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Introduction
With a customer base of 135 million, the Emirates Telecommunications Corporation based in the U.A.E, better known as Etisalat, has grown to become one of largest telecommunications companies in the world spanning several continents with an assortment of products and services ranging from mobile networks to internet service provision.
The success of the company is in part due to its expansion into various global markets such as those in the Middle East, Africa, and various parts of the Asian continent.
As indicated by Quisenberry & Griffith (2010,) frontier markets, especially those with few multinational corporations, are ideal locations for the creation of new business ventures due to the potential of becoming a market pioneer which is an enviable position for any company given that a well entrenched corporation within a particular market can in effect control a majority of the local market’s consumer base for many years (Quisenberry & Griffith, 2010).
What you have to take into consideration is that despite the fact the company makes a annual revenue of $8.4 billion with $2.07 billion in yearly profits, the fact remains that as it expands into new markets this creates an issue involving the training and retention of a diverse talent pool of employees from many different locations.
For example, Bley & Saad (2012) notes that when companies expand into new markets it is often the case that they do not do so alone due to a variety of rival corporations also seeking new opportunities within the same markets. As a result, this creates the potential for any expanding company to lose many of its talented expatriate employees to local rivals.
Another factor that should be taken into consideration is the fact that expanding into new markets often entails managers and other employees having to deal with a variety of distinctly different business cultures and styles which may significantly differ from what they are normally used to.
This would of course hamper operational efficiency due to the initial inability for company managers to effectively guide and instruct local employees due to a “gap” in business culture understanding. Thamhain (2009) indicates that research and development into new ways of improving a company’s talent pool is one of the practices most often seen in technology intensive enterprises (Thamhain, 2009).
This is due to the fact that technology has as of late been under a constantly accelerating level of development and, as a result, has enabled new players to enter into markets whereas in the past distinct barriers to proper entry would have been present (Thamhain, 2009).
Despite this, another factor that should be taken into consideration is how HRM acts as a method of human capital development which in effect enhances the capabilities of an organization through the creation of a talented pool of employees (Cabello-Medina, López-Cabrales & Valle-Cabrera, 2011).
As such, failure to sufficiently innovate and develop human resources along with new technological trends and products can be thought of as a failure on the part of the managerial practices at a company since being able to anticipate trends and use them to either reach greater market penetration or keep the company relevant to consumers is a necessity in today’s technology intensive market economy.
It is based on these factors involving improving a company’s talent pool of employees and retaining talented workers that this paper will examine how Etisalat can achieve a competitive advantage through talent management within the various new markets that it is entering in at the present.
This will be done through an examination of talent management from a corporate point of view within the context of the case of a large multinational company such as Etisilat and, as such, will encompass practices that are being implemented within Egypt, the U.A.E or in Etisilat’s other locations around the world.
The researcher expects that through an evaluation of the current practices implemented by Etisalat involving talent management, more effective procedures can be implemented which would result in improved performance and a far better competitive advantage for the company.
In order to accomplish this, the researcher will conduct an interview with a talent manager at Etisilat in order to obtain data regarding current practices within the company involving job satisfaction, motivation, maintaining interest as well as training and developing their employees. According to various research guides, an interview technique is used when the researcher is principally interested in descriptive, explanatory or exploratory appraisal (Rozakis, 1999).
The justification for choosing an interview approach for this particular study is grounded on the fact that participants will have the ability to respond to the data collection tool by way of self-report, thus, this project will utilize a self-administered interview schedule for the purposes of data collection (Rowland, 2000).
An analysis of related literature will also be used to compare the study findings in order to develop a succinct method of analysis regarding current practices utilized by Etisalat and industry recommended methods of talent management (Rozakis, 1999). It was determined by the researcher that utilizing an interview was the most appropriate method to obtain firsthand accounts of the current talent management processes utilized by Etisalat.
By doing so, this ensures that the aggregate data originates directly from the source and ensures that it is a viable and most importantly an academically sound way of evaluating the current processes utilized involving talent management. It is the assumption of this study that talent management and retaining employees are inherently connected to job satisfaction, as well as the degree development and the number of new tasks associated with a job that make it interesting thus resulting in a far greater degree of interest.
Background of the Study
As indicated by Jing, Sizong & Jun (2008) there are four characteristics that are in demand within a technology oriented enterprise, namely: high market responsiveness, fast developments, low cost, and finally high levels of creativity, innovation and efficiency (Jing, Sizong & Jun, 2008).
