Employee retention and talent management issues are becoming the most critical workforce management challenges of the immediate future. Employees are assets which organizations will always try to avoid losing. Employee engagement is critical to any organization that seeks not only to retain valued employees, but also increase its level of performance. The purpose of this study was to establish whether employee engagement affects talent management and employees’ retention in Kenya state corporations. State corporations in Kenya are operating in highly competitive environment owing to today’s rapidly moving dynamic, uncertain and highly competitive global markets. The study was conducted using descriptive survey design. The target population comprised of all the employees in the 162 state corporations in Kenya. The respondents were the heads of departments and HR managers in the state corporations. Stratified sampling was used to select the respondents from different categorization of state corporations. Further, simple random sampling was applied to select the respondents from the respective state corporation. A total of 385 respondents were interviewed. A self-administered questionnaire was used as the main tool for data collection. Reliability of the survey questionnaire was calculated according to Cronbach’s alpha coefficient and in order to measure the validity of research, content validity was used. To analyze the collected data, descriptive statistics (frequency, mean, percentage and standard deviation) was used. Inferential statistics (Spearman correlation coefficient and ordinary least squares regression) was used to test the hypothesis. Statistical software used was SPSS 20. The study findings revealed that showed that there was a significant positive relationship between employee engagement and talent management and retention in state corporations in Kenya. It is important, therefore, that the state corporations in Kenya address this critical component of employee engagement for competitiveness and employee retention in Kenya state corporations.
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