Skip to main content

The Relationships Between Talent Management Practices, Employee Engagement, and Employee Retention in the Information and Technology (IT) Organizations in Selangor

  • Conference paper
Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014)

Abstract

As Information and Technology (IT) industry is vital to the country’s economic growth, it is important to ensure the smoothness operations so that long-term growth and development can be achieved with fewer obstacles. Hence, a constant availability of a large pool of talented and experienced people is crucial to carry out functions. However, employee turnover issue is a critical phenomenon within IT industry globally and locally. To curb this issue, academic attentions have diverted the focus upon the implementation of talent management practices on both employee engagement and employee retention. This study seeks to determine the relationships between talent management practices (managerial support, employee career development, and rewards and recognitions), employee engagement, and employee retention within IT organizations in Selangor. This is a quantitative study. The research instrument comprises of a self-administered questionnaire. A convenience sampling technique was used for this research. A total of 581 respondents responded valid questionnaires and it gives an average response rate of 77 % for the study. Data gathered were initially analyzed using SPSS version 20.0. The findings of Pearson correlation analysis indicate talent management practices (managerial support, employee career development, and rewards and recognitions) have positive correlation with employee engagement. It was also found that employee engagement has positive correlation with employee retention. The results of hierarchical regression analysis on determining the mediating effect of a mediator (employee engagement) indicate employee engagement mediated the relationship between talent management practice (employee career development and rewards and recognition) and employee retention individually.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Economic Planning Unit (2010) Tenth Malaysia Plan 2011–2015

    Google Scholar 

  2. Economic Planning Unit (2012) The Malaysian economy in figures 2012

    Google Scholar 

  3. Prime Minister Department (2012) Economic transformation programme annual report 2012

    Google Scholar 

  4. Bux SR, Ahmad HA, Othman H (2009) Talent management practices at Government-Linked Companies (GLCs). Malaysia Productivity Corporation (MPC), Petaling Jaya, Selangor Darul Ehsan, Malaysia, pp 1–18

    Google Scholar 

  5. Bux SR, Othman H (2010) Talent management practices at government-linked companies (GLC) II. Malaysia Productivity Corporation (MPC)

    Google Scholar 

  6. Syed Abd Nasir SJ, Hassan R, Embi R, Rahmat AK (2012) Managing talent in two leading companies in Malaysia. In: International Conference on Technology and Management, 21, pp 125–130

    Google Scholar 

  7. Tham ZCG, Pee LG, Kankanhalli A, Tan GW (2008) Turnover in information systems development projects – managing forgetting. PACIS

    Google Scholar 

  8. Westlund SG, Hannon JC (2008) Retaining talent: assessing job satisfaction facets most significantly related to software developer turnover intention. J Inf Technol Manage XIX(4):1–15

    Google Scholar 

  9. Acton T, Golden W (2002) Training: the way to retain valuable IT employees? In: InSITE – “where parallels intersect”. Informing Science, National University of Ireland, Galway, pp 1–12

    Google Scholar 

  10. Naggiar JL (2001) An exploration of retention practices in the IT industry. Concordia University, Ottawa

    Google Scholar 

  11. Goh L (2012) Why job-hoppers hop. Malaysian Employers Federation (MEF)

    Google Scholar 

  12. Ministry of Human Resource (2013) Retrenchment by sector, vol 2

    Google Scholar 

  13. Mohlala J, Goldman GA, Goosen X (2012) Employee retention within the Information Technology Division of a South African Bank. SA J Hum Resour Manage 10(2):1–11. doi:10.4102/sajhrm.v10i2.438

    Article  Google Scholar 

  14. Tseng C (2010) The retention of software development employees in the IT industry in Taiwan. Southern Cross University, Lismore

    Google Scholar 

  15. Kumar JV (2012) HRM practice on the retention of employees of information technology sector. Int J Sci Res 1(2277):4–6

    Google Scholar 

  16. Lockwood D, Ansari A (1999) Recruiting and retaining scarce information technology talent: a focus group study. Ind Manage Data Syst 99(6):251–256

    Article  Google Scholar 

  17. Kahn WA (1990) Psychological conditions of personal engagement and disengagement at work. Acad Manage J 33(4):692–724

    Article  Google Scholar 

  18. Rothbard NP (2001) Enriching or depleting? The dynamics of engagement in work and family roles. Adm Sci Q 46(4):655. doi:10.2307/3094827

    Article  Google Scholar 

  19. Mustafa Kamil BA, Abdul Hamid Z, Hashim J, Omar A (2011) A study on the implementation of talent management practices at Malaysian companies. Asian J Bus Manage Sci 1(4):147–162

    Google Scholar 

  20. Wegner PM (2011) The relationship between employee engagement and employee retention in an acute healthcare hospital. Walden University

    Google Scholar 

  21. Saks AM (2006) Antecedents and consequences of employee engagement. J Manag Psychol 21(7):600–619. doi:10.1108/02683940610690169

