Talent Management and Its Effect on Organisational Efficiency: Contribution from the Malaysian Context

Abstract

The landscape of today's human resource (HR) is most likely driven by talents rather than by organizations, hence talent management (TM) has become a crucial issue in the paradigm of human resource management (HRM). Aiming to understand how talent management contributes to organizational efficiency, this study explores four fundamental issues in talent management (TM) - attracting, selecting, developing and retaining talents, and how they impact on organizational efficiency (OE). A survey was conducted in the Klang Valley and a structured questionnaire was administered on 282 respondents from numerous disciplines in the management of various organizations. Data were analysed through structural equation modelling (SEM), and findings showed that three of the four issues – attracting, selecting, and retaining talents, have significant relationships with organizational efficiency. A significant positive relationship was also noted between employee value proposition (EVP), and organizational efficiency (OE). Finally, employee value proposition (EVP) was found to have a mediating impact on the relationship between talent management (TM), and organizational efficiency (OE). The outcome derived from this survey can enable the management team as well as the policy makers to improve on their existing management setup so as to encourage a better practice of talent management in Malaysia.