Talent Management Proven to Boost Employee Retention in Bangladesh’s IT Sector
A 2026 study by Rashed Mahmud Shakil and colleagues from Uttara University Bangladesh and BGC Trust University Bangladesh reveals that structured talent management significantly improves employee retention in Bangladesh’s fast-growing IT industry. Published in the International Journal of Asian Business and Management, the research highlights how companies can reduce high turnover rates by strengthening employees’ connection to their workplace. The findings matter as Bangladesh’s IT sector continues rapid expansion while struggling to keep skilled professionals.
Bangladesh’s IT industry has become a key economic driver, contributing over USD 1 billion annually and employing more than 400,000 workers. Growth is projected to exceed 20 percent each year. However, this expansion has intensified competition for skilled talent, making employee retention a major concern for companies aiming to sustain productivity and innovation.
Against this backdrop, the research led by Rashed Mahmud Shakil focuses on how talent management strategies influence employee retention, both directly and indirectly. The study introduces job embeddedness—a concept describing how strongly employees feel connected to their organization—as a crucial factor that explains why workers stay.
Simple Survey-Based Research Approach
The research uses a quantitative survey of 250 full-time IT employees working in major cities such as Dhaka and Chittagong. Participants responded to structured questionnaires measuring three main areas: talent management practices, job embeddedness, and employee retention.
To analyze the data, the researchers applied statistical modeling techniques that identify relationships between variables. This approach allowed the team to test both direct effects—such as how talent management influences retention—and indirect effects through job embeddedness.
Key Findings at a Glance
The study presents clear and measurable results:
- Talent management directly improves employee retention
- Talent management strengthens job embeddedness
- Job embeddedness significantly increases employee retention
- Job embeddedness acts as a mediator, explaining how talent management leads to retention
Key statistical results include:
- Direct impact of talent management on retention: β = 0.251
- Impact on job embeddedness: β = 0.325
- Job embeddedness impact on retention: β = 0.364
- Indirect (mediated) effect: β = 0.136
These findings confirm that companies cannot rely solely on incentives or salaries. Instead, long-term retention depends on how deeply employees feel connected to their work environment.
Why Employees Stay: The Role of Job Embeddedness
Job embeddedness emerges as a central concept in the study. It reflects three key dimensions:
- Links: relationships with colleagues and supervisors
- Fit: alignment with organizational culture and values
- Sacrifice: perceived losses if leaving the job
Employees with strong connections, cultural alignment, and perceived career benefits are significantly less likely to leave.
Rashed Mahmud Shakil of Uttara University Bangladesh explains that when organizations invest in employee development and supportive leadership, “employees reciprocate with stronger attachment and long-term commitment.” This insight is grounded in Social Exchange Theory, which views workplace relationships as mutual exchanges of value.
Real-World Impact for Businesses and Policymakers
The findings carry important implications for business leaders, HR professionals, and policymakers:
For IT Companies:
- Develop clear career pathways and promotion systems
- Offer continuous training and skill development programs
- Build supportive leadership and mentoring systems
- Foster teamwork and collaborative culture
- Provide both financial and non-financial benefits
For Policymakers:
- Encourage workforce development programs
- Support certification and professional training initiatives
- Promote sustainable employment practices in the tech sector
Companies that focus on employee engagement and belonging—not just compensation—are more likely to retain top talent.
A Shift in Talent Strategy
The study emphasizes that talent management should be viewed as a long-term relationship rather than a short-term HR function. Organizations that actively invest in employees’ growth, recognition, and well-being create a sense of obligation and loyalty.
This approach is particularly relevant in developing economies like Bangladesh, where rapid industry growth often outpaces workforce stability. By integrating talent management with job embeddedness strategies, companies can build a more resilient and committed workforce.
Academic Contribution
The research also contributes to academic knowledge by combining Social Exchange Theory with job embeddedness. It provides a clearer explanation of how organizational support translates into employee loyalty.
By identifying job embeddedness as a mediating factor, the study fills a gap in previous research and offers a more nuanced understanding of employee retention mechanisms.
Author Profile
Rashed Mahmud Shakil is a researcher at Uttara University Bangladesh specializing in human resource management and organizational behavior. He collaborated with Md. Nizam Uddin from BGC Trust University Bangladesh, along with Sadia Arobi, Nusrat Jahan Shaila, and Md. Abu Talha from Uttara University Bangladesh. The research team focuses on talent management, employee engagement, and workforce sustainability in developing economies.
Source
Journal: International Journal of Asian Business and Management (IJABM)
Year: 2026
DOI: https://doi.org/10.55927/ijabm.v5i2.7
URL : https://journalijabm.my.id/index.php/ijabm/index
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