Talent Management Practices and Employee Retention in Competitive Industries

Abstract

Employee retention has become a strategic concern for organizations operating in competitive industries where knowledge specialized, technological competence, customer relationships, innovation capability, and leadership potential are difficult and expensive to replace. Traditional human resource practices that concentrate mainly on recruitment, salaries, and administrative control are no longer sufficient for retaining high-performing and high-potential employees. Organizations increasingly require integrated talent management systems that identify strategically important positions, attract suitable individuals, develop employee capabilities, evaluate performance fairly, provide visible career opportunities, reward meaningful contributions, promote employee wellbeing, and build a credible long-term relationship between employees and the organization. This article critically examines the relationship between talent management practices and employee retention in industries characterized by intense competition, skill shortages, rapid technological transformation, high employee mobility, and continuous pressure for innovation. Drawing upon strategic talent management, resource-based, social exchange, organizational support, self-determination, job embeddedness, psychological contract, and human capital perspectives, the article explains how talent attraction, development, career planning, performance management, recognition, succession planning, engagement, inclusive leadership, flexible work, wellbeing support, and talent analytics influence employees’ decisions to remain with an organization. Particular attention is given to the importance of fairness, transparency, organizational support, leadership credibility, employee experience, internal mobility, and ethical use of artificial intelligence.