strategic talent management in a communicative...

Strategic Talent Management in a Communicative

Perspective A study carried out in cooperation with Grundfos Holding A/S and Siemens A/S to examine how the communicative aspects in attraction, development

and retention can be utilised and integrated.

Master of Arts in Corporate Communication

Aarhus University, Business and Social Sciences Department of Business Communication

Master Thesis

Supervisor: Mona Agerholm Andersen

By Keld Andersen August, 2013

Keld Andersen Master Thesis August, 2013 Strategic talent management in a communicative perspective

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Executive Summary Talent management has become one of the paramount concerns for organisations around the globe

due to the demographic changes and the shift from the industrial age to the information age that

intensify the need for talented employees in the current knowledge economy. Moreover, scholars

and practitioners have also sought after a strategic approach to talent management, which is further

emphasised by two paradigms: Strategic human resource management (SHRM) and corporate

communication that exemplify the need for strategic talent management by advocating vertical and

horizontal integration of HR practices and alignment of communicative disciplines to develop or

maintain a sustainable competitive advantage.

Therefore, this thesis sets out to examine how the communicative aspects inherent in the talent

management strategies of attraction, development and retention can be utilised and integrated to

derive a strategic approach to talent management. More specifically, this thesis examines how

horizontal integration between the strategies can be obtained by investigating how Grundfos and

Siemens utilise and integrate the communicative aspects in these strategies and how their talents

perceive and experience this.

In order to examine the above, this thesis develops an understanding of the theoretical field of talent

management through a literature review that analyses and discusses contemporary literature

concerning the development, definition of and paradoxes in talent management, including a review

of the SHRM and corporate communication literature to argue for a strategic approach to talent

management. Moreover, the literature review also suggests strategies for attraction, development

and retention from a communicative perspective:

Firstly, to attract talents, organisations should develop an employer brand that focuses on

different benefits (e.g. psychological and symbolic), which should be co-created and negotiated with

current and potential talents. Moreover, the organisations must also be aware of the impact that the

employer brand can have on the formation of the psychological contract and the subsequent

employment relationship. Secondly, organisations should ensure that the talents develop through

experiences by providing supportive environments, mentoring and supportive managers that provide

feedback and empowerment. Thirdly, organisations should retain the talents by ensuring

identification, commitment and engagement through different aspects, such as organisational

support, organisational values and job challenges. Finally, the integration of these strategies should

be ensured by emphasising development opportunities and organisational values in the employer


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brand, and by being aware of fulfilling expectations conveyed through the employer brand, as all of

these aspects have an impact on retention.

To collect the necessary and relevant data to examine the research question, this thesis is based on

the social constructivist tradition and an exploratory research design, in which case study research is

deemed highly relevant from a purposive and methodological standpoint. Therefore, this thesis also

utilises the qualitative interview as its primary source for exploring the interviewees’ lived world by

utilising a semi-structured interview guide.

By analysing and comparing the empirical findings according to the theoretical framework, it was

found that Grundfos and Siemens focus on several benefits in their employer brands but that it was

the career and development opportunities that were the primary attractor for the talents. Moreover,

both companies also fulfil most of the talents’ expectations formed by the employer brand. In regard

to development both companies and all the talents view development from experiences as

important and state that this should be ensured by mentoring and a supportive environment, in

which the managers provide encouragement, empowerment and support. In regard to retention the

findings suggested that Grundfos and Siemens ensure identification, commitment and engagement,

which were supported by the talents, as these findings suggested value identification, support, job

challenges, involvement, development and so forth. Thus, the findings suggested that Grundfos and

Siemens ensure integration by communicating development opportunities in their employer brands

and ensuring that the talents develop within the organisation. Further, integration was ensured by

fulfilling pre-entry expectations.

Based on the above, three implications for integration were derived: Firstly, integration can be

ensured by focusing on developing the talents, as development functions as an important attractive

and retaining feature. Secondly, the fulfilment of the expectations conveyed by the employer brand

is also considered important for retention, and thus integration. Thirdly, a dialogical approach

between the organisation and employees/talents should ensure integration by co-creating of the

employer brand, organisational values and ensure a fair social exchange relationship, and thus

retention.


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Table of Contents

1. Introduction ............................................................................................................... 7

1.1. Research Question .................................................................................................................. 8

1.2. Scientific Approach .................................................................................................................. 8

1.2.1. Social Constructivism ...................................................................................................... 9

1.3. Delimitations ......................................................................................................................... 11

1.4. Structure ................................................................................................................................ 12

2. Theoretical framework ............................................................................................. 14

2.1. Introduction to Talent Management .................................................................................... 14

2.1.1. Origin and Development ............................................................................................... 14 2.1.2. Definition ....................................................................................................................... 15 2.1.3. Paradoxes in Talent Management ................................................................................ 16

2.2. Strategic Talent Management ............................................................................................... 17

2.2.1. Strategic Human Resource Management ..................................................................... 17 2.2.2. Corporate Communication ............................................................................................ 18 2.2.3. Conclusion ..................................................................................................................... 18

2.3. Strategic and Communicative Approach to Talent Management ......................................... 19

2.3.1. Attraction ...................................................................................................................... 19 2.3.1.1. Employer Branding ................................................................................................ 19

2.3.1.1.1. Reconceptualising Employer Branding .............................................................. 20 2.3.1.1.2. Communicating a Reconceptualised Employer Brand ....................................... 21

2.3.1.2. Psychological Contract .......................................................................................... 23 2.3.1.2.1. Psychological Contract Breach ........................................................................... 24 2.3.1.2.2. Formation of the Psychological Contract ........................................................... 25

2.3.1.3. Conclusion ............................................................................................................. 26

2.3.2. Development ................................................................................................................. 26 2.3.2.1. The 70-20-10 Model .............................................................................................. 27 2.3.2.2. Development through Interaction ........................................................................ 27

2.3.2.2.1. Job Appraisals Interviews ................................................................................... 29 2.3.2.2.2. Coaching and Mentoring .................................................................................... 29

2.3.2.3. Conclusion ............................................................................................................. 29

2.3.3. Retention ....................................................................................................................... 30 2.3.3.1. Motivation ............................................................................................................. 30 2.3.3.2. Identification ......................................................................................................... 31 2.3.3.3. Commitment ......................................................................................................... 32 2.3.3.4. Engagement ........................................................................................................... 33 2.3.3.5. Conclusion – Comparing Motivation, Identification, Commitment and

Engagement ........................................................................................................... 35

2.3.4. Conclusion – Integrating Attraction, Development and Retention .............................. 37


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3. Research Method ..................................................................................................... 38

3.1. Research Design .................................................................................................................... 38

3.1.1. Case Study ..................................................................................................................... 39 3.1.1.1. Semi-structured Interview .................................................................................... 40 3.1.1.2. Interview Technique .............................................................................................. 41 3.1.1.3. Interview Participants ........................................................................................... 42

3.1.1.3.1. Company Interviews........................................................................................... 42 3.1.1.3.2. Talent Interviews ................................................................................................ 42

3.1.2. Research Quality ........................................................................................................... 43 3.1.2.1. Authenticity and Trustworthiness ......................................................................... 43

3.2. Analysis .................................................................................................................................. 45

4. Findings and Analysis ................................................................................................ 47

4.1. Case Companies .................................................................................................................... 47

4.1.1. Grundfos ........................................................................................................................ 47 4.1.1.1. Talent Management .............................................................................................. 48

4.1.2. Siemens ......................................................................................................................... 50 4.1.2.1. Talent Management .............................................................................................. 50

4.1.3. Conclusion – Comparative Analysis ............................................................................... 52

4.2. The Talents ............................................................................................................................ 54

4.2.1. Grundfos ........................................................................................................................ 54 4.2.1.1. Attraction .............................................................................................................. 54 4.2.1.2. Development ......................................................................................................... 55 4.2.1.3. Retention ............................................................................................................... 57

4.2.2. Siemens ......................................................................................................................... 61 4.2.2.1. Attraction .............................................................................................................. 61 4.2.2.2. Development ......................................................................................................... 62 4.2.2.3. Retention ............................................................................................................... 63

4.2.3. Conclusion – Comparative Analysis ............................................................................... 67 4.2.3.1. Attraction .............................................................................................................. 67 4.2.3.2. Development ......................................................................................................... 68 4.2.3.3. Retention ............................................................................................................... 69 4.2.3.4. Integration ............................................................................................................. 71

5. Discussion and Implications ...................................................................................... 73

5.1. Implications ........................................................................................................................... 75

6. Conclusion ................................................................................................................ 78

7. Critical Perspective ................................................................................................... 80


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References ...................................................................................................................... 82

Web References ................................................................................................................................ 86

Character count Executive summary: 4,400 excluding spaces – corresponding to 2,0 standard pages. Thesis: 175,998 excluding spaces – corresponding to 79,9 standard pages.


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1. Introduction Today, the ‘war for talent’ is still significant, as the needs for highly skilled employees and knowledge

workers increase with vast market changes, demographic changes and the shift from Industrial age

to Information age (Michaels, Handfield-Jones & Axelrod, 2001; Strack, Baier & Fahlander, 2008;

Hatum, 2010, pp. 4-9). Furthermore, scholars and practitioners argue that employees and especially

talented employees have become a part of a company’s sustainable competitive advantage, as the

recent shift towards the Information age has emphasised intangible assets, such as intellectual

capital and talent, which is further advocated by the resource based view (ibid.; Barney & Clark,

2007; Heinen & O’Neil, 2004).

Therefore, it is argued that talent management has become paramount for most organisations

today, in order to attract, identify, develop, deploy and retain employees that are valuable for the

organisation, and thus maintain or achieve a sustainable competitive advantage (ibid.; Collings &

Mellahi, 2009; Uren, 2007). Moreover, Boston Consulting Group and the World Federation of People

Management Association (WFPMA) conducted a survey in 2012 to identify the most important HR

topics. The survey polled 4,288 executives across borders and industries and found that talent

management is rated as the top priority in HR today and in the future among companies across the

globe (Strack et al., 2012).

Despite of the fact that talent management has been identified as the most critical HR topic today

and in the future, several scholars and practitioners have sought after a strategic approach that

accounts for the activities that compose a strategic talent management system (Collings & Mellahi,

2009; Lewis & Heckman, 2006), which can also be exemplified through this quote:

(...) whilst there have been a number of significant developments in the activities

encompassed within the talent management umbrella, e.g. the growing interest in

employer branding, employee engagement and the benefits of being an employer of

choice, in many cases talent management activities lack the integration necessary to

secure the flow of talent that organisations will require in the future.

(Beardwell & Claydon, 2010, pp. 190-191).

Furthermore, two paradigms further drive the need for a strategic approach to talent management,

namely strategic human resource management (SHRM) and the notion of corporate communication,

as these approaches focus on aligning and integrating HR practices or communicative aspects to


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create or further enhance a company’s sustainable competitive advantage (Becker & Huselid 2006;

Van Riel, 2003; Cornelissen, 2011).

From the above, it is evident that there are several aspects that drive both the need for talent

management in general and integration of the different activities inherent in talent management.

Therefore, it is deemed relevant to examine how the different aspects of talent management can be

integrated to derive a strategic approach. Nonetheless, this thesis only examines how integration can

be achieved from a communicative perspective, which leads to a focus on attraction, development

and retention.1 Moreover, to investigate and propose a strategic and communicative approach to

talent management this thesis will use Grundfos Holding A/S2 and Siemens A/S3 as case studies. 4

1.1. Research Question Based on the above, this thesis sets out to investigate how the different communicative elements

inherent in the talent management strategies of attraction, development and retention can be

utilised and integrated to derive a strategic approach to talent management in the 21st century. Thus,

this thesis seeks to answer the following research question:

How do Grundfos and Siemens utilise and integrate the defined communicative aspects

inherent in the talent management strategies of attraction, development and retention;

and how do the talents experience and perceive this?

1.2. Scientific Approach The scientific approach is the foundation for the entire research process, as the scientific approach

“prescribes the relationship between methods, data, theories, and the values of the researcher”

(Ghauri & Grønhaug, 2005, p. 14). Consequently, the scientific approach prescribes the ontological,

epistemological and methodological considerations made when conducting research. Thus, the

scientific approach will serve as a guideline and have implications for the theoretical and

methodological actions taken in order to answer the research question.

The chosen scientific approach for this thesis is social constructivism, as this approach enables the

thesis to investigate the experienced reality (Burr, 2003) of the interviewees in regard to the

utilisation and integration of the communicative aspects inherent in the companies’ attraction,

development and retention strategies. Thus, social constructivism enables the thesis to examine how

1 See delimitations in section 1.3.

2 Henceforth referred to as Grundfos.

3 Henceforth referred to as Siemens.

4 The rationales for using these two companies are presented in chapter 4.


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Grundfos and Siemens intend to utilise and integrate the attraction, development and retention

strategies from a communicative perspective and how the talents perceive and experience this. The

reason for this is that social constructivism is placed within the interpretive worldview where the

researcher wants to explore how “people make sense of their social worlds (...) [and] the people’s

intentions, motivations and subjective experiences” (Daymon & Holloway, 2002, p. 4).

Subsequently, this focus excludes other scientific approaches, such as hermeneutics.

Essentially, hermeneutics seek understanding through interpretation and hermeneutic approaches,

such as the biblical and methodological seek the one true meaning in texts through different

methodologies (Sheratt, 2005, pp. 37-62; Esmark, Laustsen & Andersen, 2005, p. 13). However,

Gadamer’s philosophical hermeneutics advocates that there is not only one true meaning but several

depending on how a phenomenon is interpreted through a person’s horizon of understanding

(Skinner, 1986, pp. 23-38). Gadamer argued that a person’s horizon of understanding is based on a

person’s prejudices and preconceptions, which are a condition for understanding, and thus frames a

person’s understanding of the world (ibid.).

First of all, the reason for not utilising hermeneutics in this thesis is that the purpose with this

thesis is not to interpret the one meaning of the companies’ communicative approach to talent

management, but rather to understand how the use and integration of the three overall talent

management strategies can influence the talents and thereby develop an understanding of the

importance of this integration. Secondly, the philosophical hermeneutic approach does not account

for the social construction of reality, as the philosophical hermeneutic approach emphasises the

individual interpretation of reality through the horizon of understanding (Esmark et al., 2005, p. 13).

Consequently, this approach would not enable the thesis to investigate and reflect on how the

interviewees generate meaning and experience the communicative aspects of the talent

management strategies. Therefore, social constructivism will be explained in the following section.

1.2.1. Social Constructivism

Social constructivism’s fundamental tenet (the ontology) is that reality is socially constructed through

relations, language and context (Burr, 2003; Wenneberg, 2000; Esmark et al., 2005, pp. 15-26).

Consequently, social constructivism questions the existence of an objective truth and argues that

reality is relational and not subjective nor objective, as reality is created in the social processes, in

which people interact in a given context (ibid.).

However, several scholars have pointed out that there is no clear definition of social

constructivism but that this scientific paradigm consists of a number of different positions that can

be placed on a continuum from a critical to a very radical perspective (Wenneberg, 2000). The critical

perspective focuses on a critical analysis of taken for granted assumptions, whereas, the radical


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perspective argues that everything is socially constructed (e.g. that the physical reality only takes

form when people acknowledges its existence) (ibid.). Subsequently, each position has its own

interpretation of what social constructivism is, which naturally obscures the understanding of a clear

ontological definition of social constructivism. Therefore, Wenneberg (2000) cautions that one must

be aware of which position one takes when conducting research from a social constructivist

paradigm, as each position connotes a somewhat different epistemological approach. Thus, prior to

selecting a social constructivist position, this thesis will briefly account for the challenges inherent in

the radical position.

Wenneberg (2000) cautions that the radical position leads to some severe and paradoxical

epistemological problems. First of all, Wenneberg (2000) argues that relativism becomes a challenge

when taking the radical position, as this position inherently advocates that there is no method of

determining ‘true’ or reliable knowledge, and thus each argument or theory can be considered as

equal in regard to validity (pp. 153-158; Burr, 2003, p. 23). Secondly, Wenneberg (2000) states that

the radical position challenges the fact that some aspects of the physical reality have inherent

differences or are determined prior to people acknowledging their existence (pp. 141-146).

Therefore, Wenneberg (2000) claims that science must function as the determinant of what can (and

cannot) be defined as reality (p. 161). Subsequently, Wenneberg (2000) proposes a criterion for

demarcation, in which application and trust become essential aspects instead of the traditional

search for truth in science (pp. 162-163; 192-196). Thus, Wenneberg (2000) proposes that science

should be ‘evaluated’ according to the potential for application in general society and its reliability

(whether the produced knowledge is trustworthy). These ideas are similar to the concepts of

authenticity and trustworthiness5 that are usually applied when discussing research quality in social

constructivist research (Daymon & Holloway, 2002, pp. 93-94; Neergaard, 2007, pp. 45-46).

Based on the above discussion, this thesis will be founded on the social constructivist position that

Wenneberg (2000) cites as the epistemological position, in which two positions about what

knowledge is arise; namely, one position that argues that science is socially constructed and another

that claims scientific knowledge is socially constructed, which is somewhat similar to the radical

social constructivism. Thus, this thesis will be based on the ‘traditional’ position that argues that

science is socially constructed, as the latter leads to the same challenges as discussed above.

The implication for choosing the epistemological position is that this thesis will also be

positioned within the critical and sociological positions (Wenneberg, 2000). Firstly, this thesis sets out

to question the taken for granted assumptions (ibid.; Burr, 2003) about talent management to

5 These concepts will be discussed in section 3.1.2 concerning the research quality.


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uncover the potential interrelatedness between attraction, development and retention strategies,

and thus how these can be integrated. Secondly, the sociological and epistemological positions also

lead to the implication that “interview knowledge is socially constructed in the interaction of the

interviewer and the interviewee. The knowledge is not merely found, mined, or given, but is actively

created through questions and answers” (Kvale & Brinkman, 2009, p. 54). Thus, the knowledge and

data produced in this thesis is socially constructed through interaction between the interviewees and

the researcher (Burr, 2003, p. 152). Subsequently, the knowledge becomes socially constructed and

is only one representation of reality among others, which further underlines the importance of

basing the research on the concepts of authenticity and trustworthiness, as discussed above.

1.3. Delimitations In order to be able to present more accurate and relevant theory, research and findings there is a

need for delimiting the arena, in which the theory will be described and the subsequent research,

findings and analyses will be conducted. Thus, the delimitations help identify and frame the parts of

social reality that this thesis wants to investigate.

Firstly, the notion of talent management implies several different approaches in regard to structure,

process, communication and so forth (Beardwell & Claydon, 2010, pp. 163-189; Hatum, 2010, pp. 10-

26). Nevertheless, this thesis will only review the notion of talent management from a

communicative perspective due to a limited number of pages. Essentially, this means that the focus

will be on the communicative aspects in the attraction, development and retention strategies, as

identification and deployment strategies are more concerned with process aspects, such as assessing

business needs, identifying talent and matching individuals with key positions (Collings & Mellahi,

2009).6 7

Secondly, this thesis purposes to investigate the integration of the attraction, development and

retention strategies inherent in talent management. However, this purpose implies a focus on the

horizontal integration, whereas, the vertical integration (linked to the business strategy) (Storey,

2007, p. 65) is not considered in this thesis. The reason for this is that the alignment with the

business strategy can be argued to be considered as an aspect that focuses more on the process,

which is especially evident in the identification and deployment strategies, as discussed above.

6 This thesis acknowledges that the identification and deployment strategies consist of communicative aspects.

However, the primary focus in these strategies seems to be the tools and processes for identifying and deploying the talents for key positions (Larsen, 2012, pp. 243-245; Collings & Mellahi, 2009). 7 The fact that this thesis does not focus on identification and deployment strategies also makes a definition of

talents redundant, as a definition of who can be considered a talent is also focused on the process (ibid.).


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Naturally, it can be called a paradox that this thesis focuses on strategic talent management and then

excludes a focus on vertical integration. However, this is done to be able to do more in-depth

research within the limited number of pages.

Thirdly, this thesis establishes a general framework for integrating attraction, development and

retention strategies in talent management, while acknowledging that “the most powerful talent-

management practices are firm-specific and respond to an organization’s unique business and human

capital context” (Heinen & O’Neil, 2004, p. 67). Moreover, the extent to which individual

talents/employees are motivated by different aspects is inherently subjective and based on the

context, individual perceptions, needs and so forth (Brooks, 2009, pp. 87-98). Thus, the purpose with

the thesis is not to develop a best practice but merely to present a general framework through

research, in which the firm-specific and individualised motivational factors can be incorporated.

Similarly, the notion of global talent management will not be incorporated into this thesis, as this

would be too comprehensive given the limited number of pages. Nonetheless, it is still acknowledged

that “companies need a global template for talent management to ensure consistency across the

organization but also should allow local subsidiaries to adapt that template according to their specific

circumstances” (Stahl et al., 2007, p. 23).

1.4. Structure In order to obtain the best possible coherence, this thesis is divided into 7 chapters. The first chapter

is the introduction, in which the scope of the thesis, the scientific approach and the area of research

are described, explained and delimitated.

