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Developing Talent and Enhancing Performance in the Public Sector:
Strengthening Government Workforce Capacity for Malaysia’s
National Development
Wan Ahmad Tirmizi Wan Sulaiman
1
, Iskandar Hasan Tan Abdullah
2
, Nik Sarina Nik Md Salleh
3
,
Sakinah Mat Zin
4
, Wan Nor Azilawanie Tun Ismail
5
1,
2
Faculty of Administrative Science and Policy Studies, Universiti Teknologi Mara Cawangan Kelantan.
3,4
Faculty of Business and Management Universiti Teknologi Mara Cawangan Kelantan, Malaysia
5
Faculty of Applied Social Sciences Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu,
Malaysia
DOI:
https://dx.doi.org/10.47772/IJRISS.2025.91100232
Received: 21 November 2025; Accepted: 28 November 2025; Published: 05 December 2025
ABSTRACT
The Twelfth Malaysia Plan (12MP) seeks to revitalize the national economy, enhance societal well-being, and
strengthen long-term economic growth. Aligned with this agenda, the present study examines the relationship
between talent management and the performance of state government employees in Malaysia. Motivated, skilled,
and engaged employees are better positioned to contribute effectively to organizational objectives, thereby
improving overall performance. Accordingly, this study assesses the impact of talent management—specifically
recruitment and retention practices—on employee performance within the state government. Data were collected
using adapted survey instruments from prior research, and responses from 385 state government employees were
analysed using SPSS Version 22. The findings indicate that talent management, recruitment, and retention exert
significant positive effects on organizational performance. These results offer valuable insights for human
resource practitioners in developing strategies that support employee growth and enhance performance
outcomes.
Keywords: Employee performance, state government, talent management, talent acquisition, talent
development, talent retention.
INTRODUCTION
Human capital is widely acknowledged as a key driver of economic advancement, with the development of
competent talent forming the foundation of a resilient and dynamic economy. In alignment with the 12th
Malaysia Plan (12MP) (2021–2025), talent management has emerged as a national priority to support inclusive
and sustainable growth. Strengthening talent development strategies is therefore essential for enhancing the
performance of state government employees in Malaysia.
To remain competitive across industries, individuals must possess relevant skills and demonstrate high
adaptability. Prior research demonstrates a positive relationship between reciprocity norms, trust, and the skills
and commitment of young individuals (Nor, Alias, & Musa, 2018). Transitioning toward a productivity-driven
economy requires highly skilled youth and quality human capital capable of enhancing overall product and
service performance. Thus, individual commitment is crucial in realising the objectives outlined in the 12MP.
The presentation of the 12MP on 27 September 2021 was timely, coinciding with Malaysia’s recovery from the
COVID-19 crisis (PwC, 2021). The pandemic also underscored the significance of decentralisation as part of
public-sector reform (Seo, 2022). The 12MP charts Malaysia’s strategic direction from 2021 to 2025 and centres
on three core pillars: (a) revitalising the economy, (b) enhancing security, well-being, and inclusiveness, and (c)
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advancing sustainability. In this context, state government organisations are at a pivotal point as they contribute
directly to the nation’s aspirations for sustainable development.
Recent economic indicators reflect persistent challenges in labour productivity. Measured as value added per
hour worked, Malaysia’s labour productivity declined by 0.6% in the third quarter of 2021 (2Q 2021: –12.9%).
Although total hours worked decreased by 3.9% (2Q 2021: 33.3%), the overall economy contracted by 4.5%,
reversing the 16.1% growth recorded in the previous quarter (DOSM, 2021). This decline highlights the urgent
need for a highly skilled workforce capable of supporting economic diversification and long-term
competitiveness.
The Director General of the Malaysian Productivity Corporation (MPC) further reported that national
productivity in 2020 recorded its sharpest decline in a decade (MPC, 2021). To meet public expectations and
enhance national resilience, Malaysia must undertake fundamental reforms to improve the effectiveness and
efficiency of the public sector.
The 12MP emphasises strengthening leadership within the civil service, upholding strong values and ethics,
developing future leaders, and enhancing talent acquisition and retention strategies. Despite growing global
interest in talent management across academic fields, the public sector particularly Malaysian state government
agencies have received comparatively less attention in scholarly research (McDonnell et al., 2017). Talent
retention also remains a critical issue in Malaysia (Alias, Noor, & Hassan, 2014). Consequently, this article
examines how talent management practices influence employee performance within Malaysian state government
organisations.
