TRAINING EFFECTIVENESS AND EMPLOYEE RETENTION IN THE TELECOM SECTOR: AN SEM APPROACH

Abstract

This paper analyzes the importance of training quality in enhancing the performance and retention of employees in the telecommunication industry; therefore, the mediating effects of learning application, motivation, and engagement, and perceived performance impact will be identified. Based on the Social Exchange Theory and the Human Capital Theory, the structured survey was conducted on 372 employees in the telecom industry, and the data were interpreted using Structural Equation Modeling (AMOS). Ex-post Factor ANOVA revealed high construct validity and model fit. The results of the structure show that the quality of training has a notable positive impact on the learning application and the motivation and engagement of the employees. Perceived performance impact is strongly predicted by learning application and both engagement and performance improvements have a positive impact on retention and loyalty. The mediation analysis proves that the training outcomes work not directly, but mainly by two mechanisms behavioral transfer and psychological reciprocation. The results are a combined explanation of turning training investments into sustained organizational values in technology intensive settings. In practice, the research demonstrates that strategic-designed training programs with the help of the transfer-enhancing practice can help to increase the performance of the workforce and decrease the level of attrition in the telecom industry.