What must be understood though is that such characteristics are dependent upon the type of technical teams that are the backbone of the company wherein through the utilization of a variety of management practices a seamless integration of vertical and horizontal means of collaboration need to be implemented in order to create a stable organizational structure for proper operations and product development (Jing, Sizong & Jun, 2008).
This is where the concept of talent management enters the picture. Talent management can be described as the process by which a company develops an employee’s skills throughout their time within the company in order to take on a variety of job roles, as well as to manage their progress up the corporate ladder through a variety of leadership roles.
This process also necessitates a reduction in employee “churn rates” which requires the retention of talent within the company in order to reduce costs associated with training new employees and ensuring that talented individuals do not go to potential rivals within the same industry.
Studies such as those by Vaiman, Scullion & Collings (2012) have indicated that improving and retaining talent within any company is crucial for the success of a business due to way in which talented individuals are drivers for high performance and improved operational processes within a company (Vaiman, Scullion & Collings, 2012).
Oldroyd & Morris (2012) point out that it is not the quantity but rather the quality of a company’s workers that drives success no matter the type of business model or the popularity of a product (Oldroyd & Morris, 2012).
It is based on this that various business development specialists, such as Oldroyd & Morris (2012), indicate that it is crucial for any company that wishes to expand into different markets that their hiring and talent management processes are in line with long term views in relation to retaining employee rather than short term goals of merely keeping a position filled.
By allowing a company’s hiring practices and talent management processes to be complacent this can lead to serious detrimental effects on operational performance as well as result in increased costs related to having to fill positions over and over again as well as retrain the necessary individuals to fill them.
With the expansion of Etisalat into new markets comes the potential for various problems to crop up in reducing employee churn rates and ensuring standardization of performance across all levels of the company throughout its various locations.
Present day studies involving the expansion of telecommunication communication companies into new locations lack a sufficient emphasis on the necessity of effective talent management strategies which this study will seek to rectify through identification of perceived problems in current practices and the creation of recommendations to implement in order to create better corporate talent management practices across diverse international locations, in this case involving Etisalat.
Statement of the Problem
With the expansion of Etisalat into new markets comes the potential for problems related to employee retention and talent management. As such, it is necessary to develop new strategies that the company can employ in order to address such concerns and continue to be competitive.
Research Question
Do the current practices in talent management within Etisilat incorporate aspects related to job satisfaction, skills development and increasing job interest? If not, are its current practices already sufficiently competitive or should they be improved?
Objectives
The main objective of this study is to investigate possible methods involving talent resource management that can be implemented by Etisalat so as to become more competitive within the telecommunications industry. Other objectives within the study consist of the following:
- To determine the current talent management practices currently in play within Etisalat and propose specific methods that can be realistically implemented by the company in order to further improve its current practices involving talent management (Huang & Tansley, 2012).
- To show that job satisfaction is inherently connected with performance and employee retention rates (Huang & Tansley, 2012).
- Contribute towards corporate best practices that would enable employers to not only derive better levels of performance from their employees but would also enable them to reduce employee churn rates as well (referring to the number of employees that enter/leave a company) (Huang & Tansley, 2012).
Significance of the Study
It is important to note that as multinational corporations continue to expand into new markets it has become increasingly apparent that effectively integrating managerial practices found in one business culture to another often creates a mixed result which at times reduces the operational effectiveness of a pioneer branch within a new location.
Since globalization and multiculturalism have become synonymous aspects of the global market place companies need to respond to the diverse consumer and cultural demographics to which they sell their products and services to stay relevant.
Not only that, companies need to be able to address the very real concern of a potential brain drain as direct result of local recruitment practices that would in effect steal valuable and talented employees way from the company.
It is based on this and the current expansionist strategy being implemented by Etisalat that this study will attempt to develop new ways in which an expanding company can manage its talent management processes in such a way that it would result in the creation of better employees that would be retained for a longer time within the company.
Scope and Limitations
The independent variable in this study consists of the academic literature that will be gathered by the researcher for the literature review while the dependent variable will consist of the responses gained from the talent management senior manager that will be recruited for this study.
It is anticipated that through a correlation between the researched talent management and employee retention data and the responses of the senior manager, the researcher will in effect be able to make a logical connection regarding appropriate/inappropriate practices currently conducted by the company and make specific recommendations in order to increase Etisalat’s competitive advantage.
Overall, the data collection process is expected to be uneventful; however, some challenges may be present in collecting data involving talent management and employee retention practices that are to be utilized in this study. Such issues though can be resolved through access to online academic resources such as EBSCO hub, Academic Search Premier, Master FILE Premier, Newspaper Source Plus, and AP News Monitor Collection.
