THE INFLUENCE OF TALENT MANAGEMENT PRACTICES ON EMPLOYEE RETENTION: AN EMPIRICAL STUDY OF PUBLIC SECTOR ORGANIZATIONS

Abstract

Employee Retention is major issue for public sector organizations as retaining competent and experienced employees is considered essential for organization’s better performance and future success. This study examines effect of talent management practices on employee retention in public sector organizations in Khairpur, Pakistan. The study specifically examines effects of compensation and recruitment and selection. Quantitative method was used for this study and questionnaire was developed to collect data from 94 employees working in various public sector organizations in Khairpur. The data obtained was analyzed by using demographic analysis, reliability analysis, correlations analysis and regression analysis to understand relationship between research factors and results of study showed that talent management practices have positive effect on employee retention. In particular, compensation and recruitment and selection have significant impact on employees’ decision to stay in organization. This shows that if employees are paid fairly and recruitment & selection process is done well chances of employees leaving organization are reduced and they prefer to work with organization for longer period. The study concludes that employee retention in public sector organizations can be strengthened by improving talent management practices. This study provides useful information for policymakers and human resource managers to create better talent management strategies, reduce employee turnover rates and improve overall performance of organization.