International Journal of Emerging Research in Science, Engineering, and Management
Vol. 1, Issue 3, pp. 06-11, September 2025.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Talent Management Strategies for Employee Retention in the Era of Digital Transformation
M. Manivannan
K. Subramanyam
J. Venkatagiri
Associate Professor, Department of CSE, Siddharth Institute of Science and Technology, Puttur, India.
Associate Professor, Department of ECE, Gokula Krishna College of Engineering, Sullurpet, India.
Department of CSE, Ramaiah University of Applied Sciences, Bengaluru, India
Abstract: This study examines the impact of talent management strategies on employee retention during digital transformation in the service sectors of Karnataka, India. It employs a quantitative research design using a structured 5-point Likert scale questionnaire administered to 357 employees and middle managers across telecommunications, banking, and information technology industries. Grounded in New Institutional Theory, the research analyzes data through Structural Equation Modeling (SEM) in SMART PLS 4.0 to assess the relationships between talent management, transformational leadership, resistance to change, digital transformation, and employee retention. The findings confirm that effective talent management significantly drives digital transformation success (β = 0.62, p < 0.001) and that transformational leadership positively moderates this relationship (β = 0.30, p = 0.008), facilitating smoother adoption and reducing resistance. Although resistance to change has a negative impact on digital transformation (β = -0.28, p = 0.032), it did not significantly mediate the relationship between talent management and digital transformation. Digital transformation was found to have a positive influence on employee retention, as evidenced by increased job satisfaction and organizational commitment (β = 0.55, p < 0.001), with transformational leadership playing an indirect role in supporting retention. The model explains 67% of the variance in digital transformation success and 54% of the variance in retention intention, highlighting the importance of integrating strategic talent management and visionary leadership to sustain a competitive advantage in digitally evolving workplaces.
Keywords: Talent Management, Digital Transformation, Employee Retention, Transformational Leadership, Resistance to Change, Digital Skills Development.
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