The second chapter is the theoretical framework where the literature will be reviewed in order to

develop an understanding of the theoretical field of talent management, and thus expand on existing

knowledge to propose a strategic approach to talent management. Firstly, this chapter sets out to

introduce talent management by presenting the origin and development of the concept including a

definition of talent management and the paradoxes inherent in talent management. Secondly, this

chapter presents the two paradigms, SHRM and corporate communication, as some of the

overarching rationales that drive the necessity for viewing talent management in a strategic

perspective. Finally, this chapter will review the communicative elements inherent in the talent

management strategies of attraction, development and retention to propose how these elements

can be utilised and integrated to derive a strategic approach to talent management.


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Chapter three presents the research method and the subsequent research design utilised for

gathering the necessary data for an examination of the research question. Moreover, the chapter will

also review the interview technique that will be applied and the subsequent selection criteria for

choosing the interview participants. Following, methods for establishing the research quality of the

overall research design will be reviewed according to the scientific approach. Finally, the chapter will

conclude with a review of the chosen method for analysing the empirical findings.

The fourth chapter presents the empirical findings and analyses these. Thus, this chapter is divided

into two sections: One that examines how Grundfos and Siemens utilise and integrate the

communicative aspects of talent management and another section that examines how the

interviewed talents perceive and experience this.

In the fifth chapter the general conclusions derived from an analysis of the empirical findings will be

discussed according to the theoretical framework to suggest some implications for how to utilise and

integrate the communicative aspects of attraction, development and retention strategies.

The sixth chapter sums up the main findings and implications in this thesis and answers the research

question. Finally, the seventh chapter will review the thesis in a critical perspective and propose

areas for future research.


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2. Theoretical framework The following chapter will outline a theoretical framework on strategic talent management from a

communicative perspective. The purpose is two-fold: Firstly, review literature to compose an

overview of the talent management field and its strategic importance to enhance the understanding

and knowledge about the subject area. Secondly, relevant literature concerning the communicative

aspects of attraction, development and retention will be discussed to develop a thorough approach

to strategic talent management.

Therefore, this chapter will consist of an introduction and overview of the talent management

field with a focus on the development, definition and paradoxes in talent management. Hereafter,

the fields of SHRM and corporate communication will be reviewed to put talent management in a

strategic perspective. Finally, the theories that will constitute a strategic approach to talent

management will be reviewed. Thus, the final part of this chapter will compose a contemporary

framework for further research and analysis.

2.1. Introduction to Talent Management In this section, the development of talent management will be described, including a review of the

definition and paradoxes in talent management.

2.1.1. Origin and Development

The interest and development of the concept ‘talent management’ was initiated by a survey and

subsequent report by McKinsey & Company, in the late 1990s. The report warned about the ‘war for

talent’ and described the shortage of talent as a strategic business challenge and a critical driver of

corporate performance (Beardwell & Claydon, 2010, p. 161; Storey, 2007, p. 106; Michaels et al.,

2001). Therefore, organisations also started to recognise the importance of talent management,

which has increased since (Strack et al., 2012; Larsen, 2012, pp. 17-19).

Michaels et al. (2001) claim that there are three overarching rationales that have initiated the

war for talent. Firstly, an “irreversible shift from the Industrial Age to the Information Age” means the

demand for knowledge workers has increased as the focus has shifted from production to intangible

assets, such as innovation and intellectual capital (p. 3; Storey, 2007, p. 107; Martin, 2009).

Secondly, the “intensifying demand for high-caliber managerial talent” (Michaels et al., 2001, pp. 3-

5) is caused by changing demographics, which leads to a shortage of potential managers8 (ibid.;

Strack et al., 2008). Finally, Michaels et al., (2001) argue that managers and employees have a

8 Michaels et al. (2001) only focus on managers. However, several scholars and practitioners use a broader

definition of talent, such as specialists or high potentials and argue for their importance as well (Ashton & Morton, 2005; Beardwell & Claydon, 2010, p. 162)


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“growing propensity to switch companies” today, as it has become acceptable to have shorter

employments at more companies (pp. 5-6). Essentially, the latter exemplifies the shift from the

relational to transactional contract that Rousseau (1995) found (cited in Brooks, 2009, p. 70;

Zagenczyk, Gilbney, Few & Scott, 2011). Here, the argument is that due to the extensive downsizing

and changes that took place in the 1990s the employment relationship has changed and as a

consequence shorter employments have now become the ‘norm’ (ibid.).

In conclusion, it can be argued that the extensive focus and perceived importance of talent

management are founded on the idea that human capital enhances a company’s sustainable

competitive advantage. Thus, the rationale is the more competent and skilled the employees are for

the key positions within the organisation, the more competitive the organisation will become

(Michaels et al., 2001; Barney & Clark, 2007; Ashton & Morton, 2005; Collings & Mellahi, 2009; Uren,

2007). Consequently, this rationale has fostered the need for managing talent or as Bhatnagar (2008)

argues “talent has become the key differentiator for Human capital management and for leveraging

competitive advantage” (p. 20).

With an overview of the underlying rationales for the extensive focus on talent management, a

definition of talent management will be presented in the next section.

2.1.2. Definition

Scholars and practitioners point out that there is no clear definition of talent management and its

components (Collings & Mellahi, 2009; Ashton & Morton, 2005; Storey, 2007, p. 106) further Lewis

and Heckman (2006) state that “a review of the literature focused on talent management reveals a

disturbing lack of clarity regarding the definition, scope and overall goals of talent management” (p.

139). However, based on a literature review,9 it can be argued that talent management is composed

of attraction, identification, development, deployment and retention strategies (Collings & Mellahi,

2009; Uren, 2007; Beardwell & Claydon, 2010, pp. 162-190).

Nevertheless, as stated, this thesis will only focus on the attraction, development and retention

strategies10 and the communicative aspects inherent in these strategies. Subsequently, this thesis will

focus on aspects, such as how to attract talents through employer branding (Ewing, Pitt, de Bussy &

Berthon, 2002; Backhaus & Tikoo, 2004); develop the talent through the daily tasks, mentoring and

9 See appendix 1.

10 Nonetheless, this thesis also acknowledges that identification and deployment strategies are equally

important aspects in talent management, which is also illustrated in appendix 1.


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so forth (McCall, 2010a; Larsen, 2012, pp. 95-114); and retain the talents through motivation,

identification, commitment and engagement (Larsen, 2012, pp. 72-73; Cartwright & Holmes, 2006;

Knippenberg & Sleebos, 2006). The communicative aspects of the attraction, development and

retention will be further investigated in section 2.3.

2.1.3. Paradoxes in Talent Management

There are some paradoxes inherent in the notion of talent management and the contemporary

context that it is practiced within.

First of all, the extensive focus on talents can have a negative impact on the ‘non-talent’ since

“the tricky business of evaluating and differentiating employees, which is the essence of talent

management, is riddled with potential conflict and emotive pitfalls” (Uren, 2007, p. 33). Thus, the

extensive focus on talents may demotivate the rest of the employees, which can lead reduced

productivity and so forth. Consequently, it can be argued that organisations must be aware of

communicating about the need for talent management and continue to treat the other employees

fairly.

Secondly, a CEO may ask “why should we develop people when other companies are willing to

do it for us?” (origin unknown) which illustrates another paradox in talent management, namely the

benefits of developing your own talents versus finding/’buying’ talents from other organisations.

However, Larsen (2012) states that internal development can be more targeted and adapted to the

organisational characteristics and convey career opportunities, if the organisation’s own talent

advance to higher positions, which have a positive effect on the attraction and retention (p. 215).

Thirdly, it can also be called a paradox that the focus on talent management seems to have

intensified in recent years (Larsen, 2012, p. 18) along with the economic downturn that has led to

higher unemployment rates (Strack et al., 2008). Nevertheless, it is argued that the need for talent is

increasing due to the knowledge economy and more specialised jobs (Strack et al., 2008; Storey,

2007, p. 107; Michaels et al., 2001).

Finally, several scholars and practitioners have debated whether talent management is ‘new

wine in old bottles’ compared to HRM or whether the concept has its own merits (Lewis & Heckman,

2006; Collings & Mellahi, 2009; Larsen, 2012, pp. 22-23). It is evident that talent management is built

on several activities associated with HRM, such as recruitment and development (ibid.; Storey, 2007,

p. 108). However, the difference between talent management and HRM is to be found in the

strategic perspective that should be utilised in talent management to identify key positions, attract,

identify, develop, deploy and retain talented individuals that can fulfil the key positions, and thus

contribute to the company’s sustainable competitive advantage (Collings & Mellahi, 2009; Uren,


17

2007; Michaels et al., 2001). Thus, talent management needs to become strategic, which will be

further conceptualised in the following section.

2.2. Strategic Talent Management In this section, the two paradigms SHRM and corporate communication will be reviewed in order to

argue for the necessity of a strategic approach to talent management.

2.2.1. Strategic Human Resource Management

SHRM focuses on ensuring integration between different HR policies and practices, and consistency

between the business strategy and the HR policies and practices (Beardwell & Claydon, 2010, pp. 41-

48; Storey, 2007, pp. 65-67; Becker & Huselid, 2006; Lengnick-Hall et al., 2009). Thus, SHRM is

concerned with both horizontal and vertical integration, which is integration between the various

aspects of HR and integration with the business strategy, respectively (ibid.). Whereas HRM is

traditionally defined as a collection of HR policies and practices that are not necessarily aligned

(ibid.). Finally, it is argued that the integration inherent in SHRM leads to more effective

organisations, and thus it is also argued that integration can be a constituent of a company’s

competitive advantage (ibid.).

In regard to talent management this integration should be obtained by ensuring that the

different components are aligned. This means that there should be alignment and consistency

between the attraction, development and retention strategies, which would lead to horizontal

integration. Moreover, vertical integration should be ensured by linking the talent management

approach to the overall business strategy of the company for example by identifying key positions

within the company, as advocated by Collings and Mellahi (2009) and Uren (2007).

Furthermore, the resource-based view (RBV) has often been cited as another perspective on SHRM,

as this view focuses on the internal resources of a company rather than the external context

(Beardwell & Claydon, 2010, p. 50; Barney & Clark, 2007). The main argument is: If all elements in the

VRIO (value, rarity, inimitability and organisation) framework are fulfilled then the company will

obtain a sustainable competitive advantage (ibid.).

In regard to talent management the value will be created by attracting, developing and

retaining the talents, as these can help improve the company’s business results (Collings & Mellahi,

2009; Uren, 2007; Hatum, 2010, p. 14). Secondly, rarity and inimitability must be created through a

integration of the company culture and the talent management strategies, so that these are merged

to derive a differentiated approach to talent management that matches the company culture. Finally,


18

organisation must be obtained by ensuring that HR policies and practices are consistent and

integrated (Barney & Clark, 2007, pp. 128-135).

2.2.2. Corporate Communication

Corporate communication is defined as a management function that seeks to communicate

effectively with internal and external stakeholders to create and maintain positive reputations with

stakeholder groups upon which the organisation is dependent (Van Riel, 2003, pp. 54-55;

Cornelissen, 2011, pp. 4-5). Thus, corporate communication scholars and practitioners advocate that

individual communicative disciplines, such as advertising, employee communications and public

relations are aligned (ibid.; Frimann & Mønsted, 2012). Subsequently, the argument is that the

alignment of the communicative disciplines will help create a more favourable reputation for the

organisation, as the communication becomes less fragmented and contradictory (ibid.; Balmer &

Greyser, 2003).

Additionally, Balmer and Greyser (2003) argue that all organisations consist of five different

types of identities.11 This argument can be used to illustrate the importance of a strategic approach

to talent management, as the communicated identity that is utilised when a company engages in

employer branding must be aligned with the actual identity of the organisation. The reason for this is

that an organisation’s communicated identity in regard to employer branding will help form the

conceived identity of potential employees’ or more specifically will help form their psychological

contract (Backhaus & Tikoo, 2004; Foster, Punjaisri & Cheng, 2010; Rousseau, 2001). Moreover, the

communicated identity will also impact the current employees’ psychological contract (ibid.).

Consequently, if the communicated identity is not aligned with the actual identity then the

organisation runs the risk of breaching current and potential employees’ psychological contract,

which can lead to reduced commitment, trust, identification, job satisfaction (ibid.; Robinson &

Morrison, 2000; Zagenczyk et al. 2011). This will be further elaborated in section 2.3.1.2 concerning

the psychological contract.

2.2.3. Conclusion

The importance of a strategic approach to talent management has been emphasised by reviewing

literature concerning SHRM, RBV and corporate communication, which illustrated that integration

and alignment of HR aspects and communication can create a sustainable competitive advantage for

organisations (Barney & Clark, 2007; Becker & Huselid, 2006; Cornelissen, 2011). Therefore, this

thesis sets out to examine how a strategic approach to talent management can be developed by

11

See appendix 2.


19

ensuring horizontal integration between the communicative aspects of attraction, development and

retention strategies, which will be the focus in section 2.3.

2.3. Strategic and Communicative Approach to Talent Management

In the following sections a strategic and communicative approach to talent management will be

suggested. Therefore, the communicative aspects concerning attraction, development and retention

will be investigated to suggest how they can be utilised and integrated, and thus derive a strategic

approach to talent management in a communicative perspective.

2.3.1. Attraction

The primary method for attracting talented employees has been defined as developing an

employment value proposition (Uren, 2007; Ewing et al., 2002), which has also been coined as

employer branding (ibid.; Backhaus & Tikoo, 2004; Edwards, 2010). Moreover, employer branding is

interrelated with the psychological contract (Backhaus & Tikoo, 2004; Moroko & Uncles, 2008),

therefore, theories concerning the psychological contract will also be included in this section.

Subsequently, this section will start with a review of the employer branding literature. Hereafter, the

concept of the psychological contract will be presented.

2.3.1.1. Employer Branding

In essence, employer branding is the process of “building an identifiable and unique employer

identity, and the employer brand as a concept of the firm that differentiates it from its competitors”

(Backhaus & Tikoo, 2004, p. 502). Thus, employer branding is built on the concepts of

company/product branding in regard to differentiating the company from competitors by

communicating a unique value proposition (Ewing et al., 2002). Therefore, a strong employer brand

is considered as an important element in order to win the ‘war for talent’ (ibid.; Beardwell &

Claydon, 2010, p. 167; Moroko & Uncles, 2008), as it is argued that a strong employer brand attracts

the best possible workers (Backhaus & Tikoo, 2004; Edwards, 2010). Furthermore, scholars and

practitioners have also recognised that “employer branding considers current and potential

employees as branding targets” (Edwards, 2010, p. 6). This means that employer branding not only

attracts potential employees, but that it also “helps [current] employees internalize company values

and assists in employee retention” (Backhaus & Tikoo, 2004, p. 501). Consequently, employer

branding can help develop and maintain organisational identification, increase employee satisfaction


20

and commitment, which essentially lead to a higher level of retention12 (Edwards, 2010; Foster et al.,

2010; Backhaus & Tikoo, 2004). Therefore, a strong employer brand is considered valuable in regard

to attraction and retention (ibid.; Ewing et al., 2002).

Moreover, Aggerholm, Andersen and Thomsen (2011) argue that “employer branding can be

redefined as a dynamic and interactional process of negotiating and co-creating brand values” (p.

107), which suggests that the employer brand should be co-created and negotiated between the

organisation, and the current and potential employees. Essentially, Aggerholm et al. (2011) advocate

that employer branding is reconceptualised.

2.3.1.1.1. Reconceptualising Employer Branding

Aggerholm et al. (2011) argue that the traditional definition of employer branding is static, linear and

does not take the employer-employee relationship13 into consideration, as the traditional definition

inherently claims that current and potential employees automatically accept the employer brand.

Therefore, Aggerholm et al. (2011) and Frimann and Mønsted (2012) advocate an approach, in which

the employer brand is formed and co-created through a process that focuses on dialogue between

the organisation, potential and current employees rather than one-way communication from

organisation to potential and current employees. Hence, this new approach to employer branding is

founded in the social constructivist tradition (Aggerholm et al., 2011; Frimann & Mønsted, 2012)

which suggests that individuals construct reality and their identity through language, social

interaction and context (Burr, 2003; Wenneberg, 2000). Consequently, employer branding is defined

as:

Strategic branding processes which creates, negotiates and enacts sustainable

relationships between an organization and its potential and existing employees under

the influence of the varying corporate contexts with the purpose of co-creating

sustainable values for the individual, the organization and society as a whole.

(Aggerholm et al., 2011, p. 113).

Thus, central to this definition is the goal of the organisation to achieve sustainable relations with

potential and current employees while developing and co-creating sustainable organisational values.

Moreover, Aggerholm et al. (2011) further emphasise the strategic importance of a reconceptualised

employer brand, as it is argued that the employer brand must be anchored in the overall corporate

12

These aspects will be discussed more thoroughly in section 2.3.3. 13

Also called the employment relationship (Martin & Hetrick, 2006).


21

strategy and the societal context, in which the branding takes place. Subsequently, the employer

brand must reflect the context and changes that take place in society, for example a change from

prosperity to crisis, as such changes will affect the current and potential employees’ goals, needs and

expectations, and thus the formation of the psychological contract (Aggerholm et al., 2011; Cullinane

& Dundon, 2006). Therefore, the employer brand cannot be considered as a static entity, but rather a

dynamic entity, in which current and potential employees must be included in order to develop

sustainable relations and reflect the societal context.

2.3.1.1.2. Communicating a Reconceptualised Employer Brand

The content of employer branding has been described as the employment value proposition

(Edwards, 2010; Moroko & Uncles, 2008) that constitute the organisation’s employer brand equity

(Ewing et al., 2002) which “applies to the effect of brand knowledge on potential and existing

employees of the firm” (Backhaus & Tikoo, 2004, p. 504). Thus, enhanced employer brand equity is

the desired outcome of employer branding (Ewing et al., 2002). How enhanced employer brand

equity can be achieved will be discussed below.

Hatum (2010) suggests that the employment value proposition should be based on four dimensions:

The organisational culture; the people within the organisation (e.g. degree of teamwork and

leadership style); the work characteristics (e.g. the degree of work-life balance); and the rewards that

are offered (e.g. compensation and long-term incentives) (p. 38). Furthermore, Backhaus and Tikoo

(2004) and Lievens and Highhouse (2003) argue that the employer brand consists of functional and

symbolic benefits. The functional benefits relate to elements of the employment that are desirable,

such as salary and benefits, whereas, the symbolic benefits refer to the social approval applicants

imagine they will obtain by working for the firm, which is based on the perceived image and prestige

of the firm and is inherently linked to the organisational identity and values (Backhaus & Tikoo, 2004;

Edwards, 2010). Therefore, the employment value proposition is not merely a concept of portraying

the employment benefits a potential employee will experience within the company, as Hatum (2010)

suggests, but does also include the perceived image and reputation of the company, as this can lead

to social approval and enhanced organisational identification (Backhaus & Tikoo, 2004; Edwards,

2010; Lievens & Highhouse, 2003). Moreover, Edwards (2010) argue that employer branding reflects

“the totality of tangible and intangible reward features that a particular organisation offers to its

employees” (p. 7). Furthermore, Ambler and Barrow (1996) define employer branding as “the

package of functional, economic and psychological benefits provided by employment, and identified

with the employing company” (cited in Moroko & Uncles, 2008, p. 161).


22

Thus, the content of an employer brand can be defined as the unique proposition of tangible

(functional and economic) and intangible (symbolic or psychological) benefits provided by

employment, and identified with the employing company. Subsequently, the tangible benefits cover

aspects, such as financial rewards and organisational structure, whereas, the intangible benefits are

more difficult to define, as they range from the needs for self-actualisation (psychological) and the

perceived image of the company that can be conveyed through the values (symbolic) (ibid.; Backhaus

& Tikoo, 2004; Edwards, 2010; Lievens & Highhouse, 2003). Thus, the intangible benefits cover socio-

emotional needs (Edwards, 2010), such as the development of a self-concept connected with the

organisational identity and the possibility of personal development (ibid.; Lievens & Highhouse, 2003;

Martin & Hetrick, 2006; Backhaus & Tikoo, 2004).

The above discussion concerning the contents of employer branding has provided a framework for

the general content in an employer brand. However, the success of a given employer brand is

essentially determined by the societal context, in which the organisation operates, as this context

frames potential and current employees’ needs and expectations (Aggerholm et al., 2011).

Therefore, the employer brand values must be co-created and negotiated with potential and current

employees to account for the societal context that frames the employees’ needs and expectations,

and thus the nature of the psychological contract and the employment relationship (ibid.).

Consequently, it can be difficult to identify specific content that makes an employer more

attractive, as this should be negotiated between employees and the organisation. However, research

shows that a company with a corporate social responsibility (CSR) profile is often seen as more

attractive to potential employees because it improves the perceived image of the company

(Edwards, 2010; Aggerholm et al., 2011), which also leads to enhanced organisational identification

and commitment (ibid.). Moreover, research shows that employees value the intangible aspects of

the employer brand higher than the tangible (Edwards, 2010; Lievens & Highhouse, 2003) and

subsequently, employees emphasise elements, such as career development opportunities and social

identity (Backhaus & Tikoo, 2004).

