Impact of Talent Management on Employee Retention and Motivation: A Study on H&M

This research evaluates the impact of talent management strategies on the retention and motivation of employees in H&M. It explains the conceptual framework of talent management, employee retention, and employee motivation. The methodology used is deductive approach, systematic literature review, and quantitative research methodology. The findings are presented through frequency distribution tables.

RESEARCH
PROJECT

Contents
RESEARCH PROJECTContents...................................................................................................1
Chapter One: Introduction...............................................................................................................4
1.1Research Aim and Rationale..................................................................................................4
1.2 Research Questions................................................................................................................5
1.3 Research Objectives...............................................................................................................5
1.4 Significance of the Research.................................................................................................5
CHAPTER TWO: LITERATURE REVIEW..................................................................................6
2.1 Introduction of Literature Review.........................................................................................6
2.2 Main Body.............................................................................................................................6
Explain the conceptual framework of talent management, employee retention and employee
motivation?..................................................................................................................................6
Discuss the impact of talent management for employee retention?............................................6
Explain the talent management strategies used by H&M to retain and motivate their
employee?....................................................................................................................................7
What are the challenges faced by H&M while adopting the talent management strategy in their
workplace?...................................................................................................................................7
2.3 Conclusion of Literature Review...........................................................................................8
Chapter Three: Methodology...........................................................................................................9
3.1 Research Approach................................................................................................................9
3.2 Research Strategy..................................................................................................................9
3.3 Research Methodology..........................................................................................................9
3.4 Research Tools.......................................................................................................................9
3.5 Sampling..............................................................................................................................10
3.5.1 Identifying Population and Research Site.........................................................................10
3.5.2 Sampling Strategy.............................................................................................................10
Chapter Four: Findings (Data Analysis and Presentation)............................................................11
4.1 Frequency Distribution Table..............................................................................................11
4.2 Data Presentation.................................................................................................................12
Chapter Five: Discussion (Data Interpretation).............................................................................18
5.1 Data Interpretation...............................................................................................................18

Chapter Six: Conclusion, Recommendations and Implications for Further Research..................21
Conclusion.................................................................................................................................21
Recommendations......................................................................................................................22
Implications for Further Research.............................................................................................23
References......................................................................................................................................24
APPENDIX....................................................................................................................................25
Questionnaire.............................................................................................................................25

Chapter One: Introduction
Overview of the topic
Talent management is a process within an organisation that helps in retention and motivation of
employees. It is a systematic procedure that assists in the attraction, recruitment and
development of the employees in the workplace. Basically, this is linked to the management of
employees in the organisation so that they can feel satisfied in the workplace. Under talent
management, companies give great importance to employee motivation in the organisation
because this is directly connected to encourage employees (Narayanan, Rajithakumar and
Menon, 2019). The present investigation aims at collecting data about the impact of talent
management strategies on the retention and motivation of employees in the company. This also
includes various kinds of talent management strategies to retain talented employees in the
workplace (Anlesinya, Dartey-Baah and Amponsah-Tawiah, 2019).
The chosen company for the present research is H&M. It is a Swedish multinational
clothing organisation. The headquarters of the organisation is suiated in Stockholm. The brand is
famous for its fast-fashion clothing children, teenagers, women and men. The company was
founded in the year 4 October, 1947 in Vasteras, Sweden. The founder of the organisation is
Erling Persson.
1.1Research Aim and Rationale
Research Aim
To evaluate the impact of talent management on employee retention and motivation: A
study on H &M
Research Rationale
The major reason behind conducting the current investaigation is to develop
understanding in context of talent management and its role within talent retention and
motivation. Talent management is considered as one of the major tool and this can be used by all
the businesses for the major purpose of motivating employees in such a way that employee may
contribute their fuller skills and capabilities in attaining business objectives. Using effective
talent management in an organisation employee turnover can be reduced and at the same time
skills and capabilities of employees can also be developed (Ziegler and Stoeger, 2019). The
choice of selecting this research topic is based on two vital perspectives that are personal and

