Talent management, development and retention of Generation Y employees in New Zealand clinical laboratories

Purpose This study aims to explore the factors contributing to the retention of Generation Y employees and to develop a conceptual framework that health-care managers and organisations can use to improve retention of Gen Y employees in clinical laboratories in New Zealand. Design/methodology/approach The data for this study were collected using an online questionnaire, which included both closed- and open-ended questions. The sample was drawn from clinical laboratories across New Zealand, specifically focusing on Generation Y employees (born between 1980 and 1999). A total of 143 participants were recruited through email invitations sent to members of the New Zealand Institute of Medical Laboratory Science. The data were analysed using the partial least squares structural equation modelling method with the SmartPLS 4 software. Findings The results showed that talent management practices, including mentoring, strategic leadership and competency development, positively influence the intention of Generation Y employees to stay in their roles. By contrast, knowledge sharing does not significantly impact their intention to stay. Moreover, the study explored how competency development mediates the relationships between mentoring, strategic leadership and knowledge sharing concerning participants’ intention to stay within the organisation. Results showed that mentoring and strategic leadership indirectly affect the intention to stay through competency development. Although marginally significant, the anticipated mediation effect of knowledge sharing is not fully supported, highlighting the complex relationship between knowledge sharing initiatives and employee retention. Practical implications The findings of the present study yield practical insights crucial for human resource management, offering valuable information about the needs and expectations of Generation Y employees in the health-care laboratory sector in New Zealand. Originality/value Existing research within the business industry has demonstrated a positive correlation between robust talent management practices and heightened levels of employee engagement and retention. However, a discernible research gap persists, specifically in investigating talent management practices among Generation Y employees within the clinical laboratory sector. Moreover, the exploration of the relationship between talent management and the retention of Generation Y employees in the laboratory profession in New Zealand remains largely unexplored. The present study fills this research gap by proposing a conceptual framework to enhance Generation Y employees’ retention in New Zealand’s laboratory sector.