Analysing the Influence of Talent Management Strategies on Organisational Performance at Namibia Power Corporation

Analysing the Influence of Talent Management Strategies on Organisational Performance at Namibia Power Corporation

Michael Ochurub PhD¹*, Beata Ndahafa Alweendo²

¹Senior Lecturer (HRM) – Namibia University of Science and Technology (NUST), Department of Management, NUST, Namibia

²P.O. Box 7570. Katutura, Windhoek, Namibia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.805049

Received: 23 April 2024; Revised: 01 May 2024; Accepted: 06 May 2024; Published: 03 June 2024

ABSTRACT

Talent management strategies have a huge impact on the productivity of employees in various organisations of which Namibia Power Corporation (Nam Power), Windhoek, Namibia is no exception. The locus of this study was to analyse the influence of talent management on organizational performance. The study aimed to analyse the impact of strategic talent management strategies on organisational performance at Nam Power, to determine the factors that hinder talent management in an organisation, and to design a model for the implementation of talent management programs that enhance organisational performance. The research philosophy underpinning this study is descriptive in nature and used to establish the association between the dependent and independent variables. Both quantitative and qualitative approaches were applied to collect the data. Some data was subjected to rigorous quantitative analysis through the use of questionnaires and managers were also interviewed to collect qualitative data. The collected data was analysed and synthesised using SPSS (Statistical Package of Social Science) software with multiple regression analysis. This software enabled the researcher to analyse data, visualize findings, and draw meaningful conclusions. The researcher used regression analysis to examine the relationship between the predictor variable and outcome. The data was analysed and displayed using bar graphs and pie charts in Microsoft Excel. The study revealed that the factors that hinder talent management in the organisation institution among others include a shortage of capacity building and professional development, absence of enthusiasm, and a shortage of professional development programs. It was recommended that to attract, develop, and maintain high-performing employees in the organisation, management should introduce increased salaries, create staff development programs, advocate for a clear communication channel between staff and leadership, and have a dynamic team of human resources professionals with competent HR systems and procedures. The study further recommends that for these programs to effectively yield good results, the organisation needs to design a talent management model that should include these components such as planning, attracting, developing, retaining, and transitioning.

Keywords: Organisational performance, Talent management, Talent retention, Training, and development

INTRODUCTION

Talent management is a business process that seeks to improve the capacity of organisations by using performance management, talent development, and succession and career planning, with the overriding theme of improving organisational success (Iles, 2016). The formation and conservation of understanding hastens competitiveness and increases organisational ability to respond to market shifts (Bryan, 2015), wherein workers’ talents and characters are suitably implemented to enhance performance, is a critical and difficult task. Therefore, through effective talent management programs, organisations should strive to create a great place for great people (employees) to do great work. When an organisation discovers the primary reason for employee turnover, it can take action to mitigate the situation and implement changes to recruit and retain qualified employees (Armstrong, 2006). A study by Miguel (2017) suggested that career growth opportunities serve as a mechanism to increase staff retention levels. Excellent personnel often are ambitious and need increased learning opportunities to stay motivated (Miguel, 2017).

The importance of retaining talented employees is reinforced by Tymon, Strum pf and Smith (2011) who state that employee retention is vital because it reduces the expenses of recruiting and replacing employees, as well as providing organisations with consistency in terms of skill and knowledge. (Tymon et al., 2011). According to Pitts, Marvel & Fernandez (2011) organisations with a high level of stability perform better than those with a low level of stability. In addition, Tymon et al. (2011) explain the importance of retaining employees as those results in cost reduction since there will be no need for recruiting new employees. Organisations often have increasingly high budgetary expenditures replacing highly qualified individuals (Bach, 2016). As a result, many organisations have had to rethink their procedures and policies to achieve better human resources acquisition and retention results (Collings and Mellahi, 2009). Namibia Power Corporation, also known as Nam Power, is the national electric power utility company of Namibia. The company is responsible for the generation, transmission, and distribution of electricity in the country. Its activities are licensed, supervised, and regulated by the Electricity Control Board of Namibia (Nam Power, 2020). NamPower, has implemented several talent management strategies such as Interest-free loans for employees, Rewards for long-term serving employees, Nam Power Educational, Training, and Development Policy, aimed at increasing employee skills, broadening their knowledge and capabilities as well as enhancing their career opportunities (Nam power, 2018). These programs are also aimed at improving the performance and effectiveness of both the employees and the organisation at large hence, supporting the achievement of Nam Power’s strategic objectives.

PROBLEM STATEMENT

Developing and retaining high-performing employees to take up critical and senior positions has become a challenge to Nam Power as a business entity. According to Nam Power’s annual report of 2020, there has been an increase in employee retirement over the past five (5) years, more than 12% of the workforce will reach retirement age within the next five (5) years (Nam Power, 2020). The report further states that these anticipated departures pose a challenge in the transfer of advanced knowledge, skills, and expertise to other employees. This has not only affected staff morale but has cost the organisation time and resources because of extensive external recruitment processes.

Calo (2017) describes the reality of a perfect storm for talent management, in which three uncontrollable forces collide: the retirement of Baby Boomers, a predicted lack of knowledgeable workers, and an aging workforce, all of which will push talent management to the forefront of organisational strategy. Calo (2008) further added that when a large part of the workforce is reaching retirement age and leaving employment, one of the most pressing concerns for businesses is retaining key expertise. Nam Power has implemented programs/policies such as succession planning, employee retention, and performance management policies aimed at promoting employee engagement, attracting, and sustaining high-performing employees. Despite having talent management programs in place at Nam Power, internal applicants are still unable to successfully compete with external applicants. Therefore, this study seeks to analyse the influence of talent management strategies on organisational performance at Nam Power Namibia.