professional. In respect to personal using this research, the researcher is able to increase extent of
various skills that are anlaytical skills, problem solving skills and many others. Whereas in terms
of professional perspective the research is going to assist the researcher in executing future
researches in desired and optimal manner.
1.2 Research Questions
 Explain the conceptual framework of talent management, employee retention and
employee motivation?
 Discuss the impact of talent management for employee retention?
 Explain the talent management strategies used by H&M to retain and motivate their
employee?
 What are the challenges faced by H&M while adopting the talent management strategy in
their workplace?
1.3 Research Objectives
 To understand the conceptual framework of talent management, employee retention and
employee motivation.
 To identify the impact of talent management for employee retention.
 To discern the talent management strategies used by H&M to retain and motivate their
employee.
 To discuss the challenges faced by H&M while adopting the talent management strategy
in their workplace.
1.4 Significance of the Research
The present investigation is important because it covers detailed information about the detailed
information about talent management, motivation and retention of employees in the organisation.
The research is significant for researchers, students, organisations etc. The present research is
important for future researchers because they can easily collect information through this existing
research. This investigation will act secondary source for future researchers. On the other hand,
this investigation is also significant for organisations because this will give data about talent
management strategies used by large scale companies (Gupta, 2019). Therefore, investigation is
of great significance because this facilitates in the attainment of objectives and aim.

CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction of Literature Review
Literature review gather data related with selected topic using different secondary sources
such as publications, articles, books and various others. This is helpful in developing summary
related to research topic using different sources.
2.2 Main Body
Explain the conceptual framework of talent management, employee retention and employee
motivation?
According to the viewpoint of Crane and Hartwell (2019), talent management is regarded
as the method which is associated with giving full scope to HR and helps the organisation to
grow their employees in such a manner that employee retention can be enhanced. Talent
management is aimed at improving business performance in appropriate manner so that overall
productivity can be developed. Talent management is used within the organisation for the
purpose to recruit, retain and produce most talented employees within the workplace. This is
analysed that talent management is accumulation of various methods and processes and these are
used by the organisation for the purpose of acquiring benefits in context of business problems.
Talent management is a strategic approach which is used within the business for the major
purpose of managing workforce. This is a process by which an organisation get power to
assemble their optimal workforce in order to manage business needs in proper manner. Talent
management is used for the major purpose of talent retention and in this way when an
organisation is able to manage the HR functions then they will be able to enhance employee
retention as well (Pillai and Sivathanu, 2020). Employee motivation is regarded as the major
terminology which is used within the business so that to develop such involvement of
employees. For an organisation this is important that to have a degree of employee motivation so
that overall workplace productivity can be enhanced and at the same time determination can be
created within employees.
Discuss the impact of talent management for employee retention?
According to Sivathanu and Pillai (2019), talent management is defined as that measure
and tool that are used within the organisation in order to motivate employees and to retain them
for longer duration of time. When an organisation is having effective talent management system

then this will lead into improving overall performance and in the same manner employee
engagement can also be developed. The outcome for talent management is related with
improving employee retention as when employees are satisfied then this will develop their
involvement into the organisation which will automatically increase employee retention as well
(Kiragu, Kipkebut and Kipchumba, 2019). On the other hand, this can be said that with the help
of significant talent management practices employee will feel valued and this assist them in
giving their skills in appropriate manner.
Explain the talent management strategies used by H&M to retain and motivate their employee?
As per the perception of van Hoek, Gibson and Johnson (2020), there are various talent
management strategies which are being used within the organisation and these are effectively
used in order to control various functions in effective manner. Some of the talent management
strategies are stated as below:
Increase employee motivation: Employee motivation is regarded as that intrinsic force which is
related with moving employee forward in the direction of performing their level best so that they
can contribute in managing business functions.
Providing career development path: In the context of talent management providing career path
is considered as one of the significant method which is helpful for the organisation to manage
their employees and retain them as well. When employees are happy at their workplace then this
is the situation when their retention will increase and in the same manner higher power can be
given to them (Pagan-Castaño and et. al, 2022).
What are the challenges faced by H&M while adopting the talent management strategy in their
workplace?
According to the analysis of Crane and Hartwell (2019), there are various challenges
which are being faced by organisation at the time of adopting talent management strategies. The
major challenge is related with encouraging of employee passion which means that employee
face issues when they are not able to get such platform to manage their skills and capabilities. On
the other hand, another challenge is related with embracing new interests which means that
employees face issues in managing their business functions within the organisation. Similarly,
another challenge is related with attracting new talent as this is a difficult for the employees to
manage such aspects (Mavi and et. al, 2019).

