| Abstract: | The management and proper utilization of employee talent makes difference between organizations in the face of stiff competition. The purpose of the study was to examine the effect of talent management practices (talent planning, talent engagement, talent audit and talent retention) on employee performance. The study was guided by the following research questions: To this end, the study adopted a quantitative research approach and an explanatory research design. The population of the study constitutes 92 employees of CBE at Alem bank branch. This study adopted a census sampling technique by taking all respondents. A structured closed ended questionnaire was used to collect primary data. Data were analyzed through descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (correlation and regression analysis). The result of Pearson correlation indicates that there was a significant positive correlation between talent engagement and employee performance (r=0.215, P-value <0.05). However, employee performance does not have a statistically significant relationship with talent planning and talent retention. Based on the result of regression analysis, only two dimensions of talent management practices namely talent engagement (B=.053, P<0.05) and talent audit (B=.218, P<0.05) have a positive and significant effect on employee performance. However, this study could not find a statistically significant effect of talent planning and talent retention on employee performance. This study concludes that talent engagement and talent audit is an essential component of organizations’ talent management strategies that enhance employee performance. Engagement enhances to connect the employee with the necessary skills and knowledge required by the employees to perform their duties while audit is essential in long term employee competence performance which is also critical to overall employee performance. This study concludes that talent management systems are important to employee performance. The study recommends that programs should be designed by both managers and employees. Employees are critical component that determines the success or failure of an organization’s therefore, should not be ignored. |
