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TALENT MANAGEMENT A STRATEGY FOR EMPLOYEE ENGAGEMENT

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International Research Journal of
Management Sociology & Humanities

ISSN 2277 – 9809 (online)


ISSN 2348 - 9359 (Print)
An Internationally Indexed Peer Reviewed & Refereed Journal

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Published by iSaRa Solutions


IRJMSH Vol 10 Issue 12 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

TALENT MANAGEMENT: A STRATEGY FOR EMPLOYEE ENGAGEMENT


Dr.A.Savarimuthu,
Professor in HRM,
St. Joseph’s Institute of Management
St. Joseph’s College,Trichy
Dayana Amala Jothi,
Research Scholar,
St. Joseph’s Institute of Management,
St. Joseph’s College, Trichy

Abstract
The purpose of this article is to clarify what is meant by Talent Management, its importance and how as a
strategy influences Employee Engagement. This is a conceptual paper based on a review of the academic
and popular literatures on Talent Management and Employee Engagement. An effectively implemented
Talent Management strategy enhances Employee Engagement which in turn is associated with improved
Organizational performance. It also present the association between talent management and employee
engagement, retention, value addition and improved organizational performance. It is commonly
understood that engaged employees are motivated to contribute to the success of the organization.
Literature also reveals that work engagement which comes from job satisfaction is derived from effective
career management practices, which results in lower employee turnover and productivity of the
organization.

Keywords: Talent Management, Employee Engagement, Talent Culture, Organization Performance,


Employee Attraction, Employee Selection, Employee Development, Employee Retention.

Introduction

Talent is an instinctive quality possessed by few people, who have the capability to make a
significant difference to current and future company performance, which is equal to competencies of a
person that needs to be explored for the competitive advantage of the organization. Talent Management is
a set of strategies and systems to increase productivity by developing improved processes for attracting,
developing, retaining and utilizing people with the required skills and aptitude to meet current and future
business needs. Talent management ensures organizations that right people with fit skills located at right
place to access business strategy. In fact, talent management include complete set of process for
recognize, managing people for successful of business strategy that organization used it. (Ballesteros,
2010)
Employee engagement is a combination of commitment to the organization and its values and a
willingness to help out colleagues. It goes beyond job satisfaction and is not simply motivation. There are
three dimensions to employee engagement: Intellectual engagement – thinking hard about the job and
how to do it better; Affective engagement – feeling positively about doing a good job; Social engagement
– actively taking opportunities to discuss work-related improvements with others at work. The extent that
employees have opportunities for career growth and promotion, or have a clearly defined career path is
one of the factors most relevant to the relationship between employee engagement and talent
management.

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IRJMSH Vol 10 Issue 12 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

Concept of Talent Management


Talent management is the use of integrated set of activities to ensure that the organization attract, retains,
motivates and develops the people it need now and in the future (Armstrong, 2006). Warren (2006) talent
management as the identification, development, engagement, retention and deployment of talent. It is also
the means through which organization systematically identified the key positions within the organization
which separately play a role in the development and gives the organization more strength to face their
rival which give an organization hedges over is rivalry. Heathfield (2010) and SHL (2008) both conceived
talent Management in the same way in the sense that they believed it all involved every aspect of human
resource planning process ranging from Planning, recruiting, selecting, placement, orientation, training
and development. For talent management to effectively take place organizational must first attract right
candidate, then retain excellence performance and start nurturing such talent for organization success.
Functions of talent management
Recognize talent:
Notice what do employees do in their free time and find out their interests. Try to discover their strengths
and interests. Also, encourage them to discover their own latent talents. For instance, if an employee in
the operations department convincingly explains why he thinks he's right even when he's wrong, consider
moving him to sales!
Attracting Talent:
Good companies create a strong brand identity with their customers and then
deliver on that promise. Great employment brands do the same, with quantifiable and qualitative results.
As a result, the right people choose to join the organization.
Selecting Talent:
Management should implement proven talent selection systems and tools to create profiles of the right
people based on the competencies of high performers. It's not simply a matter of finding the "best and the
brightest," it's about creating the right fit - both for today and tomorrow.
Retaining Talent:
In the current climate of change, it's critical to hold onto the key people. These are the people who will
lead the organization to future success, and you can't afford to lose them. The cost of replacing a valued
employee is enormous. Organizations need to promote diversity and design strategies to retain people,
reward high performance and provide opportunities for development.
Managing Succession:
Effective organizations anticipate the leadership and talent requirement to succeed in the future. Leaders
understand that it's critical to strengthen their talent pool through succession planning, professional
development, job rotation and workforce planning. They need to identify potential talent and groom it.
Concept of Employee Engagement
It is the process of placing employee on a duties or engaging him/her in a particular activities as part of
the production or service in the organization. Kahn (1990) viewed worker Engagement as the process of
harnessing organizational members to their work. Roles in other to engage employ and express
themselves physically, cognitively and emotionally during role performances. In another study
engagement as where “an employee puts forward an innovative and cooperative attitude towards their job
roles beyond what the organizations specified for them to carry out such roles with the overall aim of
achieving organizational objectives”. Also, Schaufeli (2002) and Schaufeli and Bakker (2004) seen it as
work related state of mind which is positive and fulfilling as well as characterized by dedication, vigor
and absorption demonstrated by worker towards their job roles and performance.

