Abstract:
In resource-constrained business environments, organizations have been paying attention
to attract, develop and retain employees who can provide direct contributions to achieving
competitive advantages and who can guide the actions of other employees. However, with
the adverse economic conditions and the search for improved living conditions in
developed countries, it has been challenging for organizations to retain talented
employees in developing and emerging nations. This study examines the impact of talent
management practices on executive-level employee retention in the private banking sector
in Kalutara District, Sri Lanka. Building on Human Capital Theory, this research explores
whether investment in selective staff recruitment, training, career development,
performance management, and competitive compensation affects employee retention.
Drawing on Protean Career Theory, this study conceptualised perceived selfemployability
—a mindset towards self-direction in decision-making in career
management —as a moderating variable to examine how it influences the strength and
direction of main theoretical relationships. This study adopted a quantitative research
approach, sampled 183 executive-level employees in private banks through purposive
sampling and used a structured online questionnaire to collect data. The purposive criteria
were employees working at the executive level in the private banking sector in the Kalutara
district who joined the bank through the management training process. The data were
analyzed using multiple regression via SPSS version 25, and the moderating effect was
examined using Process Macro version 4.2. The results revealed that training,
performance management, and compensation significantly improve employee retention,
consistent with previous studies. Also, selective staffing and career development did not
significantly affect employee retention. Additionally, perceived self-employability as a
moderating variable did not moderate the relationship between talent management
practices and retention. This research contributes to the talent management literature by
providing empirical evidence from the private banking sector. This area is often
overlooked in globally developed countries, yet it is limited in developing nations. The
findings offer insights for talent management practitioners and process owners, as
investing in the correct blend of talent management practices improves employee
retention. Future research should explore the impact of talent management practices on
employee retention in other regions of Sri Lanka.
