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Talent Management Influence on Talent Retention: The Mediating Role of Work Life Balance and the Moderating Role of the Perceived Organizational Support
2. Literature Review
2.1 Talent Management
Talent management is defined as a systemic and strategic approach to identifying, developing, and retaining high-potential individuals who add significant value to an organization (Najm& Manasrah, 2017). It involves a comprehensive set of processes, including workforce planning, talent acquisition, and performance management, aimed at ensuring the right people are in the right roles at the right time. Beyond simple recruitment, talent management focuses on the long-term cultivation of human capital to meet both current and future organizational needs. By treating talent as a critical asset, organizations can foster a culture of excellence and continuous improvement (Gallardo-Gallardo et al., 2020).
Recent empirical studies highlight the significant impact of talent management on various organizational outcomes. For instance, research by Narayanan and Lamond (2020) demonstrated that integrated talent management practices significantly enhance employee commitment and performance. Similarly, a study by Mensah (2022) found that talent development programs are crucial for fostering a sense of belonging, which directly influences employee loyalty. Furthermore, Jooss et al. (2021) observed that organizations utilizing data-driven talent identification processes report higher levels of internal mobility and success. These findings suggest that a structured approach to managing human capital is the foundation of organizational health (Najm& Manasrah, 2017).
Current literature further reinforces the connection between talent management and retention strategies. A study by Tyskbo (2023) explored how talent management perceptions influence professional identity and long-term career planning. Additionally, researchers like Malik and Singh (2024) have identified that strategic talent management acts as a precursor to organizational innovation and sustained profitability. These studies collectively argue that when talent management is executed effectively, it creates a symbiotic relationship between the employer and the employee, reducing turnover intentions and maximizing the ROI on human resources (Malik & Singh, 2024).
2.2 Work-Life Balance
Work-life balance (WLB) refers to the equilibrium state where an individual effectively manages the competing demands of their professional responsibilities and their personal life (Shyamadanthi& Kaluarachchige, 2023). This concept transcends the mere division of hours; it involves the psychological and emotional capacity to fulfill roles in both domains without significant conflict. Achieving this balance requires organizational support through flexible working arrangements, supportive supervision, and a culture that respects personal boundaries. When employees feel they can meet their family and social obligations alongside their work duties, their overall well-being and life satisfaction improve significantly (Kelliher et al., 2019).
Empirical evidence illustrates the profound impact of WLB on employee retention and satisfaction. A study by Vaziri et al. (2020) highlighted that changes in work-life balance during major organizational shifts significantly predicted employee turnover intentions. Furthermore, research by Faisal et al (2022) established that work-life balance practices directly correlate with increased job motivation and organizational citizenship behavior. These findings are complemented by Sirgy and Lee (2022), who argued that the quality of work-life balance is a primary determinant of an employee's overall quality of life and professional longevity (Sirgy& Lee, 2022).
Recent studies also emphasize the role of WLB as a mediator in complex organizational relationships. For example, research by Mendis and Weerakkody (2024) found that work-life balance mediates the relationship between flexible work schedules and employee loyalty. Additionally, a 2025 study by Nguyen and Pham (2025) indicated that organizations offering robust WLB programs see a marked improvement in their employer branding and talent attraction efforts. These recent insights confirm that work-life balance remains a cornerstone of the modern employment relationship, acting as a vital mechanism through which talent management policies translate into long-term employee retention (Nguyen & Pham, 2025).
2.3 Organizational Learning
Organizational learning is defined as the process through which an organization gains knowledge, improves its actions, and adapts to its environment through experience and reflection (Basten & Haamann, 2018). It involves the collective capacity of a firm to acquire, share, and apply information to enhance performance and innovate. Unlike individual learning, organizational learning is embedded in the culture, systems, and routines of the company, ensuring that knowledge is retained even when individuals leave. This continuous cycle of knowledge creation allows the organization to remain competitive by evolving its strategies in response to internal and external feedback loops (Tunjic&Jakic, 2020).
Scholarly work demonstrates the transformative power of organizational learning on human resource outcomes. A study by Xie and Geng (2020) found that a strong organizational learning culture significantly boosts employee innovation and job satisfaction. Similarly, research by Singh and Singh (2023) showed that learning organizations are more successful at retaining high-potential employees because they offer more opportunities for skill mastery and career progression. These studies suggest that the ability to learn as a collective unit is directly linked to the emotional and professional satisfaction of individual employees (Singh & Singh, 2023).
Additional research by Al-Baher(2024) explored how digital transformation has accelerated the need for organizational learning to maintain employee relevance and retention. Furthermore, a 2025 study by Zhao et al. (2025) identified that organizational learning acts as a catalyst for resilience, allowing employees to feel more secure and supported during periods of industry disruption. By fostering a continuous learning environment, organizations not only improve their operational efficiency but also create a compelling value proposition for their employees. This makes organizational learning a critical variable in understanding the dynamics of talent retention in the modern workplace (Zhao et al., 2025).