Research Questions

Considering the current trends in organisations, this research intends to assess the impact of organisational culture on operational efficiency and employee productivity by soliciting answers on the following questions:

1. What is the impact of talent management on organisational performance at Nam Power?
2. What are the factors which hinder talent management in an organisation?
3. What model can be designed to improve talent management programs which enhance organisational performance?

LITERATURE REVIEW

Talent management is a business strategy that organisations can modify to retain quality employees and improve organisational performance and sustainability (Karthikvel & Samy doss, 2019). Talent management has also been described as the method of effectively hiring relevant staff, preparing them for future leadership roles in the organisation, assessing and managing their performance and retaining their knowledge and skills in the organisation. Organisational performance is dependent on the successful operations of the workforce. When staff have distinctive competencies that competitors cannot replicate, organisation automatically gain competitive edge over others in their business sector. To manage distinctive human capital, organisations are developing effective systems and processes for talent management. Many organisations endeavor to retain their top and key talent, because if they leave the organisation, the entire repository of organisational data is removed from the organisation. This chapter will illustrate multiple authors’ views in relation to talent management and organisational performance. This chapter will further provide a literature review related to the study objectives, research problem, and study instruments.   The purpose of this chapter is to analyze previous research and to evaluate its conclusions.

Talent Management

The commitment of an organisation to hire, develop, and retain qualified people within the employment market is known as talent management (Iles, 2016). According to Griffeth & Hom (2015), many employees quit because they are dissatisfied with the total compensation, professional progression opportunities, leadership, and organisational policies and initiatives, among other things. Griffeth & Hom, (2015) added that these issues arise when there are poor talent management approaches. As a result, it is the responsibility of businesses to ensure that effective talent management strategies are in place. (Iles, 2016).

Talent management is one of the business strategies that organisations can modify to retain their highly proficient staff and improve the organisation’s performance for sustainability in the dynamic corporate environment. It is the method of effectively hiring the correct talent, getting ready them to require high positions in the future, assessing and managing their performance, and conjointly preventing them from going away from the organization. The performance of each organisation depends on the performance of the workforce. If the staff have distinctive competencies that the competitors cannot replicate, the organisation automatically gains a modest edge over its participants. So, to manage this distinctive human capital, organizations are specialising in making effective systems and processes for talent management. The organisations endeavor to retain their top and key talent because if they leave the organisation, the entire repository of data is additionally gone out of the hands of that organisation. This chapter will illustrate other authors’ views on talent management and organisational performance.

The effect of talent management strategies on organisational performance

A study by Lewis and Heckman (2011) outlines the important relationship between the employees’ apparent training success and their job enthusiasm. According to Tai (2018) researchers agree in their suggestions that organisations should increase their training budgets, to retain a competitive advantage and sustain an adaptable and flexible work force. Mutambara & Mutambara (2019) conducted a study on talent management in humanitarian organisations in Zimbabwe. The study indicated that talent recruitment and deployment contribute about 72% of employee performance which in turn enhances organisational performance. Another study by Lewis & Heck man (2011) shows that there is a significant correlation between the employees’ perceived training effectiveness and their job motivation.

The Impact of Talent Management on organizational performance

Kaur (2013) conducted a study on talent management whereby, the results indicated that 92% of employee performance was a result of succession planning strategies, which included coaching, and mentoring. According to Manstra (2017) continuous learning, orienting systems and structures, and worker involvement are some of the major factors that contribute to the performance of the organization. Manstra (2017) further stated that if the organisation need stoper form higher, then, it must align its systems, structures, and everyone processes with the business goals and techniques and conjointly ought to go in conjunction with its vision and mission. It is therefore evident that to drive this high performance, the involvement of the talented work force is required because they are the core competencies and assets that a corporation has. Organisations are established by individuals who produce value through identified business processes, innovation, client service, sales, and other business activities. As organisations work to meet business goals, they should ensure that they have established continual and integrated methods for recruiting, training, managing, supporting, and compensating employees (Seyed, 2015).

Challenges of Talent Management

Integrating talent with business processes is an ongoing challenge in talent management implementation. Focused talent management incorporates the needs of employees with the organisation (Seyed, 2015). Implementing and supporting talent management in an organisation, requires the right smart structure modification and thought of several problems. The complexity and possibility of the changes imply that talent management may be a method presenting several challenges.

Talent Management approaches to boost organisational Performance

According to Chandrasekar and Zhao (2015), talent sustainability refers to an organisation’s ability to attract, develop and retain staff with the right knowledge, skills, abilities, and the motivation needed to continuously help achieve organisational goals. Tanuke (2014) highlights the following as the strategies for sustainable business development through talent management. Moreover, Chandra sekar and Zhao (2015) suggest that developing talent sustainability is a responsibility that is shared throughout the organisation, should be embedded in the overall business culture, and should not solely be the responsibility of the human resources department.

Byham & Moyer (2018) contend that, if an organisation does not have a well-defined profile of what it wants from its future senior leaders, it can neither develop people for future management positions nor accurately assess the readiness of high-potential individuals for leadership roles. Similarly, Byham and Moyer (2018) recommend that an organisation must accurately define the characteristics of the leaders who will carry it into the future. Moreover, Kermally (2004) argues that financial expenditures and developing talent management initiatives will not singularly produce results. Therefore, to successfully yield the desired results, all determinant factors must be incorporated into the process of talent management. This is validated by, LA Aina and Atan (2020) who state that as organizations operate in an inexorable marketplace, there are always new and unpredictable difficulties that make managerial roles harder and the achievement of organizational goals and objectives more critical.