2.3 Conclusion of Literature Review
From the above discussion this can be concluded talent management is regarded as one of
the major prospectus within the business which is helpful in managing various business functions
such as retaining and attracting employees. Talent management is accumulation of such practices
which are linked with improving employees experience within the organisation so that to retain
them and to use their skills and capabilities within business functions as well.

Chapter Three: Methodology
3.1 Research Approach
It is the research method that praovide certain ideologies and principles for analysing
information in a systematic way. It is divided in two kinds that are: inductive and deductive
approach. Researcher has selected deductive approach because it is directly linked to the
evaluation of numerical piece of information (Wagire, Rathore and Jain, 2019). The current
research is based on quantitative data. The main advantage of using deductive approach is it only
focuses on information that is in numeric form and it does not take longer time duration.
3.2 Research Strategy
It is the method by which investigator gather apt data to meet research objectives in a systematic
way. There are various types of strategies that are systematic literature review, survey, action
research, experimental research (Gorczynski and Fasoli, 2020). Researcher has used systematic
literature review for taking out information which is available in secondary form from available
and published data. Survey is also considered to accumulate numerical data without consuming
maximum time.
3.3 Research Methodology
The methodology helps in gathering right kind of information for attaining aim and objectives of
the research. This is categorised in two forms which are qualitative and quantitative research
methodology (Staron, 2020). Investigator has chosen quantitative research methodology so that
numerable data can be assembled and objectives could be met with statistical facts and figures.
The advantage of quantitative methodology is that it depends on fewer variables and concrete
numbers. The other greatest benefit is that it is easier in obtaining large sample sizes.
3.4 Research Tools
Data collection is one of the research tools that facilitates in accumulating data to attain
objectives. This is of two vital kinds that are: primary and secondary data collection method.
Primary data collection is selected for the accumulation of raw information from the help of
questionnaire. This kind of information is carried out for the very first time and holds major
importance in the achievement of pre-defined objectives (Lohr, 2021). On the other hand,
secondary data collection is also considered for assembling second-hand data from the sources
like books, articles, newspaper, journals and publications.

3.5 Sampling
It is the technique that facilitates in choosing right number of respondents so that right
information can be assembled. This is categorised in two forms that are: probability and non-
probability sampling. Researcher has chosen probability sampling for selecting large number of
representatives (Gill, 2020).
3.5.1 Identifying Population and Research Site
The present research is directed in the United Kingdom. 30 employees are selected from
H&M because they can only provide right information about the motivation strategies and talent
management strategies.
3.5.2 Sampling Strategy
The sampling strategy used in the current investigation is random sampling method. This
facilitates in doing research by giving equal opportunities to each and every selected respondent.
It also helps in getting maximum piece of information for attaining research objectives and aim.

Chapter Four: Findings (Data Analysis and Presentation)
Data analysis and presentation is the chapter in which assembled information through primary
and secondary sources is systematically analysed (Anlesinya and Amponsah-Tawiah, 2020). In
the present investigation frequency distribution analysis is considered for evaluating and
analysing numerical information. MS-Excel is also considered by
4.1 Frequency Distribution Table
Q1) Do you have knowledge that H&M has the strategy of motivating
employees in the workplace?
Frequency
a) Yes 28
b) No 2
Q2) As per your perspective, is it necessary to motivate the whole
workforce in the organisation?
Frequency
a) Yes 25
b) No 5
Q3) According to your opinion, what is the major purpose of motivating
employees in H&M?
Frequency
a) To improve work-life balance 8
b) To drive energy and commitment 12
c) To encourage employees 6
d) To retain talent 4
Q4) According to your perspective, what is the best type of motivation
scheme used by H&M to retain and motivate talent?
Frequency
a) Providing rewards and benefits 8
b) Promoting workplace transparency 6
c) Recognising and celebrating achievements 5
d) Providing work-life balance 4
e) Giving moral support 7
Q5) Do you think providing work-life balance helps H&M to retain their
employees?
Frequency
a) Yes 24

