Outcomes of talent identification in economically liberalized India: Does organizational justice matter?

Abstract

Organizations in economically liberalized India face substantial challenges regarding the engagement and turnover of talent. By exploring the outcomes of the firm-level management practice of talent identification, we uncover the effects of identifying valuable employees as high potential. Adopting an organizational justice lens, we consider the social exchange consequences of talent identification for those identified either as high potential or non-high potential, examining how perceived organizational justice moderates the relationship with employee engagement/turnover intention. Based on data from 331 employees in two large organizations in India, perceptions of distributive, procedural, and interactional justice in this highly competitive labor market are found to moderate the relationship between talent identification and work engagement, while distributive justice moderates the relationship with employee turnover intention. The study identifies novel conditions under which talent identification might avoid the negative outcomes associated with an exclusive approach to talent management, commonly adopted in Indian organizations.