Talent management and organizational performance: The mediating role of employee engagement

© 2021 by the authors; licensee Growing Science, Canada


Introduction
In today's business, human resource management is a team that promotes a positive environment for employees, continues to grow and develop, while providing the right services to the right people to achieve the desired goals. The hospital sector is categorized as a service industry and faces many challenges such as human resource management and risk management. Effective management of future challenges has a major impact on the survival and success of the hospital department. However, risk management will not be successful without qualified people. This is achieved through talent management practices that help achieve the organization's overall strategy by attracting, encouraging, developing and retaining the most qualified and talented staff (Aina & Atan, 2020). Organizations face the challenge of being limited by talented employees. Talented employees are only 3-5% of all employees in an organization (Kehinde, 2012). Talent is a key success factor for improving and maintaining organizational performance, where talent consists of abilities, experience, knowledge, intelligence, and individual qualifications, as well as their ability to learn and develop (Berger, 2004). Having talented employees can achieve organizational goals efficiently and effectively with outstanding performance, and they have more engagement with the organization because they are highly motivated, which in turn provides a significant competitive advantage while increasing productivity and profitability (Nafei, 2015). Studying the impact of talent management on organizational performance is based on the assumption that talent management improves organizational performance by attracting and retaining the talented people it needs (Armstrong & Taylor, 2014). The goal is to create a positive and comfortable environment for employees, strived to get employees who are satisfied and then engaging. Employee engagement is defined as a state of wanting, fulfilling, and affective motivation for well-being and not job fatigue (Maslach & Leiter, 2008). Talent management has attracted a lot of attention from academics and practitioners since a group of McKinsey consultants coined the phrase "The War for Talent" in 1997 (Moayedi & Vaseghi, 2016). Organizations around the world realize that the knowledge, skills, and abilities of employees as sources of competitive advantage (Jamnagar, 2014). Indeed, even in times of financial crisis, talent remains an important agenda to focus on highest achievers and the majority of companies still intend to focus on the best talents, with nearly half of companies planning to maintain or enhance learning (Lockwood, 2006). Without a doubt, talent management will continue to grow important in the knowledge economy era. Research to advance the theoretical and empirical developments of talent management as part of being human resource management (Moayedi & Vaseghi, 2016), remains interesting to do. Midwives, whose job is to assist with childbirth, is a big challenge. The midwife profession is the largest group of health workers in the world (Dahshan, Keshk, & Dorgham, 2018). In their work activities, midwives have a big responsibility for the safety of mothers and their babies (Hajy & Alsadat, 2013), so that midwives must have good qualifications (Hajy & Alsadat, 2013). So that the condition of a comfortable work environment greatly affects performance, as well as having good talent (Aina & Atan, 2020). The sample of this study is midwives who work in private hospitals in East Java, Indonesia.

Talent management on organizational performance
Talent in the twenty-first century, being characterized by high speed and competitiveness, has become one of the most vital pillars which companies and organizations rely on in achieving their strategic vision, not to mention that the demand for it has increased (Almaaitah et al., 2020). Talent may be defined as the inherent ability of an individual to do a particular task in a particular way. Talent is seen as the sum of an individual's abilities, which includes his or her intrinsic gifts, skills, knowledge, experience, intelligence, judgment, attitude, character, and drive. It also incorporates the individual's ability to learn and grow (Nafei, 2015). Talent refers to unique characteristics, qualities, traits or abilities of people who utilize this to reach the objectives of organizations (Sheehan, Grant, & Garavan, 2018). On the other hand, (Yllner & Brunila, 2013) noted that talent represents greater mastery of developed abilities and knowledge systematically in the field of human endeavor. Talent management has been perceived as part of human resource management strategies, where it consists of the implementation of integrated strategies that are executed to improve and sustain the organizational performance by improving procedures for attracting, retaining, developing, and profiting from individuals with the necessary qualifications and skills to achieve present and future business requirements (Cheese, Thomas, & Craig, 2007). Talent management sustains organizational performance by providing essential knowledge and strategies for improvement and change; it helps organizations to recognize the most talented employees to become the potential future leaders, whenever there is a vacant position (Aina & Atan, 2020). Talent management is not only related to employee talent, in its development it is linked to the mission and vision of the organization, resulting in sustainability and a competitive advantage for the organization. Most researchers who have investigated the effect of talent management have confirmed that talent management has a significant impact on the sustainability of organizational performance (Aina & Atan, 2020;Valverde, Scullion, & Ryan, 2013;Dahshan et al., 2018;(Almaaitah et al., 2020). These researchers reinforced the assumption of a positive significant relationship between talent management and organizational performance. H1: Talent management has a positive influence on organizational performance.

