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Integrating Talent Engagement as a Strategy to High Performance and

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Article · October 2008

DOI: 10.1177/097324700800400402

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 14

Asia-Pacific Business Review

Vol. IV, No. 4, October - December 2008
pp. 14-23. ISSN: 0973-2470

Inte
Integg r ating Talent Eng a g ement as a Str
Enga Straate
tegg y to
High P erf
Perf or mance and R
erfor etention
Retention
Saket Jeswani* and Souren Sarkar**

The paper focuses on how talent engagement is an antecedent of job involvement and what should
company do to make the talents engaged. The paper also discusses the importance of talent retention
strategies with special reference to the leadership style of the superiors within the organization. The paper
suggests Talent Engagement Model, which explains the process of engagement, psychological ownership,
performance and retention of talents and their relative relationships, which can help not only to retain the
talents but also to increase the performance for the overall development of both the talents and the
organization.

Keywords: Talent Engagement, Talent Retention, Psychological Ownership

Introduction also provide additional evidence about the impact of

talent engagement on important business outcomes.
Talent is one of the most important assets of an
organization. An efficient workforce determines the This paper makes an attempt to bring to notice the
level of productivity of the organization and thus importance of talent engagement, various
determines the effectiveness of organizational systems organizational factors that influence talent engagement
and processes. Any organization, whether small or and retention, consequences of not paying attention
large, which expects to grow and prosper, must take to it and suggestions to attain talent engagement.
the talent retention issue as a top priority. Failure to Three specific objectives are setup in this paper to
do so lead to organizational slowdown and steady understand the basic relationship between
decline. Even during the times of economic slowdown, engagement, performance and retention of specially
it is imperative for an organization to focus on talent the talented talents, as they are more important for
retention strategies. This way, the organization can any organization as compared to talents who are not
retain talent and make judicious use of the same. The at all engaged or disengaged talents:
expedition to find the best way to retain talents has (i) Construct and evaluate the drivers for talent
taken HR professionals through concepts such as engagement.
talent reviews, talent satisfaction and talent delights.
The latest idea is “Talent Engagement”, a concept (ii) Examine the effect of engagement on
that holds that it is the degree to which a talented individual outcomes such as job
talent is emotionally bonded to his organization and effectiveness and retention likelihood.
passionate about his work that really matters.Talent
(iii) Prevent talents from becoming disengaged.
engagement is the level of commitment and
involvement a person has towards his organization Talent Engagement
and its values. An engaged talent is aware of business
context, and works with colleagues to improve Most organizations today realize that a ‘satisfied’
performance within the job for the benefit of the talent is not necessarily the ‘best’ talent in terms of
organization. Talent engagement is a critical ingredient loyalty and productivity, but it is the ‘engaged talent’
of individual and organizational success. Engagement who is intellectually and emotionally bound with the
is strongly influenced by leadership quality, as well organization, who feels passionately about its goals
as by job and organization features. This conceptual and is committed to its values. The engaged talent
research is designed to determine if the potential for goes the extra mile beyond the basic job responsibility
talents to be engaged in work can be predicted at the and is associated with actions that drive the business
time of their initial application for work. These studies and who puts in his maximum skill and talent in
accomplishing the common goal. Therefore, it becomes

Shri Shankaracharya
Asia-Pacific Institute of Review
Business Management & Technology, Junwani, Bhilai - 490020, India Vol. IV, No. 4, October - December 2008
*E-mail: saketjeswani@yahoo.com, **E-mail: dearsarkar@yahoo.com
 15

mandatory for organizations to focus on talented who are engaged generally perform well, act as
talents, so that they can be utilized maximum in favor positive advocates for their employer’s mission and
of the organization instead of focusing on talents are less likely to leave the company. Disengaged
who are unable to put in their maximum. This defines talents, on the other end, are negative forces that can
and explains the importance of “Talent Engagement” hurt morale and obstruct progress. Talent engagement
over and above “Employee Engagement”. definitions vary from “a positive emotional connection
Development Dimensions International (2007) defines to talent’s work” to “engaged talents are inspired to
“Talent engagement as the extent to which individuals go above and beyond the call of duty to meet
are committed to their organization and its bottom business goals”. The Corporate Leadership Council
line, have pride and job ownership, and put forth (CLC, 2004) definition of talent engagement is “the
more discretionary effort in terms of time and energy”. extent to which talents commits to something or
The term ‘Talent Engagement’ represents an alignment someone in their organisation and how hard they try
of maximum job satisfaction with maximum job and how long they stay as a result of that
contribution. There are five distinct talent segments: commitment”. This includes discretionary effort as a
(a) Fully engaged (b) Almost engaged (c) by-product or output of engagement. Towers Perrin-
Honeymooners & hamsters (d) Crash & burn and (e) ISR global study (2006) included three components
Disengaged. The global survey shows that 34 per in the definition of talent engagement: Cognitive/
cent of the talents in India are fully engaged, 13 per think, Affective/feel, and Behavioural/act as shown
cent disengaged and as many as 29 per cent are in Figure 1. The thinking dimension refers to believing
‘almost engaged’ (HRA Report: HR Special Survey, in an organisation’s goals and values; the feeling
2008). dimension involves a sense of belongingness, pride
and attachment to the organisation; the behavioural
Talent engagement is vital to an organization’s
dimension includes the intention to stay with the
success. Engaged talents are loyal, highly motivated organisation and willingness to go the extra mile, i.e.
team players who care about the company and will discretionary effort.
work hard to help the organization succeed. Talents

