Managing talent loss in the procurement function: Insights from the hospitality industry

Abstract

This paper sought to extend the existing talent management literature through an exploratory investigation of talent loss resulting from the possible departure of talented employees from the procurement function of hotels. Through a multiple case study of five organizations in the hospitality industry, we found that the departure of talented procurement managers disrupts supply chain operations and leads to a loss of valuable explicit, tacit, and relational knowledge. Procurement managers were found to hold critical skills and knowledge that are essential for the case organizations. Hence, more proactive management strategies were adopted. Managers seeking to minimize the negative impact of talent loss in the procurement function would be well-advised to treat this procurement function as a strategic one and to adopt proactive and documented management strategies. Firms should be aware of the type of important knowledge and of the importance of aligning their strategies with such knowledge. To retain relational knowledge in case of talent loss, strategies should be designed to reduce the firm's reliance on personal contacts and emotion-based trust in supplier relationships. We concluded the paper with implications for future research and managerial practice for managing talent loss, with an emphasis on sustainability in the hospitality industry.