The Effect of Talent Management on Employee Retention Mediated by Organizational Justice and Talent Perception Congruence

Abstract

This study aims to determine the direct effect of talent management on employee retention and the indirect effect mediated by organizational justice and the talent perception congruence. Talent management is a strategy that is believed to minimize employee turnover through retention, namely by managing talented employees owned by the organization and then retaining these employees. This study is quantitative research conducted on 140 employees from private and public companies (BUMN) in Indonesia. The analysis used Structural Equation Modelling (SEM) with the help of the SmartPLS 3 application. The results of this study indicate that there is a direct effect of talent management on employee retention and an indirect effect mediated by organizational justice. However, the results show that the talent perception congruence cannot mediate the effect of talent management on employee retention. This study has several limitations that can be considered for future research. This study also provides theoretical implications for the literature and managerial implications for HR practitioners in organizations to assess talent management's effect on employee retention.