In the dynamic environment, talent management for employees is a challenge for the organisation. The human resource department strives hard for sustainable business operations through promoting the development of competencies of the employees. The inter relationship between talent management and sustain able business will directly influence greater organisational performance. Tanuke (2014) highlights the following as the strategies for sustainable business development through talent management.

Organisations ought to develop bound systems that facilitate their staff to find out and learn. Such a culture greatly helps organisations to become high performers within the trade. Mac Beath (2000) has distinguished between “old” and “new” ways of learning and thinking. The author further suggests that society, and on a micro level, managers within organisations need to understand that intelligence is not fixed at birth but is created and recreated throughout our lifetimes; it is not just an individual quality but resides both within and between people.

Knapper and Cropley (2000:47) characterize a lifelong learner as an individual who is in natelya ware of the relationship between learning and reality, understands the need for lifelong learning is engaged and motivated to start the process, and possesses the capacity and skills to engage in continuous learning. According to Human Resources Direct (2019), happy and satisfied staff provide better experiences for customers and clients. Organisations that provide employees with the required tools, and who build the knowledge capacity of employees, tend to impact the organisation and customer satisfaction positively.  A study by (Seibert, Wang and Courtright, (2011) on antecedents and consequences of psychological and team empowerment in organizations revealed that when employees experience empowerment in the workplace, their performance at work is better, are more satisfied with their job, and exhibit increased organisational loyalty.The work of employees must be acknowledged because it inspires the staff to work diligently. Research suggests that recognizing employees is a powerful tool to motivate staff, while simultaneously increasing their commitment to contributing to the vision, mission, and overall objectives of the organisation (Imran, Ahmad, Nisar and Uhmad, 2014). Hence, relevant employee recognition interventions need to be established to satisfy this talent management need. states that programs focused on employee recognition needto bebalanced between performance-based andvalue-based interventions, that are based on three programmatic methodologies which include, formal, informal, and day-to-day recognition. According to SHRM (2017), organisations can reap rewards by developing strategies on how best to grow talent internally. Career paths and ladders are effective tools for ensuring continual organisational growth, productivity, and sustainability. Aligning the career goals of staff members with organisational strategic goals allows a win-win situation for employees and the organisation, the business can more effectively differentiate itself from its competitors, sustain a skilled workforce, retain a youthful workforce, and decrease turnover of key staff members. For organisations to remain sustainable and increase their performance, they must align their systems, structures, and people to processes related to achieving business goals in conjunction with their vision and mission. According to Edwards (2014), many organisations depend on vertical and horizontal linkages to develop structures to meet organisational strategies. The organisations ought to work towards making high involvement of its staff. It will do thus by giving autonomy to its gifted staff so that they are to form their own choices, respecting their ability and distinctive ideas, and conjointly by encouraging them to perform higher. This is confirmed by Amah & Ahiauzu (2013), who states that when workers are adequately integrated into work processes often create and implement improved ways to reach the goals of the organisation. The researchers have identified that staff involvement goes beyond controlling resources for one’s own job; it involves being able to influence work decisions within the organization. There must be open communication within the organisation and there should be a free flow of data. Staff ought to learn about all the changes created and choices taken, and this can facilitate the organisation to perform higher. The sharing of information allows organisations to effectively coordinate their activities with internal and external partners leading to increased performance (Baihagiand Imam, 2013).

Whereas the high rates of unemployment in recent years put more candidates within the labour market, talent insufficiency continues to frustrate recruiters. By systematizing and restructuring the recruiting method and delivering a new vision for the success of recruiting employees and techniques, organisations can improve talent acquisition potency and effectiveness. According to Dumade, et., al (2006), recruitment is an integral human resources process that all organisations engage in, because employing appropriate staff increases performance. Talent pool reviews should be organized regularly, to match current employees who are promotion-ready with job openings that fit their skills set. Bolander, Werr and as plound (2017) stated that effectively assessing talent, involves evaluating and assessing their skill sets to ensure that they are matched with appropriate jobs.

RESEARCH METHODOLOGY

Research philosophy, approach, and design

The study’s term research philosophy relates to the beliefs and assumptions surrounding the comprehensive development of knowledge surrounding a subject matter (Saunders, et. al, 2019). Therefore, this study is descriptive in nature and aimed at establishing the association between the dependent and independent variables. Descriptive design helps a researcher to gather, summarize, present, and interpret information for clarification. This strategy is proposed because it allows the collection of a large amount of data from a sizable population efficiently. Saunders et al. (2009), recommend this strategy because the method allows researchers to collect quantitative data which can be analysed quantitatively using inferential statistics. The method is also perceived as authoritative by people in general and is both comparatively easy to explain and to understand. This study applied mixed methods to collect the relevant data. Given a larger population for this study, the quantitative approach was used to generalise the results within the population and quantify the respondents’ opinions. Moreover, because quantitative research focuses on data that can be measured, it effectively answers the research questions of this study. The population for the study consists mainly of the current non-management employees as well as Management employees at NamPower. Employees were targeted as the research focuses on employees of Nam Power. Management also formed part of the research population as they are involved in planning, leading, controlling, and coordinating activities in the organisation as well as introducing different strategies. A total of 150 employees will be considered as the research population for this study. The sample size for this study is 100 which consists of 91 employees and 9 managers at Nam Power. The sample size is derived using the Rao soft sample size calculator with a 5 % margin of error, 95 % confidence interval, response distribution of 50 %, and population size of 150 employees. The managers were selected for interviews using judgmental sampling because the study follows the quantitative and qualitative methods with the quantitative being dominant. Additionally, judgmental sampling was adopted to directly reach the target of population interest. Data collection was done through both primary and secondary resources. The primary data was collected through a survey and by structured questionnaire and secondary data through document review mainly organisational reports, newsletters as well as company policies. A structured questionnaire was the main method of collecting data and was developed based on the objectives of the study.

