From perk to policy: How organizational culture shapes talent retention in the post-pandemic era

Abstract

The purpose of this study is to examine the influence of flexible work arrangements (FWAs) on talent retention, moderated by organizational culture, specifically during the post-COVID-19 pandemic period, when the organizational atmosphere in Pakistan rapidly changed. The study's framework is underpinned by the Institutional and Social Exchange Theories. The study employed quantitative methods and a deductive approach, collecting cross-sectional data from employees of various firms, including textile and garment firms, using convenience and stratified random sampling. Finally, 367 valid responses were used to infer the conclusions. Using structural equation modeling (SEM) through the analysis of moment structures (AMOS) software, the findings unveil a positive effect of FWAs, perceived organizational support, and leadership support on talent retention. Furthermore, organizational culture positively affects talent retention. Finally, organizational culture moderates the relationships between FWAs, leadership support for flexibility, and talent retention. The study provides guidelines for policymakers and planners to build trust and communication through training leaders and engaging employees throughout such processes, which can reduce resistance to change and begin embedding flexibility into the organization’s thought and practice. This study also helps develop a culture that values people and flexibility, attracting and retaining employees, boosting morale, and keeping organizations competitive in dynamically changing workplaces. Finally, the study deepens the domain literature by adding empirical evidence from a developing context.