Talent Retention and Organizational Sustainability: A Theoretical Study on HRM Practices and Financial Performance in Emerging Economies

Abstract

This theoretical study explores the interrelationship between talent retention, organizational sustainability, and financial performance through the lens of human resource management in the context of emerging economies. Amidst growing attention toward sustainable development and responsible corporate practices, the role of human resource strategies in supporting both employee-centric and organizational outcomes has become increasingly vital. Drawing from multiple theoretical traditions, including resource-based, human capital, sustainable management, and institutional perspectives, this study presents a comprehensive conceptual model. The model positions talent retention as a mediating force that links human resource practices to long-term sustainability and financial performance, while emphasizing the moderating role of institutional context within less developed markets. The study makes key theoretical contributions by integrating micro-level retention strategies with macro-level performance outcomes and by highlighting the importance of contextual sensitivity in human resource research. The implications are twofold: practitioners are encouraged to design strategic human resource frameworks that align with ethical and economic goals, while policymakers are urged to strengthen institutional infrastructures to foster more sustainable workforce systems. While the study remains conceptual, it offers a strong foundation for future empirical exploration. The framework also sets the stage for more inclusive and globally relevant human resource research that bridges the gap between theory and real-world application in underrepresented economic environments.