Towards a talent retention model: mapping the building blocks of the psychological contract to the three stages of the acquisition process

This paper addresses a gap in the research on talent retention within the context of cross-border mergers and acquisitions (M&A). To answer our key research question: How can psychological contracts be shaped to retain talent in an M&A context? We break down the complexity of M&A by taking a process approach. Using a multiple case study methodology involving empirical data from five acquired subsidiaries, we study talent at an individual level in contrast to most studies which focus only on the organisational level. This paper extends our knowledge on the role of the building blocks of the psychological contract in talent retention post-acquisition. Our study highlights the need to reframe HR due diligence within the building blocks of the psychological contract and highlights lessons for practice in this understudied area.