LITERATURE REVIEW
Employee Performance
Employee performance refers to the extent to which individuals meet work-related objectives over a defined
period, based on established standards and criteria (Karoso et al., 2022). Coaching interventions have been shown
to enhance performance across all career stages (Pousa et al., 2017). Previous research consistently reports a
positive link between talent management practices and employee performance (Krishnan et al., 2020; Wadhwa &
Tripathi, 2018). Other studies also confirm a strong correlation between talent management and employee
performance (Sopiah et al., 2020; Damarasri & Ahman, 2020; Kaleem, 2019).
Talent Management
Talent management encompasses a set of HR practices—including recruitment, training, and succession
planning—focused on securing and developing human capital (Mercer, 2005). Its importance has increased due
to evolving labour market demands, skill shortages, demographic shifts, and the need for future leadership
development (Noe & Kodwani, 2018). Sanjeev and Singh (2017) argue that talent management involves
attracting, developing, and retaining skilled employees. The overall aim is to build high-performing
organizations capable of achieving strategic goals (Massie, 2015).
Talent Acquisition
The demand for highly skilled and mobile talent continues to exceed supply, intensifying competition among
employers (Ewing et al., 2002; Ployhart, 2006). Skilled professionals benefit from limited opportunities in
technical, professional, and service fields (Srivastava & Bhatnagar, 2008). Consequently, job applicants
prioritise selecting organizations and roles that best meet their preferences (Rynes & Cable, 2003). This has led
firms to improve their attractiveness to potential hires (Highhouse et al., 1999). A key challenge in recruitment
is identifying candidates with the appropriate mix of competencies and cultural fits (Rynes, 1991).
H1: Talent acquisition has a positive relationship with employee performance.
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Talent Development
Talent development involves planning and implementing strategies to ensure the organization possesses both
current and future capabilities (Garavan et al., 2012). This requires aligning employee development with wider
organizational objectives. According to Hedayati Mehdiabadi and Li (2016), employees must possess specialized
skills and the adaptability needed to navigate rapidly changing environments. Organizations thus require flexible
employees capable of continuous learning.
H2: Talent development has a positive relationship with employee performance.
Talent Retention
Talent retention is a critical dimension of talent management that influences employee performance (Iles et al.,
2010; Lynn, 2003). Effective retention practices prevent the loss of highly skilled employees and promote job
satisfaction and well-being (Bhattacharyya, 2015; Qureshi, 2019). Organizations with strong employer brands
demonstrate higher retention levels, lowering hiring costs and supporting long-term performance (Qureshi et al.,
2019). A diverse range of retention strategies is required to sustain key talent (Collings & Mellahi, 2009).
H3: Talent retention has a positive relationship with employee performance.
Talent Management and Employee Performance
Talent management is considered a strategic and integrated approach to improving organizational effectiveness
(Ashton & Morton, 2005). Research shows that talent management enhances employee performance and job
satisfaction (Dixit & Amit-Arrawatia, 2018). Luna-Arocas and Lara (2020) also found that talent development
practices improve performance outcomes. Similarly, Bibi (2019) concluded that talent management fosters
employee performance while enabling firms to maintain competitiveness.
H4: Talent management has a positive relationship with employee performance.
METHODOLOGY
This study employed a quantitative research design using a cross-sectional survey. The questionnaire, adapted
with minor modifications from Kaleem (2019), was converted into an online survey using Google Forms.
Kaleem (2019) examined the influence of talent management practices on employee performance in selected
UAE public-sector organizations. By adopting a self-assessment survey approach in Malaysia, the previously
validated instrument became more adaptable and diverse.
The survey consisted of 15 items measuring employees’ awareness of state government talent management
practices and 4 items assessing self-reported employee performance. The components of talent management and
their relationships with employee performance were identified from the literature and operationalized into items
covering talent acquisition, talent development, talent retention (four items), talent management, and employee
performance.
To evaluate internal consistency, Cronbach’s alpha was used. Cronbach’s alpha is widely applied to assess the
reliability of questionnaire scales, specifically item interrelatedness (Cronbach, 1951). Values above 0.70 are
considered acceptable (Alias et al., 2023; Nunnally, 1978). All variables in this study demonstrated alpha
coefficients above this threshold: employee performance (0.849), talent acquisition (0.810), talent development
(0.901), talent retention (0.830), and talent management (0.866), indicating satisfactory reliability.
