Navigating the Talent Retention Puzzle: The Role of Workgroup Identification and On-the-Job Embeddedness

Abstract

Organizations implement talent management (TM) programs to improve retention. However, results are mixed on whether these programs reduce talent turnover. Applying the social identity theory, we predicted that talent nomination in a TM program reduces workgroup identification and increases turnover intention. We also hypothesized that on-the-job embeddedness mitigates this unintended effect. Our three-wave survey study, conducted over 2 years with 352 employees at a multinational machinery manufacturing company in China, included 45 employees recently identified as talents. Results showed that talents had lower workgroup identification than their non-talent peers, but this did not lead to higher turnover intention. We found that on-the-job embeddedness had a moderating role: talents with low embeddedness reported lower workgroup identification and higher turnover intention than non-talents, whereas those with high embeddedness showed no such difference. This study highlights that TM programs can prompt thoughts of leaving among talents; however, job embeddedness can buffer these negative effects.