Investigating the Effect of Talent Management Practices on Employee Retention in the Nigerian Oil and Gas Industry

Talent management is critical for retaining skilled professionals in Nigeria's technically demanding oil and gas industry, where competition from international operators and alternative career paths creates high voluntary turnover risks. This study investigated the effect of talent management practices on employee retention in 18 oil and gas companies operating in the South South and South West zones, covering Rivers, Delta, Bayelsa, Lagos, and Ondo States. Talent management practices assessed included talent identification and profiling, development investment, succession pipeline management, performance differentiation, and recognition and reward customisation for high-potential employees. Employee retention was measured by 3-year retention rate for high-potential employee cohorts identified by companies, and voluntary turnover intention for current employees. Data were collected from 300 HR professionals and high-potential employees through structured questionnaires. Structural equation modelling and survival analysis were employed. Results showed that development investment was the strongest predictor of retention intention (path coefficient = 0.53, p < 0.001). Succession pipeline inclusion significantly reduced voluntary turnover intention (OR = 0.31, p < 0.001). Performance differentiation showed a positive effect on engagement but a more modest direct retention effect. Recognition customisation for high-potential employees improved retention rates by 23% in companies with such programmes. Retention effects of talent management were significantly stronger for employees with more than 5 years of industry experience. The study recommends that oil and gas companies in the Niger Delta prioritise succession pipeline inclusion and development investment as the most impactful retention interventions for scarce technical talent. Keywords: talent management, employee retention, oil and gas industry, Niger Delta, succession pipeline