Multiple regression analysis was conducted to examine the research model and test the hypotheses. A one-way
Analysis of Variance (ANOVA) was subsequently used to calculate the generalizability coefficient and to assess
the extent to which measurement error contributed to the dataset. ANOVA is appropriate for studies requiring
multiple comparisons and assessing overall reliability (Brennan, 1992; Connelly, 2021).
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After receiving initial responses from state government personnel, it was decided to administer the survey in
Malay. Each item used a seven-point Likert scale ranging from 1 (“strongly disagree”) to 7 (“strongly agree”).
Compared to a 10-point scale, a 7-point scale tends to produce slightly higher mean values (Dawes, 2008).
An executive officer from the Kelantan State Economic Planning Unit (UPEN) reported that the total number of
Kelantan state government employees is approximately 4,120 (Wan Zulfadhli Syahman, WhatsApp
communication, Sept 28, 2021). A sample of 385 employees was selected, exceeding the minimum
recommended sample of 274 based on Krejcie and Morgan (1970). A sample size between 30 and 500 is
considered adequate for most research studies (Sekaran & Bougie, 2019; Roscoe, 1975).
This study utilised non-probability convenience sampling, a common practice in online survey research due to
its accessibility, affordability, and efficiency (Lehdonvirta et al., 2021). The survey link was distributed to
Kelantan state government employees through WhatsApp. The main limitation of convenience sampling is the
potential for bias, which restricts generalizability. As highlighted by Ibrahim et al. (2023) and Emerson (2021),
convenience sampling lies between single-subject approaches and randomized control group methods. However,
the use of a large sample size in this study enhances the potential for limited generalization. A total of 385
complete responses were received, yielding a 69% response rate. According to Mugenda & Mugenda (2003), a
response rate of 50% is adequate, 60% is good, and 70% or above is very good.
Descriptive and Inferential Analysis
The sample consisted of 41% female and 59% male respondents. Research by Khoreva, Vaiman, and Van Zalk
(2017) indicates that female high-potential employees tend to be more dedicated to developing leadership
capabilities, whereas Tatli et al. (2013) argue that women are generally less inclined than men to compete for
higher-status roles. Given the small gender gap (8%) in this sample, the findings suggest that Kelantan state
government agencies should optimize available talent by promoting the value of talent management practices
equally to both male and female employees and empowering them to engage in developmental activities.
Employers must support high-potential employees of all genders (Khoreva, Vaiman & Van Zalk, 2017).
In terms of age, 61% of respondents were between 20–40 years old, 33.2% were 41–50, and 5.8% were 51–60.
Future competence development relies heavily on retaining younger employees in the workforce. Thus,
understanding how talent management practices are applied across age groups is essential, particularly as
technology influences competency needs. Employers may prefer younger employees due to their longer potential
contribution and developmental capacity (Urwin, 2006). However, Wilson, Parker, and Kan (2007) assert that
recruitment should focus on skills rather than age.
Regarding education, 86.5% of respondents possessed a diploma or higher qualification, indicating a high level
of talent and suggesting that many employees have the skills necessary for managerial roles. Work performance
is significantly influenced by work experience (Fajriah et al., 2021). In this sample, 72.2% of employees had
more than three years of experience, and 36.6% had more than nine years. Performance levels were generally
high: 41% good, 20.5% perfect, and 16.9% excellent. These findings reflect a workforce with substantial
experience and competency, supporting the development of skilled and talented employees.
RESULTS AND DISCUSSION
The correlation coefficient was used to determine how significantly the dependent and independent variables
were related.
Table 1: Correlations among the Variables
Hypotheses
Coefficient
H1: There is a positive relationship between talent acquisition and employee performance.
.560
**
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H2: There is a positive relationship between talent development and employee performance.
.621
**
H3: There is a positive relationship between talent retention and employee performance.
.716
**
H4: There is a positive relationship between talent management and employee performance.
.574
**
A more significant correlation between the two variables is indicated by values closer to +1.00 or -1.00, whilst
a lesser correlation is indicated by values closer to 0.00 (Pallant, 2013). Table 1 shows correlation results among
the variables.
