The effect of talent management on organizational performance: applied study in Jordanian banks

Talent management (TM) is the most important topic in most organizations in the last two decades. It is a key strategic issue for local, national, and multinational organizations. It includes a wide range of dimensions and activities such as aligning TM to strategy, maintaining, developing, and retaining/renewing talents which consists of three categories according to the study: the strategic leaders, best professional, and other high performers. With respect to the two approaches to TM, the study concluded that it’s important for effective organizations to avoid the disadvantages of both exclusive and inclusive approaches, and develop its own way of TM in order to achieve high performance and business results. Organizations should seek to increase the support and development programs for high potential and performers in all organizational levels without a narrow focus on senior managers and leaders in the higher levels only (Conger, and Fulmer,2003). This study aims to determine the effect of TM dimensions on organizational performance criteria. Four dimensions of TM were identified, which are: aligning TM to strategy, maintaining, developing, and finally attracting and renewing talents. The effective use of these four dimensions is the essence of TM to create value proposition and achieve competitive advantage in modern organizations. The study found that there is a positive effect of TM dimensions on the three performance criteria in all six banks, which represent the study sample.