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Categories of Employee Engagement


According to the Gallup, the Consulting organization there is three different types of People:-
Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role
so that they can meet and exceed them. They're naturally curious about their company and their place in
it. They perform at consistently high levels. They want to use their talents and strengths at work every
day. They work with passion and they drive innovation and move their organization forward.
Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes
they are expected to accomplish. They want to be told what to do, so that they can do it and say they have
finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged
tend to feel their contributions are being overlooked, and their potential is not being tapped. They often
feel this way because they don't have productive relationships with their managers or with their
coworkers.
Actively Disengaged--The "actively disengaged" employees are the "cave dwellers."
They're "Consistently against Virtually Everything." They're not just unhappy at work; they're busy acting
out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged
workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other
to generate products and services, the problems and tensions that are fostered by actively disengaged
workers can cause great damage to an organization's functioning. Thus employee engagement is critical to
any organization that seeks to retain valued employees.
Talent Management and Employee Engagement Overview
The word talent and management can only be effective only if employee or worker is engaged.
Organization that fails to properly engage their staff cannot discover their employee talent and how to
manage them. Most organizations are so interested about the future of their organization and to achieve
this desire goal, there is need for strong relationship between the two variables. Different studies and
research have been carried out on these two concepts particularly by the famous authority in the field yet
there is need to align the two to individual local environment to check for the effeteness of this
relationship.
Like what is obtainable in most of banks in Nigeria they believed that talent is the result of commitment
failing to known that engaged employee may not be committed and there is clear difference between
engagement and commitment. In fact most of these banks spent huge sum of money in training their staff
with the believed that it is also one of the avenue of discovering talent. Talent management and Employee
Engagement have a high degree of relationship based on the previous studies finding and also Gubman
(2004) arguably that engagement is different from satisfaction that engagement means something that is
external to the employee and primary to the organization that it effectives will lead to internal satisfaction
to the employee once it yielded desire result.

Talent Management and Employee Engagement


Hughes and Rog (2008) argue that in addition to what talent management strategy is already contributing
with effective recruitment, development and retention of employees, an organization should also
contribute to employee engagement. In line with that, Gibbons (2006) identified the top drivers of
employee engagement which culminated from 12 major research studies done by Gibbons (2006, p. 6).
These include:
- trust and integrity – this when employees feel that the leaders of the organization listen, care and meet
their needs, , is trustworthy, and ‘lead by example;

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IRJMSH Vol 10 Issue 12 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

- nature of the job – the level of people’s involvement and independence;


- the link between employees and organizational performance – the degree to which employees recognize
the objectives of the organization, required level of performance, and what is expected of them;
- career growth opportunities – the degree to which have the chance to progress in their career and get a
promotion.
- pride about the company – the level of self-esteem from obtained from their roles;
- coworkers/team members – behavior and perceptions of team members towards their work and the
organization;
- employee development – how much effort and resources are allocated from the organization for the
development of the employee’s competencies; and
- people’s relationship with their leadership – the degree to which this relationship is valued
Association between Talent Management and Employee Engagement:
Employee engagement is all about how an employee is emotionally and intellectually committed
to an organizational group. An engaged employee is always fully participative and enthusiastic about the
assigned job responsibilities (Falcone, 2006). When talented people feel important then their contributions
will make difference to organizational goals and objectives. It enable them feel recognized, appreciated
and valued, motivated and aligned to the organization’s goals and objectives (Davies & Davies, 2010).
Important element of talent management is total reward management which enables employees to
be contented and satisfied at workplace four times leading to employee engagement and organizational
success, furthermore 82% claims that employee recognition enhanced their job performance. According
to the Corporate Leadership Council (2004), “when done well, practices that support talent management
also support employee engagement”.
The practice of aligning talent management and employee engagement
By combining research from both areas it is possible to highlight strategies and approaches to employee
engagement and talent management that become self- reinforcing. These are concerned with creating a
culture in which both talent and engagement can emerge and leaders and managers, who understand, can
articulate and put in place practices that ensure the development of a workforce that is both talented and
engaged. The following are some of the approaches that will support the achievement of this objective.
Create a talent culture
Creating a talent culture is creating a culture of opportunity in which employees will recognize
and value the organization’s willingness to invest in their development in return for a commitment to the
organization’s goals. Supporting the development of employees through learning opportunities created by
talent management initiatives will have the dual effect of increasing the performance of the workforce
whilst at the same engaging them more effectively. A culture of talent will have some important
characteristics including:
An effective employee recognition process that goes beyond financial rewards and includes
opportunities for training and development; or the chance to work on new projects.
A Performance Review process in which ‘everyone understands the purpose of reviews and how
reviews affect corporate culture’ and which includes the important element of identifying talent and
giving all employees opportunities to deliver to their maximum potential.
Social Connection in which leaders and managers are open to semiformal and social ‘connections’ with
their teams. Social connection will foster a culture whereby talent can come to the fore from many
different sources- some of which may not be uncovered by traditional and fixed processes.

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IRJMSH Vol 10 Issue 12 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

Clarity about expectations. If there is to be a talent culture then ‘people need to know where they stand,
and they can only do that if they understand what’s expected of them.’ This is more than the achievement
of performance goals,it is about how the organization expects them to maximize their own potential.
To achieve these objectives will require managers who encourage their teams in career
conversations, drawing out strengths, interests and aspirations and working with all employees to meet
these where it is possible. This process also recognizes that ‘while managers play a large role in creating
an environment that fosters employee engagement, employees also need to take responsibility for the
work that they do and the level in which they are engaged’. (Sirisetti 2012)
Create an engagement culture
An engagement culture will focus on emotional engagement that is driven by a desire on the part
of employees to do more for more and to receive more – a greater psychological contract – from the
organization than is normally expected; and transactional engagement that is shaped by employees’
concern to earn a living, to meet minimal expectations of the employer and their co-workers, and so on.’
(CIPD 2012) The case was made for emotional engagement since ‘emotionally engaged employees
perform better than transactionally engaged individuals and that emotional engagement correlates with
practices designed to promote positive feelings about work.’ An engagement culture also means that the
roles and responsibilities of individuals are clear and aligned to those of the wider organization such that
each employee can see how his or her individual performance contributes to the greater whole.
Develop Leaders at all levels who understand the importance of employee engagement
Leadership behaviour, the relationship between leaders and employees and specific leadership
styles are associated with the success or otherwise of both employee engagement (CIPD 2012) and talent
management. Edger (2012) has noted that leadership is an individual’s ability to ‘organize and influence a
group of people to commit willingly to achieve a common goal.’ The leader’s role in generating
commitment to the achievement of the organizational goals; whilst at the same time attaining
psychological attachment, are key factors. This is important from a talent management perspective.
Leadership development that has a strong focus on the creation of an inclusive organizational culture will
be a critical competence.
Conclusion
Employee engagement initiatives can overlap with talent management initiatives and the two are
often closely aligned. Indeed effective talent management policies and practices show that an organization
has a commitment to its employees which results in more engaged employees and lower turnover. In
order to maximize the benefits of both employee engagement and talent management therefore the
organization should create an engagement culture which is part of and contributes to the development of a
talent culture; develop leaders and managers who recognize and have the skills to enhance performance in
both talent and engagement and give employees a voice in which they can articulate their career
aspirations. If there is success in delivering these approaches, then employee engagement and talent
management can become mutually beneficial. Engaged employees create quality output not because they
have to or are forced to but because they want to, because they see a clear linkage between their work and
the organization vision and results.