2.4 Talent Retention
Talent retention refers to the strategic efforts and policies implemented by an organization to encourage its most valuable employees to remain with the company for an extended period (Eltaybani et al., 2024). It is the outcome of a successful employment relationship where the employee's needs and the organization's offerings are in harmony. Retention strategies often include competitive compensation, career development opportunities, a positive work environment, and recognition programs. The ultimate goal of talent retention is to minimize turnover costs-both financial and intellectual-and to maintain a stable workforce that can drive long-term business success (Kossivi et al., 2021).
The importance of talent retention is paramount in today's "war for talent," where the loss of a key employee can lead to significant disruptions in productivity and the loss of institutional knowledge. High turnover rates are not only expensive in terms of recruitment and training but also detrimental to the morale of the remaining staff (Eltaybani et al., 2024). Retaining top talent ensures that the organization maintains its competitive edge, as experienced employees are often the ones who drive innovation and mentor newer staff members. In the context of this study, retention is the ultimate dependent variable that validates the effectiveness of talent management and work-life balance initiatives (Kossivi et al., 2021).
Recent research highlights the evolving drivers of talent retention in a post-pandemic world. A study by Al-Baher(2024) found that perceived organizational support and job security are now more critical for retention than ever before. Additionally, research by Presbitero and Teng-Calleja (2023) emphasized that meaningful work and professional growth opportunities are the primary reasons why high-potential employees stay with their firms. These findings indicate that retention is no longer just about the paycheck; it is about the total employee experience and the perceived value the organization provides (Presbitero & Teng-Calleja, 2023).
Furthermore, Patadungan et al (2026) revealed that work-life balance is a top-three factor influencing the retention of millennial and Gen Z talent. Another study by Kim and Park (2025) demonstrated that talent management practices specifically tailored to individual career paths significantly reduce the likelihood of turnover. These studies collectively suggest that retention is a multi-faceted outcome influenced by various organizational levers. By understanding these connections, organizations can develop more targeted strategies to keep their best people, ensuring organizational continuity and a sustained competitive advantage in an increasingly volatile global market (Kim & Park, 2025).
2.5 Theoretical Foundations and Integration
The theoretical framework of this study is primarily grounded in the Social Exchange Theory (SET), which posits that social behavior is the result of an exchange process (Blau, 1964). In the workplace, when an organization provides talent management and work-life balance initiatives, employees feel a sense of obligation to reciprocate with higher levels of loyalty and performance (Cropanzano et al., 2017). This reciprocal relationship is the engine behind talent retention, as employees stay because they perceive the exchange as fair and beneficial. SET provides a robust lens through which we can understand how organizational investments in people lead to positive behavioral outcomes (Cropanzano et al., 2017).
Complementing SET is the Conservation of Resources (COR) Theory, which suggests that individuals strive to obtain, retain, and protect resources that they value (Hobfoll, 1989). Work-life balance is a critical resource in this framework; when employees have sufficient WLB, they conserve the energy and psychological resources needed to perform their jobs effectively. According to COR, talent management practices provide the resources (skills, support) that prevent "resource loss" and burnout, thereby encouraging employees to remain within the organization to protect their existing resource pool (Halbesleben et al., 2014). This theory explains why WLB is such a powerful mediator in the retention process (Hobfoll, 1989).
Lastly, the Perceived Organizational Support (POS) Theory serves as the moderating foundation for this research. POS refers to employees' general belief that their organization values their contribution and cares about their well-being (Eisenberger et al., 1986). When POS is high, the positive effects of talent management on work-life balance and retention are amplified because employees trust the organization's intentions. According to Kurtessiset al. (2017), POS acts as a catalyst that strengthens the bond between the individual and the firm. This theory integrates the other concepts by explaining how the organizational environment can either accelerate or hinder the success of talent-focused initiatives (Kurtessis et al., 2017).
The integration of these three theories-Social Exchange, Conservation of Resources, and Perceived Organizational Support-creates a comprehensive model for understanding the variables in this study. Together, they explain the "why" and "how" behind the relationships: SET focuses on the reciprocal bond, COR focuses on the protection of personal well-being, and POS focuses on the organizational climate that makes these processes possible (Cropanzano et al., 2017; Hobfoll, 1989). This multi-theoretical approach ensures a holistic understanding of how talent management drives retention through the mediation of work-life balance and the moderation of organizational support (Kurtessis et al., 2017).
3. Hypothesis Development and Research Model
H1: Talent Management positively influences Talent Retention
Talent management provides a structured path for employee growth, which directly increases the likelihood of an individual staying with the firm (Mensah, 2022). When employees see a future for themselves through development programs, their turnover intentions decrease. Recent studies by Tyskbo (2023) and Jooss et al. (2021) confirm that strategic talent identification and cultivation are fundamental to long-term retention. Therefore, a robust talent management system is expected to yield higher retention rates (Mensah, 2022).
The importance of talent management to the context of this study lies in its ability to reduce voluntary turnover through the creation of internal career pathways. In modern industries where specialized skills are scarce, losing a high-performing employee results in significant "brain drain" and replacement costs that can reach double the employee's annual salary (Kaur, 2021). Effective talent management ensures that top-tier employees feel intellectually stimulated and professionally secure, which directly stabilizes the workforce. Within the research model, this variable acts as the primary organizational driver that initiates the exchange process between the employer's investment and the employee's decision to remain affiliated with the firm (Najm& Manasrah, 2017).