Naturally, the fact that organisations with a CSR profile and a focus on intangible benefits seem

to be more attractive in the current societal context may be altered due to changes in the market

and society, thus, these elements are not constant but rather contemporary. However, the fact that

employees value organisations with a CSR profile and the intangible aspects of employer branding, as

these help form their social identity and self-concept (Backhaus & Tikoo, 2004; Aggerholm et al.,

2011), further highlights the shift from functionalism to social constructivism in employer branding

and corporate communication in general (Frimann & Mønsted, 2012). Therefore, “employees are no

longer defined within a Tayloristic notion of humans as raw material but recognized as meaning-


23

making corporate citizens” (Aggerholm et al., 2011, p. 106). Thus, the central point is that the

employer brand and the relationship between the organisation and current and potential employees

are developed through dialogical, interactive, negotiated and co-created processes (Frimann &

Mønsted, 2012; Aggerholm et al., 2011).

Moreover, another more general element of what an employer brand should contain is the

fact that it must portray realistic job previews in terms of accurate, honest and well-balanced (both

positive and negative) information about the organisation and the job itself (Backhaus & Tikoo, 2004;

Moroko & Uncles, 2008; Edwards, 2010; Guest & Conway, 2002). The reason for this is that potential

and current employees are meaning-making organisational citizens therefore they will also evaluate

the employer brand and interpret the employment value proposition, which will form the

expectations for the employment experience. Thus, the information conveyed in the employer brand

helps shape employees’ psychological contract (ibid.). Consequently, the theories surrounding the

psychological contract will be discussed next.

2.3.1.2. Psychological Contract

Since its introduction in the 1960s, the psychological contract has been a much debated subject, as

several scholars and practitioners have discussed its constructs and merits. Therefore, a common

definition of the psychological contract does not exist (Cullinane & Dundon, 2006).

Levinson (1962) defined the psychological contract as “a series of mutual expectations of which

the parties to the relationship may not themselves be dimly aware but which nonetheless govern their

relationship to each other” (cited in Cullinane & Dundon, 2006, p. 114). Moreover, Guest and Conway

(2002) define the psychological contract as “the perceptions of both parties to the employment

relationship – organisational and individual – of the reciprocal promises and obligations implied in

that relationship” (p. 22). From these two definitions it is evident that the emphasis is on the mutual

expectations between the employee and employer, and thus focusing on a two-way exchange of

expectations and obligations in the employment relationship.

Rousseau (2001) defines the psychological contract as “(...) subjective beliefs regarding an

exchange agreement between an individual and, in organisations typically, the employing firm and its

agents” (p. 512). Here, the emphasis is put on the subjective beliefs, and thus the focus is on the

employee perspective. The distinction between whether the psychological contract is composed of

mutual expectations of the employer and employee or the subjective beliefs of the employees is the

main reason for the dispute and the reason that there is no agreed upon definition of the

psychological contract (Cullinane & Dundon, 2006)


24

Edwards (2010) argue that the psychological contract is in fact an exchange of obligations and

expectations between employer and employee, as the employer also has expectations towards the

employee. This notion is further supported by Guest and Conway (2002) as they argue that the

employer perspective is neglected in most of the literature concerning the psychological contract.

Moreover, Cullinane and Dundon (2006) propose two relevant critique points of contemporary

literature about the psychological contract that further add to this dispute. Firstly, Cullinane and

Dundon (2006) argue that if the psychological contract is only subjective then it can hardly be

considered a ‘contract’ as a contract is constructed between two or more persons. Secondly,

Cullinane and Dundon (2006) claim that the psychological contract is in fact formed in the wider

societal context and not only in the interaction between employer and employee, which is also

supported by Aggerholm et al. (2011). Thus, the societal context must be accounted for in the co-

creation and negotiation process of the employer brand, which enhances the organisation’s

possibility of reflecting changes in the environment, and thus the current and potential employees’

needs and expectations (ibid.). Finally, the notion that the psychological contract should only be

viewed from the employee perspective conflicts with the definition presented by Aggerholm et al.

(2011) that the employer brand is negotiated and co-created between current and potential

employees and the organisation, as this approach is based on the view that the employer brand, and

thus the psychological contract are socially constructed.

Therefore, this thesis acknowledges that the psychological contract is the exchange of

reciprocal expectations and obligations between an organisation and employee that forms the

employment experience. Nevertheless, this thesis will focus more on the employee perspective, as

the purpose is to examine for example how breach may impact the talents and the subsequent

integration of the communicative aspects in talent management.

2.3.1.2.1. Psychological Contract Breach

According to Robinson (1996) “psychological breach is a subjective experience based not only (or

necessarily) on the employer’s actions or inactions but on an individual’s perception of those actions

or inactions within a particular social context” (p. 576). Thus, it is a person’s perception that

determines whether or not the psychological contract has been breached.14 Moreover, Robinson and

Morrison (2000) found that “[regardless of whether or not these perceptions] are accurate, [they]

have been found to reduce employees’ trust, job satisfaction, intentions to remain with the

organization, sense obligation, and in-role and extra-role performance” (p. 525). Additionally, breach

14

Martin & Hetrick (2006) distinguish between breach and violation. However, this distinction is not deemed relevant for this thesis, as the purpose here is to examine how breach may impact the employment relationship and not to what extent. Therefore, this distinction has been enclosed in appendix 3.


25

has also been found to impact commitment and organisational identification (ibid.; Zagenczyk et al.,

2011).

Subsequently, breach of the psychological contract can impact the employment relationship

through the employees’ attitude and behaviour towards the job and the organisation, which in turn

can affect the organisational performance and retention (Robinson & Morrison 2000; Backhaus &

Tikoo, 2004). Therefore, Robinson and Morrison (2000) argue that it is important that organisations

are aware of what they promise employees and that the organisation must increase the amount of

honest and open communication, as this will help lessen the incongruent perceptions.

2.3.1.2.2. Formation of the Psychological Contract

In order to understand how perceptions of breach can occur, it is important to understand the

elements of the psychological contract and under which circumstances it is formed.

Rousseau (2001) presents an extensive framework for the development of the psychological

contract, in which it is argued that the psychological contract is formed by pre-employment

experiences, recruitment practices, early socialisation and later experiences.15 The pre-employment

phase is where a potential employee “[possesses] beliefs regarding work, [his] occupations, and

organizations generally that set in motion certain responses to joining with an employer” (Rousseau,

2001, p. 512). Moreover, Aggerholm et al. (2011) and Cullinane and Dundon (2006) argue that the

employees’ expectations and needs are also influenced by the societal context. Furthermore,

Cullinane and Dundon (2006) argue that employee needs and expectations “are often imposed by

corporate values and interests, particularly through the use of advertising [and] marketing (...)” (p.

123). Thus, employer branding also becomes an aspect that influences potential employees’ pre-

employment beliefs. Secondly, post-hire socialisation concerns a continuous revision of the

psychological contract according to various ‘stimuli’ such as organisational change and organisational

communication that can lead to a re-negotiated or breached contract (Rousseau, 2001).

From the above review, it is evident that an employer brand can influence the formation of the

psychological contract in all the phases, as the employer brand can influence the pre-employment

experiences concerning perceptions of working for the organisation and its image and the post-hire

socialisation, which is further supported by Ewing et al. (2002) and Edwards (2010). Thus, the

employer brand impacts both current and potential employees by influencing the development and

revision of their psychological contract.

15

However, the recruitment phase is not within the scope of this thesis (see appendix 1). Thus, this part of the theory will not be reviewed.


26

2.3.1.3. Conclusion

In conclusion, organisations should develop a strong and distinguishable employer brand to attract

the best possible talents (Ewing et al., 2002). This should be done by focusing on the unique

proposition of tangible (functional and economic) and intangible (symbolic or psychological) benefits

provided by employment, and identified with the employing company (Backhaus & Tikoo, 2004;

Lievens & Highhouse, 2003; Edwards 2010; Moroko & Uncles, 2008). Moreover, the employer brand

values should be co-created and negotiated between the employer, potential and current employees

in order to account for the societal context that in turn frames the employees’ needs and

expectations (Aggerholm et al., 2011; Cullinane & Dundon, 2006). Additionally, contemporary

research shows that employees are valuing the intangible aspects including the possibility of

personal development and a strong CSR profile higher than the tangible aspects in the employment

value proposition (Aggerholm et al., 2011; Backhaus & Tikoo, 2004; Edwards, 2010). Finally, it was

found that the employer brand has an impact on the employment relationship for both current and

potential employees, as the employer brand conveys expectations, promises and obligations that

help form potential and current employees’ psychological contract (ibid.). Therefore, the employer

brand also becomes a basis for determining employee behaviour and the level of motivation, which

influence the performance and retention (Backhaus & Tikoo, 2004; Robinson & Morrison, 2000).

Whether the employment relationship becomes positive, neutral or negative is determined by the

extent to which the employer can provide satisfactory tangible and intangible aspects, and the extent

to which the promises and obligations conveyed are kept (ibid.). Therefore, the employer brand

messages must reflect the actual identity of the organisation in order to decrease the possibility of

breach of the contract, which can have a negative impact on the employment relationship and lead

to lower levels of performance and retention (ibid.; Edwards, 2010).

2.3.2. Development

In the development literature there has been a long dispute about the effectiveness of different

approaches to development. Essentially, the dispute concerns the effectiveness of the formal

educational approach (with formal training and courses) versus the informal experience based

approach (McCall, 2010a; Beardwell & Claydon, 2010, pp. 269-271; Larsen, 2012, p. 95). However, in

the last two decades, several scholars and practitioners have begun to advocate the experience

based approach, as it is argued that development based on aspects, such as job experiences are

more effective than formal training (McCall, 2010b; Michaels et al., 2001; Larsen, 2012, pp. 105-106;

Heinen & O’Neil, 2004). Nonetheless, other scholars and practitioners continue to remind about the

importance and effectiveness of the formal educational approach, as this can provide valuable


27

knowledge and frameworks in regard to preparing individuals for future experiences (e.g. leadership

training may prepare a future leader for some of the leadership experiences), which can help the

individual make better sense of experiences (Jackson & Lindsay, 2010; McCall, 2010a).

2.3.2.1. The 70-20-10 Model

Robert Eichinger and Michael Lombardo developed a model that accounts for both the educational

and informal elements, as they proposed that 70% of the development takes place through informal

on the job experiences; 20% takes place through coaching, mentoring and through others (for

examples colleagues and managers); and 10% takes place through formal training, such as courses

and seminars (cited in Kajewski & Madsen, 2012). However, Kajewski and Madsen (2012) caution

that this model lacks empirical evidence. Nevertheless, McCall (2010a; 2010b) argues that the model

is built on prior research and further suggests that the point is not the exact percentages but rather

ensuring that most development takes place through experience, as this is viewed as the primary

method for effective development (ibid.; Michaels et al., 2001; Larsen, 2012, pp. 105-106). However,

it should still be complemented by formal training to extend (e.g. by preparing individuals for future

experiences) and enhance the development (Jackson & Lindsay, 2010).

Moreover, Larsen (2012) argues that development on the job takes place through interaction,

cooperation with others and the given context. Thus, development takes place in a social process and

not in isolation (p. 107), which corresponds to the social constructivist perspective utilised in this

thesis. Therefore, the following section will review the communicative aspects highlighted from the

above discussion about development.

2.3.2.2. Development through Interaction

The communicative aspects linked to development through experience, coaching and mentoring can

be difficult to define, however, aspects such as encouragement, support and feedback have been

found important for development (Michaels et al., 2001, p. 97-101; Beardwell & Claydon, 2010, p.

270; McCall, 2010b). Moreover, Larsen (2012) states that the immediate manager is important for

developing the talent (and also in regard to retention), as the manager is a role model (amongst

others) from who the talent will decode the organisational culture16 (pp. 137-142), and thus the

manager’s actions and communication will have a great impact on the talent’s development.

16

Scholars emphasise the importance of the organisational culture in regard to development, as they argue that the culture is the foundation from which the development takes place. Thus, the culture can promote or hinder learning depending on the values and attitudes inherent in the culture (Larsen, 2012).


28

London, Larsen and Thisted (1999) argue that it is important that managers provide feedback and

empower employees, as this will help employees in regard to self-management, which has become

more important today due to the unstructured and unpredictable business environment that also

has an impact on career development. Thus, employees are increasingly asked to take responsibility

for their own development. Self-management is the process of monitoring and evaluating the

progress toward individual goals. Therefore, self-development becomes a method for achieving the

individual goals, through manager feedback and empowerment that challenges the individual (ibid.).

Moreover, London et al. (1999) also state that feedback seeking behaviour and a wish for self-

development are important prerequisites in order for development to take place. Consequently, it is

argued that a supportive work environment (nonthreatening and noncontrolling), in which the

managers provide feedback and empower employees will promote self-management, which leads to

a wish for self-development and feedback seeking behaviour (ibid.; Dahling, Chau & O’Malley, 2012).

London et al. (1999) argue that feedback should provide information about the individual

employee’s performance, and thus help adjust self-perception and lead to self-development.

Additionally, the feedback should also be constructive by being task-specific and evaluative by

focusing on comparing the employee’s past performance to established ‘standards’ which should

help the employee focus on self-development or function as positive reinforcement of current

behaviour. Furthermore, Leung, Su and Morris (2001) found that fair interpersonal treatment is

important in the subsequent assessment and acceptance of negative constructive feedback. Fair

interpersonal treatment is defined by aspects, such as consideration for the employee’s concerns,

respectful treatment and a focus on avoiding biases (ibid.). Thus, “the quality of interpersonal

treatment affects the attributions that recipients make regarding the authority figure’s behavioral

dispositions, and also determines whether the feedback itself will be accepted” (Leung et al., 2001, p.

1157).

Empowerment is also an important element in self-development, as empowerment can

facilitate that employees seek challenging assignments. A sense of empowerment is developed by

the manager sharing information and knowledge that help employees understand and contribute to

organisational performance (London et al., 1999). Moreover, organisational support and

encouragement have also been identified as important constituents in order for employees to seek

challenges (ibid.; Beardwell & Claydon, 2010, p. 266; McCall, 2010b).

Furthermore, concepts such as performance appraisals interviews, coaching and mentoring have also

been identified as important aspects for development (Beardwell & Claydon, 2010, pp. 294-296;

Michaels et al., 2001, pp. 107-118; Aggerholm, Andersen, Asmuss & Thomsen, 2009). Therefore, the


29

next two sections will briefly review these concepts and their implications for development in a

communicative perspective.

2.3.2.2.1. Job Appraisals Interviews

Aggerholm et al. (2009) define a job appraisal interview as a “formal conversation between a superior

and an employee about the employee’s current and future job situation” (p. 269). Therefore, a job

appraisal interview is also an effective way to provide feedback for the employee and further

enhance the relationship between the employee and superior (ibid.) if the interpersonal treatment is

perceived as being fair (Leung et al., 2001). Consequently, the job appraisal interview can be viewed

as the formal arena, in which the constructive feedback that focuses on either positive reinforcement

or self-development, should take place (Beardwell & Claydon, 2010, p. 469).

2.3.2.2.2. Coaching and Mentoring

Coaching and mentoring are often used interchangeably, however, there is a difference between the

two, which is exemplified by the relationship between the participants: Mentoring is categorised by a

more experienced (the mentor) supporting a more inexperienced (the mentee) in terms of

knowledge, learning, guidance and so forth, whereas, coaching is more focused on the coach raising

the coachee’s awareness and responsibility to develop a practicable approach to reach a specific goal

(Beardwell & Claydon, 2010, pp. 295-296).

Mentoring is based on a developmental relationship that should encourage, support and guide

the mentee’s development process within the organisation. Therefore, the interpersonal relationship

between the mentor and mentee is important, and thus the mentor must possess some

interpersonal skills, such as empathy and effective communication. Finally, the mentor should also be

skilled at providing constructive feedback (which has been discussed above), as this is important in

the mentor and mentee relationship (Beardwell & Claydon, 2010, pp. 267-268).

Coaching is the process of helping an individual to reach his/her goal or full potential. Typically,

coaching is categorised by structure and skills. The structure defines the coaching process or

framework, and thus the structure is a guide for the coaching process. The skills are defined by the

conversational aspect of coaching (Beardwell & Claydon, 2010, p. 296). Dowey (2003) placed the

skills on a continuum ranging from directive (e.g. offering advice and instructing) and non-directive

skills (e.g. listening to understand, reflecting and paraphrasing), and further argued that the most

effective skills are the non-directive (cited in Beardwell & Claydon, 2010, pp. 296-297).

2.3.2.3. Conclusion

The above literature review suggests that development is more effective when it is facilitated by

informal on the job experiences (McCall, 2010b; Larsen, 2012, pp. 105-106; Heinen & O’Neil, 2004).


30

Therefore, the organisation must provide a supportive environment that encourages development

through experiences (London et al. 1999; Dahling et al., 2012; McCall, 2010b). Furthermore, the

managers should also provide constructive and fair feedback and empower the employees, as these

aspects lead to self-management behaviour and are paramount for development from experiences

(London et al., 1999; Leung et al., 2001). However, formal training should not be neglected due to

the fact that training can provide valuable frameworks for the employees’ future experiences

(Jackson & Lindsay, 2010). Thus, the formal training can also support the employees’ development

through experience and ensure that the employees learn as much as possible from certain

experiences (ibid.). Finally, the job appraisal interviews, coaching and mentoring were discussed as

important constituents to the employees’ development, as these formal concepts can be used to

provide feedback, support and enhance self-efficacy (Beardwell & Claydon, 2010, pp. 294-296;

Michaels et al., 2001, pp. 107-118; Aggerholm et al., 2009).

2.3.3. Retention

The concept of retention is complex and difficult to grasp due to the fact that the level of retention is

influenced by a variety of psychological aspects and is rooted in the concepts of motivation,

commitment, identification and engagement17 (Larsen, 2012, pp. 72-73; Collings & Mellahi, 2009).

Larsen (2012) distinguishes between the four concepts by arguing that motivation explains the

forces that drive human behaviour; identification is a cognitive alignment between the individual and

organisational values; commitment is a positive emotional and attitudinal relation between the

employee and the organisation; and engagement is more or less defined as a synonym for

commitment (p. 73). However, these distinctions can be argued to be rather simplistic. Subsequently,

the different concepts of motivation, identification, commitment and engagement will be examined

more closely. Hereafter, the merits of these concepts will be discussed in regard to retention

strategies from a communicative perspective.

2.3.3.1. Motivation

Larsen (2012) states that the concept of motivation has become less important as a method for

describing behaviour, since the emergence of commitment and engagement (pp. 72-73). However,

Meyer, Becker and Vandenberghe (2004) argue that motivational theories are still relevant today, as

these theories help explain employee behaviour in terms of what they are motivated by, how they

17

Besides increasing the level of retention, several scholars and practitioners also state that these aspects have a positive effect on job relevant outcomes, such as job satisfaction and performance (Harter et al., 2002; Knippenberg & Sleebos, 2006)


31

will achieve it and the intensity for achieving it. Moreover, some motivational theories are

fundamental to several of the considerations in the identification, commitment and engagement

literature, which will be illustrated in the following sections. Traditionally, motivational theories have

been defined as either process (“how a variety of personal factors interact and influence human

behaviour”) or content theories (“attempt to identify and explain the factors which energise or

motivate people”) (Brooks, 2009, p. 81).

In the context of retention, the most relevant process theory is Adam’s equity theory, as this

theory posits that employees will assess whether a received reward is adequate and equitable

compared to the employees perceived effort. If the employee assesses the reward as favourable,

then this can lead to satisfaction and performance (Brooks, 2009, pp. 85-86).

The most relevant content theory is Herzberg’s two-factor theory. Herzberg distinguishes

between hygiene factors (extrinsic rewards: Working conditions, monetary, relationships etc.) and

motivators (intrinsic rewards: Recognition, personal growth, sense of achievement etc.). Moreover,

Herzberg argues that adequate hygiene factors do not enhance motivation but can lead to

dissatisfaction if they are considered inadequate, whereas, motivators can enhance motivation if the

employee perceives these rewards as adequate (Brooks, 2009, pp. 93-95).

Finally, Hackman and Oldham contribute to the motivational theories by suggesting that the

job design is also an important element for enhancing motivation. Specifically, Hackman and Oldham

suggest that individuals should experience three psychological states through the job design:

Experienced meaningfulness, experienced responsibility and knowledge of results (Brooks, 2009, pp.

104-105; Cartwright & Holmes, 2006).

2.3.3.2. Identification

Cornelissen (2011) argues “when employees strongly identify with the organisation they work for,

they are more satisfied in their work, they will be more cooperative and they will also demonstrate

behaviour that is helpful to the organisation” (p. 167). Thus, organisational identification can lead to

a variety of beneficial outcomes, such as job satisfaction, job involvement and decrease turnover

intentions (Maier & Andersen, 2012; Knippenberg & Sleebos, 2006; Edwards, 2005).

Moreover, Chreim (2002) argues that organisational identification has been studied from two

complementary perspectives: The organisational behaviour perspective that focuses on the

individual and the micro psychological aspects of identification (ibid.), whereas, the organisational

communication perspective focuses on the macro inducement strategies through management

communication to enhance identification (Cheney, 1983; DiSanza & Bullis, 1999; Maier & Andersen,

2012). However, the latter perspective is less relevant for the purpose of this thesis, as it focuses on

the management strategies used in e.g. employer magazines to enhance identification and not the


32

individual employee’s identification with the organisation (ibid.; Chreim, 2002). Thus, this thesis will

focus on the organisational behaviour perspective.

