Stakeholder relationship challenges and prospects in talent management: the case of the Jamaican business process outsourcing industry

Purpose While talent management (TM) is widely considered a driver of competitive advantage, emphasis on tangible outcomes often ignores the unintended consequences for stakeholder relationships. Drawing on psychological contract (PC) theory, this article explores how TM practices are interpreted by different stakeholders, influencing psychological contracting and affecting employee relationships within the Jamaican business process outsourcing (BPO) industry. Design/methodology/approach The study utilises 24 in-depth stakeholder interviews across 10 BPO organisations to explore perceptions and experiences of actors both inside and outside of talent programmes. Data were analysed thematically to capture how TM practices are enacted and interpreted in context. Findings TM implementation significantly influences employees' PCs and associated workplace relationships. Findings demonstrate how subjective interpretations of TM philosophies, selection processes and communication practices influence employees' psychological, emotional and behavioural responses to both selection and non-selection. The study highlights how relational tensions emerge as PCs are recalibrated, and how line managers may be insufficiently equipped to manage these dynamics. Practical implications The findings assist talent leaders in recognising and responding to relational dynamics underpinning TM implementation. Building on the findings, we develop a “4-Cs” framework (clarity, consensus, consistency and connectedness) to provide practical guidance in mitigating negative and unintended impacts on PCs and employee relationships. Originality/value This research advances understanding of the unintended consequences of TM by providing nuanced qualitative evidence of how TM operates at a relational level. It demonstrates how TM practices function as signals that influence PCs, contributing to relationship challenges and requiring ongoing stakeholder negotiation and management.