b) No 6
Q6) As per your view, what is the major challenge faced by H&M not
giving enough importance to staff motivation schemes?
Frequency
a) High employee turnover 7
b) Poor organisational communication 5
c) Minimise market coverage 4
d) Unachieved goals and targets 9
e) Conflicts and disputes between employee and employer 5
Q7) Do you think when employees leave the organisation, it negatively
impacts the brand image of H&M in the market?
Frequency
a) Yes 27
b) No 3
Q8) As per your knowledge, what is the main benefit experienced by
H&M with the adoption of different motivation schemes?
Frequency
a) Lower employee turnover 8
b) Generation of new ideas 6
c) Motivated and encouraged workforce 10
d) Attainment of company’s objectives 6
4.2 Data Presentation
Q1) Do you have knowledge that H&M has the strategy of motivating
employees in the workplace?
Frequency
a) Yes 28
b) No 2

Q2) As per your perspective, is it necessary to motivate the whole
workforce in the organisation?
Frequency
a) Yes 25
b) No 5
Q3) According to your opinion, what is the major purpose of motivating
employees in H&M?
Frequency

a) To improve work-life balance 8
b) To drive energy and commitment 12
c) To encourage employees 6
d) To retain talent 4
Q4) According to your perspective, what is the best type of motivation
scheme used by H&M to retain and motivate talent?
Frequency
a) Providing rewards and benefits 8
b) Promoting workplace transparency 6
c) Recognising and celebrating achievements 5
d) Providing work-life balance 4
e) Giving moral support 7

Q5) Do you think providing work-life balance helps H&M to retain their
employees?
Frequency
a) Yes 24
b) No 6

Q6) As per your view, what is the major challenge faced by H&M by
not giving enough importance to staff motivation schemes?
Frequency
a) High employee turnover 7
b) Poor organisational communication 5
c) Minimise market coverage 4
d) Unachieved goals and targets 9
e) Conflicts and disputes between employee and employer 5
Q7) Do you think when employees leave the organisation, it negatively
impacts the brand image of H&M in the market?
Frequency
a) Yes 27
b) No 3

Q8) As per your knowledge, what is the main benefit experienced by
H&M with the adoption of different motivation schemes?
Frequency
a) Lower employee turnover 8
b) Generation of new ideas 6
c) Motivated and encouraged workforce 10
d) Attainment of company’s objectives 6

Chapter Five: Discussion (Data Interpretation)
5.1 Data Interpretation
Theme 1: Knowledge that H&M has the strategy of motivating employees in the workplace
Interpretation: With the above assembled data in the tabular form, it is interpreted that out of 30
respondents, 28 respondents have said yes that they have knowledge that H&M has the
strategy of motivating employees in the workplace. They have great information about this
as they their company motivates and encourages them. The rest 2 respondents have said no
that they do not have knowledge regarding this because they are at their learning phase and
they are learning about these strategies.
Theme 2: Necessary to motivate the whole workforce in the organisation
Interpretation: With the mentioned tabular data, it can be easily evaluated that 25
representatives have said yes that it is necessary to motivate the whole workforce in the
organisation because this creates mind-set among employees that their efforts are very
necessary. They said that it is vital because it is directly connected to improve the efforts of
employees. The rest 5 representatives have said no that it is not necessary for motivating
employees because these people are already encouraged towards their work.
Theme 3: Major purpose of motivating employees in H&M
Interpretation: According to the assembled data, it is evaluated that there are total 30
participants and out of these participants, 8 respondents have said that to improve work-life
balance is the major purpose of motivating employees in the workplace. When organisation
provides work-life balance to employees then their concentration power gets increased
towards their work. The other 12 respondents have said that driving energy and commitment
is the other purpose to motivate employees because this makes employees to perform their
roles and responsibilities. Another 6 respondents have said that encouraging employees is
the main purpose of motivating employees as this makes employees to do their work with
greater efficiency and effectiveness. The rest 4 respondents have said that for retaining
talent, company uses motivation strategies in the workplace. This helps in saving the cost of
the company by retaining existing employees.

