The psychological outcomes of talent management: the way to optimize employee performance

Abstract

In today's global business environment, talent management becomes one important source of competitive advantage that creates value for all companies. Most leaders today recognize that competitive advantage in the knowledge economy is determined by human capital. People are the only asset that innovates, innovation is the only path to sustained performance, and talents are the only individuals who can execute successful winning business strategy. Consequently, talent management must be continuously reviewed to find the best fit. This step is essential as the business world is dynamic and talent management as with the understanding on what exactly is a talented employee is unique to each organization. While companies may have talent management in place, these practices must be continuously reviewed and updated so that the company can capitalize on its talented employees to grow and expand into new markets. Therefore, talent management needs to be given great effort at every organization and the psychological outcomes need to be debated in order to optimize the employees' performance.