H2: Talent Management positively influences Work-Life Balance
Effective talent management includes the proper allocation of tasks and the recognition of employee limits, which directly supports a healthy work-life balance (Najm& Manasrah, 2017). By aligning skills with roles, organizations reduce the stress associated with job-person mismatch, allowing employees more mental space for their personal lives. Research by Kaur (2021) suggests that talent-focused organizations are more likely to implement flexible policies that enhance WLB. Thus, talent management serves as an organizational precursor to improved work-life equilibrium (Najm& Manasrah, 2017).
The importance of this relationship within the current study is rooted in the "Conservation of Resources" (COR) theory. Talent management practices that ignore work-life balance risk depleting the very human capital they aim to develop. For organizations, promoting WLB through talent initiatives is a strategic necessity to maintain a healthy and productive workforce (Haider et al., 2020). High levels of work-life conflict are associated with increased absenteeism and reduced job performance, whereas a balanced environment fosters higher levels of engagement. By integrating WLB into the talent management framework, firms ensure that their top performers remain energized and committed to their roles over the long term (Shyamadanthi& Kaluarachchige, 2023).
H3: Work-Life Balance positively influences Talent Retention
Employees who experience a high degree of work-life balance are less likely to seek employment elsewhere, as they value the flexibility and well-being provided by their current employer (Faisal et al, 2022). WLB reduces burnout, which is a leading cause of voluntary turnover in the modern workforce. Studies by Sirgy and Lee (2022) and Patadunganet al. (2026) have consistently shown that WLB is a significant predictor of an employee's decision to remain in their role. Consequently, better work-life balance is hypothesized to lead to higher retention (Sirgy& Lee, 2022).
In the context of this study, work-life balance is essential because it serves as a primary motivator for employees to remain with an organization. In an era of "quiet quitting" and the "Great Resignation," WLB has emerged as a top priority for talent, often outweighing salary in retention decisions (Shyamadanthi& Kaluarachchige, 2023). For organizations, fostering WLB is a strategic tool to reduce the high costs associated with employee turnover and lost productivity. A workforce that enjoys a healthy balance is more resilient, creative, and loyal, making WLB a cornerstone of any sustainable talent retention strategy in the contemporary global economy (Haider et al., 2020).
H4: Work-Life Balance mediates the relationship between Talent Management and Talent Retention.
The impact of talent management on retention is often indirect, operating through the improvement of the employee's daily life and well-being (Mendis & Weerakkody, 2024). Talent management provides the framework, but the resulting work-life balance is what often cements the employee's loyalty. Research by Nguyen and Pham (2025) indicates that without the mediating effect of a balanced life, talent programs may fail to retain staff. This suggests that WLB is the mechanism through which talent management achieves its retention goals (Nguyen & Pham, 2025).
The importance of this mediation in the study context is found in the "Social Exchange Theory." When an organization invests in talent management, it creates a positive social exchange; however, the employee's ability to reciprocate with loyalty is often dependent on their personal capacity, which is protected by WLB (Cropanzano et al., 2017). For the organization, understanding this mediation is crucial because it highlights that talent management must be "sustainable." If management practices are too demanding, they may inadvertently destroy the retention they seek to build. Therefore, WLB serves as the essential filter through which management practices are evaluated by the employee (Mendis & Weerakkody, 2024).
H5: Organizational Support moderates the relationship between Talent Management and Work-Life Balance.
The effectiveness of talent management in improving WLB depends on whether employees feel the organization truly supports them (Al-Baher, 2024). High Perceived Organizational Support (POS) acts as a multiplier, making talent initiatives feel more authentic and effective. Conversely, if POS is low, talent management may be viewed with skepticism, weakening its impact on WLB. Study results from Kim and Park (2025) support the idea that organizational climate moderates the success of HR interventions. Therefore, POS is expected to strengthen the link between talent management and work-life balance (Kim & Park, 2025).
The importance of POS as a moderator in this context is centered on the concept of "organizational trust." Without a foundation of support, talent management initiatives might be viewed by employees as mere tools for extraction or increased workload, which would negatively impact their WLB (Al-Baher, 2024). However, in a high-support environment, these same initiatives are seen as developmental opportunities that empower the employee to manage their time better. For researchers, identifying POS as a moderator explains why the same talent management policies can produce different results in different organizational climates, making it a critical boundary condition for the study (Kurtessis et al., 2017).
Figure 2.1. The Research Framework
The above theoretical framework illustrates a complex structural relationship between four key organizational variables. Talent management serves as the independent variable, exerting a direct positive influence on talent retention. This primary relationship is further explained by work-life balance, which acts as a mediating variable; it suggests that talent management improves employee well-being, which in turn leads to higher retention. Additionally, the model incorporates perceived organizational support as a moderating variable. This indicates that the strength of the link between talent management and work-life balance depends on how much employees feel supported by their organization overall.