The Synergistic Effect of Talent Attraction and Retention on Employee Productivity: Empirical Evidence from the Indian IT Industry

Talent Management, Human Capital, Employee Productivity, Resource-Based View, Indian IT Sector, HR Strategy

This study investigates the individual and combined effects of talent attraction and talent retention on employee productivity within the competitive context of the Indian Information Technology (IT) industry. It aims to address a gap in the literature by testing their synergistic impact, rather than examining them in isolation.

Design/Methodology/Approach: A quantitative, cross-sectional research design was employed. Data was collected via a structured questionnaire from 350 IT professionals across five major Indian IT hubs (Bengaluru, Pune, Chennai, Hyderabad, Kochi). Validated scales measured perceptions of talent attraction, retention, and self-assessed productivity. Data analysis utilized descriptive statistics, correlation, and hierarchical regression analysis to test the hypotheses.

Findings: The results confirm that both talent attraction (β = 0.34, p < 0.001) and talent retention (β = 0.52, p < 0.001) are significant positive predictors of employee productivity. Crucially, hierarchical regression revealed a significant synergistic effect. The combined model (Talent Attraction + Talent Retention) explained a substantially greater variance in productivity (R² = 0.48) than the model with attraction alone (R² = 0.32), demonstrating that their integrated impact is greater than the sum of their individual parts.

Research Limitations/Implications: The cross-sectional design limits causal inference, and self-reported data may introduce bias. Future research should employ longitudinal designs and objective performance metrics.

Practical Implications: The findings urge IT firms to move beyond siloed HR approaches. Managers must develop integrated talent management strategies where employer branding and recruitment promises are seamlessly aligned with the internal work experience, leadership support, and career development opportunities to maximize employee productivity.

Originality/Value: This study provides empirical evidence for the synergistic relationship between talent attraction and retention, a area previously underexplored in the Indian IT context. It offers a validated model and instrument for future research and provides managers with a clear rationale for a holistic talent management framework.