Assessing the relationship between AMO framework and talent retention: role of employee engagement and transformational leadership

PurposeThis paper analyzes the impact of the perceived ability motivation opportunity (AMO) framework on talent retention via employee engagement, which act as a mediator. Moreover, the study also explores the moderating role of transformational leadership between employee engagement and talent retention.Design/methodology/approachThe survey responses were gathered from 360 frontline employees of five-star hotels in the Indian hospitality industry. Structural equation modeling using SMART PLS-4 was used to test the measurement model, construct reliability and validity, and hypotheses were tested using partial-least square structural equation modeling.FindingsThe study results demonstrate that AMO-enhancing HR practices positively affect talent retention. Concerning the indirect effects, results indicate that employee engagement partially mediates the relationship between the perceived AMO framework and talent retention. The moderating effect of transformational leadership on the relationship between employee engagement and talent retention showed a significant interaction effect.Practical implicationsThe study results suggest that hospitality organizations must focus on effectively designing and implementing HRM bundles catering to their employees’ abilities, motivation and desired opportunities. Also, industrial practitioners must focus on nurturing the transformational leadership style to ensure higher employee engagement and talent retention.Originality/valueThe paper offers significant implications for the hospitality industry struggling to retain talented professionals. Also, the study provides a comprehensive framework that suggests a positive influence of the AMO framework on talent retention among hospitality employees in the context of developing countries, in which there is minimal empirical research.