Hardworking and talented personnel are the key to organisational sustainability and success, enable an organisation’s success and play a vital role in achieving its goals, objectives and mission. Thus, talent management has not only emerged as a very important function to improve the performance and long term sustainability of an organisation but as well as retaining, nurturing the talent by attracting the right and bright human capital, while having a crucial role in succession planning. Talent management also reduces recruitment costs by lowering employee turnover. It is a process to attract, identify and develop the right human resources for desirable and suitable positions along with creating an atmosphere of effective leadership which will further improve the morale, engagement and performance in achieving the long-term goal and organisational objectives. Organisations should focus more on Inclusive talent development through proper identification, training and meaningful engagement of human resources. Literature reviews clearly suggest that the positive attitude of employees nurtured through inclusive talent management helps to improve the sustainable organisational performance. The more the employees are engaged, the more satisfied and productive they become. By aligning with their long-term goals, inclusive talent management practices and the corporate sector can successfully create an atmosphere of job satisfaction, motivation and enhanced productivity which will lay a strong foundation for effective succession planning in times to come.
We all know that there is a shortage of skill and talent in the corporate sector and organisations constantly compete globally to get the right human resource and retain them to get an advantage over other companies. The concept of inclusive talent management primarily focuses on helping organisations to achieve sustainability by retaining the talent which is a key factor for achieving the competitive advantage. Some employees may leave an organisation after receiving training, which may appear like a waste of resources. The employees who continue and grow within the organisation become valuable assets, leading to higher productivity and profits. This will ultimately improve performance of the organisation in a positive way and will improve the return on human resource investment.
Though, there are similarities in managing talent and human resources, actually, they are two different concepts altogether while managing an organisation. The practitioners and researchers have defined both the concepts in a slightly different manner as human resource management has been considered as a subject which deals with performance, potential, and developing the human talent pool by helping them to grow in the organisation and preparing them for future roles and challenges.
Talent management is an important tool which can be used to the advantage of the organisation to have an edge over competitors in the national and global market. The businesses as well as the personnel can be developed as a valuable asset by focusing on an individual’s distinct skills and abilities that stand out from others who may be good in some other areas of work.
Iscandarov (2018) observed that any person capable of assessing the capacity of working individuals and achieving results with the help of education and training is having Talent Management skills. The talent management aims at building an organisational culture of high productivity with the end goal of promoting result oriented activities (Vural et al., 2012 ). It is the development of practices through scientific processes of identifying talented people, developing their capabilities and making them valuable for the organisation. (Armstrong & Taylor, 2014) and (Ansar & Baloch, 2018).
Two of the important activities of human resource management are Skill upgradation and reskilling. They help in building a supportive learning culture within the organisation. When companies adopt these strategies, they can promote talent development through proper planning and strategic allocation of resources.
It has been observed that organisational efficiency, creativity and excellence of employees improve when organisations implement talent management strategies and conduct customized training programmes for skill improvement. Such efforts also strengthen institutional systems and enable the organisation to take advantage of competitive opportunities in the market. These practices are influenced by internal as well as external factors. Social, political, and cultural conditions also affect these practices to a great extent. Once these practices become part of human resource management, they provide multiple long term benefits to the organisation (Chang et al., 2023).
Talent Management is among the core activities of HRM. They aim to influence and improve the functioning of employees by having an impact on their behaviour. They have a direct impact on the overall performance of employees which leads to sustainable organisational performance. Effective talent planning also helps in attracting the qualified and suitable workforce to achieve the objectives of the organisation. In the area of talent management, Senior managers play a pivotal role by mentoring and helping guide their younger colleagues on various skills to make them leaders of the future. The skills and knowledge transfer contributes in a great way towards talent availability and retention, paving way towards continuity of the business.
Objectives of the Study
There are many objectives to pursue this study that broadly includes:
2.1 To explore the meaning and scope of inclusive talent management, succession planning and sustainable organisational performance.
2.2 To study the relationship between inclusive talent management, succession planning and sustainable organisational performance.
2.3To study top management techniques for inclusive talent management for the achievement of strategic objectives.
In addition to the above objectives, attention will be given to various management measures and developmental programs aimed at training and retaining employees to improve organisational efficiency and effectiveness.