Essentially, the organisational behaviour perspective on identification is built on social identity

theory (Edwards, 2005) which proposes that individuals to some extent construct their self-concept

from the membership of specific social groups (i.e. organisations), and thus the membership

becomes self-definitional (ibid.; Knippenberg & Sleebos, 2006). Thus, organisational identification is

the psychological ‘merging’ (or the perceived oneness) of the individual and organisational beliefs,

values and/or interests (ibid.; Cheney, 2004, p. 114). Subsequently, the individual can identify with

the organisational identity, which is defined as core, unique, enduring characteristics/values/stories

that are shared among members of the organisation (Cheney, 2004, pp. 108-109; Van Riel, 2003).

Consequently, “the more people identify with an organization, the more the organization’s values,

norms, and interests are incorporated in the self-concept” (Knippenberg & Sleebos, 2006, p. 572).

Moreover, Edwards (2005) cites several studies that have found two important antecedents to

increased organisational identification: (1) the perceived image of or prestige connected with

working for a particular organisation, which is shaped by the perceived attractiveness and positive

associations connected with the organisation’s external image. (2) the attractiveness of the

attributes associated with the organisation, such as the organisational values, culture and image.

Furthermore, Zagenczyk et al. (2011) found that high levels of perceived organisational

support, the “perceptions concerning the degree to which the organization values [employees’]

contributions and cares about their well-being” (p. 255) also lead to higher levels of organisational

identification (pp. 255-256), which is also supported by Edwards (2010). The perceived organisational

support can be facilitated through fairness, job conditions and supervisory relationships (Zagenczyk

et al., 2011). Finally, Zagenczyk et al. (2011) found that employees will disidentify with the

organisation if they perceive that the psychological contract has been breached, as this will convey

low levels of perceived organisational support.

2.3.3.3. Commitment

There are several definitions of commitment and which forms commitment can take in an

organisational setting (Meyer et al., 2004; Meyer & Herscovitch, 2001). However, the model that has

received the most attention, empirical scrutiny and support is Meyer and Allen’s (1991) three-

component model (Meyer et al., 2004; Larsen, 2012, p. 75). Meyer and Allen (1991) suggest that

commitment is a “psychological state that (a) characterizes the employee’s relationship with the

organization, and (b) has implications for the decision to continue or discontinue membership in the

organization” (p. 67). Thus, Meyer and Allen (1991) argue that commitment binds an individual to


33

the organisation, which is accomplished through three forms of commitment: Affective, continuance

and normative. However, research shows that affective commitment is more related to retention

and other positive aspects, such as enhanced performance, compared to other forms of commitment

(Meyer & Herscovitch, 2001). Therefore, this thesis will only focus on affective commitment. Thus,

the description of normative and continuance commitment has been enclosed in appendix 4.

Affective commitment is the employee’s emotional attachment and involvement in the organisation

and is argued to be based on several antecedents arising from the work experiences: This refers to

the extent experiences satisfy employees’ need to feel physically and psychologically comfortable in

the organisation, and the extent experiences make employees feel competent in their work role

(Meyer & Allen, 1991).

In regard to feeling comfortable this is shaped by confirmation of pre-entry expectations (e.g.

formed by employer branding activities), organisational support, supervisor relationship and so forth.

In relation to the competence-related experiences aspects, such as involvement,

autonomy/responsibility, job challenges, opportunity for advancement are important (ibid.).

Furthermore, Knippenberg and Sleebos (2006) argue that affective commitment is founded in

the social exchange relationship which is built “on the trade of effort and loyalty for benefits like pay,

support and recognition” (p. 574). The quality/fairness of this exchange relationship also reflects the

level of perceived organisational support (ibid.; Zagenczyk et al., 2011). Moreover, Meyer and Allen

(1991) state that the concepts of identification18 and internalisation are useful in describing the

process of building affective commitment.19 Identification is expressed through the employees’

willingness to exert effort on behalf of the organisation due to the benefits they obtain from the

exchange relationship with the organisation. Internalisation is conveyed through the shared values

between employees and the organisation, which lead to the fact that employees are committed to

the organisation (ibid.).

2.3.3.4. Engagement

Recently, the definitions of engagement have become more elaborate and tend to reflect the multi-

sidedness in engagement illustrated by its emotional, attitudinal and behavioural constructs

(Gibbons, 2006; Shuck & Wollard, 2010; Saks, 2006). Therefore, engagement is defined as “a

heightened emotional and intellectual connection that an employee has for his/her job, organization,

manager, or co-workers that, in turn, influences him/her to apply additional discretionary effort to

18

Here, the term ’identification’ refers to the social exchange theory, whereas, organisational identification refers to social identity theory (Knippenberg & Sleebos, 2006). This will be discussed in section 2.3.3.5. 19

Henceforth referred to as commitment.


34

his/her work” (Gibbons, 2006, p. 6). The outcomes of high engagement has been studied thoroughly

and research points out that high engagement leads to higher profitability, productivity, performance

and lower turnover (Harter, Schmidt & Hayes, 2002; Gibbons, 2006; Robinson, Perryman & Hayday,

2004). However, the antecedents (or drivers) of engagement have been more researched from a

practical perspective rather than an academic and empirical perspective, which has led to a variety of

different suggestions and methods for engaging employees (Saks, 2006; Wollard & Shuck, 2011;

Robinson et al., 2004). Thus, the purpose here is to examine literature concerning the drivers of

engagement.

Several scholars have investigated the individual drivers for engagement and have found important

aspects, such as employee development, perceived organisational support, recognition, involvement,

two-way communication, work-life balance, alignment between individual and organisational values,

and challenging work (Gibbons, 2006; Saks, 2006; Robinson et al., 2004; Wollard & Shuck, 2011).

However, the list of drivers for engaging employees is rather immense and difficult to summarise.

Therefore, several scholars and practitioners have also focused on the ‘meaning of work’ as an

important driver for engagement, as this approach incorporates several of the aspects just

mentioned (Fairlie, 2011; Chalofsky & Krishna, 2009; Cartwright & Holmes, 2006).

The meaning of work approach is built on the thought that employees are more motivated by

other elements than money and other extrinsic rewards. Basically, there are two overarching

elements that create a sense of meaningfulness: Firstly, the work itself to the extent that the work

satisfies intrinsic motivators, such as challenging work, personal growth, responsibility and

recognition. Secondly, the extent to which the job allows the employees to realise life purpose, have

a social impact and the extent to which the job is viewed as important (ibid.). Furthermore, Chalofsky

and Krishna (2009) elaborate on the meaning of work by distinguishing between sense of self, the

work itself and a sense of balance.20

The sense of self should be obtained by allowing employees to bring their whole selves (mind,

body, emotion and spirit) to work, which should be facilitated by acknowledging and appealing to the

employees’ values and trying to align these with those of the organisation. The work itself should

focus on responsibility, empowerment, development and provide a “sense of meaning and purpose,

sense of choice, sense of competence, and sense of progress” (Chalofsky & Krishna, 2009, p. 196).

Thus, the work itself should have a social impact, be viewed as important, provide responsibility,

involvement, challenge and develop the individual. A sense of balance should be achieved by

20

Chalofsky & Krishna (2009) argue that there is a difference between meaning of work and engagement. However, this thesis joins the arguments of Fairlie (2011), Saks (2006) and Cartwright & Holmes (2006) that argue meaning of work is in fact the primary antecedent of engagement.


35

balancing the time spent on work, leisure, family and so forth. Therefore, supportive work

environments that provide flexible working conditions and awareness of creating a work-life balance

are important (Chalofsky & Krishna, 2009; Cartwright & Holmes 2006).

From the above discussion, it is evident that the ‘meaning of work’ approach can be used as an

umbrella term for engagement, as this concept incorporates some of the essential drivers of

engagement such as, employee development, organisational support, employee involvement, reflect

personal values, work-life balance and meaningfulness (Saks, 2006; Wollard & Shuck, 2011; Gibbons,

2006; Fairlie, 2011; Robinson et al., 2004; Cartwright & Holmes, 2006).

2.3.3.5. Conclusion – Comparing Motivation, Identification, Commitment and Engagement

From the above literature review, it is evident that the four concepts overlap and are interrelated.

Therefore, the concepts must be compared and contrasted to enhance the understanding of the

different concepts in order to be able to discuss the merits of each concept in regard to retention

strategies from a communicative perspective.

First of all, it is evident that the motivational theories are fundamental to some parts of

identification, commitment and engagement. This is particularly evident in the commitment and

engagement strategies, as both these strategies focus on intrinsic and extrinsic elements, such as

recognition, involvement and organisational support; and the strategies also focus on the job design

through experienced meaningfulness, experienced responsibility or knowledge of results (Meyer &

Allen, 1991; Chalofsky & Krishna, 2009). Moreover, Adam’s equity theory is also apparent, as the

quality of the social exchange relationship can be determined by the balance between the perceived

effort and the received reward, which also reflects the perceived level of organisational support that

is fundamental to identification, commitment and engagement (ibid.; Zagenczyk et al., 2011).

Subsequently, it is important to understand the underlying motivational aspects in order to

enhance the understanding of the concepts of identification, commitment and engagement.

However, despite of the fact that these three concepts share many of the same underlying

motivational aspects, there still are some fundamental differences between them.

The concept of identification has been compared to commitment (especially affective commitment)

due to the fact that both concepts reflect the psychological linkages between the individual and the

organisation (Knippenberg & Sleebos, 2006; Edwards, 2005). However, it is argued that the two


36

concepts differ. Firstly, commitment is related to the social exchange theory, whereas organisational

identification is related to the social identity theory and self-definition, which are more

cognitive/perceptual in regard to the extent that the organisation is incorporated into the self-

concept (Knippenberg & Sleebos, 2006; Edwards, 2005). Therefore, “employees who maintain social

exchange relationships with their organizations will reciprocate favorable treatment; employees who

identify strongly with their organizations believe that they are ‘one with the organization’”

(Zagenczyk et al., 2011, p. 256). Thus, it is argued that commitment is contingent on the quality of

the social exchange relationship, which reflects the perceived level of organisational support

(Knippenberg & Sleebos, 2006; Edwards, 2005). However, Zagenczyk et al (2011) also found that

perceived organisational support leads to organisational identification. Consequently, both concepts

are influenced by the level or organisational support. Secondly, the antecedents to commitment are

more attitudinal and are usually reflected in aspects that make the job enjoyable and involving,

whereas the antecedents to organisational identification are based on aspects that can ‘strengthen’

the individual’s self-concept (Knippenberg & Sleebos, 2006; Edwards, 2005).

Engagement and commitment have often been associated (Larsen, 2012, p. 73). However, it is

argued that the difference between the two concepts is to be found in the fact that commitment is

an attitude towards the organisation, whereas, engagement is founded in the meaning of work (Saks,

2006; Chalofsky & Krishna, 2009). Thus, commitment is derived from a variety of factors that make

the job enjoyable, whereas, engagement is also derived from similar factors (e.g. organisational

support and involvement) but also from the feeling of meaningfulness coming from the work itself

and the inclusion of the employee’s private/social ‘sphere’ exemplified through a need for work-life

balance and bringing the self into the organisation. Consequently, engagement is in part influenced

by commitment antecedents and the meaningfulness of the job, which are reflected in the intrinsic

motivation derived from the work itself (ibid.).

In summary, it is evident that retention is influenced by a variety of different aspects and that the

four fundamental concepts for retention overlap. Subsequently, some of the important aspects in

retention can be considered to be: Perceived organisational support, good supervisory relationships,

recognition, personal growth, two-way communication, identification with organisational values,

challenging and meaningful work (Saks, 2006; Wollard & Shuck, 2011; Gibbons, 2006; Zagenczyk et al

2011; Meyer & Allen, 1991; Chalofsky & Krishna, 2009; Knippenberg & Sleebos, 2006). The salience of

the communicative aspects inherent in these aspects varies. However, Brooks (2009) argues that

“powerful intrinsic rewards require communication to be apparent” (p. 101), as employees need

recognition, feedback and two-way communication from the work/manager. Furthermore, it can also


37

be argued that for example the perceived level of organisational support, experienced

meaningfulness, experienced responsibility are facilitated through management communication, as

the experienced meaningfulness and responsibility can be encouraged by employee empowerment

that ensures development,21 and support is among others facilitated through the relationship with

the manager, feedback, received rewards and so forth (ibid.; Zagenczyk et al., 2011).

2.3.4. Conclusion – Integrating Attraction, Development and Retention

In conclusion, the concepts of attraction, development and retention are interrelated, and thus they

can be integrated. This is evident from the fact that the employer brand utilises intangible

psychological and symbolic benefits, such as development opportunities and the image of the

organisation (e.g. values and CSR profile) to attract potential employees (Lievens & Highhouse, 2003;

Backhaus & Tikoo, 2004; Moroko & Uncles, 2008). These aspects are also used to retain employees

through identification, commitment (internalisation) and engagement (sense of meaning and self

conveyed through personal growth and alignment of personal and organisation values) (Knippenberg

& Sleebos, 2006; Chalofsky & Krishna, 2009; Martin, 2009). Moreover, the economic and functional

benefits conveyed through an employer brand also attract employees by portraying attractive

benefits, such as, supportive and challenging work environment (that can foster development)

(Backhaus & Tikoo, 2004; Edwards, 2010). Thus, it is evident that the employer brand utilises

motivational factors to increase employer brand equity, which attracts potential employees but also

encourages current employees to stay (ibid.; Ewing et al., 2002). Therefore, the employer brand also

conveys expectations, obligations and promises that influence the formation of the psychological

contract, which is fundamental to the subsequent employment relationship, as a breach of the

contract can lead to absenteeism, employee turnover and reduced citizenship behaviour (ibid.;

Robinson & Morrison, 2000). Thus, the employment relationship directly impacts the subsequent

level of motivation, identification, commitment and engagement (ibid.).

Consequently, it can be concluded that the concepts of attraction, development and retention

are interrelated on several levels, and thus the concepts must be integrated in order to develop and

sustain a positive employment relationship that can lead to a sustainable competitive advantage.

21

See section 2.3.2.2.


38

3. Research Method The purpose with this chapter is to explain and discuss the research method that will be utilised in

order to collect the relevant empirical data required to investigate and answer the research question.

Firstly, this chapter will present the research design and the chosen research strategy that will

be utilised to investigate the research question. Secondly, as interviews are the chosen method for

gathering primary data for this research, this chapter will also touch upon the interview technique

utilised to obtain rich and sufficient data. Thirdly, the selection criteria for choosing interview

participants will be explained. Fourthly, the methods for enhancing the research quality and

achieving authenticity and trustworthiness will be discussed. Finally, the methods for analysing the

data will be reviewed.

3.1. Research Design Ghauri and Grønhaug (2005) argue that “the research design should be effective in producing the

wanted information within the constraints put on the researcher” (ibid.). These constraints are

among others a limited timeframe, budget (ibid.) and number of pages. Thus, these constraints limit

the number of research options, the research depth and have implications for the choice of research

strategies. Moreover, Ghauri and Grønhaug (2005) define the research design as “the overall plan for

relating the conceptual research problem to relevant and practicable empirical research” (p. 56).

Thus, the research design should match the purpose of the research and the scientific approach to

obtain the best possible data to answer the research question (ibid.; p. 46).

Therefore, an exploratory research design (Stebbins, 2001) is utilised. An exploratory research

design is considered adequate when the research question is under-researched and complex (ibid.).

While the individual concepts of attraction, development and retention are well researched and

established within the scientific field, the purpose and subsequent research question in this thesis,

are considered under-researched and complex, as research concerning the horizontal integration of

the three strategies and their communicative aspects have not been found. This is also supported by

Beardwell and Claydon (2010, pp. 190-191). Further, explorative research is also chosen when the

purpose is to explore relationships between different areas (ibid.), which is part of the purpose in this

thesis, as it seeks to investigate the integration between the attraction, development and retention.

The research approach that is most often associated with an exploratory research design is the

qualitative research approach (Stebbins, 2001). Nonetheless, a literature review is also accepted as a

part of the exploratory research design (Ghauri & Grønhaug, 2005, pp. 52-53). Consequently, this

thesis has also reviewed literature to help frame the study and identify relevant concepts and


39

existing theories within the theoretical fields (ibid.). Thus, the literature review helps in the process

of developing, gathering and analysing the primary data (Daymon & Holloway, 2002, p. 256). This

also corresponds with the fact that the scientific approach prescribes the ontological, epistemological

and methodological considerations made when conducting research. Additionally, the theoretical

framework also provides a lens (or a context) through which the gathering and analysis of the data

will be conducted (Wenneberg, 2000, pp. 34-35). Thus, the research method is built on the tenets of

social constructivism and purposes to extend on the theoretical framework by either building on or

developing theories through empirical research.

Moreover, a research strategy that is often associated with exploratory research is a case study

(Ghauri & Grønhaug, 2005, p. 114). Additionally, Neergaard (2007) argue that case studies are useful

for investigating and uncovering complex issues (p. 18), which is similar to the rationale for utilising

an exploratory design. Therefore, case studies will be applied as the research strategy in this thesis.

3.1.1. Case Study

A case study is an empirical investigation that is composed by a number of data sources to

investigate a given entity or phenomenon in a specific context (Neergaard, 2007, p. 17; Daymon &

Holloway, 2002, p. 105). Moreover, Daymon and Holloway (2002) state that “the purpose of case

study research is to increase knowledge about real, contemporary communication events in their

context” (p. 105). Finally, Daymon and Holloway (2002) also define a case study as a holistic approach

that focuses on exploring relationships and connections with a focus on taken-for-granted

assumptions (p. 107). Consequently, the case study approach is deemed highly relevant both from a

methodological and purposive standpoint, as this thesis purposes to enhance the knowledge about

the communicative aspects in talent management, how they are integrated and the perceptions

about this.

In order to reflect the need for multiple data sources inherent in the case study approach (Ghauri &

Grønhaug, 2005, p. 114), this thesis will divide the case study up into two parts: Company and talent

interviews. Moreover, this approach also reflects the sender (i.e. Grundfos and Siemens) and receiver

(i.e. the talents) perspective, and thus multiple viewpoints on the communicative aspects of talent

management.

The purpose with the company interviews is to conduct interviews with the talent

management responsible at Grundfos and Siemens to be able to examine how the two companies

work with talent management including a review of how they utilise and integrate the

communicative aspects of attraction, development and retention strategies.


40

The talent interviews are conducted in order to get a ‘receiver’ perspective on the application

of the communicative aspects of attraction, development and retention strategies. Thus, these

interviews help enhance the understanding of how the talents perceive and experience this, which

can be argued to be an indicator of whether the utilisation and integration of the communicative

aspects in these strategies are considered effective from a receiver perspective.

Both interviews will be based on a semi-structured interview, as this type of interview entails an

overview of the topics that must be covered and which questions should be asked in order to obtain

the necessary knowledge within the research field (Kvale & Brinkman, 2009). Thus, this type of

interview enables the research to be effective in the sense that the interviews will cover the relevant

areas derived within the theoretical framework. This also presents the rationale for utilising a semi-

structured interview even though the research design is explorative, as the theoretical framework

can be considered so comprehensive that unstructured interviews would run the risk of not covering

the relevant areas to answer the research question (Daymon & Holloway, 2002, pp. 170-171). This is

elaborated on in the next section.

3.1.1.1. Semi-structured Interview

The semi-structured interview is neither unstructured nor structured, therefore it allows for enough

flexibility to adapt the interview to the interviewee’s answers (Daymon & Holloway, 2002, p. 171;

Kvale & Brinkman, 2009). Generally, the semi-structured interview is based on an interview guide

“with a focus on the issues or topic areas to be covered and the lines of inquiry to be followed”

(Daymon & Holloway, 2002, p. 171). Thus, the interview guide will contain an overview of the topics

and suggested questions for each topic. However, the structure and questions are not fixed but

should be adapted to the interviewee’s responses and the general context of the interview (ibid.).

Therefore, the semi-structured interview allows the research to become more explorative and allows

the researcher to obtain more elaborate information on the different topics, if the interviewer “has

an ear for the interview theme and a knowledge of the interview topic, a sensitivity toward the social

relationship of an interview and knowledge of what he or she wants to ask about” (Kvale & Brinkman,

2009, p. 139).

To ensure that the interviews provide sufficient and relevant data the interview guides22 will

be centred around three themes that correspond to the theoretical framework, namely: attraction,

development and retention. Subsequently, the guides will also contain relevant questions to each of

22

See appendix 5 and 6.


41

the three topics that were reviewed in the theoretical framework. How the questions will be framed

and the general technique for the interviews will be reviewed in the next section.

