The Mediating Effect of Job Satisfaction to Predict the Role of Talent Management Strategy in Improving Employee Retention

Authors : Deri Satria, Lenny Ch Nawangsari.

Volume/Issue : Volume 4 - 2019, Issue 4 - April

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The purpose of this study is to see the effect of Talent Management strategy in improving Employee Retention with Job Satisfaction as the mediator. And the variable used consists of; Talent Acquisition, Talent Development, compensation strategies, and Succession Planning as the independent variable, Job Satisfaction as the mediator and Employee Retention as the dependent variable. This study uses 73 respondents sampling with 261 individuals of the total population, which these samples come from employee boot-camps program, one of the IT Consultant Company. The data are processed by using Partial Least Square (PLS) software. Its testing is divided into two types they are; the outer model to evaluate the reflective measurement model and inner model to evaluate the structural model. From that measurement were obtained a result that Talent Acquisition, Talent Development, and compensation strategies have a direct influence on Employee Retention significantly. Only Talent Acquisition have an indirect influence on Employee Retention through Job Satisfaction. The mediation effect from Job Satisfaction is partial because the direct influence of the Talent Acquisition to Employee Retention is higher than indirect influence. But, Job Satisfaction has a significant influence on Employee Retention. It could be concluded that a Talent Management strategy has a strong influence on Employee Retention. The better strategy applied the less possibility for the employee to leave the company.

Keywords : Talent Management, Employee Retention, Job Satisfaction, Partial Least Square.


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31 - August - 2022

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