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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.

Structural equation modelling was utilized to analyse survey data representing a sample of 439 high-potential employees from 11 Finnish multinational corporations.

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.

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.

The implicit assumption since the beginning of the science and practice of human resource management (HRM) has been that if we do HRM well, this will somehow make organizations perform more effectively. The purpose of this paper is to address this “somehow” by investigating the antecedents of work engagement among high potential employees.

The data were collected through a web-based survey from 439 high potential employees of 11 Finnish multinational enterprises. Structural equation modeling was utilized to analyze the data.

In line with the social exchange perspective, the findings demonstrate that it is through the fulfillment of psychological contract and through increased organizational identification that high potential employees become more engaged with their organizations in response to participation in leadership development activities.

Given its cross-sectional nature, the authors cannot completely exclude the possibility of common method bias having impact on the study results. The authors thus call for longitudinal research to examine the nature of causality within the associations analyzed in this study.

This is one of the first empirical studies, which examines the previously underexplored association between leadership development activities and employee attitudes. In addition, this study addresses the lack of research investigating such a specific group of employees as high potential employees, those employees who rank at the top in terms of performance and competencies, and who are considered to be of highest concern for organizations.