3.1.1.2. Interview Technique

The qualitative interview is often referred to as a conversation with a purpose and a form of

structure that attempts to understand the perspectives and perceptions of the interviewees’ lived

world (Kvale & Brinkman, 2009; Daymon & Holloway, 2002, pp. 166-168). Thus, the interview is able

to uncover complex feelings, perceptions and thoughts about past and present experiences as

interpreted by the interviewees and expressed in their own words (ibid.). This and the fact that

interviews usually utilise a flexible approach correspond well with the exploratory research design

(Ghauri & Grønhaug, 2005, p. 133), as the interview is able to uncover complex issues through its

flexibility and focus on understanding. Therefore, qualitative interviews are deemed relevant as the

fundamental method for gathering primary data in the case studies, as the interviews enable the

researcher to examine how Grundfos and Siemens utilise and integrate the communicative aspects

of talent management and how the talents perceive this.

Additionally, the fact that this thesis utilises a semi-structured approach enables the researcher to

adapt the interviews to the interviewees’ answers and ask second questions, such as probing and

interpreting questions23 (Kvale & Brinkman, 2009, pp. 135-140; Daymon & Holloway, 2002, pp. 173-

176). Consequently, this approach becomes more explorative and enables the research to obtain

rich, elaborate and specific data by asking second questions. Therefore, the knowledge derived from

the interviews becomes “socially constructed in the interaction of the interviewer and the

interviewee” (Kvale & Brinkman, 2009, p. 54). Thus, the knowledge derived from the interviews is

also formed by the questions that are asked during the interview (Burr, 2003, p. 152).

Furthermore, Kvale and Brinkman (2009) state that “a good interview question should

contribute thematically to knowledge production and dynamically to promoting a good interview

interaction” (p. 131), therefore, the interviews will start with one or more introductory questions to

make the interviewees feel comfortable and get the interviewees to talk. Thereafter, a number of

more specific questions will be asked to obtain additional thematic knowledge and to keep the ‘flow’

of the conversation going. These questions are among others direct and second questions.

Furthermore, the extensive use of second questions will demonstrate attentive listening, which Kvale

and Brinkman (2009) argue establishes a good contact “[by] the interviewer showing interest (...)” (p.

128). Finally, Kvale and Brinkman (2009) argue that “the questions should be easy to understand,

23

See appendix 5 for examples.


42

short, and devoid of academic language” (p. 131) and that open questions provide the ‘fullest’

answers (p. 134). Subsequently, these aspects will also be incorporated into the interview questions

used in the semi-structured interview guides.

3.1.1.3. Interview Participants

The sampling strategies used in qualitative research should be determined by the available resources

(e.g. time and budget) and should be purposeful rather than random, as in quantitative research

(Daymon & Holloway, 2002, p. 157; Neergaard, 2007, pp. 7; 11). Furthermore, it is argued that

redundancy can be used as the primary criterion for determining the sufficient number of

interviewees. The redundancy criterion is applied when no new information is provided by additional

interviewees – as a rule of thumb redundancy is evident when similar information is repeated eighty

percent of the time (Neergaard, 2007, pp. 49-50). Moreover, sampling parameters can also be used

to narrow down the sample size of the target population in order to collect adequate, relevant and

sufficient quality data (Daymon & Holloway, 2002, pp. 157-158) within the constraints of time and

resources. Subsequently, the selection criteria for the different interviews will be discussed next.

3.1.1.3.1. Company Interviews

The interviewees for these interviews were identified based on a clear description of the purpose of

the thesis and the interviews, which led to an identification of who were able to help the most in

contributing to this research. Specifically, the interviews were conducted with the Head of Talent

Management at Siemens and the Group Talent Manager at Grundfos. Thus, it was also estimated

that since the two interviewees have the overall responsibility for talent management at Siemens

and Grundfos additional interviews would have been redundant.

3.1.1.3.2. Talent Interviews

Ten interviewees were identified based on the following selection parameters: The interviewees

must have been employed for at least half a year; be identified as ‘talents’ by either Grundfos or

Siemens; and willing to share their experiences and perceptions. The rationales for these parameters

are that talents that have been employed for more than half a year should have been able to

accommodate to the company culture and have been exposed to some developmental or retention

strategies. Moreover, the willingness for sharing experiences and perceptions are paramount in

order for the research to obtain trustworthy data.

Furthermore, the rationales for conducting ten interviews are found in the constraints of time

and budget. Additionally, it is estimated that redundancy will take place when five employees have

been interviewed at each company. Taking this estimation and the limited resources (time and

budget) into account, ten interviews are deemed ‘sufficient.’


43

3.1.2. Research Quality

As stated, the interview approach and technique allow the researcher to adapt the interview to the

interviewees’ answers. This will also help enhance the interview quality, as Kvale and Brinkman

(2009) argue that quality interviews are based on “the extent of spontaneous, rich, specific, and

relevant answers from the interviewee” (p. 164) and “the degree to which the interviewer follows up

and clarifies the meanings of the relevant aspects of the answers” (p. 164). Furthermore, Kvale and

Brinkman (2009) also argue that quality interviews are characterised, to a large extent, by “the

interview being interpreted throughout the interview” and “the interviewer attempting to verify his or

her interpretations of the subject’s answers over the course of the interview” (p. 164). Thus, the

second questions utilised in the interviews help enhance the research quality.

Moreover, it can also be argued that by briefing the interviewees about the purpose of the

interviews and the ethics followed in connection with the interviews, the interviewees will become

more comfortable, if this is done in a sufficient manner (Ghauri & Grønhaug, 2005, p. 137).

Consequently, the initial briefing about the interview and ethics is fundamental for the outcome, and

thus for the subsequent quality of the interview (ibid.; Daymon & Holloway, 2002, pp. 182-183).

Therefore, each interview will contain a short briefing and cover the fundamental ethics,24 such as

the right of informed consent, the right of free choice, rights of privacy and confidentiality (Kvale &

Brinkman, 2009, pp. 70-73).

Traditionally, when assessing research quality the concepts of reliability and validity are used.

However, these concepts are grounded in quantitative research. Thus, it is difficult to apply these

concepts directly on a qualitative research setting (Daymon & Holloway, 2002, pp. 88-89; Burr, 2003,

p. 158). Therefore, Neergaard (2007) argue that the criteria for determining the quality of research

should be defined by the scientific approach. Consequently, it is suggested that research based on

social constructivism should apply authenticity (Daymon & Holloway, 2002, p. 92) and

trustworthiness (ibid.; Neergaard, 2007, pp. 43-45) as criteria for the research quality.

3.1.2.1. Authenticity and Trustworthiness

Daymon and Holloway (2002) state that authenticity is achieved by applying appropriate strategies

for the ‘true’ reporting of participants’ ideas and when the research helps participants to understand

and improve their world (p. 93). In this thesis, authenticity is achieved by using fair and appropriate

methods for gathering, interpreting and analysing the participants lived experiences. This is ensured

24

See appendix 5 and 6.


44

by a continuous focus on asking second questions during the interviews and a thorough method for

interpretation and analysis.25 Finally, this thesis should also help the interviewees understand the

complexities inherent in the integration of the communicative aspects in attraction, development

and retention strategies, and thus help conceptualise this to further improve the work within this

area for the mutual benefit of the ‘sender’ and ‘receiver.’

Moreover, Lincoln and Guba (1985) suggest that trustworthiness is defined by credibility,

transferability, dependability and confirmability (cited in Daymon & Holloway, 2002, pp. 93-94;

Neergaard, 2007, pp. 45-46).

In this thesis, credibility is achieved by presenting explicit rationales for the methodological

choices made in regard to interviewees, research design, case companies and so forth. Moreover,

credibility is also achieved by ensuring that interviewees recognise the ‘truth’ in the findings, which is

ensured through the second questions asked during interviews (ibid.).

Transferability is difficult to conceptualise, as it often refers to generalisability. However, in

this thesis, transferability is ensured by a definition and description of the context26 (ibid.), in which

this research is conducted and by “the use of two or more case studies [which] enables some measure

of generalization to a wider universe” (Daymon & Holloway, 2002, p. 108). Therefore, Neergaard

(2007) state that it is essentially up to the reader of the research to assess and determine whether

the findings can be ‘transferred’ to his/her specific context (pp. 45; 51). Moreover, Neergaard (2007)

argue that multiple case studies achieve a higher level of ‘trust’ and strengthen the findings in the

case studies, and thus can be used for theorising (p. 22).

Dependability is achieved by consistent and accurate findings, which is achieved through an

audit trail that describes the processes, decisions and arguments utilised throughout the research

(Daymon & Holloway, 2002 p. 94; 100). More specifically, this entails a description of the scientific

approach, its implications on the research and the subsequent research design including the

arguments and rationales for the choices made during the process of writing this thesis. The audit

trail is developed to enable readers to evaluate the adequacy of the analysis (ibid.).

Finally, confirmability is achieved by being aware of the potential subjectivity inherent in

qualitative research. This is ensured by being aware of own biases, a continuous reflexive (Burr,

2003, pp. 156-158) approach when writing the thesis and by the above mentioned audit trail (ibid.)

that is conveyed throughout this thesis by the different rationales and arguments. However, the

point is not to present the truth and objective facts but merely to legitimise and strengthen the

25

See section 3.2. 26

The context will be reflected in the brief company descriptions and how Grundfos and Siemens work with talent management, which will be presented in chapter 4.


45

research findings and the subsequent analysis of Grundfos’, Siemens’ and the talents’ experienced

social reality in regard to utilisation and integration of attraction, development and retention

strategies.

3.2. Analysis According to Daymon and Holloway (2002) ”data analysis is the process of bringing order, structure

and meaning to [the] mass of unstructured data” (p. 231). Therefore, it is paramount to utilise a

systematic approach to structure the data (ibid., p. 234). Thus, the qualitative interviews will be

transcribed to provide structure and overview of the data. However, there is no clear guideline for

transcription, but rather it depends on the research purpose (Kvale & Brinkman, 2009, p. 186).

Therefore, this thesis will not utilise a verbatim transcription (inclusion of pauses, tone of voice and

so forth), as the purpose is to analyse the perceptions and experiences that the interviewees have

towards the communicative aspects of the talent management strategies at Grundfos and Siemens

and not an in-depth analysis of any underlying discourses (ibid.).

Furthermore, this thesis will utilise data reduction, which is the process of dividing the data up

into manageable parts by coding, categorising and summarising the data (Daymon & Holloway, 2002,

pp. 232-238; Ghauri & Grønhaug, 2005, pp. 206-209). Furthermore, the process of data reduction is

similar to Kvale and Brinkman’s (2009) mode of analysis that focuses on meaning (pp. 201-207).

Therefore, the analysis in this thesis will go through a coding, categorisation, condensation and

interpretation phase (ibid.). Coding is the process of attaching key words to different segments in the

data to provide an overview of the data, whereas, “categorization entails a more systematic

conceptualization of a statement, opening it for quantification” (ibid., p. 202). Hereafter, the data will

be condensed into shorter sentences that represent the common and central themes found in the

data. Finally, the data will be interpreted by viewing the data through the lens of the established

theoretical framework and through a critical interpretation of the data in a manner that “goes

beyond what is directly said to work out structures and relations of meanings not immediately

apparent in a text” (Kvale & Brinkman, 2009, p. 207).

Moreover, data analysis and interpretation is not a linear process that merely starts after data

collection, but is rather an iterative process, in which there is an interplay between data collection,

analysis and interpretation (Daymon & Holloway, 2002, pp. 232-234). Additionally, the purpose of

coding and categorisation is also to constantly compare the data in order to find common themes

and contrasts in the data (ibid.; Ghauri & Grønhaug, 2005, pp. 208-209). Therefore, this thesis also

utilise a multiple case study to initiate a comparative analysis of the two cases, as this will help


46

explore different dimensions and commonalities (Ghauri & Grønhaug, 2005, pp. 214-215). In turn,

this approach will help enhance the theorisation and conceptualisation about a strategic and

communicative approach to attraction, development and retention.


47

4. Findings and Analysis The following chapter will present the research findings and conduct an analysis of these findings

according to the theoretical framework to examine how Grundfos and Siemens utilise and integrate

the communicative aspects of the talent management strategies of attraction, development and

retention; including how the talents at these companies perceive and experience this.

Therefore, this chapter will be divided into two overall sections. The first section will present

the case companies and analyse their approaches to talent management and specifically in regard to

the communicative aspects of attraction, development and retention, as this will represent the

context, in which the talents perceive and experience the communicative aspects of talent

management. The second section will focus on how the talents at Grundfos and Siemens perceive

and experience the communicative aspects of the attraction, development and retention strategies

inherent in talent management. Both sections will be concluded with a comparative analysis to draw

general conclusions that can be used for the discussion and implications in the next chapter.

4.1. Case Companies This section consists of three parts. In the first part, a brief company description of Grundfos will be

made and followed by an analysis of Grundfos’ approach to talent management.27 The second part

will focus on Siemens and have the same structure as the latter. Finally, the analyses of the two

companies approach to talent management will be compared.

Moreover, it is important that the selection of case companies is based on rationales that reflect the

purpose of the research (Ghauri & Grønhaug, 2005, pp. 118-119). First of all, Grundfos and Siemens

were found to be relevant case companies, as both companies are large international companies.

Secondly, both companies are working with talent management and have expressed a great interest

in helping to explore how talent management can be viewed from a strategic and communicative

perspective, which has allowed the researcher to access both companies and conduct interviews

with the two managers and the talents. Therefore, the selection of Grundfos and Siemens is in

accordance with the research purpose of this thesis.

4.1.1. Grundfos

Grundfos was founded in 1945, in Bjerringbro, Denmark. Today, the company produces 16 million

pump units a year, which makes the company one of the leading pump manufactures in the world. 27

These analyses are based on the interviews with the talent management responsible at Grundfos and Siemens, which can be found in the enclosed transcriptions.


48

Grundfos is represented in 55 countries and employs 18,000 employees worldwide (web1).28

Furthermore, Grundfos also works with several values, such as sustainability, focus on people and

partnership (web2) including a purpose that states: “Grundfos is a global leader in advanced pump

solutions and a trendsetter in water technology. We contribute to global sustainability by pioneering

technologies that improve quality of life for people and care for the planet” (web3). Grundfos uses

the values and its purpose actively in its talent management strategies and the interest in talents is

also expressed explicitly on the company homepage (web4).

4.1.1.1. Talent Management

At Grundfos, talent management is utilised in a strategic manner to help realise Grundfos’ purpose

and business strategies (L11-15; 270-274)29 by translating the business strategy into a HR strategy

that highlights the current and future needs (L287-297). Therefore, Grundfos also views talent

management as an important part of the business (L612-616) to attract, develop and retain talents to

help resolve the current and future business needs (L15-23).

To attract talents Grundfos is providing above average employment packages (salary, bonuses,

pension and working conditions) including an extensive focus on career and development

opportunities for the individual (L20-23; 56-69). Moreover, Grundfos also focuses on conveying its

purpose, values, culture and CSR profile through its employer brand (L90-92; 102-105; 131-153),

which can also be illustrated from this quote: “we communicate what is the purpose of Grundfos:

That we are here to help people getting fresh water, clean water and to get rid of their dirty water”

(L91-92). Thus, Grundfos is not only focusing on being a pump manufacturer but also on its CSR

profile. Therefore, Grundfos’ approach to employer branding also corresponds to most of the

literature review about attraction, as Grundfos emphasises the tangible (i.e. salary and working

conditions) and intangible (i.e. values, CSR profile and development opportunities) benefits in its

employer brand. Subsequently, Grundfos’ employer brand covers the functional, economic, symbolic

and psychological benefits, such as the development of a self-concept connected to the

organisational identity and the possibility for personal development. However, this analysis was not

able to uncover whether Grundfos co-creates and negotiates its employer brand with current and

potential employees and whether Grundfos is aware of fulfilling the expectations, obligations and

promises conveyed through the employer branding activities.

28

Abbreviation of the electronic sources. See web1, in the reference list. 29

References that indicate the line numbers in the transcribed interviews.


49

In regard to development, Grundfos utilises the 70-20-10 model as a ‘golden rule’ for development

(L401-404; 439-445). Therefore, the importance of the immediate managers is also emphasised, as

they should challenge, encourage and involve the talents to ensure development (L409-416).

However, it is also emphasised that the individual talents have a responsibility for their own

development (L416-423). Nonetheless, the analysis was not able to uncover the extent to which

Grundfos provides feedback and empowerment to ensure self-management behaviour – other than

the different development opportunities provided for the talents (L381-401) and the extensive focus

on the development dialogue facilitated by the manager. The development dialogue is where the

immediate manager and talent discuss the development needs and wants of the talent and create a

plan to ensure development (L63-67; 782-787). Moreover, Grundfos also applies coaching and

mentoring as a part of the talents’ development (L388; 400). Additionally, it can also be argued that

Grundfos is aware of the usefulness of formal training, as “you need to have the basics right: You

need to have a proper education you need to have a proper toolbox” (L443-445). The development of

a proper toolbox could be facilitated through the courses and seminars that Grundfos also provides

for the talents (L401). From this review, it is evident that Grundfos’ approach to development

corresponds to most of the theoretical framework about development, as Grundfos emphasises the

development from experiences approach conveyed through the 70-20-10 model including the

importance of the immediate manager, coaching, mentoring and the formal training.

To retain the talents Grundfos focuses on ensuring that the talents grow and develop their

competences by following up on their motivation and development (L532; 539-548). Moreover,

Grundfos emphasises development and involvement (L532-533). This is further supported by this

quote “retention is very much about the daily management and the daily environment, the daily

atmosphere and that [the talents] are also put in organisations and roles where they feel inspired and

stimulated and involved” (L578-580) and the fact that Grundfos gives the talents opportunity for

experimenting and testing their competences to challenge themselves (L589-593). Subsequently,

Grundfos seems to ensure a supportive work environment where management follows up on the

talents’ motivation and ensures a good atmosphere, which should lead to identification,

commitment and engagement by conveying organisational support. The fact that Grundfos also

involves the talents should also lead to enhanced commitment and engagement (through a sense of

choice). Additionally, Grundfos also emphasises the development ensured by involvement,

challenges and responsibility, which should lead to commitment and engagement (through a sense of

meaning and competence by providing development and responsibility, respectively). Furthermore,

Grundfos also emphasises the importance of its strong image, focus on sustainability, culture, values

and the fact that the talents identify with these values (L588-603). Therefore, Grundfos also seems to


50

ensure organisational identification, commitment (through internalisation) and engagement (through

a sense of meaning and purpose by having a job that has a social impact). However, this review was

not able to examine if Grundfos creates a sense of self, progress and balance for the individual

including the extent to which the social exchange relationship is perceived as fair and individuals

identify with the values.

4.1.2. Siemens

Siemens is a global technology company working within the energy, healthcare, industry and

infrastructure sectors. Siemens was founded in 1847, in Berlin, and has developed into an

international conglomerate present in 190 regions and employs 370,000 employees worldwide

(web5). Siemens’ vision is to be a pioneer within its core business areas (e.g. energy) and has the

following values: Responsible, excellent and innovative (web6). Moreover, Siemens is also actively

trying to attract and develop talents (web7).

4.1.2.1. Talent Management

At Siemens, the primary focus seems to be on developing the talents (L23-29; 380-381), attracting

the best and the brightest talents (L193; 275-277) and retaining these talents (L351-353) to ensure

that there are a sufficient number of capable talents for future key positions (L78-81; 317-323).

To attract talents (or the best and brightest) Siemens is focusing on branding the company as a good

and attractive employer (L333-334). Furthermore, Siemens is focusing on “some basic requirements

as for instance competitive salary package” (L234-235) in its employer brand. However, at the same

time, Siemens emphasises the importance of focusing on the interesting products and projects that a

potential talent can work with at Siemens (L235-236), and thus enhance his/her development.

Additionally, Siemens is also focusing on that there is much to be proud of when working at the

company, for example that Siemens wants to improve the world within its core business areas (L235-

241). Thus, Siemens is also focusing on its CSR profile and encourages employees to be proud of

working at Siemens, and thus ‘strengthen’ their self-concept. Therefore, Siemens’ attraction

strategies also correspond to the literature review, as the company focuses on tangible (i.e.

competitive salary package and good work environment) and intangible benefits (i.e. development

opportunities and its CSR profile) in its employer branding. Nevertheless, similar to the attraction

analysis at Grundfos, this analysis cannot determine whether Siemens co-creates and negotiates its

employer brand and is aware of fulfilling the expectations derived from the employer brand.


51

At Siemens, the performance management process is essential, as Siemens applies this process to set

performance targets and follow-up (L13-15; 48-49), which is used to create a development plan and

subsequent development targets for each talent (L35-40; 76-81). Moreover, Siemens applies the 70-

20-10 model for development (L106-111). Therefore, “courses are a really small part of

[development]” (L105-106). Nonetheless, the talents have access to lectures and seminars on

different subjects (L70-74; 81-82). Furthermore, Siemens also provides a mentor for the talents (L75;

83-84). Additionally, the talents also participate in cross organisational projects or other

development opportunities that are meant to enhance their development (L68-96; 103-109). Finally,

Siemens also recognises the importance of the immediate manager in the talents’ development (and

retention), as the managers must ensure that the talents’ development are based on the 70-20-10

model, as this is believed to be more beneficial (L113-120). Moreover, the managers must also

support and encourage the talents to ensure that the talents develop (L168-182). Therefore,

Siemens’ approach to development corresponds to some of the theory presented in the theoretical

framework, as Siemens tries to balance the informal development with formal training activities and

mentoring, and further emphasises the need for support and encouragement from the immediate

manager for the talents to develop. At Siemens, the talents are also responsible for their own

development (L185), however, the analysis did not find any explicit considerations of empowerment

and feedback to enhance the talents’ self-management behaviour.

