THE IMPACT OF TALENT MANAGEMENT ON EMPLOYEE RETENTION: MEDIATING ROLE OF ORGANIZATIONAL TRUST AND MODERATING ROLE OF PERCEIVED ORGANIZATIONAL SUPPORT

The problem of talent retention has been increasing in strategic focus among organisations, where the need for a sustainable competitive advantage creates a challenge. This paper examines the impact of talent management on employee retention, where organisational trust serves as a mediator and perceived organisational support acts as a moderator. It was largely studied to understand how the best talent management practices could lead to employees becoming more trusted and boosting retention performance. A quantitative method was used, and a survey questionnaire was distributed to 300 workers from various industries in Pakistan. A structural equation modelling procedure was carried out using SmartPLS 4.0, which determines reliability, validity, and tests hypotheses. The findings revealed a significant relationship between talent management and employee retention (β = 0.312, p < 0.001), as well as between talent management and organisational trust (β = 0.428, p < 0.001). In addition, organisational trust significantly influenced retention (β = 0.295, p < 0.001) and mediated the relationship between talent management and retention (β = 0.126, p = 0.002). The study also confirmed the moderating role of perceived organisational support (β = 0.167, p = 0.011). The results suggest that companies should invest in open talent management, reinforcing trust determinants, and cultivating supportive work environments to retain their employees. The research is currently limited to cross-sectional data, indicating the potential for conducting longitudinal research in the future. The study emphasises the theoretical and practical significance of incorporating talent management attributes and support, as well as trust, in maintaining a long-term workforce.