Other databases consulted for this topic include Emerald Insight, Academic OneFile, Expanded Academic ASAP, General OneFile, Global Issues in Context, Newsstand, Opposing Views in Context, popular magazines as well as other such online databases which should have the necessary information.
Relevant books were also included in the review. Furthermore, websites such as The Economist.com have several online articles which contain snippets of information that should be able to help steer the study towards acquiring the necessary sources needed to justify asserted arguments.
It must be noted that the time constraint for this particular study only allows structured interviews with an unrepresentative number of people, and also a limited flexibility when conducting the interview. A general overview of multiple companies within the same industry is therefore not possible.
The main weakness of this study is in its reliance on interview results as the primary source of data in order to determine the general opinion of managers regarding current practices involving talent management at Etisalat.
There is always the possibility that the responses could be false or that the manager in question really does not know anything at all regarding the various methods involving talent management and job satisfaction improvement that will be indicated by the researcher. While this can be resolved by backing up the data with relevant literature, it still presents itself as a problem that cannot be easily remedied.
Review of Related Literature
Introduction to Literature
This section reviews and evaluates literature and theories on the use of talent management in order to attain a competitive advantage as well as methods that are often incorporated into talent management practices in order to retain employees and increase their overall performance. This section thus discusses various aspects related to motivational practices, the impact of talent management on developing a competitive advantage, management styles as well as current practices involved in creating job satisfaction.
Literature Review
When it comes to employee retention and performance, job satisfaction is the deciding factor behind several principles of corporate human resource development and, as such, should be examined from a multilevel perspective in order to ensure employees continue to perform adequately and stay longer with a company (Huang & Tansley 2012).
There are many ways in which this can be accomplished ranging from mentoring, continuous job training and other such factors which contribute towards increased job satisfaction. Yet, it must be questioned which particular process is the most suitable for corporations and which is the most preferred by employees.
As such, this section will conduct an investigation into the aforementioned processes which contribute towards job satisfaction in order to determine which is the most effective in talent management practices.
What you have to understand is that the reason such processes are important is due to the fact that they enable a company to acquire a distinct competitive advantage over their competitors within the same market. This can take on a variety of forms such as cost savings, fewer operational interruptions, higher levels of creativity and other such processes which improve the overall performance of the company.
Competitive Advantage
When examining current corporate methods of operation, it must be noted that companies that practice effective methods of talent management actually develop a certain degree of competitive advantage over their competitors within the same industry (Aime, 2010).
The reason behind this is actually quite simple, by retaining talented individuals and increasing their skills and competencies the company in effect creates a talent pool that can respond to a diverse amount of circumstances and develop methods of innovation that can enable a company such as Etisilat to surge ahead of its competition (Aime, 2010).
Not only that, it reduces the inherent costs related to the search and hiring process. All of this translates into the development of a significant competitive advantage for the company which enables it to outperform its rivals. In his study examining HR practices and their effects on corporate performance, it was noted by Aime (2010) that an employee based competitive advantage manifested itself in improved operational capacities resulting in reduced errors and greater levels of productivity (Aime, 2010).
Aime (2010) points out that HR talent management practices actually helps a company to conform to practices related to Six Sigma and other similar methods of increasing operational efficiency while at the same time reducing wasteful practices within the company in the form of hours spent lounging around instead of working. Similar studies such as those by Chavez (2011) point out that talent management practices creates a certain desire in employees to become better in their respective fields through constant training and experience.
As a result, this creates a pool of talented employees that can easily respond to the needs of the company in a quick and efficient manner (Chavez, 2011). From the perspective of Dawson & Abbott (2011), competitive advantages achieved through talent management manifests itself in the form of cost savings.
What you have to understand is that it is far easier for a company to develop an employee and manage their talent in a specific field than it is to hire externally and incorporate them into the company’s current operational infrastructure (Dawson & Abbott, 2011). It must also be noted that the period of time in between incorporating an externally hired new employee, guiding them on what the new position entails and helping them to ease into the company’s business culture consists of a considerable investment of time and monetary resources.
Not only that, during this particular period of time the company is unable to efficiently provision the necessary services that the vacant position is suppose to accomplish and, as such, this creates the potential for considerable financial loses. Lastly, externally hired employees have been noted by Kalman (2012) as having a greater likelihood to shift companies should a better opportunity present itself resulting in the time and effort spent in recruiting and managing this particular individual being wasted (Kalman, 2012).