Talent
Engagement

Cognitive Affective Behavioural

(Think) (Feel) (Act)

Figure1: Components of Talent Engagament

Melcrum’s research (2005) shows the benefits of talent CLC (2005), a definition of a fully engaged talent:
engagement programmes. According to Melcrum, the
(i) Is intellectually and emotionally bound with
issue of talent engagement appeared around 2000,
and as stated by him, the survey research by the the organization.
Gallup Organization (2003), showed a link between (ii) Gives 100 percent.
disengagement and intentions to resign. According
to the survey, only 25% of talents are actively (iii) Feels passionately about its goals.
engaged, while 17% are actively disengaged and the (iv) Is committed to live by its values
remaining 58% are neither engaged nor actively
disengaged. According to the CLC (2004), Talent This talent will definitely go beyond the basic job
Engagement Framework and Survey cited by the responsibility to delight the customers and drive the
Australian Public Service Commission, the engagement business forward. Moreover, in times of diminishing
(commitment and effort) accounts for roughly 40% of loyalty, talent engagement is a powerful retention
observed performance improvements. According to strategy. Patricia Soldati (2007) states that Talent

© Asia-Pacific Institute of Management, New Delhi

 16

Engagement is the means or strategy by which an (i) Increased passion for, commitment to and
organization seeks to build a partnership between the alignment with the organization’s strategies
organization and its talents, such that: and goals.
(i) Talent fully understand and are committed (ii) Improved overall organizational
to achieve the organization’s objectives, and effectiveness.
(ii) The organization respects the personal (iii) A high-energy working environment.
aspirations and ambitions of its talents
(iv) Increased productivity and enhanced morale.
It is seen from the above that the organization’s
responsibility is to create an environment and culture (v) Boosted business growth.
conducive to this partnership. Talent engagement (vi) Talents as effective brand ambassadors for
creates greater motivation within talents for the work the company.
they do and increases their commitment to the
organization. It is about creating an enthusiasm for (vii) Creating a sense of loyalty in a competitive
their roles, their work and the organization, and environment.
ensuring that they are aligned with the values of the (viii) Attracting more people like existing talents.
organization, well informed and well integrated with
their colleagues as well as culture of the organization. (ix) Increased talents’ trust in the organization.
According to a recent Gallup study (Katharine Esty (x) Lowered attrition rate and higher talent
and Mindy Gewirtz, 2008) on talent engagement, about retention.
54 percent of talents in the United States are not
engaged and 17 percent are disengaged and only 29 (xi) Creating a community at the workplace and
percent are engaged. The key business challenge for not just a workforce.
companies is to create the necessary environment
(xii) Improving customer brand experience and
which promotes talent engagement. Many leading
customer loyalty.
HR professionals preach the benefits of this, but
what does it involve in reality? It is the means by Engagement is important for managers to cultivate
which an organization seeks to build a true partnership given that disengagement or alienation is central to
with its talents such that everyone fully understands the problem of workers’ lack of commitment and
the organization’s objectives and where everybody motivation. Meaningless work is often associated
works together to achieve them. It is a combination with apathy and detachment from ones works. In
of commitment, involvement, organizational citizenship such conditions, individuals are thought to be
and an outcome of a positive psychological contract estranged from their selves (Seeman, 1972) .Other
between talents and their employer. Research using a different resource of engagement
(involvement and enthusiasm) has linked it to such
So why should organizations look to engage their
variables as talent turnover, customer satisfaction –
workforce? What is the business case? A highly
loyalty, safety and to a lesser degree, productivity
engaged talent is someone who will consistently
and profitability criteria (Harter, Schnidt & Hayes,
deliver beyond expectation and who will have a sense
2002). In the workplace research on talent
of belongingness and a strong bond with the
engagement, Harter, Schmidt & Hayes (2002) have
company and its brand. Typically, engaged talents
repeatedly asked talents ‘whether they have the
are strong company advocates, who provide value
opportunity to do what they do best everyday’. The
for the business by raising awareness and trust in
response shows that one in five talents strongly
other stakeholders, reinforcing satisfaction and
agree with this statement and those work units scoring
encouraging commitment amongst colleagues.
higher on this perception have shown substantially
Engagement requires a two-way relationship between
higher performance. Thus talent engagement is critical
employer and talent. Organizations must work to
to any organization that seeks to retain valued talents.
engage the talent, who in turn has a choice about the
The Watson Wyatt consulting companies proved that
level of engagement to offer the employer. Towers
there is an intrinsic link between talent engagement,
Perrin - ISR global study (2006) indicate the benefits
customer loyalty, and profitability. As organizations
of enhancing the bond between the talent, their
globalize and become more dependent on technology
colleagues and the organization. Some of the benefits
in a virtual working environment, there is a greater
documented are:

Asia-Pacific Business Review Vol. IV, No. 4, October - December 2008

 17

need to connect and engage with talents to provide (i) The talents and their own unique
them with an organizational ‘identity.’ psychological makeup and experience
Talent Engagement Drivers (ii) The employers and their ability to create the
conditions that promote talent engagement
According to Nitin Vazirani (2007), there are certain
aspects of talent engagement, which are significant (iii) Interaction between talents at all levels.
and should be managed both by the talents and the The above aspects are the organization’s
employer’s efforts. The three basic aspects of talent responsibility and they have to create an environment
engagement shown in Figure 2 are: and culture conducive to this partnership, and a win-
win equation.

Talent
Engagement

Employee’s Employee Employee

Self + Employer + Employee

Figure 2: Aspects of talent engagement

According to the Gallup study (2006) there are being tapped. They often feel this way
different types and levels of engagement. They are: because they don’t have productive
relationships with their managers or with
(i) Engaged Talent: “Engaged” talents are their coworkers. The characteristics which
builders. They perform at consistently high
can be drawn for not-engaged are that they
levels. They want to know the desired are “Employees” and not the talents because
expectations for their role so they can meet they do not produce any positive result for
and exceed them. They’re naturally curious
the organization.
about their company and their place in it.
They want to use their talents and strengths (iii) Actively Disengaged Employee: The
at work every day. They work with passion “actively disengaged” employees are the
and they drive innovation and move their “cave dwellers.” They’re “Consistently
organization forward. against Virtually Everything”. They’re not
just unhappy at work; they’re busy acting
According to the above certain expectations
out their unhappiness .They sow seeds of
can be assumed for the talents as shown in negativity at every opportunity. Every day,
fig. 3 to get engaged and can be considered actively disengaged employees undermine
as “Talents”, which can act as the drivers
what their engaged colleagues accomplish.
for their engagement. As employees increasingly rely on each other
(ii) Not Engaged Talent: “Not-engaged” talent to generate products and services, the
tends to concentrate on tasks rather than problems and tensions that are fostered by
the goals and outcomes they are expected actively disengaged workers can cause great
to accomplish. They want to be told what damage to an organization’s functioning. The
they should do, so that they can complete characteristics which can be drawn for
the work. Then focus is more on actively disengaged are “No Use
accomplishing tasks rather than achieving Employees” as they do not themselves
an outcome. Employees who are not- produce any positive result for the
engaged tend to feel their contributions are organization and also do not let others to do
being overlooked, and their potential is not anything.

© Asia-Pacific Institute of Management, New Delhi

 18

According to the above given aspects and categories which leads to talent engagement as shown in Figure
of talent engagement, there are some critical drivers 3. They are:

Figure 3: Drivers leading to talent engagement

(i) Feeling valued & Involved: Motivation is boosts self-esteem and self confidence, and
fuelled by feeling that ones contribution is the knock-on effect of this is increased
appreciated and they are valued by others. motivation to do the job well.
Feeling that ones contribution is valued,