The secondary data sources will be taken from academic publications and various reports issued by the corporate sector highlighting the strategies and practices implemented by organisations in the area of talent management. Proper acknowledgment, credits and citation will be provided to all authors and researchers whose work has contributed to the study. A lot of research has been done in this field, still there is much more to be done. In the end, a sincere attempt will be made to present recommendations on the basis of research done as well as the interpretations and conclusions drawn for the consideration and implementation by the concerned people, organisations and policymakers.
Conceptual Framework
Talent is the sum total of various skills of the individual which can be described through his contribution and dedication. These skills are reflected in his knowledge, experience and intelligence which he uses for completing a job with great efficiency (Beecher and Woodward, 2008). With focus on individual worker’s strength and ensuring their placement into the optimal rules through the process of fair evaluation and support system, Inclusive talent management focuses on enhancing human potential via curiosity and equity (Swailes, Downs, & Orr, 2014).
Operational efficiency, organisational productivity contribute to strong talent retention practices within the corporate world. To achieve this, firms need to adopt effective talent management techniques so they can retain highly skilled employees and ensure that these capabilities are passed on to the next generation of workers (Cheng et al., 2022).
Talent management plays a crucial role in retention of skilled employees. This further leads to reduction of employee anxiety, workplace distractions, prevents interruptions in customer service and saves the organisation from spending extra money on frequent recruitments, training and induction.This leads to managing low stress levels and saving unnecessary costs on recruitment, training and induction. This approach also helps in minimizing disruptions that may arise because of workforce imbalances and result in uninterrupted business continuity.
Traditional talent management (TTM) is based on the assumption that talent is evenly distributed. TTM caters to a small section of employees who hold exceptional capabilities and are designated as high performers in the organisation.
However, the concept of traditional talent management ensures that resources of the organisation such as training, succession planning and leadership development are devoted towards such employees who are creative and possess the potential to perform.
Inclusive talent management (ITM) is based on the assumption that talent is broadly distributed, which means all employees can perform if trained and nurtured. ITM is based on the concept that talent can be developed among the entire work force and is not limited to a select few. ITM lays stress on continuous learning and development opportunities and systems which can enable every single employee in the organisation to perform as per potential and add value to the organisation. The main purpose is not only to enhance long-term employee performance but also instill fairness, capacity building, and engagement among employees .We may conclude by saying that the basic difference between traditional talent management and inclusive talent management lies in how the organisation defines talent and distributes resources towards development of their employees..
Succession planning is a critical mechanism that helps organisations formulate strategies and programmes to develop, train, and retain high-potential employees. It also involves preparing and guiding younger employees through training programmes so they are ready for future roles and anticipated replacements. This also supports the growth and effectiveness of both individuals and the organisation as a whole (James & Jonah, 2022).
The definition of sustainable organisational performance is expressed in terms of its capacity to address the needs of present as well as future stakeholders and also be able to protect different stakeholders as far as their future expectations are concerned (Al Alina & Aten, 2020).
Sustainable organisational performance requires continuity in processes and regular improvement of systems in alignment with stakeholder expectations. Organisations must make continuous efforts that reflect the principles of sustainability, focusing on responsible practices that contribute to long-term success. Rothwell (2010) states that effective performance can be achieved by doing continuous efforts to bring suitable human resources in the organisation. This happens through proper development and timely replacement of key personnel.
It has been observed that organisations investing in leadership development and succession planning are well equipped and prepared to overcome challenges. In the short run as well as long run, these organisations plan for leadership succession as well as operational succession which results in long term viability of the organisation ( Ali & Mehreen, 2019). Right people are selected, groomed and supported by Talent Management practices. Through this approach they can perform well and help the company achieve its goals. This attracts, develops and retains skilled employees. (Collings & Mellahi, 2009). Talent acquisition involves activities for identifying, recruiting and hiring skilled professionals. The main aim is to bring in individuals who have the right abilities and mindset to help the company achieve its objectives effectively (Tarique & Schuler, 2010).
In the recent past, the concept of inclusive talent management, focussing on improving morale, motivation and productivity is becoming an important consideration for HR Practitioners. In this regard, career development programmes offered to employees enhance job satisfaction and growth.
