Given the significance of talented employed in relation to meeting the needs of an organization and creating more innovation and productivity it is important that an organization hires and develops employees. As such a company’s HR strategies for retention need to be designed in such manner as to attract, develop, motivate and retain employed who are productive, motivated and engaged. Talent management refers to the expectation of the required human capital for an organization or business and the planning done to meet those needs.
It means to manage the ability, competence and power of the employees of an organization. It can be affected bt external factors and environment. As part of the human resource team it is critical that there is true commitment to recruiting, hiring, retaining and developing the talents employees (G.Collings & KamelMellahi, 2009). For employees to remain in an organization factors which play a decisive role are job satisfaction, work-life balance and organizational commitment.
Thus for turnover rate to be reduced or to increase retention of good employees, talent management strategies which focus on employee enrichment are needed to be employed (Deery, 2008). Given the context and role played by talent management, the emphasis upon it as a useful retention strategy stems from its effect on employee recruitment, retention and engagement. It is driven by the belief that an organization’s primary source of competitive advantage is its human resource and it is becoming a limited supply. The benefits which are experienced as a result of a successful TM strategy includes improved recruitment and retention rates, increased employee engagement and as a result of these the organization experiences improved operational and financial performance (Hughes & Rog, 2008).