Digitalization of talent planning in IT sector: Mediating role of HR policies and practices

Abstract

In the highly dynamic digital era of the information technology industry, agile talent planning and human resources (HR) management strategies are essential for maintaining a competitive edge. This study aims to determine the impact of HR policies and practices as a mediator between the effectiveness of talent planning and digitalization tools and techniques within the IT sector. The research population comprised IT companies in Delhi (and its national capital region), India. Using the convenience sampling technique, a sample of 106 respondents was selected out of 168 contacted, including human resource professionals and managers. The study employed regression analysis and structural equation modeling. The results reject that digitalization tools and techniques do not significantly increase the effectiveness of talent planning in IT organizations (beta coefficient = 0.455 at p-value <0.001). Additionally, the paper shows that digitalization tools and technologies significantly affect HR policies and practices (beta coefficient = 0.826 at p-value <0.001). The findings reject the suggestion that there is no significant positive relationship between HR practices and policies and the effectiveness of talent planning in the IT sector (beta coefficient = 0.425 at p-value <0.001). Furthermore, the study rejects the perception that HR policies and practices do not mediate the relationship between digitalization tools and techniques and the effectiveness of talent planning (beta coefficient = 0.351 at p-value <0.001). These insights will contribute to developing effective HR strategies that align with technological advancements and foster organizational growth.