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International Journal of Research and Review
DOI: https://doi.org/10.52403/ijrr.20210926
Vol.8; Issue: 9; September 2021
Website: www.ijrrjournal.com
Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237

Analyze the Influence of Talent Management and


Knowledge Management on Employee Performance
through Employee Retention as Intervening
Variable at PT Bhanda Ghara Reksa Divre I Medan
Nidya Banuari1, Yeni Absah2, Elisabet Siahaan3
1
Postgraduate Students Department of Management, Faculty of Economics and Business at University of
Sumatera Utara, Indonesia
2,3
Postgraduate Lecturer Department of Management, Faculty of Economics and Business at University of
Sumatera Utara, Indonesia
Corresponding Author: Nidya Banuari

ABSTRACT had positive and significant influence on


employee performance, knowledge management
Employee performance is one of the most had positive and significant influence on
important things to achieve company goals. employee performance, talent management had
With employee performance, company positive and significant on employee
optimization can be realized. PT Bhanda Ghara performance through employee retention, and
Reksa's performance in 2019 experienced a knowledge management had positive and
decline in revenue so that the profit target significant on employee performance through
generated was not maximized. In order to employee retention. Knowledge management
improve employee performance, the company most dominantly affects employee retention and
must design a strategy to retain potential employee retention most dominantly affects
employees. One of them is the application of a employee performance.
talent management and knowledge management.
The objective of this research was to analyze the Keywords: Talent Management, Knowledge
influence of talent management and knowledge Management, Employee Retention, Employee
management on employee performance through Performance
employee retention as intervening variable at PT
Bhanda Ghara Reksa Divre I Medan. The INTRODUCTION
research used descriptive quantitative approach The success of a company can be
and explanatory research method. The measured from human resources who are
population in this research are permanent talented and have a lot of knowledge that
employees as many as 74 respondents, taken by
companies have to manage human capital.
using saturated sample with census sampling
technique. The method in analyzing the data is According to Adiba (2018), it is important
descriptive and inferential statistical analysis to balance the needs of employees and the
with using path analysis and Sobel test to test ability of the company comes from the
the significance of the intervening variable. The management of human resources.
result of the research showed that talent According to Qustolani (2017), the
management had positive and significant employee is the main wheels of a company
influence on employee retention, knowledge achieve its goals. According to the Harmen
management had positive and significant (2018), one of the few things important to
influence on employee retention, employee achieve the goal of the company is
retention had positive and significant influence employee performance. With the
on employee performance, talent management
performance of the employees of the

International Journal of Research and Review (ijrrjournal.com) 189


Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

optimum of the company can be realized. must be able to do the draft strategy to
Every company requires the employee's defend the human resources potential. A lot
performance to the maximum that will give of things that can be done by the company
an impact on the achievement of targets and to obtain and retain employees in the
goals of the company. organization, one of its forms, namely the
PT Bhanda Ghara Reksa or better implementation of the system management
known as BGR Logistics is the State-Owned talents and knowledge management. By
Enterprises engaged in warehousing hiring workers potentially, the company can
services, management of indoor and maximize the performance of employees to
delivery of the goods. Network BGR achieve the desired goal. So the retention of
Logistics consists of 9 branches and 14 sub- employees (employee retention) as a
branches that spread in all over Indonesia. variable that mediates the relationship of
The warehouse belongs BGR Logistics for management talent and knowledge
rent as a place to store goods production to management on the performance of
other companies. employees.
Every year the demand for leasing Until the end of 2019, the number of
warehouse continues to increase, but have employees BGR Logistics as much as 1.314
not yet fully the request can be fulfilled. people who fill a variety of positions at
This is due to the availability of warehouse various levels of organization that is spread
that is managed there are more or not all over Indonesia. Employees BGR
comparable with the employees at BGR Logistics scattered on the Division I Field a
Logistics who served as the Head of the total of 74 people. This number is fewer
Warehouse which amounts to 19 (nineteen) than in 2018 as many as 99 people and 113
people. Workload exceeds the capacity can people in the year 2017. The following
result in the maximum performance of the details regarding the recruitment and the
employee. level of employee turnover happens in the
In addition to the focus in improving BGR Logistics throughout the year 2019 as
the performance of employees by creating follows:
quality human resources, the company also
Table 1: Data Employee Turnover
2017 2018 2019
New Employees Employee Exit New Employees Employee New Employees Employee Exit
(%) (%) (%) Exit(%) (%) (%)
8 (6,6) 16 (13,2) 12 (11,3) 23 (21,6) 18 (20,8) 33 (38,2)
Source: Info BGR 2019 (processed data)

Table 1 show that the data of more potential and meet the qualifications
recruitment and turnover rate of employees the company so that the number of
throughout the year 2019, where the number employees who get out more because there
of recruitment and employee turnover can be expected position and chose to resign
managed BGR Logistics increased. If from the company. Employees who choose
employee turnover is increased, then the to come out due to the company not be able
retention of employees categorized as bad to retain the employee so that the employee
so give a negative impact on the submitted to a second party (Outsourcing).
performance of the employees. On the data This is due to the lack of competence and
it can be seen that the company has reduced skills of employees in the implementation of
the employee to perform the selection such selection. The company not only see
process of the employees who already work the background and skills of prospective
with do Management Development Program employees but also look at the aspects of
(MDP) that is, such as assessment, academic efficiency and effectiveness of employee
potential test, a test of analytical thinking as performance can be seen from the results of
well as psychological tests to get employees