Asia-Pacific Business Review Vol. IV, No. 4, October - December 2008

 19

(ii) Good Quality Line Management: A and provide support through strong systems and
harmonious relationship with the superiors, strategies of engagement and convert them into
colleagues and subordinates in addition to actually engaged talents. Employees expect to be
quality line managers leads to a satisfied valued and involved, good quality line management,
employee with maximum productivity. two way communications, career development, clear
company values and image and atlast they want
(iii) Two Way Communication: The company efficient and effective use of their skills and talents
should follow the open door policy. There
which help them to convert into an engaged talent
should be both upward and downward Together, working on drivers lead to the formation of
communication with the use of appropriate an engaging work environment. Once created, the
communication channels in the organization.
engaging work environment has a positive impact on
(iv) Career Development - Personal and employee behaviors and attitudes. In particular, an
Professional Growth: Organizations with high engaging environment builds the feeling of
levels of engagement provide talents with psychological ownership in the minds of talents by
opportunities to develop their abilities, learn meeting their personal and practical needs, thus
new skills, acquire new knowledge and realize encouraging them to put redundant efforts for
their potential. maximum performance and stay with the organization.
In addition, an engaging work environment taps into
(v) Clarity of company values and Image: How talents’ motivation to try harder and put forth the
much employees are prepared to endorse extra effort that differentiates organizations from their
the products and services which their competitors. Finally, when organizations have engaged
company provides its customers depends talents, the long-term benefits appear in the bottom
largely on their perceptions of the quality of line. Organizations have more satisfied and loyal
those goods and services. customers, increased profits, better-quality products
(vi) Effective Management of Talents: Career or services, and greater growth potential.
development influences engagement for Organizations drive engagement by proactively
employees and retaining the most talented leveraging three sources of influence for change:
employees and providing opportunities for employees, leaders, and organizational systems and
personal development. strategies. These three sources work in unison to
Talent Engagement Model: The Outcomes build an engaging work environment. Although
engagement has multiple drivers, the ultimate
of Engaged Talent ownership of engagement rests within the individual
Engaged talents feel inspired, energized and motivated employee. Organizations hoping to drive engagement
to give their best and hence talent engagement is must tap into employees’ passion, commitment, and
central to retaining key talent and securing sustained feeling of ownership with the organization. This is
high levels of individual, team and organizational accomplished by implementing the critical engagement
performance. But the way organizations lead, organize drivers as mentioned in the previous section.The
and manage talents frequently results in disengaged, engagement drivers initiate more and more engaged
frustrated and demotivated employees whose potential talents and tries to develop an emotional connection
is underutilized and whose performance is sub optimal. between the talent and the organization, the first
Too often the organization adopts a rigid, mechanistic phase of “Cognitive Think”. The second important
approach to people and organizations, particularly in component of the model is generation of the
times of uncertainty and change. Therefore a Talent possessive feeling among talents regarding their
Engagement Model is suggested as shown in fig. 4 organization known as “Psychological Ownership”,
for the organizations, who really want to engage their which leads to the positive attitude of “Organizational
talents and want to leverage their skills to accomplish Commitment” and the positive behavior of “Job
both the organizational and individual goals.The first Satisfaction” among employees which is the second
and the most critical aspect are the, “engagement phase of “Affective Feel”.
drivers”. These are the levers that organizations can
use to build a more engaging work environment.
Organizations must hire employees who fit the job
requirements, develop leaders with the right skills,

© Asia-Pacific Institute of Management, New Delhi

 20

Figure 4: Talent Engagement Model

The outcome of the engaged talent can be seen in the The most appropriate work environment of
“Behavioral Act”, the last phase of talents intention engagement would lead to a heightened sense of
to stay and redundant efforts which leads to Talent employee motivation, which, in turn, would lead to
Retention and Increased Performance respectively. enhanced or discretionary effort. Enhanced effort is