In regard to retention Siemens ensures that “some basic things are in place” (L348) and it can be

assumed that these basic aspects are similar to the aspects considered in Siemens’ employer brand,

such as competitive salary packages (L235). Furthermore, Siemens also acknowledges that its

employer branding strategy is also used to retain talents and is also considered essential in this

process (L351-359). Thus, Siemens also communicates its social impact and that the talents can be

proud of being employed at Siemens, and thus help improve the world (L238-241). Consequently,

Siemens seems to ensure organisational identification, commitment (through internalisation) and

engagement (through a sense of meaning and purpose by having a job that has a social impact).

However, Siemens also emphasises that it focuses on other important aspects, such as good

relationship with the immediate manager and the possibility for personal and professional

development, which is considered as the most important part of retention, at Siemens (L349-363).

Consequently, it can be argued that Siemens tries to create a supportive workplace, which leads to

identification, commitment and engagement. Moreover, the development opportunities can lead to

engagement (through a sense of meaning by development/personal growth). Nonetheless, this

review was not able to investigate if Siemens creates a sense of self, balance, competence and

progress for the individual talent; to what extent Siemens involves, challenges and empowers the


52

talents; and to what extent the talents identify with Siemens’ values and perceive the social

exchange relationship as fair.

4.1.3. Conclusion – Comparative Analysis

In regard to attraction Grundfos and Siemens seem to focus on ensuring that they offer competitive

employment packages that consist of salary, bonus, pension schemes and good working conditions.

However, both companies also emphasise that competitive employment packages are only the

basics, as there are more important aspects to attract talents, such as career and development

opportunities, and working for a company that has a CSR profile. Thus, both companies focus on the

economical, functional, psychological and symbolic benefits in their employer brands. Moreover,

Grundfos was more explicit about also putting emphasis on communicating its values and culture to

attract talents. The fact that Grundfos emphasises its values and culture in the employer brand can

be argued to signal or further highlight its focus on for example sustainability (i.e. CSR profile) and

focus on people (i.e. development) communicated through two values: ‘Sustainable’ and ‘Focused on

People’ (web2). Thus, the focus on the values and culture in the employer branding conveys the

functional (i.e. working conditions, such as open and informal culture (L104-116)), symbolic (i.e.

Grundfos’ values and CSR profile) and psychological (i.e. development) benefits.

The development approach at Grundfos and Siemens is built on the 70-20-10 model. Therefore, both

companies focus more on the development derived from experiences on the job supported by

development opportunities, the environment (as argued in the retention analyses), mentoring and

the managers that should provide encouragement and support for the talents’ development.

Additionally, both companies also utilise formal training sessions, which can be used to prepare and

help enhance the talents’ development from on the job experiences. Moreover, the development

dialogue (or the performance management process) and the subsequent creation of a development

plan are central to the development processes at both companies, as this dialogue is used to

evaluate and discuss the talents’ development targets. These dialogues can also be assumed to be

similar to the concept of job appraisal interview, as they cover the talents’ performance, motivation

and development (Grundfos, L65-66; Siemens, L13-15; 34-44). Finally, the talents at Grundfos and

Siemens are responsible for their own development.

In order to retain talents Grundfos and Siemens offer competitive employment packages, but also

emphasise the importance of offering personal and professional development opportunities.

Moreover, both companies also stress the importance of the relationship with the immediate

manager, the daily work environment and the fact that the talents can relate to the companies’


53

values and purpose/vision and that this creates a social impact. Therefore, Grundfos and Siemens

seem to ensure organisational identification (by high levels of support and strengthening the talents’

self-concept through the values and by providing an attractive purpose/vision that has a social

impact), commitment (through support and internalisation of values) and engagement (through

support, the work itself, social impact and development, which can lead to a sense of meaning and

purpose). However, Grundfos was more explicit in its focus on involving and challenging the talents

and letting them test and experiment their competences. Essentially, this can be argued to facilitate

responsibility and involvement, which are antecedents for commitment and engagement (sense of

choice and competence).

Based on the above examinations, it can be concluded that Grundfos and Siemens seem to be aware

of the integration between the attraction, development and retention strategies, as the employer

brands are also applied to retain employees. This is apparent from the fact both companies

incorporate several of the factors that are fundamental for identification, commitment and

engagement, such as values, CSR profile and development opportunities. Moreover, the fact that

both companies emphasise the importance of the talents’ development and ensures this through

different actions also exemplify integration, as development is considered central to attracting and

retaining the talents at both companies.

However, the above examinations were not able uncover some of the aspects reviewed in the

theoretical framework. These include: The fundamental question of whether Grundfos and Siemens

fulfil the psychological contract conveyed through the employer branding; co-create and negotiate

the employer brand; provide feedback and empowerment to ensure self-management behaviour;

knowledge about how mentoring and coaching are conducted; and finally whether Grundfos and

Siemens are aware of creating a sense of self, progress and balance. Moreover, the above review

only focuses on the Grundfos and Siemens intentions. However, aspects such as the extent to which

the talents identify with the values, perceive a fair social exchange relationship or experience

meaningfulness are inherently subjective and based on the talents’ perceptions and experiences.

Therefore, the purpose with the next section is to analyse the talents’ perceptions and experiences in

regard to attraction, development and retention.


54

4.2. The Talents This section will be divided into three overall parts to create a better overview of the findings and

analyses. Thus, the first part will examine how the talents at Grundfos perceive and experience the

communicative aspects in the company’s talent management under three headings corresponding to

the three overall areas investigated in this thesis: Attraction, development and retention. The second

part will have an identical structure but focus on the talents at Siemens. Finally, the analyses will be

compared.

4.2.1. Grundfos

4.2.1.1. Attraction

From the data it is evident that the interviewed talents were attracted by different aspects prior to

seeking employment at Grundfos.

The primary attractor was the career or development opportunities, which are facilitated

through the possible international opportunities at Grundfos (G1, L262-270) or the job/opportunity

itself and the challenges it provides (G3, L56-57; G4, L41-43; G5, L163-169). This is also illustrated

through this quote “So I did not send my CV to Grundfos because it was Grundfos, I sent my CV

because the opportunity was interesting” (G2, L244-245).30 Thus, the fact that career opportunities

are valued highly also exemplify the importance of the psychological benefits, as it can be argued

that inherent in the wish for career opportunities is the psychological desire for personal growth and

development both professionally and personally. This is also reflected in the development and

retention analyses.31 However, it is important to notice that it can be argued that the career

opportunities can also be functional benefit, if it is just the career opportunities that are attractive,

which are facilitated by the size and structure of the company (i.e. functional benefits). Nevertheless,

the career opportunities become a psychological benefit if it is the perceived challenges and

development derived from the opportunities that are the main attractor. Therefore, it can be argued

that both the psychological and functional benefits have had an influence on the interviewed talents’

desire to seek employment at Grundfos.

In terms of more functional benefits, some of the talents also mentioned the importance of

the culture or work environment at Grundfos as an attractor, as they find a good, dynamic and

positive environment more attractive (G1, L286-294; G5, 219-223). Furthermore, G1 also mentioned

the fact that Grundfos has a graduate programme as an important aspect, as this programme could

30

Despite of the fact that the interviewed talents stated that they were primarily attracted by the career and development opportunities, they also stated that they have come to learn Grundfos as an attractive company (G1, L302-305; G2, L267-285; G3, L375-377; G5, L286-307) and that they are glad to be employed there today for several reasons, which will be examined in the section about retention. 31

Sections 4.2.1.2 and 4.2.1.3.


55

help scope the future career and enhance the personal and professional development (L270-276).

This highlights a combination of the functional and psychological benefits, as the functional benefits

are facilitated through the structure that the graduate programme provides and the psychological

benefits are reflected in the inherent wish for development in the graduate programme (G1, L221-

229).

However, only one of the interviewed talents was explicit about the image (i.e. CSR profile) of

Grundfos as an important aspect in regard to applying for a job (G4, L107-114). However, the same

talent also pointed out that the primary factor for seeking employment was the job opportunity itself

and not so much the image of Grundfos (G4, L41-43; 68-69) Therefore, in this case, the psychological

(and partly the functional) benefits seem to be more attractive than the symbolic benefits offered by

the perceived image, values or CSR profile. Moreover, none of the talents mentioned the economic

benefits, as an important attractive feature despite of the fact that some of talents view the salary as

a motivational factor, which will be discussed in more detail in the retention analysis.

Moreover, all the interviewed talents stated that Grundfos has met most of their expectations or the

criteria that they set before seeking employment. Therefore, the talents also think that Grundfos has

lived up to their expectations in regard to development, career opportunities (G1, 369-381; G2, L326-

332; G3, L59-63), its culture (G5, L219-253) and its values about being responsible and so forth (G1,

L302-340; G2, L267-274; G3, 180-190; G4, L86-97; G5, L286-295). Consequently, Grundfos seems to

utilise honest and realistic job previews in its employer brand, which reflect the actual identity of

Grundfos. However, some of the talents also thought of some aspects or expectations that were not

met compared to what they initially thought, such as the fact that Grundfos is a large organisation

and therefore they feel that their own development sometimes moves too slow (G1, L410-429; G4,

L342-402) and that there may be too many talents to fill key positions or too many talents for the

organisation to effectively handle their individual development (G1, L442-449; G4, L358-367). Thus,

these unmet expectations also have an impact on the talents’ motivation, as they feel that Grundfos

is sometimes too slow to accommodate their development needs (G1, L424-425; G4, L399-402).

4.2.1.2. Development

Based on the interviews with the talents at Grundfos, it is apparent that the five talents feel that it is

their daily jobs and the experiences/challenges they face in their jobs that are the primary method

for their own development both personally and professionally through new input, tasks or more

responsibility (G1, L229-247; G2, L112-144; G3, L459-463; G4, L490-495; G5, L94-112). Furthermore,

the talents that have participated in formal training also expressed a clear connection between the


56

formal training and their daily job, in the sense that the formal courses were useful in providing tools

that could be used in the daily work (G2, 115-127; G5, L145-152). However, both talents also

expressed that the daily job is still more important in regard to development, as G5 stated “I do not

think that courses develop you as much as challenges in your daily job” (L157).

Therefore, it is evident that the talents’ statements correspond to the 70-20-10 model, as they

feel that most of their development takes place through the daily challenges or the job itself and as

the two talents that have received formal training felt that this was beneficial for their development.

Moreover, all the talents stated that they have a wish for self-development, and thus the talents

want to develop (G1, L155-158; G2, L355-357; G3, L62-73; G4, L311-314; G5, L105-108) and also feel

that it is their own responsibility to develop and get the most of the talent/graduate programme at

Grundfos (G1, L157-162; G3, L75-81; G4, L412-414; G5, L48-50). Consequently, this does also

correspond to the theory about self-management. Moreover, the talents also stated that Grundfos is

providing a supportive environment through good general support, flexibility and willingness to listen

and help the talents in their development (G1, 137-147; G2, L362-375; G3, L178-185; G4, L389-392;

G5, L381-382). Furthermore, all the interviewed talents also claimed that they have a supportive

manager that can encourage, help and empower them through suitable strategic assignments or

input (G1, L151-167; G2, L146-179; G3, L78-128; G4, L384-387; 405-434; G5, L114-135). Therefore, it

is evident that Grundfos facilitates some of the aspects that lead to more self-management

behaviour by supporting the individual through the environment and the managers who encourage,

support and empower the talents to seek new challenges by providing input and strategic

assignments.32

However, the findings and subsequent analysis did only find sparse data about the specific

feedback that was given, as it was only G2 that was explicit about the feedback. G2 stated that the

manager gives honest task-specific feedback on the talent’s performance that the talent feels is fair

and can be used for further development (L165-194). Thus, this thesis is not able to uncover whether

the feedback is constructive and fair in regard to the rest of the talents.

In regard to the formal concepts in development, namely the job appraisal interview, mentoring and

coaching the findings were a bit mixed. Some of the talents have been assigned a mentor, who can

support them, provide them with new perspectives and help give them access to a large network

(G1, L120-134; G2, L200-212), which are aspects that help the talents in their development, as they

have access to more opportunities and are ‘forced’ to challenge themselves (ibid.). In terms of the

32

Nevertheless, two of the talents feel that sometimes their own development is evolving too slow, which was also discussed in the attraction analysis.


57

job appraisal interviews, three of the talents mentioned these explicitly. These talents stated that the

interviews were used to evaluate performance, discuss future tasks and development goals, which

the talents feel are important for their development (G1, L173-181; G2, L149-155; G3, L101-116).

Nonetheless, only G2 was specific about how the evaluation and feedback given during the job

appraisal interviews, as explained. Finally, there were not any of the talents that mentioned

coaching.

4.2.1.3. Retention

As stated, in the attraction analysis, all of the interviewed talents were glad or proud to be working

at Grundfos and there are a number of reasons for this, which will be reviewed in this section.

Therefore, this analysis will be divided into three parts concerning the value-specific, job-specific and

company-specific aspects of retention, which have been derived as common themes in the analysis

of the interviews.

Firstly, all the interviewed talents said that they can relate to some of Grundfos’ values and they

think that these values are good despite of the fact that the values were not important for any of the

talents when seeking employment. Nevertheless, four of Grundfos’ six values were mentioned

several times in regard to what the talents can relate to and what correspond with their own

personal values: Relentlessly ambitious by always striving for the best results and to challenge

oneself to find new ways to be the best (G1, L310-314; G5, L301-307); open and trustworthy by

having honest and clear dialogues with colleagues (G2, L482-496; G3, L327-341; G4, L184-193);

sustainable which is reflected in Grundfos’ CSR profile toward the world in general but also the local

community and the fact that the talents feel that their jobs have a social impact (which also lead to a

sense of meaning) (G1, L318-368; G3, L347-389; G4, L195-213); and focused on people that is

reflected in Grundfos’ approach to treating employees with respect, involving and listening to them

(G3, L180-190; G5, L178-180; 294-302).

Thus, it is evident that the interviewed talents identify with one or more of Grundfos’ values,

which lead to a perceived oneness between the individual and organisational values. Consequently, it

can also be argued that it is the attractiveness of the individual values that is important to the talents

and not the prestige associated with working for Grundfos. Subsequently, the interviewed talents

also seem to be committed (through internalisation) and engaged (due to the fact that Grundfos’

values also reflect some of the talents’ personal values reflected in a sense of self) by the values.

Moreover, all of the talents cannot only relate to some of the values but they also stated that they

feel Grundfos lives up to the values and therefore, they become more motivated (G1, L296-340; G2,


58

L267-274; G3, 180-190; G4, L86-90; G5, L286-295), as it can be argued that Grundfos has lived up to

pre-entry expectations by following its values stated in the employer brand, which should enhance

the commitment.

Secondly, the more job-specific aspects that retain the talents at Grundfos can be categorised as the

work itself, challenges, development, recognition and meaningfulness.

All the talents found the work itself motivating, as they are working within an area of interest

(G1, L436-437; G2, L337-344; G3, L146-175; G4, L195-203) or due to the fact that they feel that they

“have ended up on the right shelf” (G5, L330-339). Moreover, all the talents also feel that their jobs

are meaningful (even though it can be difficult to see the direct impact of their jobs for some of

them), as they feel that their jobs are valued either by colleagues and Grundfos (G1, L503-546; G3,

L192-210; G5, L328-343) or because they work with something of strategic importance to Grundfos

(G2, L412-438; G4, L223-238). Additionally, the fact that the talents feel that their jobs are important

or have a purpose is also strongly linked to recognition, as it can be argued that the talents receive

recognition by knowing their contributions are valued or by working with something of strategic

importance to the company, as illustrated with this quote: “the idea to do something that is not

important for anybody, I do not think that gives you a lot of energy. But in this case, I know it is

important and this helps” (G2, L418-420). Moreover, some of the talents also receive ‘explicit’

recognition on their work, which is also very motivating for them (G1, L548-550; G3, L217-222; G4,

L531-545; G5, 386-396). Therefore, it can also be argued that the talents feel experienced

meaningfulness, experienced responsibility (as some of the talents work with something of strategic

importance) and knowledge of results (even though it was difficult for some, they still feel valued).

Consequently, the talents should feel engaged, as the work itself can be argued to provide a sense of

meaning, purpose and competence (through the recognition). Moreover, the fact that the talents feel

that their jobs are recognised and valued should convey organisational support, as their

contributions are valued. Thus, this should lead to increased identification, commitment and

engagement.

Furthermore, all the talents also stated that they were motivated by the daily challenges that

come in the form of enhanced responsibility, high expectations, difficult tasks (G1, L436-347; G2,

L420-431; G4, L292-314; G5, L265-277) or working within new areas (G3, L160-175). Consequently,

the different challenges that the talents experience in their daily job should also lead to enhanced

commitment and engagement, as it is associated with competence-related experiences and the

meaningfulness of the work itself through responsibility and job challenges. However, the talents

also stated that they were not only motivated by the challenges per se, but also the subsequent

development that came out of being challenged in their daily job. This is especially evident from this


59

quote “an important aspect of [my development] is to be constantly challenged on that, I want new

challenges, (...) I can see from my own development that is an aspect that I need on-going in order to

develop” (G4, L313-316). This connection between challenges and development was made evident in

the development analysis, however, it has also become evident that the challenges and the

subsequent development are also important for the talents’ motivation (G1, L238-247; G2, L346-357;

G3, L62-69; G5, L94-112). Thus, the fact that the talents feel motivated by their daily challenges and

the subsequent development from these challenges exemplify some of the intrinsic motivators, such

as challenging work and personal growth from the work itself. This should lead to increased

engagement, as the challenges help develop the individual, which should establish a sense of

meaning, competence and progress.

Thirdly, the final aspects that have an influence on retention at Grundfos can be categorised as more

company-specific themes, such as the culture/environment, the manager, salary, career

opportunities and work-life balance.

In regard to the culture/work environment all the talents mentioned this as an important

motivational factor, as there is a supportive environment/culture (this is also reflected in the value

focused on people), in which there are good collegial/supervisor relationships, flexibility and a

dynamic atmosphere that provides (and allows for) a lot of challenges and taking responsibility (G1,

L538-546; G2, L275-280; G3, L149-154; G4, L243-263; G5, L192-202; 378-384). Moreover, the

interviewed talents also stated that their managers are supportive both in regard to their

development (as already discussed) and in general daily aspects, such as listening to the talents’

wishes and so forth (G1, L84-90; G2, L149-179; G3, L401-410; G4, L258-266; G5, L130-135).

Subsequently, these findings also exemplify both extrinsic and intrinsic rewards, as the talents

mention the good working conditions, collegial relationships and responsibility. The extrinsic

rewards, which revolve around the general supportive environment (i.e. good working conditions

and relationships), should lead to increased identification, commitment and engagement. The

intrinsic reward (i.e. responsibility) and the fact that the managers listen to the talents can also

convey empowerment and involvement (as discussed in the development analysis), which should

lead to commitment (through involvement and responsibility) and enhanced engagement, as the

talents should experience a sense of choice, meaning and purpose by being empowered, involved

and taking more responsibility in their daily work.

Furthermore, the fact that the talents feel Grundfos provides a supportive environment is also

reflected in the fact that all of the talents stated that they have a good work-life balance, as Grundfos

provides flexibility and freedom in planning the working hours, which is important for the talents’

motivation and performance (G1, L560-586; G2, L386-401; G3, L298-307; G5, L365-371) and leads to


60

engagement through a sense of balance. Further, the flexibility and freedom also convey autonomy,

which should lead to increased commitment and engagement.

In regard to the career opportunities all the talents stated that it is an important part of their

motivation that they have (international) career opportunities (G1, L627-641; G2, L253-260; 327-357;

G3, L459-473; G4, L119-135; G5, L240-253), which was also discussed in the attraction analysis.

Subsequently, the talents are also given opportunities for advancement. Thus, this should increase

commitment and engagement (through a sense of progress). Additionally, the fact that the talents

can develop and be challenged through these career opportunities should also increase engagement

through a sense of meaning.

Furthermore, the interviewed talents also stated that the salary should match the

responsibility and performance and that a lower salary cannot be made up solely by more

recognition or career opportunities (G1, L591-642; G2, L455-480; G4, L510-540; G5, L416-426).

Therefore, the talents also stated that the salary can become demotivating if it does not reflect the

actual performance and responsibility of the individual even though Grundfos provides good

intangible aspects (ibid.). Consequently, it is evident that the talents assess whether the received

reward (i.e. the salary) is satisfactory compared to the perceived effort. Thus, some of the talents

sometimes feel that they could be rewarded more, compared to their effort/performance (G1, L600-

628; G4, L539-540). However, some of the talents also stated that even though they might be able to

get a higher salary elsewhere Grundfos still provides some benefits other than salary, such as good

working conditions, career opportunities that in total create a good employment package (G2, L259-

466; G5, L416-420). Thus, it is evident that the talents evaluate the quality of the social exchange

relationship differently by valuing some rewards more than others (e.g. flexibility over salary).

