Talent management and employee retention: role of employee development

Purpose This study sought to assess the mediating role of employee development in the relationship between talent management and employee retention among small- and medium-sized enterprises (SMEs). Design/methodology/approach The study adopted a cross-sectional research design and survey approach. A structured questionnaire was used to collect data from 289 SME employees in the Ashanti Region of Ghana. Data collection was confined to SMEs in the Ashanti region, representing a significant portion of Ghana's SME employee landscape. Structural equation modeling (SEM) was used as the analysis technique and Amos (v.23) was used as the analysis software. Findings The findings revealed that talent management has a significant positive effect on employee retention. Also, talent management was discovered to have a significant positive effect on employee development. Additionally, the study found that employee development influences employee retention positively and significantly. Furthermore, the results demonstrated that employee development partially mediates the relationship between talent management and employee retention. Practical implications SMEs should prioritize employee development programs such as regular training, mentorship, and career advancement opportunities, as these initiatives have been shown to improve job satisfaction and loyalty. By investing in both talent management and employee development, SMEs can build a more committed and motivated workforce to reduce turnover rates, and ultimately improve their long-term competitiveness and sustainability. Originality/value This study contributes original insights by empirically examining the mediating role of employee development in the relationship between talent management and employee retention within SMEs in Ghana an area that remains underexplored in current literature. By focusing on SMEs in an emerging economy, this study provides context-specific evidence that advances understanding of how internal developmental practices shape retention outcomes. This mediation perspective and the localized empirical data fill a clear gap in research and offer novel implications for HRM theory and SME practice.