International Journal of Research and Review (ijrrjournal.com) 190


Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

the workload analysis across levels of the In addition to talent management,


organization. knowledge also plays an important role in
One of the developments undertaken preparing qualified human resources and
by the company is to implement a system of competitive. Given the intense competition
management talent. Management talent is a of today's global, the company should be
process to ensure the ability of the company able to create human resources that have a
fills the position of the key future leaders of lot of knowledge to push the performance of
the company (company future leader) and employees to achieve company goals. By
the position of the supporting competence applying the knowledge management, a
the core of the company, Pella & Afifah company can perform a variety of
(2011). Data management talents on BGR innovation and renewal that continues to
Logistics obtained from the results of grow.
interviews with Department Business According to the Harmen (2018)
Support stating that so far BGR Logistics knowledge management (knowledge
has conducted training which will create management) is a series of the process of
skills and skills to cultivate the talents of creation, communicating, and applying
employees. For a new employee training- knowledge of the company as a learning to
training and development will be monitored improve the performance of employees and
in doing the work. After passing the organization. Knowledge management is
training, the employee will be placed in a how to manage the knowledge of employees
position in accordance with his expertise. in the organization as effectively and
Then will enter the panel of the promotion efficiently as possible. Every company
which provided the company with the terms needs to realize that the knowledge of which
and conditions of the company. For is owned in a company should be utilized
employees who get a promotion for his review effectively and efficiently. The
achievements during the work, passed the company continues to perform the
assessment in PPM will make the process of development of employee competencies
Management Development Program (MDP) through the implementation of various
travelled for six months in order to improve workshops to hone soft skills and hard
the abilities and talents of employees as of skills. Workshop that includes a number of
the next Company's Future Leader. modules that are given to employees from
Since the adoption of management various levels and departments.
talents in 2018, of course, there are various Problems faced BGR Logistics that
kinds of obstacles and problems faced by have the process of knowledge
BGR Logistics. One of them is that there are management, exchange of knowledge
still many employees who do not qualify for explicit (exchange) and tacit (meeting), but
assessment provided by the company, even not used to manage respondensi and
more so most of the employees who work knowledge related to the work in the field of
more than 5 years. In addition, the system of logistics. There are still many employees
recruitment and selection in previous years who are not able to recognize and
that have not yet formal cause the understand it better, because it does not
company's difficulty in placing employees have the sensitivity and awareness of the
in accordance with their competence. BGR impact for the company. A lack of
Logistics middle to make improvements in knowledge both tacit and explicit about the
the aspect of Human Resources at mid-year work of the employees one of which
2019, such as by performing pembahruan resulted in a lot of error (human error) so as
job profile in collaboration with the to make the quality of work of employees
consultant and prepare a career path as a decreased. The quality of work of
form of program kaderasasi employees. employees can be seen from the knowledge

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Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

they have, this is because knowledge is a LITERATURE REVIEW


thing that continues to experience growth. Management Talent
Researchers are interested to do The management of talent is as
research on the management talents and organizational procedures related to
knowledge management. Because at the end analyze, identify, selection, training,
of this topic such as this become a primary development, motivation, and maintain the
issue in the problems of Human Resources performance and the highest potential of the
Management. The day the increasing employees to achieve the goals of the
number of human resources. However, strategy (Valverdeet al., 2013).
whether all the quality of human resources?
Of course not. Just some of the human Knowledge Management
resources who have the ability and meet the Knowledge management is a process
requirement of the company. Required of helping corporate identity, select,
competent human resources in a company to organize, disseminate, and send important
be able to create progress, but in reality the information as well as expertise included
number of workers tools is very limited. Of parts of memory organization that is located
course, the company will be racing and in a typical in organissasi in the area of
competing to get competent employees. structured (Turban, et al 2010).
In line with research conducted by
Katili, et.al (2015), Ogbeta (2015), Mahlala Employee Retention
(2018) stated that the management of taenta Employee Retention is defined as
positive and significant effect on employee the ability of the company to maintain a
performance. Khanal (2017), Garcia & potential employee owned company to
Coltre (2017) stated that knowledge remain loyal to the company (Ahmad,
management has significant effect on 2011).
employee performance. The results of these
studies supported by Rahmawati (2019), Employee Performance
which examines the influence of talent Performance is the result of work
management programmes on employee that can be accomplished by a person or
performance through employee retention, group of people in an organization, in
Harmen (2018) stated that the management accordance with the authority and
of talent and knowledge management has a responsibility of each in order to achieve the
significant influence on employee goals of the organization concerned is legal,
performance. does not violate the law and in accordance
with the norms and ethics of
(Prawirosentono, 2014).

Figure 1. Conceptual Framework

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Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

Hypothesis employees as an intervening variable at PT


Based on the background research Bhanda Ghara Reksa Division I Field.
and the relationship between variables, then This study will be conducted in PT
the research hypothesis: Bhanda Ghara Reksa Division I Field which
1. Management talents positive and is located at Jalan Titi Pahlawan Medan
significant effect on employee retention. Marelan, Medan, Sumatera Utara.
2. Knowledge management has positive Implementation of this research was
and significant effect on employee planned from July 2020 until April 2021
retention. The population in this research is all
3. Employee retention has positive and employees in the BGR Logistics 74 people.
significant effect on employee Given the number of population is limited,
performance. then all members of the population as the
4. Management talent has positive and sample of the study. Data collection method
significant effect on employee used in this research is interview (Interview)
performance. directly to obtain the necessary data to
5. Knowledge management has positive management and employees BGR Logistics.
and significant effect on employee A list of questions (quesionare) given to
performance. employees BGR Logistics and
6. Management talent has positive and documentation Studies, namely the
significant effect on employee collection of data through documents related
performance through employee to the problem under study.
retention. The type and source of the data
7. Knowledge management has positive collected in this research is using primary
and significant effect on employee Data is Data obtained directly from the list
performance through employee of questions (quesionare) were distributed to
retention. the respondents and the interview (the
interview) to employees BGR Field and
MATERIAL AND METHODS secondary Data are data that support the
This research is a type of research primary data obtained from company
that uses quantitative research that uses documents through the study of
survey and questionnaire as a data collection documentation, such as records or official
tool. According to Sugiyono (2015) states documents of the company, the media, the
regarding the quantitative method is a company Website, the internet, journals that
research method that is based on the had to do with research, and previous
philosophy of positivism, is used to examine research.
the population and sample specific, using a
data collection instrument of the study, RESULTS
quantitative data analysis/statistics with the Test Asusmsi Classic
aim to test the hypothesis set. As for the Testing Assumptions The Classical
nature of this research is explanatory. Equations Structural 1
According to Arikunto (2011), the nature of Based on the Table 2 it can be seen
descriptive research explanatory research is that the value of the coefficient..of
aimed to explain the position of the determination (Adjusted R Square) by 0,611
variables studied and the relationship or 61,1% means the influence of
between the variables with other variables. management talent and management
The nature of this research is explaining knowledge of employee retention BGR
phenomena that occur in the object of Logistics is 61.1% and the rest by 38,9%
research about the influence of management influenced by other factors not examined in
talent and knowledge management on the the study this, it is estimated variables,
performance with the retention of

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Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

namely compensation, the environment work, and job satisfaction.

