Retaining talent in knowledge-intensive services: enhancing employee engagement through human resource, knowledge and change management

Abstract

Purpose: This study aims to explore talent retention in knowledge-intensive industries by investigating the mediating processes between the existence and application of human resource management (HRM) and employee turnover. Toward this end, drawing on the conservation of resources and job demands–resources theories, a three-dimensional model is examined, which includes the relationship between HRM, knowledge management (KM) and change management (CM), as well as their relationship with employee engagement and employee turnover intention. Design/methodology/approach: The proposed research model has been studied with a sample of 168 talented employees in over six European countries, using a quantitative approach, involving the structural equation modeling method. All data were gathered by a multidimensional questionnaire via prolific, an academic crowdsourcing platform. Findings: Results indicated that knowledge-intensive services firms may achieve higher talent retention through the interaction of HRM with KM and CM practices, which may lead to enhanced employee engagement. Research limitations/implications: Possible limitations of the study include the relatively small sample size, the self-rate questions for the collection of data and the use of cross-sectional data. Practical implications: To retain their talented employees, organizations should identify ways to improve their HRM, CM and KM practices. In addition, HR practitioners ought to include their talented employees in all organizational change and KM processes and create mechanisms that successfully support knowledge acquisition, creation, sharing, retention and codification. Originality/value: To the best of the authors’ knowledge, this is the first study to examine various factors of retaining talented employees in knowledge-intensive services. Furthermore, the study took place in six European countries, i.e. UK, Poland, Italy, Germany, Portugal and Greece, where the research on talent retention is very limited.