Talent management on employee engagement
Employee engagement is how effective the employees are committed to the organization's activities. They are dependent on talent management, and they are based on the emotions and intellects of an individual employee (Ayub, 2017). In various organization, employees' engagement starts with talent management (Chou, 2012). If the organization focuses on employee welfare and talent management, it will generate satisfaction and commitment (Lockwood, 2006). Employee engagement consists of ways that keep employees concerned with the operations of the organization. Talent management for organizations is considered as the most efficient and effective variable that can capture, adopt, develop and utilize based on employee engagement to achieve organizational performance. Strategically, it aims to achieve market value and increase competitive advantage (Ayub, 2017). Schaufeli et al. (2002) define employee engagement as the positive fulfilling, work related state of mind that is characterized by vigor, dedication and absorption. They moreover stated that engagement is not a momentary and specific state, but is a more persistent and pervasive affective and cognitive state that is not focused on any particular object, event, individual, or behavior. Talent management can function as a framework within which to define, communicate and engender the development of qualities considered important for the achievement of present and future organizational goals (Hoglun, 2012). Talent management is basically related to employee engagement (Onday, 2016). Talent management is processes that provide the capabilities the organization needs, determine potential competence, ensure team capabilities, generate innovation, strive for people's creativity and communicate actively. Several indicators of successful talent management to achieve employee engagement and the most relevant examples are employees who are talented, more capable the organization needs, when and where it is needed.

H2
: Talent management has a positive influence on employee engagement.

Employee engagement as mediator on the relationship between talent management and organizational performance
Talent management must apply to all human resource management functions in the organization (Ali, Bashir, & Mehreen, 2019). Having the right talent is the biggest benefit for any company (Ali, Bashir, & Mehreen, 2019). Organizations must be able to ensure that employees with the right skills and talents must remain with the organization for a longer period of time (Ifeoma, Purity, & Okoye-Nebo, 2015). Talent management is increasingly popular as a tool for employee and organizational performance (Kimani & Waithaka, 2013). The talent management process reinforces that talented employees have good work results for the prosperity of the company (Lyria et al., 2017). In the current era of competition, it is quite difficult to retain talented employees due to the high mobilization of employees from one organization to another (Kehinde, 2012). This can be minimized if the company tries hard to engage employees by involving employees in every activity of the company and paying attention to their career development (Lockwood, 2006).

Methodology
The data were obtained from questionnaires distributed to midwives who work in private hospitals in East Java, Indonesia. The reason for selecting the sample was that the midwife was not a specialist. they work with limited authority and a code of conduct. for example: to see the health of the fetus in the womb, the tools used are not three or four-dimensional which can show a clear picture of the fetus's condition, but with a device that can only be heard and needs a separate analysis to find out that the fetus is fine. At the time of the birth process, it is also limited to normal delivery, and section is the domain of doctors. That was the background of the sample selection because the midwife's profession was unique and required talent management to carry out her duties. As many as 200 questionnaires were distributed, and those who returned and were declared eligible were 172 questionnaires and the rest were deemed not eligible to be used as research data. Using the Likert scale, talent management adopts from Almaitaah (2019), uses six question items, employee engagement adopts from Schaufeli & Bakker (2004) with 17 questions and organizational performance adopts from Dahshan (2019) using eleven questions. The operational definitions of these variables are presented: Table 1 Description of Variables