A positive work environment is created through talent management policies that further supports employees emotionally and improve their mental well-being. It has been observed that organisations that do not pay attention to these practices or fail to give importance for employee well-being, often face challenges like low job satisfaction and high levels of demotivation in employees. These problems affect not only the employees’ well-being but also their working relationship with managers resulting in overall adverse working conditions.
The employee turnover rate increases, if employees expectations are not aligned with business goals, This results in dissatisfaction and affects employee morale.Therefore, good talent management practices are very much required for employee’s well-being. Talent management emphasizes the importance of employee engagement and positive organisational support.
A proper framework is needed to design well-structured talent management practices. Such a framework helps in improving the overall performance of the organisation. It will take care of employees' well-being continuously and consistently.There is a need for a performance appraisal system which features monitoring the work as per goals set . This ensures continuous improvement and keeps employees motivated to perform better (Kyndt et al., 2016).
Some of the key factors that help improve employee commitment and retention in an organisation are effective hiring processes, proper employee training and development, recognition of good work, regular performance appraisals. It is important that employees should feel that their work has meaning and purpose and their contributions are well recognized. This encourages loyalty and a stronger connection with the organisation. While designing and implementing strategic talent management practices, emotional and psychological resilience, work–life balance and supportive physical and mental health programmes that help reduce stress should also be included .
According to Sareen and Mishra (2016), employees' job satisfaction increases when they receive proper training and development. This will improve employee retention. Talent management practices, when well designed, results in higher profitability because increased job satisfaction results in higher productivity from employees.
Diener et al. (2017) explain that employee well-being is a multifaceted concept. It includes maintaining a healthy work–life balance and receiving organisational support for both physical and emotional health.
Bakker and Demerouti (2017) says that social dimensions must also be considered while designing Talent management strategies. Organisations need to apply time tested theories and stress-reduction practices to create a conducive work environment.They not only help in maintaining a positive work atmosphere but also provide opportunities for personal and professional growth.. This increases job satisfaction and motivates employees to perform better.
De Cieri and Lazarova (2021) notes that employees’ perceptions begin to change , if there is effective talent management. They start to value both their own development and the growth of the organisation as well. They remain committed and motivated. This reduces turnover rates and leads to higher levels of workplace engagement .
It is observed that many organisations still face several challenges while trying to implement these strategies. Budget is one of the major issues. Organizing leadership training, wellness initiatives, and other talent development programmes requires a large financial investment. Because of this, many small and medium-sized organisations struggle due to limited resources. They find it difficult to create proper talent management frameworks. This has a direct bearing on their ability to support employees and offer enough opportunities for career growth and overall well-being (Guest, 2017; Boxall & Purcell, 2021).
Another important challenge is resistance to change. Employees , particularly, managers often resist accepting and adapting new practices because of diffidence, uncertainty or lack of awareness. They suspect that these changes might reduce their effectiveness or make their roles less important or even redundant. This fear becomes a major barrier whenever organisations try to introduce new talent management strategies. For successful implementation of well-being-oriented policies, of continuous learning , adaptability for change and innovative mindset.(Kotler, 2018).
5.1 Talent Management and Succession Planning
Talent Management is an extension and subset of HRM. With the advent of modern technology these processes have become more effective. Talent Management is identification of key groups of employees who have high potential and then build proper strategies to develop and support them. This way the organisation gains competitive advantage. Effective talent management also involves strong performance management, assessing employees’ potential and developing future leaders to take leadership roles as and when required. All these activities grouped together are known as successful succession planning .
Orellano and Miller (1997) explain that both types of organisations, whether small or large, enjoy the benefits of succession planning. It includes identifying key positions, understanding future human resource requirements and selecting the right people for the right roles and positions. Succession planning also deals with developing leadership skills by training talented employees from within the organisation. This way, future leaders are identified and groomed so that whenever there is any requirement, there will be leaders waiting to take responsibilities for continuity of business.
According to Jan Hills (2012), to begin with, succession planning starts with identifying the traits and abilities that people should possess and then prepare and groom them.This forms the basis of a good talent strategy for succession planning. Once the right people are identified and selected, the next step is to build a system that develops talent from within an organisation , so that the organisation uses a mix of internal and external talent as and when required.
According to Lewis and Heckman (2006), talent management also focuses on retaining talented employees in the organisation and helps them to grow. It has been noted that some firms that invest their resources in developing talent, especially in the areas of leadership and succession planning, are able to overcome many organisational challenges . These organisations prepare not only for leadership succession but also for operational succession. As a result, they strengthen the long-term stability and viability of the organisation (Ali & Mehreen, 2019).
