The Effect of Talent Management Strategy on Employee Retention at Awash Bank S.C.
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Date
2026-08-03
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Addis Ababa University
Abstract
This study examined the effect of talent management strategy on employee retention at Awash Bank S.C. The study specifically assessed the effects of talent planning, talent attraction and recruitment, selection and placement, training and development, and compensation and rewards on employee retention. A quantitative research approach with descriptive and explanatory research designs was employed. Primary data were collected through structured questionnaires distributed to 400 employees selected using stratified random sampling techniques, out of which 380 valid responses were obtained, representing a 95% response rate. Data were analyzed using descriptive statistics, Pearson correlation analysis, and multiple regression analysis with the help of SPSS version 26. The findings revealed that all dimensions of talent management had positive and statistically significant effects on employee retention. Selection and placement had the strongest effect on employee retention (β = 0.31), followed by training and development (β = 0.25), talent planning (β = 0.21), talent attraction and recruitment (β = 0.18), and compensation and rewards (β = 0.14). The regression model explained 61% of the variation in employee retention (R² = 0.61). The study concludes that integrated talent management practices significantly improve employee retention at Awash Bank S.C. Therefore, the study recommends strengthening succession planning, improving competency-based recruitment and placement systems, expanding employee training and development opportunities, and enhancing both financial and non-financial reward systems to improve employee retention
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Talent management, employee retention, talent planning, selection, placement, training, development, compensation, Awash Bank, Ethiopia.