The Role of Talent Management in Enhancing Employee Retention: Mediating the Influence of Psychological Empowerment

Dalila B. S. Menezes (), Megi Gumashivili and Kiti Kanokon
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Dalila B. S. Menezes: School of Management and Economics, University of Electronic Science and Technology (UESTC), Chengdu 611731, China
Megi Gumashivili: School of Management and Economics, University of Electronic Science and Technology (UESTC), Chengdu 611731, China
Kiti Kanokon: School of Management and Economics, University of Electronic Science and Technology (UESTC), Chengdu 611731, China

Sustainability, 2025, vol. 17, issue 7, 1-22

Abstract: In this study, the mediating effect of psychological empowerment (PE) is examined along with the impact of talent management (TM) in improving employee retention (ER). Companies increasingly realize how important strategic TM is in retaining talented workers and promoting organizational success in today’s cutthroat business world. Using a cross-sectional survey of 226 employees across multiple sectors in São Tomé and Príncipe, this study examines TM’s effects on ER through PE’s mediating role. This research demonstrates that TM has a significant positive effect on ER and that PE mediates the relationship between TM and ER. Organizations can create an environment that nurtures commitment, motivation, and long-term retention by empowering employees through targeted TM practices. According to this study, PE is crucial in connecting TM tactics to better ER results, advancing HRM theory. The findings support the theories that PE mediates the interaction between TM and ER and that TM positively impacts ER and PE. To maintain a competitive edge in the modern workforce, HR professionals looking to boost employee engagement, satisfaction, and loyalty will find this study offers helpful insights.

Keywords: talent management; employee retention; psychological empowerment; human resource management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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