Role of laissez-faire leadership in talent management: Evidence from the pharmaceutical industry of Bangladesh

Laissez-faire leadership is mainly perceived as zero leadership, and research on it is relatively scant compared with other dominant approaches to leadership. Although the adverse effects of laissez-faire leadership have been well examined, its influence on talent management (TM) has been undiscovered. This study assessed the impact of laissez-faire leadership on TM strategies, including talent attraction, retention, engagement, and development. Data were collected from 460 employees of pharmaceutical companies in Bangladesh using judgmental sampling. Structural equation modeling was employed to test the hypothesized relationships between laissezfaire leadership and TM strategies using social exchange theory. This study found positive effects of laissez-faire leadership on talent attraction, retention, development, and engagement. These findings suggest that if talented employees are given freedom, they tend to engage and secure more opportunities for self-directed development by solving problems independently. This study contributes to the understanding of how laissez-faire leadership may constructively affect TM in the context of a developing economy's pharmaceutical industry. Finally, this study provides recommendations for practitioners of pharmaceutical companies to improve their strategic choices regarding laissez-faire leadership to ensure better TM strategy practices.