Data Analysis

According to Sarantokos (1998), the analysis of data allows the researcher to organize data collected during the study to assess and evaluate the findings and to arrive at some valid, reasonable, and relevant conclusion. According to Cooper & Schindler (2009), the method allows a researcher to digest and understand large quantities of data and effectively communicate their important aspects in a research study. The data was analysed using multiple regression analysis to effectively obtain the relationship between the independent and dependent variables in the study. While quantitative data is based on meanings derived from numbers through the use of charts, diagrams, and statistics, qualitative data concentrates on meanings expressed through words and analysis conducted using conceptualization (Saunders et al, 2009). Concerning the qualitative data, all data were reduced to numerical values, and numerical frequency tables were generated. The categories are in effect codes or labels and were used to re-arrange the data.

Reliability and validity of instruments

The instrument used elicits reliable responses. Most of the respondents fully understood the questions asked and provided honest expressions of their knowledge. The researcher was available to address all shortcomings consistently. The questionnaires were given to other experts in research to seek their opinion about the adequacy and representativeness of the instrument to ensure it covers all the variables being measured as a way of eliminating content validity. The study adequately reviewed related literature and modeled the study on sound theoretical models. A pilot study was also conducted on the data collection instrument before the main survey to assess the clarity of the questionnaire. The items found to be redundant and misunderstood were modified to improve the quality of the research instrument, thus increasing its validity. Healy and Perry (2000), assert that reliability is the extent to which results are consistent over time and an accurate representation of the total population under study. Cronbach‟s Alpha was used as a measure of reliability and internal consistency. Cronbach‟s Alpha is a reliability coefficient that indicates how well items in a set are positively correlated to one another. It measures the inter-correlations among test items, with a measure of 1 being higher in terms of internal consistency and reliability and 0.7 to 0.9 being acceptable (Revelle and McDonald, 2006).

Ethical Considerations

Ethical considerations were considered during the exploration of secondary data collection as well as analysis and interpretation, given its sensitivity. All participation was voluntary, and participants could withdraw at any stage. This voluntary process did not infringe on the rights of any respondents. In this research study, issues relating to the ethical conduct of research such as informed consent, confidentiality, privacy, and anonymity were upheld. Participants and respondents were given full information on the purpose and objectives of the study for them to make informed decisions as to whether to partake or not. Moreover, all information gathered was used for the sole purpose of this research study.

RESEARCH RESULTS AND FINDINGS

The findings indicate that the effect of talent management strategies on performance at Nam Power was rated very high by 10% of the respondents, 50% of the respondents indicated that it was average and 20%, indicated that it was very low.

The research results show that 31.75% of the respondents strongly agree that lack of training and development hinders talent management. Another 31.75% of the respondents agree while 3.17% disagree with training and development being one of the factors that hinder talent management.

Most of the respondents, totaling 44.44% strongly agree that lack of career development hinders talent management. This is followed by another 26.98% who also agree with the factor.  A total of 12.70 % of the respondents neither agree nor disagree that career development hinders talent management.

The findings indicate that 42.86% of the participants strongly agreed that lack of motivation hinders talent management.  Another 19.05% of the participants agreed that lack of motivation is indeed a hindrance to talent management.  There are however a few participants who believed that lack of motivation does not hinder talent management looking at the evidence of 6.35% of the participants who disagreed and 4.76% of the total participants who strongly disagreed. The data reveals that lack of incentives and poor wages is a hindrance to talent management According to 30.16% of the respondents agreed while another 30.16% of the respondents neither agreed nor disagreed.

The table above indicates that 39.68% of the respondents strongly agree that poor relationships with supervisors is a hinderance to talent management while 4.76% strongly disagreed that poor relationship with supervisor hinders talent management. According to the results, the respondents indicated with a resounding 90% that talent management had an impact on the performance of the organisation while 10% indicated that talent management had no impact on organisational performance. Fifty percent (50%) of the respondents believe that the level of organisational performance was average when there was poor talent management in the organisation. Twenty (20%) of the respondents were of the view that organisational performance was low when talent management in an organisation was poor.

The data collected reveals that most of the respondents believed to a large extent with 39.68% and to a very large extent with 49.21% respectively that there will be loss of valuable knowledge and experience due to poor implementation of talent management. However, 3.17% of the respondents believed that valuable knowledge and experience will not be lost at all even talent management is implemented poorly.

The data collected also reveals that 38.10% of the respondents indicated that, there would be poor motivation and morale to a very large extent if talent management strategies were poorly implemented, while 1.59% indicated that, there would be poor motivation and poor morale to a very large extent if talent management strategies were poorly implemented valuable knowledge and experience would be lost to a large extent if talent management strategies were poorly implemented.

The findings show that 30.65% of the participants indicated that there will be dissatisfaction of stakeholders to a moderate extent because of poor implementation of talent management.  Whereas 22.58% of the participants indicated that stakeholders will be dissatisfied to a very large extent and only 20.97% of the participants indicated that there will be dissatisfaction of stakeholder due to poor implementation of talent management.

