EFFECT OF TALENT MANAGEMENT ON EMPLOYEE PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA

Abstract

The purpose of the study was to assess the effect of talent management on employee performance of Commercial State Corporations. The specific objectives addressed were; todetermine the effect of talent development on employee performance; to examine the effect of career development on employee performance; and to establish the effect of Work-life balance on employee performance of Commercial State Corporations in Kenya. The study was anchored on Resource Based View (RBV) theory, Person-Environment Theory and Social Exchange Theory. The study employed a descriptive research design. The target population for the study included 55 Pure and Strategic Commercial State Corporations. A total of 48 parastatals were selected using simple random sampling technique. From the selected parastatals a total of 48 respondents who were the managing directors or human resource managers were randomly selected into as the study sample. The main data collection tool for the study was structured questionnaire.A pilot test was conducted to test the reliability of the data collection tool. Collected data was cross-checked for consistency and completeness before it was coded and entered into Statistical package for Social Sciences for analysis. Data was then analyzed using Pearson correlation coefficient and multiple linear regression to determine the relationship between the variables in the study. The results were presented descriptively using Tables and Pie charts. The findings of the study showed that talent development had a positive significant effect on the performance of employees of Commercial State Corporations in Kenya. The organizations under study had well designed talent management activities which enhanced employee performance, they aligned talent development strategy with organizational strategy, they had in-house development programs for effective talent development practice and they used coaching by line managers to develop effective talents. Career development had a positive significant effect on the performance of employees of Commercial State Corporations in Kenya. Career development reduced employee absenteeism and turnover, it improved employee commitment as well as employee performance and it had a direct impact on job performance. Work-life balance had a positive significant effect on the performance of employees of Commercial State Corporations in Kenya. Good work-life balance in the organization leading to effectiveness of the organization, efficient work-life management policy led to higher employee satisfaction and a good work-life management policy improved employee commitment and performance. The research recommended the following out of the findings of the study; Organizations should have in-house talent management programs which are aligned with the organisational goals to ensure maximum employee productivity. The researcher recommended further for future research which should incorporate comparison of talent development and employee performance of both the executive and regulatory agencies since there are different levels of state corporations in Kenya.