Talent management (Almaitaah, 2019)
The hospital has attractive salaries and incentives for talented people to work for the hospital (TM1) Directly, the hospital searches for those with expertise and, competence to fill important senior positions (TM2) The hospital adopts a culture of employing talented employees and those with expertise and competencies (TM3) The hospital depends on highlighting the role of the gifted and facilitating their mission inside and outside the hospital (TM4) The management of the hospital seeks to increase the knowledge and expertise of talented employees by participating in scientific seminars and courses inside and outside the hospital (TM5) The hospital provides a lot of modern technology to talents for more creativity and innovation (TM6) Employee engagement (

Results
SEM PLS is used to analyze the data, and the following results are shown as the output of SEM-PLS:

Age
Qualification Work experience

Fig. 1. Respondents' profile
Furthermore, before testing the hypothesis to predict the relationship between variables in the structural model, the first step is to evaluate the measurement model, with the following results:   Table 4 shows the results that the indirect effect of talent management on organizational performance through employee engagement is stronger than the direct effect, namely 0.816> 0.758.

Discussion, implication and limitations
Talent management has a significant impact on patient safety, access to timely care, and control of costs which is considered to be the most serious operational problem in health care organizations (Taha, 2015). Ogden (2010) claims that talent management is in crisis in many hospitals and that midwife involvement is now needed more than ever. The biggest problem is: a shortage of midwives, high turnover rate, the number of midwives who have entered retirement age, and the difficulty of finding talented midwives. Based on the problems found, the following results are presented: There is a positive and significant relationship on the direct influence between talent management and organizational performance (Almaaitah et al., 2020;Aina & Atan, 2020;Nafei, 2015;Sheehan, Grant, & Garavan, 2018;Yllner & Brunila, 2013).
Organizations that have talented employees are easier to achieve organizational performance (Cheese, Thomas, Craig, 2007). Currently talent management is known as a systematic approach to attracting, screening, selecting the right talent, engaging, developing, deploying, leading and retaining high potential and performing employees to ensure continued talent delivery within organizations that aim to increase labor productivity (Davies & Davies, 2010;Behera, 2016;Thunnissen & Buttiens, 2017). The goal of talent management is to create high performance, sustainability organizations that meet their strategic and operational goals and objectives (Behera, 2016). Interesting, selecting, engaging, developing, and retaining employees are the top five focuses of talent management. So that companies gain a competitive advantage, the demand for human resources will continue to encourage talent management (Oladapo, 2014). Talent development is the process of changing an organization, its employees, its stakeholders, and groups of people within it, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization. Talent development is process of upgrading the skills and attitude of the employees (Dahshan, Keshk, & Dorgham, 2018).
Talent management and employee engagement have a positive and significant relationship (Ayub, 2017;Chou, 2012;Hoglun, 2012). It is very important to understand the skills and knowledge possessed by employees (Lyon, 2010), and it is very important for organizations to identify, develop, deploy and retain key talent. Talent management is a systematic way of trying recruiting, developing and retaining highly productive and promotable people (Davies & Davies, 2010). Attracting high potentials is not enough; there must be an overall strategy for managing their talents. Organizations must also focus on the future and predict the skills, attitudes, and behaviors of talented employees to be managed properly so that these employees engage.
Organizations must be able to create the right environment or culture so that their talents are honed. Talent management and employee engagement are capable of describing organizational performance. There is a positive relationship between talent management, employee engagement with organizational performance (Kimani & Waithaka, 2013;Lockwood, 2006). In this study it was proven that an indirect relationship, the role of employee engagement as a mediator in the relationship between talent management and organizational performance, shows a greater value than the direct relationship between talent management and organizational performance. Talented employees have an initiative to involved in organizational decision making, so leads to positive employee attitudes which can be interpreted as engagement. Organizations that have employees like this feel lucky, because the organization will find it easier to achieve goals and produce maximum organizational performance.