When taking into consideration the sheer size of many of today’s multinational companies, the complex nature of particular positions and the loss in operational efficiency should a vital member of the company resign, this creates a substantial problem for hundreds of companies around the world.
It is based on this that applying effective methods of talent management along with sound job satisfaction practices results in a company developing a distinct competitive advantage over its rivals who rely almost entirely on external sources for employees for upper management and higher tier technical positions.
Despite the obvious advantages brought about by talent management, it must be noted that even the best talent management practices in the world need to take into consideration the level of motivation that an employee derives from their position.
such as those by Green (2002) indicate that talent management practices are increasingly taking into consideration methods of increasing employee motivation due to the likelihood of an employee resigning due to their dissatisfaction with their job despite all the time and effort the company placed in developing their talents (Green, 2002).
Motivation
Employees that lack sufficient motivation with their current position have been shown as being more likely to leave for “greener pastures” as compared to employees that have been sufficiently motivated by their company (Green, 2002). This can come in the form of reward programs, company policies or varying degrees of empowerment that in effect encourage employees to work harder and stay longer at their jobs (Huang & Tansley 2012).
Based on the work of Green (2002), it was determined that employee motivation played an important role in talent management practices due to its correlation in creating employees that are more motivated to work, more interested in their job and, as a result, stayed longer with their respective companies (Green, 2002).
Motivation, as stated by Green (2002), is a crucial aspect of talent management since no matter how well a company develops its employees through a plethora of training programs and seminars, if said employees find little willingness to actually apply what they were taught in a productive and enthusiastic manner then the training itself would have been a useless venture (Green, 2002).
The reason behind this is the fact that businesses do not operate within a vacuum and have to deal with an intense competitive environment on an almost daily basis (Höglund, 2012). As such, in order to meet these challenges company’s often have to retain employees by offering certain benefits while at the same time institute costly training practices in order to improve performance, these factors result in added costs for the company (Höglund, 2012).
For example, if a company wishes to expand into a new field of business to stay competitive it would need to train some of its current employees (Ghemawat, 2012). This is an important factor to take into consideration for companies since such programs increase employee performance levels (Ghemawat, 2012).
One example of this seen in modern day firms is the employee bonus program which rewards hard workers and those who fulfill certain standards of attendance. Another interesting point brought up by Downs (2012) are the assumptions on what drives an employee to perform better (Downs, 2012).
This comes in the form of varying models which emphasize that most individuals are goal direct, are driven towards intrinsic rewards and need such rewards in order to work better. Such models of behavior are important facilitators in understanding employee behaviors and, as such, are important in the creation of new policies and strategies in boosting employee performance (Downs, 2012; Andersson, 2012).
For example, when using such models of behavior a company may employ a rewards program for efficiency and productivity in order to encourage all employees to work harder as a result. Within the Santhoshkumar & Rajasekar (2012) study it was shown how motivation initiates, directs and sustains an employee’s performance to the job they are accomplishing (Santhoshkumar & Rajasekar, 2012).
When examining this particular aspect it becomes obvious that all employees need some form of motivating factor in order to work harder, without this there is no incentive to improve one’s performance. For example, if a company does not have any means of motivating its employees to work harder it is unlikely that their performance will improve and thus is an ineffective method of talent management (Andersson, 2012).
Management Styles
Another factor that should be taken into consideration when it comes to talent management are the types of management styles that company managers apply when managing and training their respective employees (Ji, et al., 2012). What you have to understand is that there are variety of management styles currently in practice today ranging from the militaristic, to the laid back and finally the open management style which focuses on developing an environment where the sharing of ideas is promoted.
Each type of management style results in different levels of employee reciprocity such as: their responsiveness to given situations, their ability to adapt to new problems and even their ability to improve themselves (Ji, et al., 2012). Companies need to take into consideration what management styles are currently in place and how do they relate to what they want in terms of talent management.
Do they want employees that are robotic and respond in a manner that is dictated step by step by the company? Or do they want employees that are creative and imaginative resulting in the development of possible solutions for current internal problems? It is questions such as these that bring up the issue of implementing proper management styles within a company in order to ensure that talent management practices are implemented in such a way that it is in accordance with what it wants its employees to become.
It must also be noted that some management styles unfairly use the situations of employees in order to derive every single ounce of performance out of them while at the same time paying them a mere pittance (Coget, 2011). The final points of interest in this section are instances where serious problems are overlooked in favor of having work continue as usual. This can come in the form of environmentally damaging practices or employee abuse (Höglund, 2012).
