Exploring the Mediating Effect of Flexible Work Arrangements on Compensation-Talent Retention Linkages

Abstract:

The study aims to assess the mediating effect of flexible work arrangements on the relationship between compensation and talent retention at four industrial companies in Jordan applying flexible policies.

This study is quantitative and explanatory. The study population included all employees in the upper and middle management at four industrial companies that apply flexible working time arrangements in Jordan, whose number is (346) employees. The study was conducted with a comprehensive survey, where (346) questionnaires were distributed. The number of questionnaires valid for statistical analysis reached (290), with a recovery rate of (83.82%).

The results revealed that compensation has a significant positive impact on talent retention mediated by flexible working time arrangements.

Industrial companies should improve awareness of developing innovative ways to involve talented human resources in the decision-making process and provide corporate management employees with learning tools to keep abreast of developments in the surrounding environment. Also, the companies’ management should ensure that the employees receive training to support telecommuting.

An empirical study is essential for exploring the optimal answers to inquiries related to compensation, flexible working time arrangements, and talent retention. Moreover, the lack of talent represents one of the biggest challenges facing organizations, and Arab countries suffer from the leakage of their distinguished national competencies, this is not due to the scarcity of talent, but rather a result of the lack of sufficient motivation and a suitable environment for prosperity and development of the talent present in the individuals, creativity, and innovation.