Examining the Effect of Talent Management on Employee Performance: Mediation of Employee Engagement and Moderation of Organizational Culture

Authors

  • Rakhmat Sigit Widodo Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia
  • Nur Wening Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia
  • Suhirman Suhirman Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia
  • Sujoko Sujoko Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia
  • Ifah Rofiqoh Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i3.1043

Keywords:

Talent Management, Employee Engagement, Organizational Culture, Employee Performance

Abstract

Human resource management in an era of competition and workplace transformation requires organizations to focus not only on competency development but also on the ability to foster employee engagement and an organizational environment that supports sustainable performance. This study develops a model of the relationship between talent management, employee engagement, organizational culture, and employee performance in the context of organizations in Indonesia. The primary focus of the study lies in how employee engagement acts as a psychological mechanism explaining the influence of talent management on employee performance, as well as how organizational culture reinforces this relationship. The research was conducted using a quantitative approach via a survey of 200 respondents and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research findings indicate that the impact of talent management on employee performance is not direct or automatic, but rather operates through employees’ psychological attachment to their work and the organization. Furthermore, a supportive and adaptive organizational culture has been shown to enhance the effectiveness of talent management practices in improving work performance. This study confirms that an organization’s success in improving employee performance is determined not only by the quality of its talent management system but also by its ability to foster engagement and a work culture that supports learning, participation, and continuous development.

References

Abdullahi, M. S., Raman, K., and Solarin, S. A. (2022). Talent management practices on employee performance among academic staff of Malaysian private universities: employee engagement as a mediator. Journal of Applied Research in Higher Education, 14(1), 135-158. https://doi.org/10.1108/JARHE-08-2020-0283

Aljbour, A., Ali, M., and French, E. (2024). Talent management practices and the influence of their use on employee outcomes via perceived career growth. Employee Relations: The International Journal, 46(8), 1625-1647. https://doi.org/10.1108/ER-05-2023-0245

Amrina, E., Foci, N. A., and Hasan, A. (2024). The effect of employee engagement on employee performance by moderation of generational characteristics of employees in private agencies. Jurnal Rekayasa Sistem Industri, 13(2), 75-90. https://doi.org/10.26593/jrsi.v13i2.7202.75-90

Appelbaum, E., Bailey, T., Berg, P., and Kalleberg, A. L. (2000). Manufacturing Advantage: Why High-Performance Work Systems Pay Off. Cornell University Press.

Armstrong, J. S., and Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396-402. https://doi.org/10.1177/002224377701400320

Badan Pusat Statistik. (2025). Tingkat Pengangguran Terbuka (TPT) sebesar 4,76 persen. https://www.bps.go.id/id/pressrelease/2025/05/05/2432

Bakker, A. B., and Demerouti, E. (2017). Job demands-resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273-285. https://doi.org/10.1037/ocp0000056

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108

Blau, P. M. (1964). Exchange and Power in Social Life. Wiley.

Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Lawrence Erlbaum Associates.

Collings, D. G., and Mellahi, K. (2009). Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4), 304-313. https://doi.org/10.1016/j.hrmr.2009.04.001

Demerouti, E., Bakker, A. B., Nachreiner, F., and Schaufeli, W. B. (2001). The job demands-resources model of burnout. Journal of Applied Psychology, 86(3), 499-512. https://doi.org/10.1037/0021-9010.86.3.499

Denison, D. R., Janovics, J., Young, J., and Cho, H. J. (2006). Diagnosing organizational cultures: Validating a model and method. Denison Consulting Group Working Paper, 1(1), 1-39.

Eisenberger, R., Huntington, R., Hutchison, S., and Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500-507. https://doi.org/10.1037/0021-9010.71.3.500

Febrian, W. D., and Solihin, A. (2024). Analysis of improving organizational culture through employee engagement, talent management, training and development human resources. Siber Journal of Advanced Multidisciplinary, 1(4), 185-195. https://doi.org/10.38035/sjam.v1i4.86

Firdausi, J., and Wajdi, M. F. (2024). Pengaruh talent management dan employee engagement terhadap kinerja karyawan. Jesya (Jurnal Ekonomi dan Ekonomi Syariah), 7(1), 1080-1092. https://doi.org/10.36778/jesya.v7i1.1525

Gallup. (2025). State of the Global Workplace: Indonesia Country-Level Data. https://www.gallup.com/workplace/705674/state-global-workplace-indonesia-country-level-data.aspx

Gede, D. U. (2025). Employee engagement as a mediator of strategic alignment and organizational performance in Ethiopian education institutions. Discover Psychology, 5, 180. https://doi.org/10.1007/s44202-025-00510-9

Hair, J. F., Hult, G. T. M., Ringle, C. M., and Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). SAGE Publications.

Hofstede, G., Hofstede, G. J., and Minkov, M. (2010). Cultures and Organizations: Software of the Mind (3rd ed.). McGraw-Hill.