Table 2: Model Summary Equation Structural 1


Model Summaryb
Model. R R.Square Adjusted.R Square Std. Error.of the.Estimate

1 .789a .622 .611 2.007


a. Predictors: (Constant), Manajemen_ Talents, Manajemen_ Knowledge
b. Dependent Variable: Retention_Employees
Source : Research Results, 2021 (data processed)

Test t and knowledge management to variable the


Test t (partial) done to the test the dependent ie employee retention. The
magnitude of the effect independent results of the test t (partial) structural
variables that is the management of talents equation 1 presented at the Table 3 here:

Table 3: Results The t test The Structural Equation One


Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 5.663 2.689 2.106 .039
Manajemen_Talents .272 .113 .241 2.412 .018
Manajemen_ Knowledge .633 .105 .604 6.031 .000
a. Dependent.Variable: Retention_Employees
Source : Results.The study, 2021 (data processed)

Based on the Table 3 looks from the 0,241 which means that the influence of
value of the test results in the partial knowledge management against the
equations structural 1 be aware that. retention the employee is greater than the
Variable knowledge management earn the effect management talents against the
highest value of 0,604 temporary variable retention employees.
management talents to obtain the value of

Testing Assumptions The Classical Equations Structural 2


Table 4: Model Summary Equation Structural 2
Model Summaryb
Model R R.Square Adjusted R Square Std. Error of the Estimate

1 .852a .726 .715 1.773


a. Predictors: (Constant), Retention_Employees, Manajemen_Talents, Manajemen_ Knowledge
b. Dependent.Variable: Performance_Employees
Source : Results. The study, 2021 (data processed)

Based on the Table 4 it can be seen


that the value of the coefficient Test t
determination (Adjusted R Square) by 0,715 Test t (partial) conducted to test the
or 71,5% means the influence of influence of the variables independent
management talent management. namely management, talent management.
Knowledge and employee retention on Knowledge and retention of the employee to
performance employees in BGR Logistics is the variable dependent of the performance
71,5% and the rest by 28,5% affected, by employees. The results of the test t (partial)
other factors not examined in the study this, structural equation.2 presented at the. Table
it is estimated variable attachment to the 5 here.
employees and the support of the
organization.

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Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

Table 5: Results The t test. Equations Structural 2


Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.712 2.448 .699 .487
Manajemen_Talents .209 .103 .205 2.277 .037
Manajemen_ Knowledge .475 .114 .439 4.168 .000
Retention_Employees .500 .105 .485 4.772 .000
a. Dependent.Variable: Performance_Employees
Source : Results.The study, 2021 (data processed)

Based on Table 5 looks of the value 0,205 meaning that influence employee
of the partial test results of the equation retention against the performance of the
structural 2 be aware that variable retention employees greater than the influence of
of the employees earn the highest rated by management talents against the performance
0,485, the next variable knowledge of the employees and influence knowledge
management earned value amounted to management. on performance employees.
0.439 and variable management talents of

Table 6: The Influence Between The Variables Of The Research


Independent Variable Dependent Variable Intervening Direct Indirect Total
Manajemen Talents (X1) Retention Employees (Z) 0,241 0,241
Manajemen Knowledge (X2) 0,604 0,604
Manajemen Talents (X1) Performance Employees (Z) Retention Employees (Z) 0,205 0,116 0,321
Manajemen Knowledge (X2) 0,439 0,292 0,731
Retention Employees (Z) 0,485 0,485
Source : Research Results, 2021 (data processed)

In Table 6 shows the influence companies can improve employee retention


between the variables of the study has been through the efforts of human resource
summarized. Influence what happens on the management by applying a system of
basis of the results of the regression management talents high. The application of
between the variables of research is a direct management talents can be done by the
influence between variables. Indirect effects company by attracting talented employees.
included the presence of an intervening The process of attracting talented employees
variable in the calculation of such influence. based on criteria that consider the vision and
The result of the multiplication between the mission of the company is to perform the
direct effect between the independent recruitment of talented employees and a
variable on the variable mediation and other selection of career development. Where the
intervening variable on the dependent indicator selection career development have
variable are called the indirect effect. the highest value. This is because the
company gives the employees an
DISCUSSION opportunity to be selected in following the
Management Talents Positive And development of the talents that his career
Significant Effect On Employee Retention can be increased so that the company can
Based on the test Path Coefficient maintain the employee with the provisions
that management talents positive and that have been set.
significant effect on employee retention in So also with the process of the
BGR Logistics. This means that the higher development of talented employees, where
management talents will also increase education and training as the indicator. This
employee retention, on the contrary the process is built on the ability of the talent of
lower the management talents then it will employees, the needs of the company, and
decrease as the retention of employees. the requirements of the job, as well as limit
Management talent has a close the weaknesses of employees to fill the gap
connection with the retention of employees, which will increase the chances of

