The Impact of Talent Management on Organizational Performance in Banking Sector in Palestine: The Mediating Role of Employee Engagement رسالة ماجستير

Abstract

The purpose of this study was to examine how talent management (talent planning, talent acquisition, training and development, performance management, and talent retention) affects organizational performance, as measured by the Balanced Scorecard dimensions: financial performance, customer satisfaction, internal business processes, and learning and growth. The study also considered employee engagement as a mediating variable in this relationship. A correlational approach was adopted, using a structured questionnaire for primary data collection targeting supervisors and managers working in banks in Palestine. Through a convenient sampling method, the final sample in this study comprised of (295) employees out of an overall population of (1358) employees at the end of 2023. The collected data were analyzed using SPSS v.26 and AMOS v.23. The findings show a significant impact of talent management practices on organizational performance (R² = 0.533, sig = 0.000). Moreover, employee engagement partially mediates this relationship (a × b = 0.723 × 0.170 = 0.123). Finally, talent planning is the most influential factor in the talent management dimension (M =3.93, SD = 0.581). The study provided several recommendations, the most is: encourage banks to adopt and implement talent management practices as these have been shown to positively influence organizational performance as well as employee engagement. Additionally, banks should focus on enhancing employee engagement through innovative practices, investing in planning initiatives and training programs for employees along with developing retention strategies for long-term success. Other recommendations include offering competitive compensation, providing internal job rotation opportunities, and VI fostering career development. Improving retention strategies is particularly vital for maintaining a high-performing workforce and achieving organizational objectives.