Theme 4: Best type of motivation scheme used by H&M to retain and motivate talent
Interpretation: With the above assembled data, it is analysed that 8 respondents have answered
that providing rewards and benefits is the best motivation strategy because this helps in
increasing the monetary benefits of employees. The other 6 respondents have said that
promoting workplace transparency is the other best kind of motivation scheme because this
helps in sharing information at right time to each employee. Another 5 respondents have
said that recognising and celebrating achievements helps in improving the social status of
the employees and when this happens then they do their role with great responsibility. The
rest 4 respondents have said that providing work-life balance is the other greatest strategy of
motivating employees because this makes them manage their personal and professional life.
The rest 7 respondents have said that giving moral support is the best strategy because this is
directly linked to provide them constant guidance and support.
Theme 5: Providing work-life balance helps H&M to retain their employees
Interpretation: With the assembled piece of information, it can be interpreted that 24
respondents have said yes that work-life balance helps H&M to retain their employees
because this assists them in making coordination between their personal and professional
life. The rest 6 respondents have answered no that providing work-life balance does not help
in retaining employees because there are other expectations and needs of employees while
working in the workplace.
Theme 6: Major challenge faced by H&M by not giving enough importance to staff motivation
schemes
Interpretation: From the above data, it is analysed that 7 respondents have said that high
employee turnover is the main challenge due to absence of staff motivation schemes.
Employees leave the organisation when they do not feel motivated. Another 5 respondents
said that poor organisational communication is the main challenge because their needs and
requirements are not actually communicated to right people. The other 9 respondents have
said that unachieved targets and goals is the main challenge because employees leave
organisation and existing employees do not perform their roles with great efficiency. The
remaining 5 respondents said it gives emergence conflicts between employees and
employers in the organisation.

Theme 7: Negatively impacts the brand image of H&M in the market
Interpretation: As per the assembled data, it is analysed that 27 respondents said yes that when
employees leave the company then it negatively impacts the brand image because they
spread negative word of mouth. The remaining 3 respondents answered no that it does not
negatively impacts the image of the company because sometimes employees because of
their own reason.
Theme 8: Main benefit experienced by H&M with the adoption of different motivation
schemes
Interpretation: From the accumulated data, it is interpreted that 8 respondents have said that
lower employee turnover is the main benefit for the company by adopting different
motivation schemes because they are motivated enough. The other 6 respondents have said
that generation of new ideas is the main benefit because more satisfied employees means
more new ideas to carry out activities of the business. Another 10 respondents have
answered that motivated workforce is the most important benefits because this is the main
purpose of motivating employees. The rest 6 respondents have said that attainment of
company’s objectives by adopting various motivation strategies.

Chapter Six: Conclusion, Recommendations and Implications for Further
Research
Conclusion
From the above accumulated data, it is concluded that retention of employees is necessary
for a company because it directly impacts its performance and success. Talent management is the
practice that is concerned about retention and development of employees in an enterprise. It
provides different kinds of talent management strategies so that different practices can be
adopted by an organisation. Talent management is directly connected with retention and
motivation of employees in the company. Employees are retained in an enterprise by using
different motivation strategies such as training and developments, more career development
opportunities, rewards and incentives and many more.
Organisation also focuses on understanding the needs and requirements of employees in
such a manner that their satisfaction level can be improved in the workplace in relation to their
assigned roles and responsibilities. This report has also carried out challenges faced by an
enterprise while adopting different talent management and motivation strategies in the workplace
such as resistance of employees to learn new technologies or skill, lack of effective
communication channels, lack of clarity about expectations of employees from the company,
disputes between employee and manager and many more. The strategies of talent management is
directly connected to the development and retention of skilled employees in the organisation.
The motivation strategies help in increasing the commitment level among workforce in relation
to their work and objectives of the company. The talent management and motivation strategies
help employees to deal with uncertain situations without any difficulty. Therefore, the present
investigation has carried out detailed information about the strategies of motivation and talent
management in the organisation.
This report has also covered quantitative research methods for the collection of data in a
systematic way. This has included primary and secondary sources for collecting raw and second-
hand data respectively. Questionnaire had developed for the accumulation of raw information
and books; articles had helped in assembling second-hand data. Frequency distribution had
selected to analyse and evaluate information which is available in numerical form. Therefore, the