However, the extent to which the talents are motivated by the different rewards is subjective and it

is not the purpose of this thesis to investigate this. Nonetheless, it is apparent that the theory of

social exchange relationship is illustrated through the fact that the talents consider the salary,

support, career opportunities, recognition and so forth, when assessing the balance between these

rewards and their effort. Subsequently, this should also lead to commitment for the talents that feel

fairness in the exchange of effort and rewards, which in turn lead to organisational support that can

increase identification and engagement as well.


61

4.2.2. Siemens

4.2.2.1. Attraction

In regard to what attracted the interviewed talents to Siemens the findings are a bit mixed compared

to Grundfos, as the talents were attracted by the career opportunities, the values or culture of

Siemens.

Firstly, all of the talents stated that they were attracted by the career opportunities that

Siemens provided in terms of the interesting tasks, opportunities for an international career, the

training provided and the chance for development (S2, L206-217; S3, L176-203; S4, L424-426; S5,

L42-81). Moreover, S1 also sums it up by stating “[the] graduate programme was more interesting

from my perspective, as there were more training, more personal development and I also had the

chance to actually go abroad in eight months, which to me is very important to get some

international experience so early in [my] career” (L339-342). Thus, this quote also exemplifies the

importance the graduate programme can have in order to underline the functional and psychological

benefits that such a programme provides reflected in the size/global perspectives and development

opportunities that Siemens provides. Moreover, some of the talents were also attracted by the

culture/work environment at Siemens, which they find dynamic and diverse (S1, L224-229; S2, L206-

217; S5, L72-75), while others were attracted by the fact that Siemens works with green energy, as

this is something they can relate to (S1, L207-216; S5, L45-64). Nonetheless, the talents that were not

attracted by Siemens’ image stated that they are proud to work at Siemens today due to its CSR

profile and values (S2, L273-278; S3, L172-175; S4, L353-356).

The above findings also illustrate the importance of both the functional and psychological

aspects as the two primary attractors reflected by Siemens’ culture and career opportunities (and

subsequent development) respectively, whereas, the symbolic benefits are also highlighted through

the attraction of S1 and S5 in terms of Siemens’ image (CSR profile). Again, the economic benefits

were not mentioned as an attractor even though several of talents mentioned the motivational

aspects in regard to salary when employed at Siemens, which will be reviewed in the retention

analysis.

Furthermore, all the talents feel that Siemens has met their criteria and subsequent expectations

before seeking employment. Therefore, the talents feel that Siemens has met their expectations in

regard to career opportunities (S2, L221-228; S3, L205-210; S5, L86-96), the culture (S3, L205-210; S5,

L355-339) and the values by living up to these (S1, L377-384; S3, L234-247; S4, L222-224; S5, L343-

355). Thus, Siemens seems to utilise realistic and honest information in its employer brand to portray

the company’s actual identity. However, one of the talents stated that Siemens has not met all of the

expectations, as there is a lack of training (S1, L37-57). Therefore, it is also evident that Siemens has


62

both fulfilled and breached the psychological contract, which have also impacted the talents’

subsequent motivation.


The interviewed talents at Siemens mentioned several aspects of their own development that

correspond with the theories about development that were reviewed in the theoretical framework.

Firstly, all the talents stated that they have a wish for self-development or that it is very important

for them to develop (S1, L334-340; S2, L390-395; S3, L346-355; S4, L435; S5, L442-443) and that it is

their own responsibility to ensure that they develop and get the most out of the opportunities that

Siemens provides (S1, L128-132; S2, L134-136; S3, L124-126; S4, L100-108). Moreover, all the talents

agreed that it is their daily job or the challenges that they face through this job that are important for

their own personal and professional development (S1, L132-136; S2, L69-70; S3, L77-81; S4, L80-97;

S5, L145-162). Therefore, the talents also stated that they need a supportive environment that can

stimulate or help them in their own development, which Siemens is also providing (S1, L104-111; S2,

L181-191; S3, L311-320; S4, L430-432; S5, L120-140). Furthermore, all the talents also stated that the

immediate manager is important for their own development and that the manager is an important

constituent in creating a supportive environment (ibid.). Thus, the talents also view the ability of the

manager to push, support, spar with and guide the talents as important to enhance their own

development (S1, L105-126; S2, L101-141; S3, L98-126; S4, L179-189; S5, L122-139). Additionally, the

talents also mentioned the feedback from the manager (either given at formal job appraisal

interviews or in informal dialogues) as an important aspect in their own development in order for

them to be able to receive guidance on how to solve future tasks, develop personally and evaluate

their own performance or development (S1, L162-179; S2, L146-164; S3, L122-133; S5, L225-253).

Moreover, some of the talents also elaborated on the job appraisal interviews (or the weekly

meetings some of them have with their manager) and stated that these interviews were beneficial

for their development, as they are used to give the above mentioned feedback or have a discussion

about current and future challenges, tasks or development areas (S2, L154-164; S3, L122-126; S5,

L176-223).

Therefore, it is also evident that the talents at Siemens feel that there is a supportive

environment, in which the talents get good general support and where the manager can give

constructive task-specific feedback that is evaluative and helps the talents develop. Nonetheless, this

thesis is not able to examine whether the talents feel that the feedback is fair, as the talents were

not specific about this. However, the interviewed talents feel that they have a manager that can


63

support, encourage, guide or give them input for their development (S1, L104-137; S2, L105-141; S3,

L100-143; S4, L179-189; S5, L120-140). Thus, it can be argued that the managers are also able to

empower the talents to seek new challenges and develop themselves, as the managers give them

input, sparring and so forth.

Secondly, some of the talents also mentioned the importance of formal training or seminars in order

for them to develop and especially the training they have received in the talent/graduate programme

at Siemens (S2, L69-76; S3, L40-61; S5, L300-321). However, the training is only viewed as a minor

part of the development (ibid.) as exemplified in this quote “I would say that formal training and

courses they give some sort of basis and they can give inspiration on how to do or how to carry out

your different tasks but I would say that they cannot give you the primary development” (S3, L85-87).

Moreover, S4 also stated that Siemens could provide more training, as S4 actually thinks that the

training can give some tools that can be applied in the daily job or projects, and thus enhance the

development from experiences (L120-141). Subsequently, this illustrates that the training could have

been a useful supplement to the development that takes place through the daily job.

Thirdly, most of the talents have also been assigned a mentor who they describe as important for

their development, as the mentor is another person that can guide and support them in a more

general sense compared to the manager that is often focused on job-related performance and

development, whereas, the mentor is more focused on long-term personal development (S1, L184-

200; 505-526; S3, L138-139; S4, L165-176; S5, L259-293). Nevertheless, two of the talents also stated

that their immediate managers have taken the mentor role, as they have a good

relationship/dialogue with their managers. Thus, these managers seem to be more closely involved

in the talents’ different projects by providing support, guidance, ideas and ensuring that the talents

utilise the tools from the formal training in their projects (S2, L119-141; S3, L100-149). Moreover, S5

also stated that the manager is providing sparring to help facilitate the development and that this is

quite beneficial (L228-253).33 Finally, the findings did not indicate whether coaching is taking place.

4.2.2.3. Retention

In regard to retention the interviewed talents at Siemens mentioned several aspects that are

motivating them, and thus encouraging them to stay at Siemens. Therefore, this analysis will be

33

Thus, it may be argued that it is not important whether the talents have an appointed mentor, but rather if the mentor-role is fulfilled by someone capable of this role.


64

divided into three parts concerning the value-specific, job-specific and company-specific aspects of

retention, which are also derived from the common themes found in the analysis of the interviews.

Firstly, the interviewed talents at Siemens stated that they can relate to one or more of Siemens’

three values personally. The talents relate to the values in the following ways: Responsible by helping

the world utilise green energy or by caring for the local community (S1, L207-216; S3, L228-269; S4,

L215-219; S5, L46-64; 341-351) and having a social impact through the job at Siemens (which also

leads to increased engagement through a sense of meaning) (S1, L304-307; S3, L172-175; S4, L349-

362; S5, L107-113; 462-465); excellence by being the best at what Siemens works with (i.e. wind

power), setting high goals and ensuring that one’s own job is done perfectly (S2, L289-300; S3, L228-

261; S5, 341-346); and innovative through continuous improvement and trying to work smarter (S2,

L289-300; S3, 234-269; S4, L205-212).

Therefore, it is also evident that the interviewed talents experience a perceived oneness

between their individual values and Siemens’ values, through the attractiveness of the individual

values and not the prestige associated with working for Siemens. Subsequently, this should lead to

enhanced identification, commitment (through internalisation) and engagement (as some of the

values reflect some of the talents own personal values which lead to a sense of self). Furthermore,

the talents also stated they feel that Siemens lives up to its values and therefore, this has an positive

impact on the talents (S1, L363-393; S2, L292-2296; S3, L234-252; S4, L222-224; S5, L50-51), as it can

be argued that Siemens has lived up to pre-entry expectations by following its values stated in its

employer branding, and thus increased commitment.

Secondly, the more job-specific aspects that retain the talents at Siemens can be categorised as the

work itself, challenges, development, recognition and meaningfulness.

All of the interviewed talents at Siemens find the work itself motivating, as the specific job

area is interesting, there is a tangible outcome or influence through the job (S1, L281-302; S2, L307-

320; S3, L172-178; S4, L435; S5, L331-335). Thus, the fact that the talents find the work itself

motivating and involving should lead to a commitment and engagement (through a sense of meaning

and choice). Furthermore, all the talents also stated that their individual job has a purpose, as they

feel that they have an impact on Siemens’ business and contribute to the bigger picture (S1, L142-

150; S2, L327-336; S3, L273-275; S4, L327-330; S5, L394-400). Therefore, it is also evident that the

talents feel experienced meaningfulness. Consequently, the talents should feel engaged, as the work

itself can be argued to provide a sense of meaning and purpose due to the fact that the talents feel

their jobs are viewed as important. Additionally, the fact that the talents feel that their jobs are

important or have a purpose is also strongly linked to recognition, as it can be argued that the talents


65

receive recognition by knowing their contributions have an impact on Siemens’ business, as

illustrated with this quote: “whenever they use what I have done, for example I gave some

documentation more than half a year ago about (...) and I know that documentation is still used

today. So that is definitely acknowledgement of your task and also getting the recognition by the

management” (S5, L395-398). Additionally, all of the talents also receive ‘explicit’ recognition on

their work and performance, which is also important for their motivation (S1, L311-320; S2, L340-

348; S3, L322-328; S4, L302-305; S5, 426-430). Subsequently, it can be argued that the talents also

have knowledge of results, which further emphasise engagement through a sense of meaning,

purpose and competence (through recognition). Furthermore, the fact that the talents feel that their

jobs are recognised and valued should convey organisational support, which should lead to increased

identification, commitment and engagement.

Moreover, all the interviewed talents stated that they were also motivated by the challenges

they face in their daily job in terms of working in a dynamic environment that requires fast decisions

and provides sudden challenges (S1, L285-288; S2, L245-251; S3, L289-299; S4, L435; S5, L323-329).

The daily job or the challenges are particularly important for the talents, as they feel that they can

develop personally and professionally through these. Thus, the challenges and the subsequent

development are motivating for the talents (S1, L104-158; S2, L388-395; S3, L77-81; S4, L80-81; 430-

431; S5, L145-166). The fact that the talents find the challenges motivating can be explained as an

intrinsic reward arising from the work itself, which should lead to increased commitment

(competence-related experiences) and engagement (through the meaningfulness derived from the

challenges in the work itself). Furthermore, the fact that the talents feel that they can develop

through the challenges (as discussed in the development analysis) should also lead to engagement

due to the fact that the talents experience personal growth from the work itself, which should lead to

a sense of meaning, competence and progress.

Thirdly, the final aspects that have an influence on the talents’ retention at Siemens can be

categorised as more company-specific themes, such as the culture/environment, the manager,

salary, career opportunities and work-life balance.

In terms of the culture and the work environment at Siemens, all the talents mentioned some

aspects that directly relate to providing the challenges and subsequent development, as reviewed

above: Some of the interviewed talents find the environment dynamic, which also provides a lot of

unforeseen challenges (S1, L138-145; S3, L275-279; S4, L63-64); supportive which naturally helps the

talents grow, develop and feel comfortable (S1, L435-468; S3, L311-314; S4, L280-300; S5, L373-386);

and intercultural, which gives some diversity and opportunities (S2, L238-239; S5, L72-75). Thus, the

talents find these aspects motivating, as they lead to more opportunities for development.


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Moreover, the talents also stated that they appreciate the good collegial relationships (S2, L380-386;

S3, L283-287; S4, L280-300; S5, L420-426). Furthermore, the interviewed talents also experience that

they have good managers that support, listen, guide them and recognise their problems, which is

important for the talents’ development (as discussed) but also their motivation and retention (S1,

L105-126; 309-320; S2, L101-128; S3, L114-147; 370-374; S5, L137-140). Therefore, it is evident, from

the above review of the data, that Siemens provides a supportive environment that conveys

organisational support by providing general support and good collegial/supervisor relationships,

which should increase identification, commitment and engagement. Furthermore, the fact that the

talents feel they have supportive managers that listen, recognise (problems) and guide the them

convey additional organisational support, but also involvement (by letting the talents influence their

own work and decisions) and empowerment (by listening to and guiding the talents in their own

development). Thus, this should also lead to enhanced commitment (from support and involvement)

and engagement (from support and a sense of choice).

However, another important aspect in retention is the work-life balance, which is also

reflected in the supportive environment/manager at Siemens, as the interviewed talents stated that

in general they have a good work-life balance (S1, L395-416; S2, L350-358; S3, L366-381; S4, L345-

346; 436; S5, L487-510). However, some of the talents also stated that it might be better (S1, L401;

S2, L355-356), but at the same time, the talents also stated that there is a great focus on ensuring a

work-life balance both from the managers and the environment at Siemens, as people tries to listen

and help, if someone is experiencing a poor work-life balance (S1, L401-403; S2, L356-357; S3, L370-

375; S5, L490-492). Therefore, it is also apparent that Siemens seems to pay attention to creating a

good work-life balance and tries to help if someone experiences an imbalance, which convey a sense

of balance, and thus enhanced engagement. Moreover, it can also be argued that the focus on

creating a work-life balance conveys organisational support, which should also lead to enhanced

identification and commitment.

In regard to career opportunities, all of the interviewed talents stated that it was motivating

for them that Siemens has a variety of (international) career opportunities due to the fact that it is

large company within several industries, which also provides the opportunity to work within new

areas (S1, L339-342; 431-433; S2, L208-217; S3, L176-190; S4, L435-436; S5, L432-437). Therefore,

Siemens is also providing the talents with the opportunity to advance and be challenged through

several international opportunities, which can be argued to increase commitment and engagement

(through a sense of meaning and progress). Moreover, the fact that the talents can be challenged

and develop through these international career opportunities should also lead to enhanced

engagement through a sense of meaning.


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Finally, most of the interviewed talents also stated that the salary is motivating, however, the

daily tasks/challenges that they get are more important than a good salary (S1, L325-332; S2, L397-

406; S3, 386-406). Nonetheless, two of the talents also stated that the salary can function as

acknowledgement or recognition of the talent’s job and performance (S4, L368-376; S5, L512-521),

and thus, the salary should be balanced according to the performance (ibid.). Subsequently, it is

apparent that the talents assess whether they feel that the social exchange relationship between

their effort and the benefits/rewards can be considered fair. Thus, the talents consider the daily tasks

and the recognition that can come from being paid a fair salary as important aspects in the social

exchange relationship (ibid.; S1, L325-332; S2, L397-406; S3, 386-406). Therefore, a fair social

exchange relationship based on aspects, such as the salary, support, recognition and career

opportunities should also lead to increased commitment. However, it is also apparent that the

individual talents value some rewards (i.e. salary) higher or lower compared to other rewards (i.e.

recognition), which naturally makes the perceived quality of the social exchange relationship

subjective and difficult to assess.

4.2.3. Conclusion – Comparative Analysis

4.2.3.1. Attraction

In regard to attraction it is apparent that all the interviewed talents at Grundfos and Siemens were

attracted by the job itself or the career and development opportunities that the companies provide

through the fact the two companies are large international companies, which give the talents more

opportunities. Thus, the psychological benefits inherent in development from career opportunities

seem to be important to attract the interviewed talents. However, it was also argued that the fact

the talents were attracted by the mere size and global representation of both companies also

illustrate the functional benefits, as the size and global representation of both companies can be

argued to be some of the foundation for the possible career opportunities (which was also reflected

in the graduate programme). Moreover, additional functional benefits that attracted some of the

interviewed talents also include the culture and work environment at Grundfos and Siemens, as

several talents emphasised the positive and dynamic culture at the companies. Furthermore, only

two of the ten talents explicitly stated that they were attracted by the image or values (i.e. the CSR

profile) of Siemens, as they found the fact that Siemens works with green energy as something they

could relate to. Consequently, it can be concluded that the psychological and functional benefits

conveyed in the employer brands seem more important than the symbolic, in this case. However, all

the talents that were not initially attracted by the values and image of Grundfos or Siemens stated

that they were proud of working at the companies today due to their values. Finally, none of the


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talents stated that they were attracted by the economic benefits despite of the fact that several of

the talents emphasised the importance of a fair salary in regard to motivation and retention.

In terms of the psychological contract and the fulfilment of this, the talents stated that

Grundfos and Siemens have to a large extent fulfilled the promises and expectations that the talents

had to the companies when entering these. This is illustrated from the fact that the companies have

lived up to the promises and expectations in regard to career opportunities, the culture and values.

Therefore, both companies seem to utilise realistic and honest information in their employer brands

to portray the companies’ actual identity. However, some of the talents also stated that they felt

some of their initial expectations were not met, as some of them felt that their development was

evolving too slow, that there are too many talents to fill leadership positions and that there is a lack

of training. Therefore, it is also apparent that both companies both fulfil and breach the talents’

psychological contracts, which also impact the talents’ subsequent motivation.


All the interviewed talents at Grundfos and Siemens stated that they want to develop in their jobs

and that it is their own responsibility to ensure self-development, which correspond to the theory

about self-management. Furthermore, the talents also experience that their own development is

taking place in their daily job through the experiences/challenges they face in this job through

enhanced responsibility or new input.

Moreover, the talents that have participated in formal training or seminars at either Grundfos

or Siemens also stated that this has been beneficial for their development, in the sense that this

training could provide some tools for enhancing their development from the daily job. Thus, it is

apparent that the talents’ statements correspond to the 70-20-10 model and the argument that

formal training can still be useful to enhance development.

Furthermore, all the interviewed talents at Grundfos and Siemens stated that they experience

a supportive environment, in which there is flexibility, willingness to listen, helpfulness and

stimulation of the talents to develop through challenging assignments. Moreover, all the talents also

stated that they have a supportive manager that can encourage, support, empower and guide them

in their own development. Therefore, it is evident that Grundfos and Siemens provide some of the

elements (i.e. supportive environment and manager) to facilitate self-management behaviour.

However, the findings and analysis in regard to feedback were a bit mixed, as it was only five of the

ten interviewed talents (four at Siemens and one at Grundfos) that were explicit about the specific

feedback. Nonetheless, the talents that were specific about the feedback stated that it was


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constructive, task-specific and evaluative of their current and future performance and development,

which have helped them develop.

In regard to the job appraisal interviews several of the talents at Grundfos and Siemens

explained that the job appraisal interviews were used for evaluating performance, giving the above-

mentioned feedback, discussing future tasks and development goals, which are aspects that the

talents feel are important for their development. In terms of mentoring most of the interviewed

talents stated that they have someone who fulfils the mentor role and can support them, challenge

them, provide them with new perspectives and give them access to more opportunities, which are

considered important aspects for the talents’ development. Finally, none of the talents mentioned

coaching as a part of their development.

4.2.3.3. Retention

Based on the interviews with the talents from Grundfos and Siemens it is evident that the talents are

retained by several aspects. Consequently, this part of the comparative analysis will be divided into

the four fundamental aspects of retention, namely identification, commitment, engagement and

motivation to provide a better overview of the different aspects.

First of all, it is apparent that the interviewed talents at Grundfos and Siemens identify with one or

more of the organisational values, such as the values of being relentlessly ambitious or sustainable at

Grundfos or focusing on excellence or being responsible at Siemens. Therefore, it is also evident that

it is the attractiveness of the individual values (and not the perceived image) that makes the

interviewed talents feel a perceived oneness with either Grundfos or Siemens, which lead to the

incorporation of the values into the talents’ self-concept.

Moreover, another antecedent for identification that was also found, in the findings and the

subsequent analysis, is the level of perceived organisational support. This is facilitated through

several aspects at both Grundfos and Siemens, such as good collegial/supervisor relationships,

recognition, work-life balance and a supportive environment, in which the talents are allowed

flexibility and responsibility.

