A Conceptual Model of Talent Acquisition, Development, and Retention in the Service Sector

Abstract

This theoretical paper advances a lifecycle model of talent acquisition, development, and retention that provides the idea of how these three stages are strategically related in service organizations. This framework is based on the premise that, using the Social Exchange Theory, Theory of a psychological contract., and the Job Demands-Resources (JD-R) Model, learning culture, leadership support, and psychological contract fulfillment together determine sustainable workforce stability in the service industry. The model emphasizes mediating functions of the perceived organizational support and employee engagement as being very important in connecting the talent management practices with the outcomes of retention. The paper is a synthesis of current empirical results in the years between 2021-2026, and also presents ten empirical propositions, which can be tested in future empirical studies regarding service-sector settings. The gap that the presented framework helps to fill in the literature is the combination of traditionally fragmented functions of talent management into one comprehensive system which takes into account the specifics of service industries, where human capital is the main source of competitive advantage. Both research and practice implications have been discussed, with a specific focus on the need to create evidence-based interventions, which would help organizations to attract, nurture, and retain critical talent in the current competitive labor market.