THE INFLUENCE OF TALENT MANAGEMENT PRACTICES ON EMPLOYEE RETENTION AND PERFORMANCE: AN EMPIRICAL STUDY OF JORDANIAN SERVICE ORGANIZATIONS

Abstract

This study aimed to examine the influence of talent management practices (recruitment and selection, training and development, rewards and compensation) on employee retention and employee performance in Jordanian service organizations. A questionnaire was adopted and distributed among the employees in the service organizations in Jordan; the study’s respondents were 267 employees from service organizations (telecommunication firms, banks, and tourism firms). SmartPLS 3 was used to analyze the data and to examine the measurement and structural models. The findings of the study indicated that rewards and compensation significantly and positively affected employee performance (t = 2.558) and employee retention (t = 5.336). Similarly, recruitment and selection significantly and positively influenced employee performance (t = 2.208) and employee retention (t = 5.822). Training and development also significantly and positively affected employee performance (t = 2.288) and employee retention (t = 2.699). The results suggest that implementing talent management practices (recruitment and selection, training and development, and rewards and compensation) can improve employee retention and performance in Jordanian service organizations.