Certain systems must be put in place for the success of succession planning to work in any organisation. The organisation should focus mainly on three elements namely improving competence, culture, and connectivity. When these three elements come together, employees are better prepared for future roles. This helps them understand organisational challenges and develop the necessary skills.
A good succession plan should be designed to match the competitive environment, future needs, strategies to be adopted and the depth of available talent. When these strategies are followed, top management can strengthen the leadership skills and competencies of existing employees. This also reduces unnecessary costs of hiring and training new people, because internal successors are already being developed. As a result, succession happens naturally through inclusive and effective talent management practices. Based on the above discussion the null hypothesis H01 is proposed:
H01: Inclusive talent management techniques have no impact on succession planning.
5.2 Inclusive talent management and Sustainable Organisational Performance
Organisational performance is affected by both Internal as well as external factors playing in the organisation. HRM systems not only facilitate them but also optimize in the interest of the organisation's performance. They influence as well as get influenced by social, political and cultural factors from all sources affecting excellence and swiftness of institutional mechanism (Chang et al., 2023).
Talent management system will lead to organisational sustainability that would incorporate the crucial elements of the human resource system being practiced in the organisation. A systematic approach is required to be designed and executed with the aim to attract, develop, and retain suitable human resources needed for the organisation to improve performance and long term organisational sustainability (Gallardo-Gallardo et al., 2020).
Globalisation and increasing global competition are compelling organisations to constantly evolve and develop new mechanisms to meet customer demands. This requires innovative new designs, technologies and improved practices. This way they can gain competitive advantage both domestically and globally (AlQershi et al., 2022).
Sustainable organisational performance is positively affected by initiatives taken by organisations to manage and develop the talent of its human resources through practices such as equitable recruitment development and retention. Effective talent management systems within the organisation helps to gain competitive advantage and further improve employee productivity. This further helps the organisation to align its human resources and helps the organisation to achieve its strategic goals and support long term sustainable organisational performance(Al Aina & Atan, 2020).
In order to generate competitive advantage and improve employee effectiveness, talent management practices influence and play an important role towards sustained organisational performance (Mujtaba & Mubarik, 2022). Based on the above discussion the null hypothesis H02 is proposed:
H02: Inclusive talent management techniques have no impact on sustainable organisational performance.
5.3 Inclusive Talent Management, Succession Planning and Sustainable Organisational Performance
There are limited studies to show the mediating effect of succession planning on the relationship between inclusive talent management and sustainable organisational performance. However literature review reveals that employee talent nurtured through Inclusive practices becomes a significant component of succession planning and that leads to organisational long term sustainability (Graham, Zaharie, &Osoian, 2024).
It is indicated from the literature that a mediated relationship which helps to convert the benefits of inclusive talent management into sustainable organisational performance by establishing strong leadership structure within the organisation that aligns human capital of the organisation with its strategic requirement and thereby fosters resilience and long term sustainability (Hitt & Duane, 2002). Based on the above review of literature here we proposed the model for the study depicting the relationship between Inclusive talent management, succession planning and sustainable organisation performance.
Figure 1: Proposed model on relationship between inclusive talent management, succession planning and sustainable organisation performance
Research Gaps
Review of literature highlights studies on outcomes of inclusive talent management in western context (e.g., Collings & Mellahi, 2009; Gallardo-Gallardo et al., 2020; Graham et al., 2024). However, in the Indian context there is limited evidence available in literature that emphasis on unique cultural dynamics and presence of diversity among the labour force.
Few studies investigate succession planning as a mediator or moderator between talent practices and performance outcomes. Most of the studies highlight the turnover and leadership continuity (Ali & Mehreen, 2019; Rothwell, 2010) and do not define the strategic role played towards organisational sustainability.
Graham, Zaharie, and Osoian (2023) suggest that there is a positive relation between inclusive talent management practices and individual employee level outcomes but how such practices influence or are related to organisational sustainable performance has not been highlighted.
