Relationship between Talent Management Practices and Organizational Performance in Islamic Banks in Kenya

Abstract

Stringent business environment, shareholders expectations on financial returns and the realization of companies’ goals are some of the factors that led to team leaders’ embracing talent management initiatives at various places of work. Innovation, demographic changes, competition and the advancement in technology have made leaders lose highly abled and skilled staff to their competitors. To minimize losing competent staff, organizations must set aside sufficient resources and time to embed talent management initiatives across their firms. The purpose of this study was to examine the relationship between talent management practices and organizational performance in Islamic banks in Kenya. The researcher considered the following factors: recruitment, selection, learning & development, and employee retention to examine their influence on organizational performance. The study targeted 100 respondents from the three Islamic banks in Kenya and used multivariate regression analysis to examine the relationships between the study variables. Both recruitment and selection had significant influences on organizational performance. Learning & development also presented a strong positive influence while employee retention had a negative relationship with organizational performance. Based on these results, the researcher concluded that the three independent variables; recruitment, selection, and learning & development strongly influence organizational performance. However, employee retention had no statistical significance on organizational performance. Hence, if these organizations are to achieve their desired objectives, they must address the factors identified in this research. It is recommended that the three Islamic banks in Kenya should strive to build their staff capacities internally through various avenues available to them and put in place well-defined succession plans that would help them retain their high potential employees.