Most of the respondents (39.68%) indicated that service delivery will be disrupted at a moderate extent. A smaller percentage, 14.29% of e respondents believe that service delivery will be disrupted to a small extent while 28.57% of the participants believed that there will be disruption of service delivery to a large extent if talent management is poorly implemented.

The data collected indicates that 41.27% of the respondents think that employee workloads will be increased to a large extent if talent management is poorly implemented. Whereas 31.75% indicated that the workload for employees will increase to a very large extent due to poor implementation of talent management. Other respondents of 11.11% indicated that the workload for employees will only increase to a moderate extent.

The results of the study show that from the respondent’s data, 65% indicated that Nam Power had adopted measures to manage talent management. The respondents further suggest that the measures are theoretical, However, 35% of the respondents indicated that there were no talent management measures adopted at Nam Power.

The data collected shows that when respondents were queried on the rate of effectiveness of talent management programs in the organization, 55% of the respondents rated the effectiveness as average, 15% rated the effectiveness as high and 20% of the respondents indicated a low rating.

The results of the data collected shows that 40% of the respondents believe that competitive remuneration was to a large extent a solution to talent management, with 50% suggesting that fostering employee development was to a very large extent a solution, and finally. 40% think that fostering open communication between employees and management was to a large extent a factor in talent management. Functional human resource system was indicated by 45% of the respondents as contributing to a large extent in talent management.

Ninety five percent(95%)of the respondents were of the view that talent retention affected organisational performance while 5%, believe that organisational performance was not affected by talent retention.

A vast majority(95%) of the respondents indicated that organisational performance was affected by learning and development programs while 5% were of the view that learning and development had no effect.

Multiple regression model: A Model summary

R: Multiple correlation coefficient = .484

R²: coefficient of determination is .234

The model explains only 23.4% of the variation in the dependent variable

The overall model is not significantly useful in explaining the organizational performance, F (5, 57) = 3.482 p> 0.005

All the variables in this model are insignificant with their p-values > .001.

This model shows that there is a negative relationship between lack of training and development and the organizational performance. For every individual who lacks training and development the organisational performance drops 6.1%.There is a negative relationship between lack of motivation and organisational performance. For every individual who lacks motivation the organization performance decreases by 4.8%.

There is a negative relationship between lack of incentives poor wages and organizational performance. For every individual who lacks or doesn’t get incentives or receives poor wages the organization performance decreases by 4.2%.

There is a negative relationship between poor relationships with supervisors and organizational performance. For every poor relationship between a supervisor and an individual, the organization performance drops by 9.4%.

This multiple regression model tests the impact of talent management on organizational performance. The variables considered in this model are lack of training and development, lack of career development and growth, lack of motivation, lack of incentives poor wages, and poor relationship with supervisors. The positive relationship between lack of training and development and the organization can be clearly explained because if employees are not provided with training, they will not know what to do or what is expected of them. Employee’s performance must be measured through talent management. Upon this occurring the company performance is measured through individual achievement and management can place employees in roles where they perform effective and productive. The negative relationship between lack of career development and growth and impact of talent management strategies on the organizational performance is credible in this model.

When the organization does not offer career growth and opportunities for management roles, performance will drop because some will opt to leave and go showcase their talents elsewhere or they will not perform to the best of their ability. The positive relationship between lack of motivation and the organization cannot be explained in this model because if the organization does not have effective talent management strategies, performance will be impacted as the employee may only perform at their minimum capacity, motivation is integral to organizational success because motivated employee work hard and often seeks self-development opportunities. This variable does not fit within this model, and it can be removed to not draw misleading conclusions. The negative relationship between lack of incentives and poor wages can be justified in this model as employees are motivated by financial renumeration. Thus, when there are limited incentives and insufficient salaries to meet an employee’s needs, then they are likely to underperform. The negative relationship between poor relationships with supervisors and the organization performance can be justified because supervisors are in a better position to recognize talent whenever they see it. Another variable can be added to the model to further explain the impact of talent management strategies on the organization performance.

R: Multiple correlation coefficient is .327

R²: Coefficient of determination is .107

The model explains 10.7% of the variation of the dependent variable.

The overall model is not significantly useful in explaining the lack of career development, F (2, 60) = 3.580. P > 0.005

The highest qualification and age of respondents are both insignificant in this model with their p-values of .668 and .012 which is greater than .001.

There is a positive relationship between the highest qualification and lack of career development. The model indicates that for every increase in an individual qualification, employment level the career development increases by 4.4%.There is a negative relationship between respondents’ age and career development. This means that with every increase in the individual’s age, the need for career development decreases by 42.6%.

The variables on this multiple linear regression model to test the effect of highest qualification and respondent’s age against career development conveys strong results that are realistically applicable, because people with higher qualifications, often pursue career development to reach high positions in the organization. The largest number of people with the highest qualification such as bachelor’s degrees to masters’ degrees are young people who understands what career development is, and they seek continuous learning opportunities for career advancement and preparation for other job prospects that comes their way. With the advancement in technology organisation structures change fast, making continuously learning necessary.  The negative relationship between respondents age can be justified in the sense t that as a person ages the desire for career development often decreases. because they feel they are moving towards the end of their working era and after the age of 60 they will retire and will have nowhere to apply their acquired. In some cases, the aged people in the organisation are from a generation that believes that one can only advance until a certain stage. From our data it shows that the people aged 51 years and over mainly holds a grade 12 only and they are the people who have been working for the organisation for a long time and at times gets to advance in their career on account of their loyalty thus ends up occupying the higher positions because of the experiences they have collected over the years. Other variables such duration of employment at NamPower can be added to the model to further explain the reasons for the lack of career development.

