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 have 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 able and skilled staff to their rivals. 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 adopted the following factors: recruitment, selection, learning & development and employee retention to examine their impact 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. The researcher concludes that the three independent variables; recruitment, selection and learning & development strongly impact organizational performance but not for employee retention which has no impact on organizational performance. Therefore, if these organizations are to achieve their desired objectives, they must adequately address the factors identified in this study.