The Influence of Talent Management Practices on Employees' Intention to Stay in Chinese Private Enterprises: Evidence from a PLS-SEM Study

Abstract

This study examines the influence of four talent management practices—training and development, compensation and rewards, career growth opportunities, and employee recognition—on employees' intention to stay in Chinese private enterprises. The study responds to the growing retention challenge faced by private firms operating in a labour market characterised by high employee mobility, competition for skilled workers, changing career expectations, and competition with state-owned and multinational organisations. Drawing on Human Capital Theory, Social Exchange Theory, and the Resource-Based View, a quantitative cross-sectional survey was conducted with 384 full-time employees from private enterprises in manufacturing, technology, retail, and e-commerce across eight Chinese cities. The measurement and structural models were assessed using Partial Least Squares Structural Equation Modelling in SmartPLS 4, following preliminary data screening and descriptive analysis in SPSS. The measurement model demonstrated satisfactory psychometric quality: outer loadings ranged from 0.781 to 0.861, Cronbach's alpha from 0.895 to 0.912, composite reliability from 0.922 to 0.935, and average variance extracted from 0.680 to 0.732. All four hypothesised relationships were positive and statistically significant. Career growth opportunities were the strongest predictor of employees' intention to stay (β = 0.431, t = 8.94, p < 0.001), followed by compensation and rewards (β = 0.257, t = 5.68, p < 0.001), employee recognition (β = 0.154, t = 3.47, p < 0.001), and training and development (β = 0.140, t = 3.05, p = 0.002). The model explained 50.3% of the variance in intention to stay (R² = 0.503), demonstrated predictive relevance (Q² = 0.347), and achieved satisfactory model fit (SRMR = 0.061). The findings show that retention in Chinese private enterprises is best understood as the outcome of an integrated talent management system, with visible long-term career pathways playing a particularly decisive role. The study contributes context-specific evidence for Chinese private enterprises and provides practical guidance for prioritising career development, competitive reward systems, meaningful recognition, and continuous employee development.