Asia-Pacific Business Review Vol. IV, No. 4, October - December 2008

 21

not just putting in the extra time; it also refers to with lowest levels of talent engagement. The CLC
getting things done in the right manner. Talent concludes that this provides “a definite source of
engagement represents the extent to which the competitive advantage”. The CLC claims that high
workforce identifies with the company, is committed level statistical modelling analysis shows that talent
to it and provides discretionary effort so that it can engagement accounts for 40% of observed
be successful. Engagement is a key leading indicator performance improvements of high quality skills. They
for high performance workplaces, improved employee found a direct relationship between employee
productivity and minimized turnover. engagement and redundant effort, such that improved
workforce commitment results in increased
Talent Engagement Vs Performance and performance of from 20% up to 57% (CLC, 2004). A
Retention second benefit of increased workforce commitment or
talent engagement is improved retention. Moving from
The power of talent engagement is that it is closely
strong non-commitment to strong commitment
connected to business results. The summary of some
decreases the probability of departure by 87% (CLC,
of the many studies demonstrating the relationship
2004). The CLC survey (2004) also found a strong
between engagement and organizational outcomes
correlation (0.52) between engagement and financial
has been presented earlier in this article. It is clear
performance: organisations with above average
that talent engagement plays a strong role in business
commitment also tended to have above average
success. When employees work in an environment
financial performance relative to their industry.
in which they can focus their attention on their work
and have a drive to do their best, organizations The main research in the areas of talent engagement
experience higher levels of productivity and has been done by Gallup (2007) which estimates that
profitability. Engaged employees look for better ways actively disengaged workers who make up 17% of
to do their work, spend less time on wasted activities, workforce cost US business from $270-$343 billion a
and make effective use of resources. In the end, year due to low productivity (Melcrum, 2005). Another
companies deliver better products or services and analysis of Gallup studies by Harter, Schmidt and
have more resources left to invest in further Keyes (2003) found a strong and substantial positive
improvements. Engaged employees are more likely to relationship between employee engagement and
improve other critical factors affecting customer productivity and profitability. Towers Perrin-ISR
satisfaction, such as responsiveness, product quality, global study (2006) found that engaged talents were
thought leadership, innovation, etc. Finally, higher more loyal, resulting in reduced recruitment and
engagement translates into higher and faster revenue training costs, put in extra effort and were linked to
growth. Engaged employees are more innovative and increased customer satisfaction. Companies that
place more emphasis on meeting customer needs. scored highly on engagement had higher operating
The “what can I do better or differently” attitude of and net profit margins as compared to those with low
engaged employees versus the “it’s not in my job engagement scores. The above stated research studies
description” attitude of the unengaged simply places prove the trend of relationship between the talent
the former in the better financial performance. engagement and performance and retention which is
shown in Figure 5. As employee productivity is clearly
The CLC employee engagement survey (2004) found
connected with employee engagement. Creating an
that in organizations with high levels of employee
environment that encourages employee engagement
engagement, 20% or more of the workforce
is considered to be essential in the effective
demonstrated the highest level of redundant effort,
management of human capital.
compared with only 3% of those in organisations

Figure 5: Relationship between talent engagement vs performance and retention

© Asia-Pacific Institute of Management, New Delhi

 22

Suggestions for Improving Talent a coordinated, consistent effort from leaders,

Engagement organizational systems, and individuals. It must be
aligned and linked with the most important
If organizations desire to enhance the percentage of organizational business drivers, or it will get pushed
their engaged talents in their organization, they have aside by the daily pressures of work, and languish.
to formulate strategies comprising of various A fully engaged workforce is a loyal workforce and
engagement drivers that are not only essential in in addition, an engaged workforce will give the extra
terms of performance and retention but also important effort the organization needs to remain competitive.
to compete in this fast changing environment. The An organization should thus recognize employees,
employer should focus on the defined characteristics more than any other variable, as powerful contributors
of an engaged talent and by inculcating it in the to a company’s competitive position. Therefore
formulation of strategies to implement for engagement employee engagement should be a continuous
of their talents. The characteristics of the engaged process of learning, improvement, measurement and
talent is defined in the paper, on the basis of which action.It can be concluded that raising and
certain drivers have been extracted out of it. These maintaining employee engagement be in the hands of
drivers help the employers to formulate strategies for an organization and requires a perfect blend of time,
engagement which further leads to increased effort, commitment and investment to craft a
performance and retention of talents as shown in successful endeavor.
talent engagement model. Therefore, organizations
must focus and use their resources and energy only References
on converting the employees into engaged talents by Corporate Leadership Council (2004), The effort
using the mentioned drivers of engagement who drive dividend: Driving employee performance and
the employees into performed and retained talents. retention through engagement.
Conclusion Corporate Leadership Council (2004), Driving
To conclude if talent engagement is not evaluated Performance and Retention through Employee
and handled as soon as possible, disengaged talents Engagement.
will multiply and negative talent satisfaction issues Corporate Leadership Council (2004), Driving talent
can result in: performance and retention through engagement: A
(i) Decreased Motivation: Remaining talents quantitative analysis of the effectiveness of talent
can be overburdened with new duties, in engagement strategies. Washington, DC: Corporate
addition to the unresolved issues that Executive Board.
already prevent their full engagement Corporate Leadership Council (2005), Employee
(ii) Higher Talent Turnover: Talents leave, taking Engagement Survey.
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Asia-Pacific Business Review Vol. IV, No. 4, October - December 2008

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