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Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

employees in order to continue productive and significant positive effect on employee


work. On the dimensions of the strategy of retention.
succession, the company requires the
development of the staff of the company, Knowledge Management Has Positive
prepare the employee to accept a job when it And Significant Impact On Employee
is needed and does not leave a chance at a Retention
job in a company. Indicators of the strategy Based on the test results of the Path
of succession are to provide adequate Coefficient shows that the management of
support and provide real opportunities to knowledge and significant positive effect on
employees to show his talent. It is intended employee retention in BGR Logistics.
that the preservation of the level of retention Meaning that the higher the knowledge
of employees in the company. management will also increase employee
The results of the analysis of the retention, on the contrary the lower the
descriptive statistics on the variables of management of knowledge then it will
management talent of the respondents ' decrease as the retention of employees.
answers showed that the management of the Knowledge management is the most
talents that are applied by BGR Logistics on influential factor in the strategic future
average already categorized either. Good for which will operate as the basis of
a dimensional attract talented employees, competitive intensity for the company.
the development of talented employees, Knowledge management is also closely
strategy and visible succession of related to the attitudes and behavior of
respondents ' answers are mostly answered employees on the job so that the employee
agree and strongly agree. Employees who can survive on the company and the views
follow the process rekrumen search of and suggestions are well received in the
talented employees, get a chance selected to company.
participate in the development of talent, Implementation of knowledge
given the opportunity to participate in management can be done by finding the
education and training, given adequate knowledge gained from the work experience
support, and given real opportunities can that is owned by the employees themselves
improve the retention of employees at BGR or work experience boss and get easy access
Logistics. to the SOP that exist in the company to
The results of this study are in line obtain information. This can help the
with previous research conducted by employees to develop the knowledge so that
Phelister (2016) the research results prove employees are able to survive in the
that the talent management programmes company. The processes of making
have a significant influence on employee knowledge (knowledge capture) either
retention. The most important step of explicit or tacit, which are within the
management talent is talented employees in employee, can be obtained by following the
the companies that make the company's seminar/workshop for working in the
need to retain employees in the company and get the facility of search of
organization. It is also supported by knowledge work environment that has been
Ratnawati (2018) to indicate the presence of provided by the company.
a significant impact of management talents Knowledge of the explicit or tacit
to the retention of employees. Research can be communicated back to the process of
conducted by the Rahmawati (2019) stated knowledge sharing, where the indicators
that management talents to have a positive that a knowledge sharing culture and the
influence and significant impact on availability of a group of social media. So
employee retention. It is also supported by also with the process of the application of
research conducted Sulistiyana (2021) knowledge, where by applying the
which states that the management talents knowledge can help work as well as can

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Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

help in decision making. The process of of the employee. The interconnectedness of


such a good impact on the employees to be the retention of employees with employee
able to renew knowledge in order to performance is a process where employees
compete so that the company can retain the are encouraged to remain at the company in
employee. the maximum period of time or until the
The results of the analysis of the completion of the target company where the
descriptive statistics on the variables of employee retention has benefits for both
knowledge management regarding the employers and employees.
respondents’ answers showed that Efforts to increase the performance
knowledge management applied by BGR of employees are done by the development
Logistics on average already categorized of a career that can affect the level of
either. Good for the dimensions of employee retention significantly.
knowledge, capture knowledge, knowledge, Opportunities for personal development
and application of knowledge seen from the bring up the reason why individuals take the
respondents ' answers are mostly answered job this time and why they last. indicators of
agree and strongly agree. Through the the underlying is training employees to
concept of knowledge management, can continue the company, development and
help BGR Logistics to face its competitors career guidance to our employees, as well as
and creates a employee-an employee who the planning of formal career in the
has a new innovation for the progress of the company. Real rewards received by
company. employees-shaped salary, incentives and
The results of this study are in line benefits. All three of these things is a reason
with the results of the research Surbakti to survive or get out of the company, but is
(2016) that proves that the knowledge not the only reason. Employees tend to
management and business intilejen survive if awarded competitive. Awards are
emphasize the empowerment of employees. competitive can be done in the form of
Employees are empowered and have the salary and benefits are competitive, merit-
freedom to participate in the decision in an based performance, the recognition of
organization. The contract of employment employees as well as the benefits and
has a significant effect in attracting and special bonuses.
retaining asset skilled as a key to strategic Fundamental things that affect
work in modern work. So the research stated employee retention is the nature of the task
that knowledge management has significant and the job done. The design task and a
effect on employee retention. In line with good job should pay attention to the
the results of research conducted by elements of responsibility and autonomy of
Ramadhani (2020) show that knowledge the work, the flexibility of employment,
management has a positive influence and good working conditions (factors of
significant impact on employee retention. physical and non-physical), and the balance
or the life of the employees. So also with the
Employee Retention Has Positive And relationship that is owned by its employees
Significant Effect On Employee within the company. Employee relations,
Performance including the fair treatment or not
Based on the test Path Coefficient discriminatory for each employee, the
shows that the retention of employees has support comes from the supervisor or
positive and significant effect on employee management and employee relations with
performance at BGR Logistics. This means fellow colleagues. It is a supporting factor
that the higher employee retention will also can BGR Logistics do to be able to retain its
increase the performance of employees, on employees so that it can create good
the contrary the lower the retention of performance.
employees, it will decrease the performance

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Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

The results of the analysis of the the 3rd that I was given the opportunity to
descriptive statistics on the variables in follow the education to be able to increase
employee retention regarding the my potential, further indicators of training
respondents' answers showed that the with the statement to-4 that I was given the
retention of employees who there are at opportunity to attend the training in
BGR Logistics on average already accordance with the type of job where I am
categorized either. Good for the dimensions on the second statement has a high value,
of career opportunities, award, design of because of the development of talented
tasks and jobs, as well as employee relations employees in the statement can assist
seen from the respondents answers are employees in improving and developing the
mostly answered agree and strongly talents so that employees are able to
agree.BGR Logistics megupayakan for improve their performance.
retaining the employees in order not to The results of the analysis of the
experience a loss in the job so that the BGR descriptive statistics on the variables of
Logistics need to develop the steps management talent of the respondents '
necessary company. answers showed that the management of the
The results of this study are in line talents that are applied by BGR Logistics on
with research conducted Princess & average already categorized either. Good for
Arwiyah (2019) which shows that employee a dimensional attract talented employees,
retention significantly positive effect on the development of talented employees,
employee performance with the contribution strategy and visible succession of
of 92%. It is also supported by Susilo respondents ' answers are mostly answered
(2019) the results of his research stated that agree and strongly agree. Through
there is a significant influence of employee management talents, BGR Logistics can
retention and customer satisfaction on manage the talents of employees based on
employee performance. the performance of the employees
themselves.
Management Talent Has Positive And The performance of the employee
Significant Effect On Employee who will either create the success of a
Performance company where employees who have the
Based on the test Path Coefficient potential and talent will be more easy to
shows that management talent has positive complete the work given company. A
and significant effect on employee system of management talent in the BGR
performance at BGR Logistics. This means Logistics one of them is to be able to
that the higher management talents will also improve employee performance and also the
increase the performance of employees, on performance of the company. Education,
the contrary the lower the management training, support, and opportunities is the
talent it will decrease the performance of the most important thing that is given BGR
employee. By applying management talents Logistics to be able to improve the
then the employee can improve their performance of employees through a system
performance with the talents that exist in the of management talent that is applied on the
employees. Employees can follow the BGR Logistics.
process of talent management programmes The results of this study are in line
as a form of career improvement will have with research conducted by Katili, et.al
an impact on the performance of employees (2015) which revealed that the variable
to achieve a common goal among management talent has positive and
employees and the company. significant effect on employee performance.
This can be seen on the dimensions This is supported by research conducted by
of the development of talented employees in Harmen (2018) revealed that management
the education indicators with a statement of