    Article  Google Scholar 

  22. Ram P, Prabhakar GV (2011) The role of employee engagement in work-related outcomes. Interdiscip J Res Bus 1:47–61

    Google Scholar 

  23. Clifford MK (2010) Employee engagement: antecedents and consequences. Nova Southeastern University

    Google Scholar 

  24. Bhatnagar J (2007) Talent management strategy of employee engagement in Indian ITES employees: key to retention. Empl Relat 29(6):640–663. doi:10.1108/01425450710826122

    Article  Google Scholar 

  25. Hughes JC, Rog E (2008) Talent management: a strategy for improving employee recruitment, retention and engagement within hospitality organizations. Int J Contemp Hosp Manag 20(7):743–757. doi:10.1108/ 09596110810899086

    Article  Google Scholar 

  26. Corporate Leadership Council (2004) Driving performance and retention through employee engagement. Corporate Leadership Council

    Google Scholar 

  27. Piansoongnern O, Anurit P, Kuiyawattananonta S (2011) Talent management in Thai cement companies: a study of strategies and factors influencing employee engagement. Afr J Bus Manage 5(5):1578–1583

    Google Scholar 

  28. Yapp M (2009) Measuring the ROI of talent management. Strateg HR Rev 8(4):5–10. doi:10.1108/ 14754390910963856

    Article  Google Scholar 

  29. Glen C (2006) Key skills retention and motivation: the war for talent still rages and retention is the high ground. Ind Commer Train 38(1):37–45. doi:10.1108/ 00197850610646034

    Article  Google Scholar 

  30. Lockwood NR (2007) Leveraging employee engagement for competitive advantage: HR’s strategic role

    Google Scholar 

  31. Sweem SL (2009) Leveraging employee engagement through a talent management strategy: optimizing human capital through human resources and organization development strategy in a field study. Benedictine University

    Google Scholar 

  32. Grossman RJ (2007) HR magazine IBM’s HR takes a risk. Retrieved from http://www.shrm.org/Publications/ hrmagazine/ Editorial Content/ Pages/ 0407grossman.aspx

  33. Ellehuus C (2012) Transforming business leaders into talent champions. Strateg HR Rev 11(2):84–89. doi:10.1108/ 14754391211202143

    Article  Google Scholar 

  34. Tymon WG Jr, Stumpf SA, Doh JP (2010) Exploring talent management in India: the neglected role of intrinsic rewards. J World Bus 45(2):109–121. doi:10.1016/ j.jwb.2009.09.016

    Article  Google Scholar 

  35. Riccio SJ (2010) Talent management in higher education: identifying and developing emerging leaders within the administration at private colleges and universities. University of Nebraska

    Google Scholar 

  36. Nilsson S, Ellström P-E (2012) Employability and talent management: challenges for HRD practices. Eur J Train Dev 36(1):26–45. doi:10.1108/ 03090591211192610

    Article  Google Scholar 

  37. Maslach C, Schaufeli WB, Leiter MP (2001) Job Burnout

    Google Scholar 

  38. Liden RC, Wayne SJ, Sparrowe RT (2000) An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships, and work outcomes. J Appl Psychol 85(3):407–416. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/10900815

    Google Scholar 

  39. Preacher KJ, Hayes AF (2004) SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behav Res Methods Instrum Comput 36(4):717–731. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/15641418

    Google Scholar 

  40. Schaufeli WB, Bakker AB (2004) Job demands, job resources, and their relationship with burnout and engagement: a multi-sample study. J Organ Behav 25(3):293–315. doi:10.1002/job.248

    Article  Google Scholar 

  41. Oehley AM, Theron CC (2010) The development and evaluation of a partial talent management structural model. 19(3):2–29

    Google Scholar 

  42. Scott B, Revis S (2008) Talent management in hospitality: graduate career success and strategies. Int J Contemp Hosp Manag 20(7):781–791. doi:10.1108/ 09596110810897600

    Article  Google Scholar 

  43. Kumudha S (2012) Talent management: importance, process, retention and strategies for business organization. Int J Res Commer Econ Manage 2(6):78–85

    Google Scholar 

Download references

Acknowledgment

First of all, Alhamdulillah, we thank Al-Mighty Allah SWT for giving us the opportunity and health so that the researchers can complete the research successfully. Thanks to Director of Arshad Ayub Graduate Business School (AAGBS), Assoc. Prof. Dr. Jaafar Pyeman, who always gives support and motivation in their speech and talk and also gives the permission and budget to attend some conferences. We would also like to convey our special appreciation to our families for their prayers, support, understanding, compassion, sacrifices, and inspiration for us to successfully complete in writing this journal.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Nurul Ezaili Alias .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer Science+Business Media Singapore

About this paper

Cite this paper

Alias, N.E., Nor, N.M., Hassan, R. (2016). The Relationships Between Talent Management Practices, Employee Engagement, and Employee Retention in the Information and Technology (IT) Organizations in Selangor. In: Pyeman, J., Wan Rashid, W., Hanif, A., Syed Mohamad, S., Tan, P. (eds) Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014). Springer, Singapore. https://doi.org/10.1007/978-981-287-426-9_9

Download citation

Publish with us

Policies and ethics