The reason this is important is due to the fact overlooking such factors is highly unethical and would reflect badly on the company if discovered. What you have to understand is that all the negative factors indicated within this section are indicative of company management practices that actually result in adverse effects on a company’s talent pool (Coget, 2011).
The more unethical a company’s internal practices are the more likely it is that performance levels would drop and the rate of employee churn would increase resulting in a considerable degree of talent loss for the company (Schuler, Jackson, & Tarique, 2011).
For example, practices which involve making an employee work harder than they should, employ ethically dubious methods of operation as well as other similar factors are actually detrimental to talent management practices since they either create a situation where employees are more likely to leave the company or the company would develop employees that are distinctly unethical in their own method of working (Coget, 2011).
It is based on this that any examination of a company regarding its talent management practices should involve the manner in which they treat their workers and nature of the ethical codes of conduct of the company. As explained by Höglund (2012) ethically sound companies are able to retain workers more effectively and develop better talent pools since such practices encourage employees to stay with the company due to the overall positive regard for the company’s practices (Höglund, 2012).
Job Satisfaction
This section is comprised of possible solutions to the issue of increasing job satisfaction among employees which is an important component of talent management practices.
Comprised of the concepts of mentoring and continuous development programs, this part of the paper delves into possible practices that could be implemented within a company in order to help employees transition into their respective roles and, as a resul,t develop in a fundamentally better manner as compared to simply leaving it to training and development initiatives.
Mentoring in the case of job satisfaction involves guiding an employee either through a team leader or an adjunct employee that is willing to “take them under their wing” so speak in order to help adjust to the various aspects of the job, teach them how to do it well and guide them as they advance (Swapna & Raja, 2012).
The advantage of this particular method is that it eliminates the dissatisfaction employees have with a job by enabling them to see “the bigger picture” and have them develop a development plan from which they can ascertain what they want out of their current job (Swapna & Raja, 2012).
It must be noted though that while this method is effective it hinges on the fact that the mentor will actually have time to address and guide the concerns of the person that he/she is mentoring (Zenger, Folkman, & Edinger, 2011). In instances where there is sporadic mentorship what often occurs is that employees fall back into old habits and job dissatisfaction occurs as a direct result (Garavan, 2012).
What must be understood is that mentorship is not as effective as a process/program instilled by a company that creates the necessary self-motivated interested within an employee and, as such, should not be considered 100% effective (Zenger, Folkman, & Edinger, 2011). It must also be noted that due to the size of certain organizations mentoring is at times not feasible and is limited because of this (Garavan, 2012).
Another method often utilized in order to increase job satisfaction is the use of continuous training and development programs for employees. This particular practice involves the development of employees in such a way that they are able to understand their intended path and role within the company.
Based on the work of Burroughs et al. ( 2011) it was noted that once an employee develops notions related to importance, acknowledgement and knowing that they will become an important aspect of the company, they become more interested in their respective positions and actually start to work harder and become more interested in their jobs (Burroughs et al., 2011).
When it comes to continuous training development programs, it is interesting to note that researcher such as Maltais (201), indicate that continuing to develop employees in order for them to accomplish multiple different tasks actually results in a greater degree of job satisfaction since it takes away factors related to repetitive actions that actually cause job dissatisfaction (Maltais, 2012).
From the perspective of Maltais (2012), an employee actually loses satisfaction with their job over time unless some degree of variability is included in order to make the job more interesting (Maltais, 2012).
For example, various studies in psychology that have attempted to use economic theories as a means of explaining certain types of human behavior state that a job can be construed as being similar to the concept of marginal utility wherein the more you consume a particular product the more likely you will consume less of it at a later date (Maltais, 2012).
The same can be said for doing the same job over and over again wherein it will eventually reach a point where the marginal utility derived from doing it will be negative thus resulting in job dissatisfaction (Schuler, Jackson & Tarique, 2011).
In order to avoid such an occurrence, it is recommended that continuous training development programs which allow employees to assume different job roles as well as sufficiently progress in their career are an optimum method for increasing job satisfaction since this enables them to “reset’ their marginal utility so to speak as they are placed into new roles (Burroughs et al., 2011).
This creates continued interest, the desire to learn and improve which in the end results in high degrees of job satisfaction (Schuler, Jackson & Tarique, 2011).
Overall, this section has highlighted the importance of incorporating job satisfaction, skills training, job interest, proper management and methods of employee motivation into talent management practices. Without these factors in place, even the best talent management programs in the world are at risk of employees simply leaving due to dissatisfaction with their current positions leading to increased costs related to having to hire, train and buildup their replacement.
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