R: Multiple correlation coefficient is .526

R²: Coefficient of determination is .276

The model explains 27.6% of the variation of the dependent variable.

The overall model is useful in predicting and explaining performance when there is poor implementation because 0.002 > 0.001 unless we set the p-value to be .005 then performance can be explained well by the independent variables when there is poor implementation.

Increased workload is significant in this model with a p-value of < .001.

The other variables in this model are not significant because the p-values of .444, .606, 812 and .166 are all greater than .001.

1. For every increase in the workload for employee the performance due to poor implementation increases by 43.6%.
2. For every increase in the loss of valuable knowledge and experience due to poor implementation in the organisation, the performance drops by 11%.
3. For every increase in the disruption of service delivery due to poor implementation of talent management strategies, the organisation performance increases by 8.9%.
4. For every increase in poor motivation and poor morale the organisation performance due to poor implementation increases by 3.6%.
5. In this model for every increase in the organization stakeholder’s dissatisfaction the performance due to poor implementation decreases by 21.5%.

This multiple linear regression model sought to find the relationship and consequences due to talent management strategies. The variables considered were increased workload for the employees, loss of valuable knowledge and experience, disruption of service delivery, poor motivation and poor morale and dissatisfaction of the stakeholders. The most significant variable on this model in increased employees’ workload, that can be further explained by our daily lives whereby if an organisation has implemented poor talent management strategies, then the employees will be overloaded with work. Often in such cases, only a few employees know how to do the job, whereas others might not have adequate work experience, thus pushing the work to those with more knowledge or relegating the additional work to subordinates. The organisation needs to have strategies to provide in-service training or hire knowledgeable employees to reduce workloads. Most of the variables on this model can remain, as they explain the variation on the model. Variables such as dissatisfaction of stakeholders can be removed from the model as the values do not make statistical sense and the conclusions will contradict what happens on the ground. If the stakeholders are not satisfied with the organisation performance due to poor implementation they will come for the organisation and try to come up with solutions, the stakeholders will be dissatisfied if the performance is poor. Other variables can be added on this model to explain the relationship further and make the model the best fit.

R: the model correlation coefficient is .401

R²: the coefficient of determination is .161

The model shows that 16.1% variation in the model is explained by the dependent variable which is the effectiveness of the talent management program.

This overall model is not significantly useful in explaining the changes or variations of the effectiveness of the talent management programs in the organisation. The p-value is 0.035 > 0.001.

The variables in the model are all insignificant because the p-values of .969, .418, .049 and .746 are all greater than .001.

1. There is a positive relationship between competitive remuneration and the effectiveness of the talent management. For every increase the competitive remunerations effectiveness talent management program increases by 0.5%.
2. There appears to be a negative relationship between the effectiveness of talent management programs and fostering employee development. For every increase in the fostered employee development, the effectiveness of the talent management the goes down by 12.2%.
3. There is a negative relationship between the effectiveness of talent management programs and open communication between employees and management. The results show that for every increase in open communication between employees and management, the effectiveness talent management program there will be reduced by 34.8%.
4. There is a positive relationship between effectiveness of talent management and a functional human resource management. For every increase in the functionality of the human resources management the effectiveness of a talent management program the increases by 6.1%.

This multiple linear regression model is not significantly useful and is not the best fit model to explain the effectiveness of talent management. Most of the independent variables are the possible solutions to have effective talent management strategies that enhances the performance of the organisation. The positive influence from competitive remuneration can further explain the increase in the effectiveness of the talent management strategies.

When an organisation offers a competitive remuneration, they can retain their most experienced and talented employees as they will not leave to go look for better compensation of their skills elsewhere. Such scenarios, saves organisational resources from recruiting staff that require training. The negative relationship between fostering employee development and the effectiveness of talent management is not applicable because when the organisation invests in employee development, they will have effective talent management strategies and vice versa. The effective talent management strategies are beneficial to both the organisation and the employee. The employees will be able to be productive and work efficiently to increase productivity and that increases the organisation revenues, and it also saves money and time that can be diverted to training and development.

The negative relationship between open communication between employee and management and the effectiveness of talent management cannot be logically explained. Management cannot make effective and well-informed decision without seeking employee feedback, because staff understand their day-to-day operation and can suggest ideas that can help management planning. This will build the leadership capacity of staff and motivate them to perform because they contributed to decision making.

The positive relationship between a functional human resource management system and the effectiveness of the talent management strategies is applicable in any operational organisation. Human resources management should have a monitoring system to track progress and effectiveness of talent managements strategies able to make necessary changes and develop strategies to increase performance effectiveness. Variables such as fostering employee development and creating open communication between employee and management can be removed from this model to avoid misleading results. Other factors can be added to further explain the effectiveness of talent management strategies and make it the best fit model.

R: The correlation coefficient is .361

R²: the coefficient of determination is .131

The model shows the 13.1% of the variability is explained by dependent variable that is the effect of talent retention in the organisation performance.

The overall model is not significantly useful on explaining the effect of talent retention on organisation performance, F (4, 56) = 2.103. P > .05

Competitive remuneration has a significant effect on the effect of talent retention on the organisational performance p=.025 < .05. For every increase on the competitive remuneration the organisation performance due to talent retention decreases by 6.2%.

Fostering employee development does not have a significant effect on the effect of talent retention on the organisation performance. There is a positive relationship between the effect of retention of talent management on the organisation performance and fostering employee development. For every fostered employee development, the organisation performance improves by 2.8% due to talent retention.

