Talent Management and Organizational Performance: The Role of Employee Engagement, Retention, and Value Addition

Abstract

During the coming decades, recruiting and retaining talented employees will become a critical challenge to organizations’ performance and survival. Talent management is a strategy that can enable organizations to retain talented employees and improve performance. This study aims to highlight the effect of talent management on organizational performance and the role of employee engagement, retention, and value addition in this relationship between talent management and organizational performance. To achieve the objectives, the study population was selected from higher education institutions in Jordan, with 374 participants from different management levels. The study applied the approach of partial least squares structural equation modelling (PLS-SEM) for data analysis. The results revealed that there was a positive association between these variables. But only employee engagement was not significant in this association. Furthermore, the mediation analyses found a significant positive effect of employee engagement, retention, and value addition in the relationship between talent management and organizational performance. This study also verified the future researchers’ perceptions and thoughts about the effect of talent management. Research implications were provided to better benefit this study's results and knowledge gaps fulfilment.