INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025  
Developing Talent and Enhancing Performance in the Public Sector:  
Strengthening Government Workforce Capacity for Malaysia’s  
National Development  
Wan Ahmad Tirmizi Wan Sulaiman1, Iskandar Hasan Tan Abdullah2, Nik Sarina Nik Md Salleh3,  
Sakinah Mat Zin4, Wan Nor Azilawanie Tun Ismail5  
1,2Faculty of Administrative Science and Policy Studies  
3,4Faculty of Business and Management Universiti Teknologi Mara Cawangan Kelantan, Malaysia  
5Faculty of Applied Social Sciences Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu,  
Malaysia  
Received: 18 November 2025; Accepted: 27 November 2025; Published: 06 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 managementspecifically  
recruitment and retention practiceson 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) (20212025), 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 practicesincluding recruitment, training, and succession  
planningfocused 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  
.560**  
H1: There is a positive relationship between talent acquisition and employee performance.  
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H2: There is a positive relationship between talent development and employee performance.  
H3: There is a positive relationship between talent retention and employee performance.  
H4: There is a positive relationship between talent management and employee performance.  
.621**  
.716**  
.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 Ftest, 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 = -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  
Beta  
t
Sig.  
1
(Constant)  
11.285  
5.770  
.000  
.000  
.271  
.000  
.004  
Talent Acquisition  
.330  
-.089  
.712  
Talent Development  
Talent Retention  
-1.103  
11.700  
-2.900  
Talent Management  
-.163  
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 initiativesparticularly 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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