THE EFFECT OF TALENT MANAGEMENT PRACTICES ON EMPLOYEE RETENTION THE CASE OF BGI ETHIOPIA ADDIS ABABA PLANT

Abstract

The study aimed to investigate the effect of talent management on employee retention in the case of BGI Ethiopia in Addis Ababa. A quantitative research approach with an Explanatory research design was applied. The population of the study considered employees of BGI Ethiopia, of which a sample of 300 respondents was selected by using a convenient non-probability sampling technique. The primary data were collected through a self-administered questionnaire and 233 valid and usable responses from the targeted respondents. Both descriptive and inferential analysis was applied to examine the relationship between talent management and employee retention with the help of SPSS 21.0 application software. The results of the findings revealed that all four dimensions of talent management namely competence mapping, employee engagement, performance management, and career development had a positive and significant effect on employee retention. Specifically, the career development dimension (β = .450) has relatively the highest effect followed by employee engagement (β = .361). But competency mapping (β = .223) and performance management (β = .176) have relatively lower contribution to the prediction model. It can be concluded that talent management practices of the company are good predictors of employee retention. They can be taken as essential components in the process of ensuring that people acquire and enhance the skills and competencies they need to retain and keep them loyal to the organization. Managers of BGI are advised to give priority to their employees’ career development based on their performance appraisal, skill, or knowledge gap to make them more committed and loyal to the company.