LAUSR

Purpose The purpose of this paper is to enhance the theoretical and empirical understanding of the process through which talent management (TM) practice effectiveness impacts high-potential employees’ commitment to leadership competence development. Design/methodology/approach Structural equation modelling was utilized to analyse survey data representing a sample of 439 high-potential employees from 11 Finnish multinational corporations. Findings First, the authors found that the more high-potential employees perceived TM practices to be effective, the more they were committed towards leadership competence development. Next, the findings revealed that the association between TM practice effectiveness and commitment to leadership competence development operates by means of psychological contract fulfilment. Finally, the authors found that female employees possessed a stronger reaction to the effectiveness of TM practices by demonstrating higher levels of commitment to leadership competence development than male employees. Originality/value This study supports social exchange theory, which postulates that when organizations invest in their employees, the employees are likely to reciprocate these corporate investments in positive ways. The findings indicate that TM practices may help high-potential employees to make sense of their employment relationship and communicate to employees those attitudes and behaviours that organizations value. The authors thus advocate that in order to have the desired effect, such as for instance the increased commitment to leadership competence development, it is crucial for organizations to invest in those TM practices that are perceived as effective by employees.