This study investigates the mediating role of employer branding (EB) in the relationship between talent management (TM) practices and engineers’ intention to stay (ITS) in Malaysia’s manufacturing sector. It explores how recruitment and selection, training and development and performance management affect engineer retention through EB. In response to escalating talent shortages in Malaysia’s engineering workforce, the study offers theoretical and practical insights into how exclusive TM practices strengthen EB and improve retention. Underpinned by the resource-based view (RBV) theory, the research positions EB as a strategic organizational resource linking TM to workforce sustainability.
A structured questionnaire was administered to 374 engineers working in Malaysia’s manufacturing industry. Structural equation modelling (SEM) was employed to test direct and mediating relationships among TM practices, EB and ITS.
The findings confirm that recruitment and selection, training and development and performance management significantly enhance engineers’ perception of EB. Moreover, EB, in turn, positively influences ITS, acting as a key mediator in the TM–retention relationship. EB fully mediates the relationship between recruitment and selection and ITS, while it partially mediates the links between the other TM practices and ITS. These results underline the pivotal role of EB in addressing engineer retention challenges.
For Malaysian manufacturers, implementing structured TM practices is vital for engineer retention: (1) transparent recruitment aligning roles with career growth expectations, (2) continuous upskilling through Industry 4.0 certifications and AI-driven learning and (3) competency-based performance systems with clear promotion pathways. HR managers should integrate EB messaging across all TM phases, emphasizing technological advancement and R&D opportunities. Collaborative university partnerships can strengthen talent pipelines. Policymakers should incentivize STEM education and sector-wide EB initiatives while fostering public-private workforce development programmes. These evidence-based strategies address Malaysia’s engineering talent shortage by transforming TM systems into retention-focused, brand-building mechanisms.
This research highlights how effective TM-ER systems can enhance workforce stability in Malaysia’s manufacturing sector, reducing economic losses from turnover while supporting national industrial growth. By prioritizing career development and continuous learning, organizations contribute to engineering workforce upskilling – crucial for Industry 4.0 transitions. Strong EB practices promote employee well-being and job satisfaction, creating more equitable workplaces. At a societal level, the study underscores the need for education-industry alignment to prepare future engineers, reducing skill mismatches. These findings advocate for corporate investment in human capital development as both an organizational imperative and a social responsibility to build sustainable, innovation-driven economies.
This study offers a pioneering empirical examination of how exclusive TM practices – specifically recruitment and selection, training and development, and performance management – impact engineers’ ITS in Malaysia’s manufacturing sector through the mediating role of EB. By integrating TM and EB within a unified framework and employing structural equation modelling (SEM) on data from 374 engineers, the research substantiates EB as a strategic organizational resource that enhances employee retention. This work extends the RBV theory by positioning EB as a competitive asset, providing actionable insights for HR practitioners and policymakers aiming to address engineering talent shortages in Malaysia.