Open communication between employee and management does not have a significant effect on the effect of talent retention on the organisation performance, p = .115 > .05. There is a positive relationship between the two, meaning that for every open communication between the employees and the management the organisation performance increases by 6.3% due to talent retention.

Having a functional human resource management system does not have a significant effect on the effect of talent retention on the organisation performance p = .093 > .05. There is a negative relationship between the two variables that means that the functional human resource management system reduces the organisation performance due to talent retention by 6.9%.

This multiple linear regression model provides the relationship between organisation performance due to talent retention and the possible solution to retaining employees. The negative relationship between competitive remuneration and the organisation performance cannot be explained in this model because if an employee is offered a competitive salary they will not want to leave, because  they feel fairly compensated, it plays on their psychology as they would want to stay in the familiar environment and they believe the will advance better if they stay in the same organisation than having to go to a new and different one where their talent might not be appreciated. Employees don’t like uncertainty; thus, they seek job security found in familiar environments. There is a positive relationship between fostering employee development and improved organisation performance due to talent retention. This is because if the organisation provides in-service training or encourage further studies for employees, by offering tuition support or promotion opportunities after obtaining their qualification. Such incentives can help organisations retain talented employees.

There is a positive relationship between creating open communication between employees and the management, and an increase in organisation performance due to talent retention. When there is an open flow of communication between the management and employees, they often recognise mutual efforts, of employees’ high performance and management selecting talented employees from the ground level and building their professional capacity throughout their career.

The model shows a negative relationship between functional human resource management and the organisation performance. A functional human resource management system is the major tool in identifying and selecting employee talent and placing them in roles where they will perform best. This variable can be removed from this model without causing further deviation and a new model can be integrated to better explain the relationship between the two variables. The other variation in this model can be explained by other factors that were not included in the current construction such as succession planning, skills transfer, self-confidence and discipline.

DISCUSSION OF FINDINGS

This study sought to ascertain the effect of talent management strategies on organisational performance at Nam Power. The study offered theoretical support for talent management and its influence on organisational performance Nam Power.

Talent management enhances growth, growth enhances motivation, and motivation enhances productivity. Talented employees would not put in 100% effort if they did not feel appreciated, leading to the organisation not performing optimally. The respondents indicated that, talent retention increases the performance of the organisation. Skilled and proactive employees were more likely to be motivated and recognised if their organisation had talent retention which has a direct effect on performance. Talent retention means that the best talent is retained. When talent is retained, organisations perform better as these employees performs better than the ordinary employees, stated some of the respondents. Effective employee retention increases the productivity of an organisation, work is done efficiently, and the turnover is low with minimal losses.

The most valuable asst of an organisation are human resource. Hence, when skilled and talented people are retained, they use their skills and the knowledge to provide outstanding service to stakeholders, which results in improved organisation performance and sustainability. Talent retention infers that organisation is not frequently training new employees due to talent loss, which can disrupt service delivery, but are able to keep staff members familiar with the work, thus ensuring continuous performance.

The study also noted that having proper talent management programs leads to a skilled high performing workforce. Long-serving employees with past years of experience when retiring/resigning would go with their skills and experience that were supposed to be passed on and transferred to the new and young generation if succession planning was not implemented. Networking and strategizing within the company provide ongoing performance management and builds relationships among co-workers (Gareth, 2008). Often, skilled employees transfer skills to other employees, enabling the organization to pull on all fronts, thus not relying on individuals but succeeding through a team effort.

The respondents indicated that, through learning, employees could employ new effective and efficient performance strategies.  Learning and development programs equipped employees’ skills and serve as employee motivation. In these cases, employees felt that they were an asset to the company which in turn motivated them to work hard and thus improving the performance. The study agrees with Martin (2005) who argues that employees are important in running of any business; without them the business would be unsuccessful. However, contemporary employers are finding that employees tend not to serve long in an organization.  Providing a stimulating workplace environment, which fosters happy, motivated, and empowered individuals, lowers employee turnover and absentee rates. Promoting a work environment that fosters personal and professional growth promotes harmony and encouragement in all levels of organization (Martin, 2005). A well developed and informed workforce is likely to develop efficient and effective ideas that can assist in achieving organisational goals. Thus, training employees can reduce organisational cost and enhance performance and consistency.

The respondents indicated that the way in which things were done in the workplace are changing because of technology. Therefore, to increase organisational growth, learning needs to take place to be up to date advanced technology and changing business environments. Continuous training and development of staff, enables them to remain current on the ever-evolving skills needed to improve individual and organizational performance. Continuous training was also noted by the respondents, to increase staff morale.

Employing well qualified people in the Human Resource department was also highlighted by the respondents.  The respondents stated that, one of the main objectives of an organization is to improve its performance, but it can never be possible without the effective and efficient performance of employees. Therefore, the performance management system came into effect as a management reform to address and redress concerns, organizations had about performance. The study found out that a positive environment for employees increases productivity which in return leads to high performance.  These findings relate with the literature review by Collings, Scullion & Vaiman (2011), where he argues that working environment in the organisation may affect performance positively or negatively. Therefore, it is important for an organisation to make the working environment rewarding, enjoyable and healthy to enable employees make a positive impact on organisational performance.

Technology continues to have an impact on work environments. With the effects of COVID-19 as an example, organisation have begun to work remotely which requires a different method to the “normal ways of living,” stated one respondent. The findings also agree with Robert (2006) who argues that continual training and reinforcement develops a work force that is competent, consistent, competitive, effective, and efficient, beginning on the first day of work, providing the individual with the necessary skills to perform their job is important.