The findings showed that every variable was significant and positive, and all correlation values were classified as
large (Cohen, 1988). The two variables most strongly correlated were talent development and retention (r=0.810,
p0.01) and talent acquisition and talent development (r=0.783, p0.01). The largest associations between talent
retention and employee performance were found in the correlation study between independent variables and
dependent variables (r=0.716, p0.01). The weakest link was between talent acquisition and employee
performance (r=0.560, p0.01). Further, a one-way ANOVA, also known as an F test, was exercised to determine
whether there was a difference between the variables (for example, different dosages of an intervention or
different timeframes) (Connelly, 2021). Accordingly, the result exhibits a significant difference in mean [F (4,
378) = 119.86, p=0.00] between the variables. Then, the association between talent management elements and
worker performance was examined using multiple regression analysis. The outcomes in Table 2 uncover talent
acquisition (β = 0.330, t = 5.770), talent retention (β = 0.712, t = 11.700), and talent management (β = -0.163, t
= -2.900) significantly influenced employee performance. Both t-values are equivalent to p-values that are less
than 0.05, making them statistically significant. As a result, talent acquisition and retention are beneficial in
predicting employee performance. Whereas talent development (β = -0.089, t = -1.103) does not since its p-value
is 0.271, i.e., >0.05.
Table 2: Multiple Regression Results for Business Performance
Model
Standardized Coefficients
t
Sig.
Beta
1
(Constant)
11.285
.000
Talent Acquisition
.330
5.770
.000
Talent Development
-
.089
-
1.103
.271
Talent Retention
.712
11.700
.000
Talent Management
-
.163
-
2.900
.004
a. Dependent Variable: Employee Performance
This study’s result resembles that of Mensah (2015), who indicates that implementing a talent management
system improves employee performance. Additionally, Sariwulan et al. (2021) assert that talent management
affects employee work performance. Dalal & Akdere (2021) also discovered a strong and advantageous
association between talent management and employee job- related results. However, due to the insignificant
finding, it can be said that talent development is not individually reliable for predicting Kelantan state
government employees’ performance. Hence, state government's human resource management (HRM) personnel
must pay more attention to developing employee talents. These measures for talent development are crucial for
fostering learning, employee engagement, talent management, and staff development, which in turn improves
organisational performance, productivity, and results (Galagan, Hirt & Vital, 2020). For example, a supportive
learning environment is usually prioritized by employees so that their learning process is not disrupted by global
health crises such as COVID-19 (Nik Md Salleh et al., 2022). In addition, to be more successful in
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promoting innovation in the firm, it is necessary, according to Datta et al. (2021), to broaden the scope of HRM
practice and supervisory support.
Implications
Existing research on organizational talent management offers limited applicability to state-level public sector
contexts. This study addresses that gap by examining the relationship between talent management practices and
the performance of Malaysian state government employees. The findings contribute to the theoretical
understanding of talent management within the public sector, an area that has received comparatively little
attention in Malaysia. The empirical evidence generated from the Kelantan state government context provides a
reference model that other state administrations may use to assess employee performance across key talent
management dimensions. This enables state governments to evaluate how effectively they leverage human
capital to enhance organizational productivity and performance.
From a practical standpoint, the study highlights that successful implementation of talent management depends
not only on organizational philosophy but also on the personal orientations of those responsible for executing
related initiatives—particularly senior officers in government departments and agencies. Effective
communication of the organization’s talent philosophy from senior to junior officers is essential for fostering a
shared talent mindset. Such alignment ensures consistent guidance and enhances employees’ perceptions, which
play a pivotal role in shaping talent management outcomes.
Despite its contributions, the study is constrained by the use of a theoretical model comprising only three factors.
Future research should consider incorporating additional variables to provide a more comprehensive
understanding of talent management and its impact on employee performance in the public sector.
CONCLUSION
The Twelfth Malaysia Plan reflects the government's strong commitment to proactively anticipating future
challenges and formulating strategic responses. In the contemporary landscape of intense talent competition,
organisations face significant difficulties in attracting, assessing, developing, and retaining skilled employees.
Human resources remain the primary differentiating factor among organisations, contributing not only to
sustained growth but also to the development of a competitive advantage.
The global shortage of qualified talent poses critical challenges across industries, as many positions remain
difficult to fill due to the scarcity of candidates with the requisite competencies. In this context, the present study
offers an important contribution by examining state government talent management practices and their influence
on employee performance. The findings underscore that for human resource professionals to manage talent
effectively and efficiently, talent management must be clearly defined, holistically understood, and strategically
aligned with organisational objectives.
ACKNOWLEDGEMENT
The authors gratefully acknowledge financial support from the Basic Development Program Research Grant,
Institut Masa Depan Malaysia (MPDP), funded by Institut Masa Depan Malaysia (MASA), under Grant No.
P22.0/2022/01/19/023DDN.
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