DOI: 10.5937/etp2602053q ISSN: 2217-5458

Talent management as a determinant of organizational performance: The mediating role of employee engagement

Sabina Šehić-Kršlak, Nerman Ljevo

Talent management has become one of the most significant strategic functions of contemporary human resource management because organizations increasingly depend on highly skilled and motivated employees to achieve sustainable competitive advantage. Globalization, digital transformation, demographic changes, and rapid technological development have intensified competition for talented employees, making talent management a critical organizational capability rather than merely a human resource practice. The primary objective of this study is to examine the relationship between talent management, employee engagement, and organizational performance through both theoretical analysis and empirical investigation. The empirical research was conducted on a sample of 120 employees working in public and private sector organizations. Data were collected using a structured questionnaire based on a five-point Likert scale. Descriptive statistics, correlation analysis, and regression analysis were applied to examine the relationships among the observed variables. The results indicate a statistically significant positive relationship between talent management and organizational performance (r = 0.62; p < 0.01). Furthermore, the findings demonstrate that talent management positively influences employee engagement, which contributes to improved organizational outcomes. The results support the assumption that organizations investing in employee development, career planning, leadership development, and retention strategies achieve higher levels of productivity, innovativeness, and overall organizational effectiveness.

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