Extensive research has been carried out in the areas of talent management, succession planning, and sustainable organisational performance but still a lot of limitations and gaps are found. There are conflicting and even confusing insights given by different researchers based on different contexts. These deficiencies clearly indicate that there is still considerable room for further insights to be carried out by the researchers into the subject to unravel the extensive possibilities and benefits not yet explored. The objective of such studies should be exclusively to achieve goals of sustainable organisational performance. These kinds of studies would help us in understanding how these approaches will contribute to improve organisational performance and success across different industries and within them in different functional areas.
Recommendations
The use of more advanced technical tools like artificial intelligence and other emerging technologies in the area of talent management and succession planning is highly recommended to be used to meet organisational objectives. We need to examine how their applications within an organisation can influence employee behaviour through positive psychological effects. Such technological and behavioural insights are essential for retaining skilled personnel by strengthening systematic training programmes, supporting succession planning, and effectively implementing talent management strategies.
Organisations should adopt long-term, industry specific policies with the support of available technologies, competence and capacity of their workforce. It is equally important to consider geographical and demographic differences as employees come from different regions with different educational and cultural background and skill levels. These factors make a difference in their adaptation to organisational policies and practices. HR policies should ensure that personnel coming from diverse backgrounds easily integrate with an organisation seamlessly and effortlessly.
HR analytics driven by AI can play an effective role in this context. There is a growing need to develop and implement remote-work policies that positively influence employee well-being. Research and studies on various talent management initiatives are required to arrive at proper conclusions and conclusive evidence regarding the strategies, methods and policies to effectively enhance employee engagement, satisfaction, and retention.
Employees' prospective for growth must be taken into consideration before designing and implementing talent management practices. Investigations need to be done in a qualitative way through surveys and interviews etc and can go a long way in capturing employees’ perceptions of their well-being and workplace experiences. Organisations should compare managerial assumptions with employee’s actual perceptions so that a mutually acceptable approach that supports organisational goals can be worked out to the satisfaction of all the parties concerned. This will motivate employees to ensure their whole hearted participation in many fields and sections of the organisation.
The idea is to build a talent pool that is willing and prepared to download skills to the next generation. This will enable organisations to achieve their succession planning objectives in a holistic manner aligning inclusive talent management with employee well-being and overall sustainable organisational performance.
Continuous and well structured, professional development programmes and leadership training initiatives should be part of HR activities in any organisation. These strategies and activities certainly create a conducive and positive atmosphere and employees perceive genuine opportunities for career growth and feel job satisfaction. All possible opportunities and facilities should be created for employees to access learning resources that help them acquire new skills, showing that the organisation is committed to their professional development.
A conducive and assuring environment is a prerequisite for promoting work–life balance which has a direct bearing on the performance of an employee. This can be fostered by introducing employee centric programs for improving physical and mental health of staff to help reduce stress levels and improve productivity and job satisfaction. A transparent and effective performance appraisal system based on constructive feedback and recognition of talent is crucial. Recognizing employees’ contributions plays a vital role in strengthening their involvement and loyalty towards their organisation.
Leadership at higher levels need to have a positive as well as proactive approach to build and nurture an inclusive culture with open communication, trust, and psychological safety. Insights through HR analytics help in supporting the efforts of HR teams enabling data-informed decision making in talent management and succession planning .
Available literature reviews have supported the relationship of inclusive talent management with succession planning, and organisational performance by providing insights and inputs from available and qualitative data collected from various sources. To realize these outcomes, organisations must adopt a systematic and scientific approach by planning and managing their workforce in such a way that desired results are obtained.
Inclusive talent management and succession planning, both, emphasise the need for strong managerial capability and competence for resolving issues related to employee development, capability building and overall well-being of personnel working in an organisation. It is emphasised by numerous researchers that appropriate and employee-centred practices need to be followed to achieve complete holistic health, without which organisational success cannot be achieved. Undoubtedly, physical and psychological aspects of employees’ health are important for organisational success.
It is also highly necessary that an organisation's focus should be on employee centric policies, such as fair compensation, opportunities for career growth, proper balance between personal and professional life that may lead to organisational competitiveness along with sustainable development in the long run. Such practices not only improve job satisfaction but also enhance overall employee well-being. Ultimately, this leads to stronger employee engagement and better retention of talent.
In a nutshell, the findings reiterate that organisations are better equipped to adapt, grow and sustain their competitive edge which in turn lead to organisational success and sustainability if they have focussed on Management of Talent .