Succession planning, that is governed and accompanied by tangible KPIs, and measurable activities was noted among the respondents. The respondents indicated that to improve talent management, the following was required: Align to company mission, vision and core values, career development plan, succession planning, mentorship and Coaching implementation, and compensation management.

Organisational leaders and executives need to engage more with their subordinates, to offer support and address any issues affecting the daily tasks, stated one of the respondents as well as putting strategies in place to retain talent. For instance, “in Nam Power such a strategy is already there (Performance Bonus), it should just be maintained” opined one of the respondents. Creating a platform to engage with staff and learning their skills requirement was another key factor in talent management. It is also important to motivate employees to focus on customer success, profitable growth, and company well-being. Employers should keep their employees informed and involved in decision-making. Early and continuous engagement shows employees they are valuable, and recognized, and such interventions can be done through information or recognition rewards (Edward, 2010).

Training budgets should be a priority for the organisation to ensure that staff are well equipped to do their jobs stated the respondents. Supervisors also needed to stop training bias, by not making decisions based on personal issues. All staff members should have an equal chance to for learning and development activities, this is how they would retain talent in the organisation.

Finally, the findings agree with Abraham (2009) who found out that employee’s flock to companies who offer more benefits. There are many employees who are not aware of the benefits that are provided to them in their compensation package. The employers need to reduce their bureaucratic procedures for the employees to receive the best available benefits without difficulty. They should note what benefits other organizations are providing, which may attract their current employees. Employees prefer companies which provide them with higher posts and increased compensation packages. The companies need to evaluate and modify their promotion policies in a fair way which would enable promotions for candidates only based on employee performance. The respondents further stated that paying employees more and empowering them to exercise their talents would benefit the organization. Finally, employee recognition, addressing staff concerns, and management and supervisors giving all employees equal and fair chances would motivate employees.

CONCLUSION

Talent Management is vital to the success of an organisation. It involves integrated organisational HR processes that work together to attract, engage, motivate, and retain the best employees. Talent management, when handled strategically, flows from the organisation’s mission, vision, values, and goals. This enables every employee to see where they fit within the organisation. This enables employees to participate in the overall direction of the company. From a strategic perspective, an effective talent management system helps high-performing feel as if they are part of something bigger than their current job. A good talent management strategy enables one to capitalize on the strengths and abilities of employees, helping them to grow within an organisation. Employee and management engagement is key.

Training and development programme are one of the vital exercises that an organisation could focus on toreta in, develop, and maintain high-performing employees.  When the systems and structures are not well integrated into the organisation, talent management strategies are also impacted negatively.  Communication between employees and supervisors turns to be a hindrance to talent management when ineffective. It is therefore important that organisations engage employees in all new developments regarding policies and programs and allow them to participate in decision-making. Planning should be aligned with the overall goals of Nam Power. Only with the correct planning would NamPower ensure that they engage talent with the right skills and experience. In addition, planning assesses current employees to see what is working well for the company. For instance, if employees with certain characteristics tend to stay at Nam Power longer, then hiring more workers like them should be considered in the planning process.

It is not always as simple as when one person leaves the company, you start a search for someone else to fill the role. For instance, the company’s needs might change, or employees may take on new responsibilities. Talent management should ensure that there is sufficient staff to carry out all the operations and prevent heavy workloads that could cause demotivation. Attracting talent should be about branding the company as an employer. Nam Power needs to find ways to increase visibility in ways that allow the company to be presented as the best place to work.

The model’s development component entails taking action to help employees advance within the organization. It should be in line with the employee development strategy, and it should include identifying future responsibilities for specific employees, as well as thinking about ways to improve workers’ skills and knowledge to meet new difficulties.

Another goal of talent management is to maintain employees at your firm for a longer period. Employees must continue to believe that working for the organization is pleasurable and worthwhile. Employees could build a career without leaving the company through training and other forms of involvement. You can do so by focusing on monetary and non-monetary rewards, as well as business culture.After hiring and developing highly performing employees there is a need to plan for employees’ transitions. The aim of Nam Power should be to keep their knowledge within the company, this is called knowledge management. Nam Power needs to have a plan in place to promote employees or move them to another role, department, or office.

RECOMMENDATIONS

Nam Power should engage employees on policies and expectations for employees to feel safe from any victimizations, discrimination, and biases as far as policy application is concerned. The organisation should create a reward system for new ideas to encourage innovativeness and increase engagement between management and employees.

Nam Power, should initiate motivating and team-building programs that allow employees of different sections to engage in activities that help them contribute to organizational goals. Nam Power should create a platform where every employee can express themselves on challenges they experience at the workplace.  Employees need to understand the organisation’s expectations, strategies of a certain period, and or goals to be achieved. Management also needs to understand what employees need in terms of training and development for the goals set to be achieved.

Some restrictions should be addressed in this thesis. The sample size for this study is insufficient to make a broad judgment regarding the most significant impact of people management practices across the whole energy industry. Furthermore, while the study is centered on Nam Power Namibia, the tactics are not relevant to every other country due to differences in employment legislation and worker expectations.As a result, the thesis’ findings should be regarded with caution. There was a dearth of data in the literature review, particularly on current studies about talent management models. Furthermore, this research can be expanded to include not only Namibia, but the entire continent, to determine what different regions of the country do to retain staff.Finally, more research may be conducted to compare the retention tactics of other countries.As a result, the author recommends interviewing as many energy organisations as possible for additional research.

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