present investigation is of great significance because it has great piece of information about the
concept of talent management and motivation strategies in an organisation.
Recommendations
As per the assembled data, it is interpreted that H&M faced certain challenges in the
absence of talent management and motivation strategies in the workplace. Some of the important
recommendations suggested to H&M in respect of talent and motivation strategies are:
 H&M should focus more on offering career developmental opportunities to its personnel
for reducing and satisfying employee turnover rates in the workplace. This will assist the
whole workforce in improving their existing skills as well as knowledge and learn
information about new technologies. When employees get developmental opportunities in
the workplace then they perform their roles and responsibilities with more efficiency and
effectiveness.
 H&M should also focus on developing talent management strategies that majorly focuses
on the recruitment procedure of the company. This recruitment procedure will help in
hiring diverse employees for the organisation and this ultimately gives way to generate
new ideas for the development and success of the company. This will encourage whole
workforce to work for the attainment of pre-defined targets and objectives of the
organisation. This will help in building mind-set among employees that an organisation
treats every employee irrespective of their gender, religion etc.
 H&M should concentrate on eliminating all those things that directly or indirectly
contribute in the creation of negative working environment. This will assist in reducing
the employee turnover rates in the organisation and also help in creating building things
that assist in creation of positive working environment.
 H&M should also arrange training sessions for employees’ time to time so that they get
chance to upgrade their knowledge and talent in the workplace. This will help in building
confidence in the workforce that they are capable of doing their work with greater
efficiency and effectiveness. Hence, employees do their work with more efforts as their
knowledge gets increased when they are provided with trainings.
Implications for Further Research
The existing research is of great importance as it has taken help of primary as well as
secondary research methods to meet pre-determined objectives and address defined research

questions. This investigation is also helpful for future researchers for conducting research on the
topic of talent management. The present research is conducted through questionnaire but in
future research can be completed with the help of conducting interview. Interview will also assist
in carrying in-depth information about the topic.

References
Books and Journals
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interaction between human and social capital. Journal of World Business. 54(2). pp.82-
92.
Crane, B. and Hartwell, C.J., 2019. Global talent management: A life cycle view of the
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APPENDIX
Questionnaire
Q1) Do you have knowledge that H&M has the strategy of motivating employees in the
workplace?
a) Yes
b) No
Q2) As per your perspective, is it necessary to motivate the whole workforce in the organisation?
a) Yes
b) No
Q3) According to your opinion, what is the major purpose of motivating employees in H&M?
a) To improve work-life balance
b) To drive energy and commitment
c) To encourage employees
d) To retain talent
Q4) According to your perspective, what is the best type of motivation scheme used by H&M to
retain and motivate talent?
a) Providing rewards and benefits
b) Promoting workplace transparency
c) Recognising and celebrating achievements
d) Providing work-life balance
e) Giving moral support
Q5) Do you think providing work-life balance helps H&M to retain their employees?
a) Yes
b) No
Q6) As per your view, what is the major challenge faced by H&M by not giving enough
importance to staff motivation schemes?
a) High employee turnover
b) Poor organisational communication
c) Minimise market coverage
d) Unachieved goals and targets

e) Conflicts and disputes between employee and employer
Q7) Do you think when employees leave the organisation, it negatively impacts the brand image
of H&M in the market?
a) Yes
b) No
Q8) As per your knowledge, what is the main benefit experienced by H&M with the adoption of
different motivation schemes?
a) Lower employee turnover
b) Generation of new ideas
c) Motivated and encouraged workforce
d) Attainment of company’s objectives