Attracting millennial talent: a signal theory perspective

Pages8-23
DOIhttps://doi.org/10.1108/EBHRM-01-2018-0009
Published date01 April 2019
Date01 April 2019
AuthorAnishya Obhrai Madan,Srishti Madan
Subject MatterHR & organizational behaviour,Global HRM
Attracting millennial talent: a
signal theory perspective
Anishya Obhrai Madan
Training and Placement Unit,
Indian Institute of Technology Delhi, New Delhi, India and
HRM/OB Area, Management Development Institute, Gurugram, India, and
Srishti Madan
Department of Electrical Engineering,
Delhi Technological University, Delhi, India
Abstract
Purpose On the basis of an exploratory research, the purpose of this paper is to identifythe criteria used by
new entrants to the workforce (specifically premium millennial talent) while making job choices.
Design/methodology/approach Using signal theory, the study attempts to explore what drives
prospective millennial candidates to apply to a particular job role by identifying the components that form the
initial anticipatory psychological contract (iAPC) of millennial talent from a tier-1 technological school in India
and the factors that drive their job application intent. It is an exploratory study which uses survey data from
335 respondents.
Findings The study identifies the critical components of the iAPC of this set of talent. It highlights the
transactional approach of this cohort to evaluate prospective job roles.
Research limitations/implications This research is based on an exploratory study which was carried
out in a single school in India and may be used as a concept for designing and implementing more generalized
studies using standardized tools of measurement in the future. The study highlights the fact that this cohort
attends to the transactional components of the signals sent out by recruiters to a larger extent than to other
kinds of signals which may be communicated by employers. HR communication strategies for connecting
with this set may emphasize the unique employment proposition to potential recruits using the findings from
this study to better engage with this cohort.
Practical implications The current research gives indications on the components of the iAPC for this
cohort and would help HR form appropriate strategies to attract this set of talent.
Originality/value This research takes a fresh line of reasoning to explain what parameters would drive
fresher millennial talent to apply for a job at an organization. It views the group through a generational theory
paradigm and signaling theory forms the backdrop for this study. Further, since the study is based on an
Indian sample, it contributes to literature from a non-western context.
Keywords Gen Y, Signal theory, Job choice, Initial anticipatory psychological contract (iAPC),
Job preferences, Millennial talent
Paper type Research paper
1. Introduction
With over 1.21bn people and more than a sixth of the worlds population, India is the second
most populous country in the world after China. With 17.5 percent of the worlds population,
India is projected to be the worlds most populous country by 2025 surpassing China, its
population reaching 1.6bn by 2050 at present projected growth rates. India has more than
50 percent of its population below the age of 25 and more than 65 percent below the age of
35 (Registrar General, India, 2011; PTI, 2017; United Nations, 2017). It is expected that in
2020 the average age of an Indian will be 29 years, compared to 37 for China and 48 for
Japan (Basu, 2007). India is thus a country with a predominantly young population
compared to many developed nations which have aging populations.
Thus, managing this young workforce to unleash their productive potential gains
importance. To this end, it becomes imperative to understand their motivations, ambitions
and driving forces in the workplace and to design policies and processes to attract this talent
pool and keep them engaged in the workplace.
Evidence-based HRM: a Global
Forum for Empirical Scholarship
Vol. 7 No. 1, 2019
pp. 8-23
© Emerald PublishingLimited
2049-3983
DOI 10.1108/EBHRM-01-2018-0009
Received 30 January 2018
Revised 30 June 2018
24 October 2018
29 October 2018
Accepted 30 October 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2049-3983.htm
8
EBHRM
7,1
A gap exists in literature on how HR engages with this generation from the
pre-recruitment phase to keeping them engaged during their life cycle within the company.
This led the researchers to explore this phenomenon in an Indian context. The sample frame
consisted of high-potential graduates (from a premier technological school in India).
The following general research question was explored in this study:
RQ1. What are the criteria used by this cohort while applying for jobs? What criteria
affect their job application intent?
Specific research questions included:
RQ2. What factors makeup the initial psychological contractof high-potential graduates?
RQ3. What factors are prioritized over others and influence the initial anticipatory
psychological contract (iAPC) of this set while applying for jobs?
This study views the group through a generational theory paradigm and signaling theory
forms the backdrop for this study. It corroborates many previous studies while also pointing
to some surprising trends.
2. Theoretical framework
2.1 Generational theory and millennials
The generational hypothesis states that a generations (including millennials) expectations
from work and life are determined by the characteristics of their generational cohort.
A generational cohort can be defined as an identifiable group that shares birth years, age,
location and significant life events at critical developmental stages(Kupperschmidt, 2000,
p. 66). Each generation is purported to develop characteristics that differentiate it from those
that precede and follow it; characteristics that are reflected in personality traits, work
values, attitudes and motivations to work in ways presumed to be important to managers
(Macky et al., 2008). Young adulthood is a particularly impressionable developmental stage
(Mannheim, 1952; Ryder, 1965). From adulthood onward, these personalities, values and
expectations remain stable (Smola and Sutton, 2002).
The millennial generation/Generation Y (born between 1980 and 2000, the newest to
enter the workforce) has been entering the workforce in large numbers, which has given
them the power to reshape the rules of play at work (Smola and Sutton, 2002; Thompson and
Gregory, 2012; Twenge and Campbell, 2008). As a result, practitioners have become
increasingly interested in this new generation. They are interested in how organizations can
successfully manage their (future) employment relationship with millennials by focusing on
their work values, motivational drivers and career expectations (Cennamo and Gardner,
2008; Dries et al., 2008; Smola and Sutton, 2002; Thompson and Gregory, 2012; Wong et al.,
2008). This led the researchers to investigate the driving factors affecting the job application
intent of millennial talent at the stage of pre-entry to the workforce.
2.2 Signal-based context and job application intent
Signaling theory is fundamentally concerned with reducing information asymmetry
between two parties (Spence, 2002). For example, Spences (1973) seminal work on labor
markets demonstrated how a job applicant might engage in behaviors to reduce information
asymmetry that hampers the selection ability of prospective employers. Spence illustrated
how high-quality prospective employees distinguish themselves from low-quality prospects
via the costly signal of rigorous higher education. Potential employers lack information
about the quality of job candidates. The candidates, therefore, obtain education to signal
their quality and reduce information asymmetries, i.e., he deemphasizes the role of education
for increasing worker productivity and focuses instead on education as a means to
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Attracting
millennial
talent

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