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Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

talent has positive and significant effect on statement shows that with the application of
employee performance. knowledge by employees, it can improve
the performance of employees who will be
Knowledge Management Has Positive impacted is also good for the company to
And Significant Effect On Employee achieve the objectives of the company.
Performance The results of the analysis of the
Based on the test Path Coefficient descriptive statistics on the variables of
shows that the management of knowledge knowledge management regarding the
has positive and significant effect on respondents answers showed that
employee performance at BGR Logistics. knowledge management applied by BGR
Meaning that the higher the knowledge Logistics on average already categorized
management will also increase the either. A good knowledge management will
performance of employees, on the contrary affect the performance of the employees
the lower the management of knowledge because the employees need the knowledge
then it will decrease the performance of the to carry out the direction of the task and
employee. With knowledge management, an routine as well as can make the optimal
employee can acquire, capture, sharing, and decisions to advance the company. By
using knowledge to enhance learning and applying the knowledge management can
performance in a company. Knowledge help BGR Logistics in evaluating its
management can also give a big impact on a performance, better performance of
company inside the company there are employees and the performance of the
employees who have the knowledge and company so that in the future BGR
develop the knowledge to be able to Logistics can easily refine and develop their
improve the performance of employees so ability to innovate.
that it helps the company in achieving its This research is in line with research
goals. conducted Torabi, et.al (2016) indicates the
This can be seen in the dimensions presence of a significant impact of
of knowledge sharing on the indicators of a knowledge management on employee
knowledge sharing culture with the performance. It is also supported by Saeed
statement-5 that companies foster a culture (2016) that the results of his research stated
of knowledge sharing among employees, that there is significant influence of job
next on the indicators of the availability satisfaction and knowledge sharing on
group social media with a statement of the employee performance. Research conducted
6th century, namely the company provides a Suryanti (2021) stated that knowledge
group of social media as a place to exchange management has positive and significant
information at which both of these effect on employee performance.
statements have a value of high, due to the
sharing of knowledge on such statements Management Talent Has Positive And
can help employees to acquire the Significant Effect On Employee
knowledge easily, so it can accelerate the Performance Through Employee
completion of the work. So also with the Retention
dimensions of the application of knowledge Based on the test Path Coefficient
where there are on indicators of knowledge shows that the management of the talents
that helps work on the statement of the 7th has positive and significant effect on
that is the knowledge I have accelerate the employee performance through employee
completion of my work further on indicators retention, then the hypothesis 6 is accepted.
of knowledge to help decision-making with The results of the research hypothesis
the statement of the 8th that is the suggest that management talent has positive
knowledge I have can help me in making and significant effect on employee
optimal decisions, where the second performance at BGR Logistics through

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Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

employee retention. Based on the results of retain employees who have the competence
the calculation of the influence directly or and talent to be able to advance the
indirectly showed that the retention of the company.
employees is able to provide mediation This research is in line with research
partially between the management of talent conducted by Rahmawati (2019) with the
on employee performance. Influence in the results of the research which states that
form of indirect can be said as the influence management talents positive effect of
of the variables of talent management employee performance through employee
programmes on employee performance retention. It is also supported by Ramadhani
through employee retention. (2020) the research results suggested that
The influence of the mediation is management talent has positive and
partial in the variable retention of significant effect on employee performance
employees at BGR Logistics, where the through employee retention.
company focuses not only in creating the
human resources potential, but the company Knowledge Management Has Positive
should also conduct design strategy as a And Significant Effect On Employee
form of maintaining such employee by Performance Through Employee
giving the opportunity to follow the career Retention
development process on the system Based on the test Path Coefficient
management talents so that employee shows that knowledge management has
performance can be improved and achieve positive and significant effect on employee
company goals. To determine the performance through employee retention,
relationship of talent management then the hypothesis is accepted. The results
programmes on employee performance is of the research hypothesis suggest that
influenced by employee retention. knowledge management has positive and
Management talent is a system that must be significant effect on employee performance
considered by the company. With the at BGR Logistics through employee
management of the talent that applied to the retention. Based on the results of the
company's employees feel the company can calculation of the influence directly or
help them to develop their career through indirectly showed that the retention of the
the talents that exist in the employees employees are able to provide mediation
themselves. To develop his career, partially between knowledge management
employees focuses not only on talent but on the performance of employees. Influence
employees should also pay attention to its in the form of indirect can be said as the
performance to be able to improve his influence of the variables of knowledge
position within the company. Thus, the management on employee performance
company can reduce employee retention through employee retention.
moreover, the company can retain talented The influence of the mediation is
employees such as an asset in the future. partial in the variable retention of
The results of the analysis of the employees at BGR Logistics, with the
descriptive statistics on the variables of application of knowledge management
management talent of respondents given by the company to employees,
categorized very high. The results also employees will be more eager to do the job.
showed that most of the employees working Moreover, if the purpose of the employee
over 5 years, meaning that employees can hand in hand with the company's goals. It is
improve their careers by following the certainly going to be very good for the
process management talents so that the performance of the employees and also the
performance obtained from such employees company. Knowledge that has set the
will increase and will have an impact on company in a concept called knowledge
retention of employees where the company management can help in the management of

