Direct and Indirect Effects of Talent Management on Employee Retention: A Structural Equation Model for the Bangladesh Case

Rashed Mahmud Shakil; Md. Nizam Uddin; Sadia Arobi; Nusrat Jahan Shaila; Md. Abu Talha

doi:10.55927/ijabm.v5i2.7

Authors

Rashed Mahmud Shakil Uttara University
Md. Nizam Uddin BGC Trust University Bangladesh
Sadia Arobi Uttara University
Nusrat Jahan Shaila Uttara University
Md. Abu Talha Uttara University

DOI:

https://doi.org/10.55927/ijabm.v5i2.7

Keywords:

Talent Management, Job Embeddedness, Employee Retention, PLS-SEM, Bangladesh

Abstract

This study examines the impact of talent management (TM) on employee retention (ER) and investigates the mediating role of job embeddedness (JE) in Bangladesh’s IT industry. Grounded in Social Exchange Theory (SET), it explores the mechanisms through which TM influences retention. A quantitative research design was adopted using survey data collected from 250 full-time employees of IT firms in Bangladesh. Data were analyzed using SPSS and structural equation modelling–partial least squares (PLS-SEM) to test direct and mediating relationships. The results indicate that TM has a significant positive effect on both ER and JE. JE also significantly influences ER. Importantly, JE significantly mediates the relationship between TM and ER. IT firms should implement structured talent strategies that enhance career development, supportive leadership, and relational bonds to strengthen employee embeddedness and long-term retention. This study addresses a critical gap by empirically examining JE as a mediator between TM and ER in the Bangladeshi IT context. By integrating SET with the job embeddedness framework, it advances theoretical understanding of exchange-based retention mechanisms in a developing economy.

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