Jehanzeb, K., and Mushtaq, M. (2025). Examining the impact of well-being-oriented HRM practices on innovative work behavior: the moderating role of servant leadership. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2482015

Joon, L. M., Nugroho, D., and Ramachandaran, S. D. (2025). Sustainable leadership, organizational culture and organizational commitment: a pathway to enhanced employee performance through employee engagement in Malaysia's oil and gas sector. Discover Sustainability, 6, 1399. https://doi.org/10.1007/s43621-025-01869-4

Karim, R. A., Jebunnesa, U., and Rabiul, M. K. (2025). Linking talent management, work engagement and sustainable organizational performance: the mediating role of perceived supervisor support and perceived organizational support. Global Knowledge, Memory and Communication, ahead-of-print. https://doi.org/10.1108/GKMC-06-2024-0383

Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1-10. https://doi.org/10.4018/ijec.2015100101

Koopmans, L., Bernaards, C., Hildebrandt, V., Van Buuren, S., Van der Beek, A. J., and De Vet, H. C. (2012). Development of an individual work performance questionnaire. International Journal of Productivity and Performance Management, 62(1), 6-28. https://doi.org/10.1108/17410401311285273

Kristof, A. L. (1996). Person-organization fit: An integrative review of its conceptualizations, measurement, and implications. Personnel Psychology, 49(1), 1-49. https://doi.org/10.1111/j.1744-6570.1996.tb01790.x

Lartey, B. S., and Ampofo, S. Y. (2025). Person-centred analysis on the influence of organizational culture on employee job performance. Cogent Social Sciences, 11(1). https://doi.org/10.1080/23311886.2025.2526008

Lee, D. Y., and Jo, Y. (2023). The job demands-resource model and performance: the mediating role of employee engagement. Frontiers in Psychology, 14, 1194018. https://doi.org/10.3389/fpsyg.2023.1194018

Nursalimah, S., Rachman, G. I. K., Andriyani, A., and Darmastuti, I. (2025). Organizational culture as a driver of employee engagement: a systematic review. Economic and Business Horizon, 4(3), 479-488. https://doi.org/10.54518/ebh.4.3.2025.692

Nusraningrum, D., Rahmawati, A., Wider, W., Jiang, L., and Udang, L. N. (2024). Enhancing employee performance through motivation: the mediating roles of green work environments and engagement in Jakarta's logistics sector. Frontiers in Sociology, 9, 1392229. https://doi.org/10.3389/fsoc.2024.1392229

Pomaranik, W., and Kludacz-Alessandri, M. (2024). Talent management practices and other factors affecting employee performance in the public healthcare sector in Poland: an empirical study using structural equation modelling. BMC Health Services Research, 24, 1667. https://doi.org/10.1186/s12913-024-12169-4

Putri, S. M., Rivai, H. A., and Syahrul, L. (2023). The effect of talent management and organizational culture on employee performance with job satisfaction as a mediating variable. Enrichment: Journal of Management, 13(1), 236-247. https://doi.org/10.35335/enrichment.v13i1.1278

Saimin, Salim, N., Nurhayati, M., and Nawangsari, L. C. (2025). Organizational culture, agile leadership, and employee performance: the moderating role of employee engagement. International Journal of Innovative Research and Scientific Studies, 8(2), 1940-1948. https://doi.org/10.53894/ijirss.v8i2.5585

Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619. https://doi.org/10.1108/02683940610690169

Schaufeli, W. B., Bakker, A. B., and Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701-716. https://doi.org/10.1177/0013164405282471

Shah, N., Bano, S., Saraih, U. N., Abdelwaheed, N. A. A., and Soomro, B. A. (2024). Developing organizational performance through talent management practices: employee satisfaction's mediating role in learning organizations. Business Process Management Journal, 30(3), 641-670. https://doi.org/10.1108/BPMJ-03-2023-0208

Sinisterra, L., Penalver, J., and Salanova, M. (2024). Connecting the organizational incomes and outcomes: a systematic review of the relationship between talent management, employee engagement, and turnover intention. Frontiers in Psychology, 15, 1439127. https://doi.org/10.3389/fpsyg.2024.1439127

Srivastava, S., and Rao, M. K. (2025). The influence of organizational culture on organizational resilience and employee performance through the mediation of high-performance work systems. Discover Psychology, 5, 170. https://doi.org/10.1007/s44202-025-00496-4

Syah, T. Y. R., Kustiawan, U., Muhmin, A. H., Stevelyne, M., Lianti, L., and Suyitno, E. (2025). Empowering talent: how talent management, thriving at work, and employee voice shape turnover intentions. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2596429

World Economic Forum. (2025). Indonesia Jobs and Skills Accelerator. https://initiatives.weforum.org/accelerators-network/indonesia

Published

2026-08-30

How to Cite

Widodo, R. S., Wening, N., Suhirman, S., Sujoko, S., & Rofiqoh, I. (2026). Examining the Effect of Talent Management on Employee Performance: Mediation of Employee Engagement and Moderation of Organizational Culture. Greenation International Journal of Economics and Accounting, 4(3), 904–919. https://doi.org/10.38035/gijea.v4i3.1043