “that’s what happens in companies of our size” (Altman, 2008, pg. 1)

According to Altman (2008), as the shortage of skilled worker in the workforce increase, talent development and retention becomes more important than ever. Altam (2008) uses the term ‘war’ to describe the competition between companies to retain the company valuable associate or employee, also known as human capital. Talent retention is one of the focal factors for the succession of leadership and talent management (Rhodes & Brundrett, 2012). The challenge falls under talent management, and those in the managing position to make the decision (Gultekin, Abdan & Kilic, 2012).

In Information Technology (IT) industry, the talent war among companies are more complicated and creative at the same time (Capperella, 2010). According to Capperella (2010), as economy becomes prosperous, company has to exert more creativity around talent retention besides paying top value dollar; it’s the job satisfaction improvement in additional to other standard benefits. “Companies can’t afford to lose their best IT Pros” is the title of one of many newspapers that study the IT talent management subject (Bond, 2008, pg. 1). According to Bond (2008), developing and retaining current IT professionals, along with attracting new IT talents have become the top priority in company executives’ strategies.

IT talent management is always a challenge because “there will always be competition based on greener grass on the other side of the fence” (Bridges, 2001). It is extremely expensive for every turnover of IT professional because of all the process that involves obtaining or developing a skillful IT individual; those include advertising, interviewing, training, and jumping over the learning curve for both technology and company specific subject (Bond, 2008). IT professionals like to be respected, recognized and valued for their inputs (Bond, 2008). IT associates also like flexibility in creativity, room for growth both in knowledge base and career, positive work environment and challenges (Bridges, 2001)

Talent Retention Is the Answer – But How?

According to Bond (2008), to be successful in talent management, it requires the following action items:

1) Provide honest and open communication

2) Encourage good relationship development between leader and worker

3) Cultivate knowledge based on employee’s need.

Capperella (2010) suggested four ways for better talent management:

1) Offer creative alternative benefits that evolve around individual needs

2) Implement the staffing rotation which provides the experience in the new situation

3) Share budget detail to improve company operational knowledge

4) Promote personal branding to increase employee loyalty

Talent management is about improving job satisfaction (Capperella, 2010), keeping current workers motivated, happy, prepared and fulfilled (Bond, 2008), because “dissatisfaction about career is one of the most crucial factors for separation decision beside pay differential” (Gultekin, Abdan & Kilic, 2012, pg. 110).



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