ENABLERS OF RETENTION OF GEN Y TALENT: A STUDY OF IT INDUSTRY IN INDIA

Abstract

The present study is primarily aimed to develop and retain talented employees of Gen Y cohort. This study initially examined the talent development literature to identify the enablers of Gen Y competency development otherwise termed as talent development. In this vein, four enablers were identified namely: mentoring, strategic leadership, knowledge sharing, and social media. Based on social exchange approach, social constructivist theory, and theory of reasoned action a conceptual framework was proposed, representing the hypothesized relationships. Primary data were collected using a cross-sectional survey from 315 Indian Gen Y employees (born in the years from 1980-2000) working in 38 IT organizations located in Delhi/NCR and Bengaluru regions. Data were analyzed by using SPSS and AMOS software packages. A selfdeveloped scale was used to measure study variables. It is followed by exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) to obtain the factor structure. The hypothesized relationship of the conceptual framework was tested through structural equation modeling (SEM). Findings reveal that mentoring, knowledge sharing, and social media have a positive relationship with Gen Y employees’ competency development. Competency development, in turn, has a positive effect on affective commitment and employee engagement. In addition, affective commitment and employee engagement were also found to be positively related to intention to stay forth. However, strategic leadership was not found to be significantly related to competency development. Overall the study findings demonstrate that competency development is important to evoke Gen Y employees’ intention to stay. Also, competency development results in an engaged and emotionally committed Gen Y workforce. Therefore, organizations must focus on talent developmental initiatives to spur positive work attitudes of Gen Y employees. Further, the study findings provide organizations the strategies to engage and retain Gen Y employees.