Generational challenges to talent management: A framework for talent retention based on the psychological-contract perspective

In this conceptual paper, we adopt a social-exchange theory perspective to explain the impact of talent management (TM) on the psychological contract and its outcomes. This relationship is supposedly moderated by generational effects and associated differences in work-related values and preferences. Thus, often-neglected individual-level variables are included in the analysis. A framework and testable propositions are provided. As a result, we propose that in contexts where a war for talent prevails, the strong interest of Generations X and Y in training, development, and career advancement makes highly engaged and extensive TM activities even more crucial for retaining talented individuals than is the case for the so-called Baby Boomer generation. 2013 Elsevier Inc. All rights reserved. * Corresponding author. Tel.: +49 30 32007153; fax: +49 30 32007189. E-mail addresses: [email protected] (M. Festing), [email protected] (L. Schäfer). 1 Tel.: +49 30 32007168; fax: +49 30 32007189.