Secondly, the interviews also showed that the all the talents should be committed to Grundfos and

Siemens due to the level of perceived organisational support, good supervisor relationship and the

internalisation of the company values, as examined above. Moreover, the confirmation of most of

the pre-entry expectations in regard to company culture, values, promises and so forth conveyed in

the employer brands also lead to the talents feeling comfortable in the organisation, and thus


70

enhanced commitment. Furthermore, the fact that Grundfos and Siemens seem to facilitate

competence-related experiences, such as involvement, responsibility, advancement and challenges

through the job further enhance the commitment. Finally, it is also evident that the interviewed

talents at Grundfos and Siemens evaluate the social exchange relationship by comparing the salary

(or other benefits/rewards) with their perceived effort. Thus, the talents at both companies are very

aware of the balance and expect to be rewarded according to their effort by rewards, such as career

opportunities, responsibility, recognition or salary. Even though a higher salary does not seem as

important as the other aspects, the talents stated that it should still reflect their effort/performance.

Therefore, the findings also suggest that it is difficult to assess the social exchange relationship, as it

is influenced by several factors. This is also illustrated from the fact that some of the talents

sometimes feel that they could be rewarded more compared to their effort.

Thirdly, it is evident that the interviewed talents at Grundfos and Siemens should be engaged by a

number of factors. Based on the findings and analysis, it can be concluded that the talents

experience a sense of self due to the fact that the talents stated that one or more of Grundfos’ or

Siemens’ values reflect their own personal values, thus, the talents’ personal values are aligned with

those of the organisation. Moreover, all the talents also stated that they perceive the work itself as

meaningful due to the daily challenges, responsibility and involvement which should lead to a sense

of meaning, purpose and choice. Additionally, the fact that the talents feel that they develop through

the job by being challenged, empowered or advancing to new positions further increase the sense of

meaning, purpose and progress. Furthermore, the talents also stated that they view their job as

important because it is of strategic importance to either Grundfos or Siemens or because it is valued

or recognised, which should lead to a sense of meaning, purpose and competence. Additionally, some

of the talents also experience a sense of meaning and purpose, as they value the fact that they can

have a social impact through their job. Finally, all of the talents also feel that there is a good work-life

balance at Grundfos and Siemens, which should create a sense of balance and also convey

organisational support.

Fourthly, from the above conclusions, it is evident that the three motivational theories reviewed

previously (Herzberg, Adam and Hackman & Oldham) are fundamental to many of the factors that

retain the interviewed talents.

Aspects of Herzberg’s two-factor theory are apparent from the extensive focus on intrinsic

motivators in both commitment and engagement, such as responsibility, recognition and personal

growth (only in engagement). The extrinsic rewards are also evident in the identification,


71

commitment and engagement antecedents, which are exemplified in the extensive focus on

organisational support and collegial/supervisor relationships.

In regard to Adam’s equity theory, this is also evident and especially from the fact that the

talents assess the social exchange relationship based on their own effort/performance and the

subsequent benefits/rewards they feel they get from this.

Finally, Hackman and Oldham’s theory about job design is apparent in the commitment and

engagement findings, as it can be argued that the job challenges, involvement, recognition,

responsibility, development and the fact that the job is viewed as important reflect experienced

meaningfulness, experienced responsibility or knowledge of results.

4.2.3.4. Integration

Finally, it is also evident that the concepts of attraction, development and retention are interrelated,

as the talents at both companies emphasised the career and development opportunities as an

important attractive and retaining feature. Therefore, the talents also highlighted their own

development as important for their motivation and subsequent retention, which is also exemplified

in these quotes: “I see myself employed in Siemens [in the future], if I keep on track with my

development and the opportunities as it is now” (S5, L442-443) and “if I do not feel that the company

cannot provide career opportunities (...) then I think [I] would look elsewhere [for a job]” (G1, L628-

631). Consequently, all the talents also feel that it is important that the companies provide the

necessary conditions for them to develop, such as a supportive environment, a good manager,

guidance, empowerment and challenges. Moreover, from the findings, it is also evident that the

talents find many of the same aspects that help develop them (e.g. supportive environment and

challenges) motivating. Thus, it is also apparent that aspects, such as challenges and a supportive

environment have a dual purpose in developing and retaining the talents.

Moreover, another interesting finding concerning integrating is the fact that the three cases of

psychological contract breach that were found in the research also revolved around the talents’

perception that the companies could not accommodate their career and development expectations

formed by the employer brand, which impacted the talents’ motivation and subsequent retention.

Furthermore, the integration of attraction, development and retention is also illustrated from the

fact that the talents stated that Grundfos and Siemens have fulfilled the expectations in regard to

career opportunities34 and values, which have motivated the talents. Therefore, it is apparent that

34

Except the three talents just mentioned.


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the fulfilment of the psychological contract (or confirmation of pre-entry expectations) also motivates

the talents, as their development expectations are cared for and the values are followed. Even

though the companies’ values were not important for attracting most of the talents, the talents are

still highly motivated by the fact that Grundfos and Siemens live by their values. Thus, the values

conveyed through the employer brand also retain the talents through identification, commitment

(internalisation) and engagement (sense of self).


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5. Discussion and Implications In this chapter the empirical findings are discussed according to the theoretical framework. Thus, the

purpose is to discuss and combine the research findings with the theoretical framework in order to

derive implications for how the communicative aspects of the talent management strategies of

attraction, development and retention can be integrated.

From the research findings, it is apparent that there seems to be an alignment between how

Grundfos and Siemens utilise and integrate the talent management strategies of attraction,

development and retention and how the talents perceive and experience this. This argument is

supported by several of the findings discussed below.

The findings concerning attraction pointed to the fact that both Grundfos and Siemens emphasise

the career and development opportunities in their employer brands and at the same time the

findings also showed that this was the primary attractor for the talents. Moreover, the interviews

with Grundfos and Siemens also revealed that both companies focus on communicating the

functional benefits of employment, such as working conditions and culture (however, Grundfos was

more explicit about this during the interview). Subsequently, the interviews with the talents at both

companies also revealed that some of the talents were attracted by the culture or work environment

at the companies. Therefore, it can also argued that the findings indicate that Grundfos and Siemens

co-create and negotiate their employer brands with the talents,35 as the employer brands reflect the

functional (i.e. the culture) and psychological benefits (i.e. the development opportunities) that also

attracted the talents. Moreover, a few were also attracted by the fact that the companies have a

graduate programme (which also reflected the combination between psychological and functional

benefits). Furthermore, most of the talents also felt that Grundfos and Siemens have lived up the

expectations conveyed by their employer brands, such as career opportunities, the culture and

values.

In regard to development, Grundfos and Siemens emphasised that they use the 70-20-10 model as a

‘golden rule’ for development. Thus, both companies also stated that they offer important aspects

for development to take place through the talents’ job experiences, such as a supportive manager,

mentoring and formal training. The key points from the 70-20-10 model were also reflected in the

interviews with the talents, as they stated that they have a wish for self-development and that it is

their own responsibility to learn from the daily challenges, which were considered as the most

35

However, it is difficult to assess how and to what extent this is done.


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effective method for development by all the talents. Subsequently, the talents also stated that

Grundfos and Siemens provide a supportive environment and a supportive manager that can

encourage, support and empower them to develop through the daily challenges. However, the

findings were a bit mixed in regard to the feedback that the talents receive, as not all of the talents

were that specific about this. Nonetheless, the five talents that were specific about the feedback

stated that it was constructive, task-specific and evaluative, which helped in their development.

Moreover, Grundfos and Siemens also emphasised the importance of the development dialogues

(similar to job appraisal interviews), which some of the talents also emphasised as an important

aspect for their development in order to get feedback, evaluate performance, current and future

tasks and development opportunities. Finally, most of the talents also stated that they have at least

one person that functions as their mentor, which the talents also consider as important for their

development, as they can receive support and guidance.

The findings regarding retention exemplified that both companies emphasised the importance of

creating a supportive environment, good collegial/supervisor relationships and identification with the

organisational values. Moreover, both companies also stated that the development opportunities

were very important in regard to retention. These aspects were also reflected in the interviews with

the talents, as their statements illustrated value identification, perceived organisational support,

confirmation of pre-entry expectations, involvement, advancement, challenges, meaningfulness,

sense of self, meaning, purpose, choice, progress, competence and balance. Thus, the listed aspects

should lead to enhanced identification, commitment and engagement. Furthermore, these aspects

also reflected the social exchange relationship, intrinsic/extrinsic rewards, experienced

meaningfulness, experienced responsibility and knowledge of results.

However, there were also some aspects that did not match with Grundfos’ or Siemens’ intentions

and the talents’ experience or perception of these.

Firstly, this is most clearly illustrated from the fact that the symbolic benefits conveyed in the

employer brands do not seem that important in regard to attracting talents compared to the

psychological and partly the functional benefits. Secondly, some of the talents also perceived a

breach in what they interpreted as promises and obligations from Grundfos or Siemens. This was

apparent in a lack of formal training, development that evolved too slow or a perception of that

there were too many talents to fill leadership positions. Consequently, the talents’ psychological

contract was breached and had an impact on their subsequent motivation, and thus the retention as

well. Thirdly, some of the talents have not received formal training despite of the fact that some of

the talents could see the impact that formal training can have on enhancing the development from


75

experiences. Fourthly, even though Grundfos and Siemens stated that they provide competitive

employment packages and some of the talents explicitly stated that they perceive that their effort

matches the rewards/benefits (G2, L455-467; G5, L416-426; S3, L390-391) in the social exchange

relationship, it is still evident that the talents assess this relationship continuously and will become

dissatisfied if it is not considered as fair. However, the research in this thesis is not able to establish if

there is an imbalance in these relationships. Nonetheless, the findings suggested that the talents

evaluate the value of rewards, such as salary, recognition and career opportunities differently, which

naturally makes it difficult to balance the social exchange relationship.

5.1. Implications

The above review of the empirical findings leads to some interesting implications which will be

discussed below:

Firstly, the integration between attraction, development and retention is evident from the fact that

Grundfos and Siemens emphasise the career and development opportunities as important aspects in

attracting and retaining talents, and the talents also perceive development as important for their

own attraction and retention at either Grundfos or Siemens. Therefore, the findings suggest that it is

important to convey the psychological and functional benefits of career and development

opportunities at the company to attract and retain talents, which is also supported by Backhaus and

Tikoo (2004). Thus, the psychological benefits comprise the actual possibility for professional and

personal development at the company and the functional benefits comprise the actual initiatives

that the company has to ensure development, such as a supportive environment, challenges,

involvement, responsibility and so forth.

Therefore, the findings also suggest that companies must ensure that the talents develop, as

this was considered important for retention. Consequently, the findings suggest that companies

should emphasise development from experiences and self-management by providing aspects, such

as a supportive environment, in which the managers provide feedback and empowerment, as argued

by McCall (2010b) and London et al. (1999). Furthermore, the research findings also suggest other

aspects that are important for the talents’ development, such as mentoring to receive support,

guidance and new input (Beadwell & Claydon, 2010, p. 267); formal training to enhance development

from experiences (Jackson & Lindsay, 2010); and job appraisals interviews to give feedback, evaluate

performance and discuss development opportunities (Aggerholm et al., 2009).

Moreover, the findings also suggested that some aspects have a dual purpose, as they are

important for the talents to develop but also for the talents’ motivation, which was especially clear


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from aspects, such as a supportive environment and job challenges. This is also supported by London

et al. (1999) who argue that a supportive environment is important for development and Zagenczyk

et al. (2011), Meyer and Allen (1991) and Saks (2006) that argue it is important for identification,

commitment and engagement, respectively.

Secondly, the findings also suggest another important area for integration, which is the fulfilment of

the psychological contract (or the pre-entry expectations) in regard to the culture, values and

development opportunities. Naturally, the fulfilment of the psychological contract is important, as

the findings suggest that it impacts the employment relationship and the subsequent level of

retention, as argued by Backhaus and Tikoo (2004) and Edwards (2010).

Moreover, even though the organisational values (i.e. the symbolic benefits) were not

important for attracting the talents they seem to be important for retaining the talents, as the

talents can identify with the values, which also enhance commitment and engagement. The reason

the values can still impact the employment relationship even though they did not attract most of the

talents, is to be found in the fact that the values must match the actual culture (Backhaus & Tikoo,

2004) or the actual identity, as misalignments can lead to a breach of the psychological contract

(ibid.). Moreover, when Grundfos and Siemens are following their values, the talents are likely to find

the values more meaningful for their self-concept, as suggested by Edwards (2010). Thus, this should

also lead to internalisation and a sense of self. Subsequently, the communication of the company

values in the employer brand may not be the primary attractor but the values are still paramount for

retention, which is also exemplified in this quote: “research shows for example that CSR initiatives

increase employee-company identification and that employee-company identification, in turn,

influences employees’ commitment to their company” (Aggerholm et al., 2011, p. 208). This is also

supported by Meyer and Herscovitch (2001) and Chalofsky and Krishna (2009).

Thirdly, the fact that the organisational values were not considered important for most of the talents’

attraction36 to either Grundfos or Siemens further emphasise the importance of co-creating and

negotiating the employer brand with current and potential employees, as this illustrates that what is

considered attractive changes according to the societal context, as argued by Aggerholm et al. (2011)

and Cullinane and Dundon (2006). Thus, another implication is that companies must be in a dialogue

with potential employees to discover their underlying needs and expectations, as this is important

for the attraction (Aggerholm et al., 2011).

36

Contrary to recent research (cited in Aggerholm et al., 201; Edwards, 2010).


77

Moreover, it is also deemed relevant to expand the use of this dialogical approach to ensure

retention, as argued by Aggerholm et al., (2011) who stated that this approach should also be used to

develop sustainable employment relationships. Thus, this approach should not only be used to

ensure attraction but also retention (ibid.). Subsequently, the findings in this thesis suggest that

dialogue should be used for two important aspects in regard to retention: (1) to continuously co-

create and negotiate the organisational values so they reflect the contemporary societal context and

the talents’ subsequent values derived from their needs and expectations (Aggerholm et al., 2011).

This can also be argued to ensure continuous identification, commitment (through internalisation)

and engagement (through a sense of self and meaning), as the co-creation and negotiation process

should lead to a reflection of the talents’ values. (2) this dialogical approach can also be used to

determine the individual talent’s expectations in regard to their underlying motivational drivers,

which is also supported by Brooks (2009, p. 101). Therefore, the dialogue can be used for the social

exchange relationship to ensure that the organisation provides rewards/benefits that reflect the

individual talent’s preferred wish for either salary, recognition, responsibility, career/development

opportunities and so forth. Thus, the company has a chance to ensure quality/fairness in the social

exchange relationship, which lead to enhanced organisational support (Knippenberg & Sleebos,

2006), and thus also identification and engagement (Zagenczyk et al., 2011; Saks, 2006). Therefore, if

this dialogical approach is adopted it can be used to further integrate the concepts of attraction,

development and retention to develop and sustain positive employment relationships that lead to a

sustainable competitive advantage.


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6. Conclusion As initially argued, the importance of talent management is emphasised by several societal,

theoretical and practical movements, such as demographic changes and SHRM, which also drive the

need for a strategic approach to talent management.

Therefore, this thesis developed a theoretical framework for the utilisation and integration of the

communicative aspects in the attraction, development and retention strategies by reviewing and

discussing contemporary literature within the research fields.

Firstly, this theoretical framework suggested that organisations should communicate different

types of benefits; co-create and negotiate their employer brands with current and potential talents;

focus on intangible aspects, such as symbolic (i.e. values or CSR profile) and psychological benefits

(i.e. development); and be aware of the impact the employer brand can have on the psychological

contract and the subsequent employment relationship by portraying the actual identity of the

company. Secondly, the framework suggested that organisations should ensure that their talents can

develop through the daily job by providing a supportive environment, mentoring, coaching and a

supportive manager that provides feedback and empowerment. Thirdly, the framework suggested

that organisations could retain talents by ensuring identification, commitment and engagement

through different aspects, such as organisational support, recognition, job challenges and

development opportunities.

Finally, the theoretical framework suggested that integration was apparent from the fact that

the employer brand conveys motivational factors, such as development opportunities or a certain

social identity that can be used for attraction and retention. Moreover, integration is also evident

from the fact that the employer brand impacts the formation of the psychological contract, which in

turn influences the employment relationship and the subsequent level of retention.

Based on the theoretical framework and the subsequent empirical investigation, it was found that

Grundfos and Siemens offer economical, functional, psychological and symbolic benefits through

their employer brands. However, the findings suggested that the interviewed talents were primarily

attracted by the functional and psychological benefits that related to career and development

opportunities. This also indicated some form of co-creation process of the employer brands. In

regard to the psychological contract most of the interviewed talents stated that Grundfos and

Siemens had met their pre-entry expectations in terms of culture, values or career and development

opportunities, which also motivated the talents. Moreover, Grundfos and Siemens emphasise that

most of the development should take place through job experiences, and thus both companies focus


79

on facilitating this through mentoring, formal training, a supportive environment and manager. The

interviewed talents at both companies stated that they perceive the development from experiences

as the most beneficial and that they also experience a supportive environment where the managers

can encourage and empower them to develop from experiences. Further, some of the talents also

emphasised the importance of mentoring, formal training, feedback and job appraisal interviews in

their own development. Additionally, the findings suggested that Grundfos and Siemens utilise

identification, commitment and engagement strategies to retain the talents by emphasising the

importance of aspects, such as the work environment, identification with organisational values and

personal growth. This is further supported by the interviewed talents, as the findings suggested that

they identify with some of the organisational values; experience organisational support; are

committed by an enjoyable job that provides aspects, such as responsibility, involvement and

challenges; and are engaged by experiencing a meaningful job, in which the talents can have a social

impact, work-life balance, responsibility, development and recognition.

Therefore, the findings also suggested that Grundfos and Siemens ensure integration of

attraction, development and retention by conveying career and development opportunities in their

employer brands and ensuring that the talents in fact develop when they work at the company,

which also impacts their subsequent retention. Moreover, the findings also indicated that integration

is ensured by fulfilling pre-entry expectations formed by the employer brand, as this impacts the

talents’ retention, which was especially evident from the fulfilment of the organisational values.

Thus, this thesis contributes to the existing literature on talent management by suggesting three

implications for ensuring integration between attraction, development and retention. Firstly,

integration should be achieved by communicating development opportunities in the employer brand

and ensuring that the talents develop (through experiences), as this is important for the retention.

Additionally, the findings also found that aspects, such as challenges and organisational support have

a dual purpose in developing and retaining talents. Secondly, integration should be obtained by

fulfilling the expectations (e.g. development opportunities), and by living up the organisational values

conveyed through the employer brand, as this also has an impact on retention. Finally, a dialogical

approach between the organisation, current and potential employees/talents should ensure

integration by co-creating the employer brand, organisational values and ensuring a fair social

exchange relationship, which in total should enhance retention.


80

7. Critical Perspective In this chapter, the underlying methodological and theoretical choices will be reviewed to evaluate

and criticise these, which will lead to suggestions for future research.

As stated, this thesis is founded on the scientific approach of social constructivism. The main critique

of social constructivism is based on the subjectivity inherent in this approach, as the research,

findings, analysis and subsequent conclusions are socially constructed, which thereby creates an

inability to replicate the data under the same circumstances, which to some, impacts the reliability

and validity of the data and subsequent quality of the research (Daymon & Holloway, 2002, p. 7).

However, the research quality in this thesis was ensured in two ways: (1) the general interview

technique that utilised second questions to ensure accurate interpretation of statements and an

initial briefing of the interviewees. (2) the focus on authenticity and trustworthiness rather than

validity and reliability to address the inherent subjectivity by setting up criteria for ‘evaluating’ the

research.37

Moreover, the choices made in the research design also lead to some areas that could have

strengthened the research, such as the inclusion of observations and more interviews. Observations

could have been a useful supplement to the interviews, as illustrated from the difficulty of assessing

whether the feedback given to the talents was fair and task-specific. Furthermore, despite of the fact

that a criterion for redundancy was made,38 and subsequently met, as it can be argued that many of

the interviews provided similar information, it is apparent that additional interviews may have

provided new data or strengthened the research findings despite of redundancy.

Furthermore, the scope and subsequent theoretical framework in this thesis also lead to some areas

for further research. This is evident from the fact that this thesis has only reviewed a general

framework for how the communicative aspects of attraction, development and attraction can be

used and integrated. Therefore, an area for further research could be to investigate the more firm-

specific aspects, such as the business and human capital context (Heinen & O’Neil, 2004) to derive a

more specific approach for how to ensure vertical integration. Another focus could also include an

examination of how cultural differences can impact the communicative aspects in the talent

management strategies. Naturally, the general focus in this thesis also makes it difficult to examine

the individual concepts of attraction, development and retention in depth. An in-depth analysis could

have given more thorough insights into for example the retention strategies and how talents can be

37

See section 3.1.2. 38

See section 3.1.1.3.


81

motivated by different factors, as the extent to which someone is motivated by different aspects is

inherently subjective (Meyer & Allen, 1991; Brooks, 2009, pp. 87-98).

Moreover, it can be considered rather difficult to co-create and negotiate the employer brand

and values with 370,000 employees at Siemens or 18,000 at Grundfos for that matter. Therefore,

another area for future research could be to examine how the co-creation and negotiation of these

aspects can be facilitated for companies. Furthermore, the focus on co-creation and negotiation also

implies a focus on sense-making (Aggerholm et al., 2011), which could also have been incorporated

into this thesis more explicitly to examine how the talents make sense of their own development or

the organisational values compared to their sense of self.


82

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