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Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

corporate knowledge to generate 6. Partial management talent has positive


competitive advantage by optimizing the and significant effect on employee
process of communicating and applying the performance through employee retention
knowledge needed in the process of as an intervening variable on the BGR
achieving business objectives. So the Logistics.
performance of employees can be increased 7. Partial knowledge management has
due to the existing knowledge in the positive and significant effect on
company continue to exist and flow so that employee performance through
employees do not lack information that employee retention as an intervening
would help her in completing the work. variable on the BGR Logistics.
In this case the retention of
employees as an intervening variable has an RECOMMENDATIONS
influence on knowledge management on the 1. For BGR Logistics
performance of the employee where the To improve the system of
knowledge management performance of management talents, BGR Logistics should
employees will increase. Employee give the opportunity to all employees to
performance increases will make the follow the system Management
company retain employees what is more on Development Program (MDP). These
the employees who have the competence to programs can help employees to be able to
be able to advance the company both now survive in the company so that the
and in the future. performance obtained will be increased,
This is supported by research such a program can be done by the process
conducted Harahap (2018), Hall (2019) and of recruitment of talented employees in an
Ramadhani (2020) the research results open and healthy, provide adequate support
suggested that knowledge management has such as motivating employees to continue to
positive and significant effect on employee grow, give suggestions and feedback to
performance through employee retention. employees, as well as provide training
periodically in accordance with the
CONCLUSIONS AND description of his work both online and
RECOMMENDATIONS offline.
CONCLUSIONS BGR Logistics should pay attention
Based on the results of research and also to the management of knowledge by
discussion that has been described in the giving an opportunity to all employees to be
previous chapter, it can be concluded as the able to access the data so that the company
following: may obtain information that can help with
1. Partial management talents positive and the work. In addition to the superiors should
significant effect on employee retention be able to help his subordinates with work
BGR Logistics. experience that has so employees gain new
2. Partial knowledge management have a knowledge. So also with knowledge
positive and significant impact on sharing, companies must foster a culture of
employee retention BGR Logistics. knowledge sharing among employees either
3. The partial retention of employees has through group social media and openly as
positive and significant effect on speech that can be performed each of the
employee performance BGR Logistics. activities apples in the morning or monthly
4. Partial management talent has positive meeting.
and significant effect on employee So the preservation of employee
performance BGR Logistics. retention to improve the performance of
5. Partial knowledge management has employees BGR Logistics suggested
positive and significant effect on providing flexible work hours such as
employee performance BGR Logistics. setting regulations should not enter the

International Journal of Research and Review (ijrrjournal.com) 201


Vol.8; Issue: 9; September 2021
Nidya Banuari et.al. Analyze the influence of talent management and knowledge management on employee
performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

office each day so as to give good impact to 7. Garvin, D.A. (2000). Learning in Action- A
the health of the employees. Companies also guide to Putting the Learning Organization
need to give the award competitive, merit- to Work. Harvard.
based performance, the recognition of 8. Ghozali, Imam. (2011). Aplikasi Analisa
employees as well as special bonuses. Thus Multivariate dengan program SPSS, Edisi
Lima. Semarang: Badan Penerbit
employees are able to survive on the Universitas Diponegoro.
company with the maximum period of time 9. Harahap, Sonafa Mayrani Muchtar. (2018).
or until the completion of the target “Pengaruh Talent Management Dan
company. Knowledge Management Pada Employee
Performance Dengan Employee
2. For Further Research Engagement Sebagai Variabel Intervening
Preferably on the research can Di Bpjs Ketenagakerjaan Kantor Cabang
further develop this research that not only Samarinda, Banjarmasin Dan Bontang”.
focuses on intervening variables but can Tesis Magister Manajemen. Fakultas
also focus on the moderating variables so Ekonomi, Universitas Islam Indonesia.
that this study can be used as a comparison. 10. Harmen, Hilman. (2018). “Pengaruh Talent
Management dan Knowledge Management
Terhadap Kinerja Karyawan PT Perkebunan
Acknowledgement: None Nusantara II (Survei Pada Kantor Direksi
Tanjung Morawa)”. Jurnal Konsep Bisnis
Conflict of Interest: None dan Manajemen, p-ISSN: 24072648 e-
ISSN: 2407-263X, Vol 4 (2). Jurusan
Source of Funding: None Manajemen FE Unimed, Medan.
11. Izwar, H.& Aerni, I. (2014).Talent
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performance through employee retention as intervening variable at PT Bhanda Ghara Reksa Divre I Medan.

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Vol.8; Issue: 9; September 2021
LITERATUS
literature for social impact and cultural studies
e-ISSN:
2686-5009
The Effect of Talent Management and Employee Retention on
Employee Performance with Knowledge Management as a Mediator
for Minimarket Employees in Jakarta

Joko Ariawan
Bina Sarana Informatics University, Jakarta
joko.jaw@bsi.ac.id

Abstract
This study aims to analyze the influence of talent management, employee retention and
knowledge management on performance with knowledge management as well as mediating
variables. The respondents of this study were 100 minimarket employees in Jakarta who were
selected using purposive sampling, from February 2022 to May 2022. The data collected is
processed using the path analysis method with the help of AMOS software. The results of the
study concluded that talent management has a significant effect on knowledge management,
retention has a significant effect on knowledge management, knowledge management does not
affect the performance of minimarket employees in Jakarta, talent management has a significant
effect on performance, and knowledge management has no effect in mediating talent
management and employee retention..
Keywords: talent management, employee retention, knowledge management, employee
performance

INTRODUCTION

The retail industry is one of the businesses that currently has good prospects, retail
is a business venture that seeks to market goods and services to end consumers who use it for
personal and household purposes. (H. T. Princess, 2018). The retail business in Indonesia
began to transform from a traditional retail business to a modern retail business, quinine
many modern retail stores opened branches in various parts of Indonesia (H. T. Putri, 2018).
The retail industry is in direct contact with the basic needs of the daily community where the
process of turnover of goods and money in it is very fast. The second largest contribution of
the retail industry to the formation of Gross Domestic Product (GDP) after the agricultural
industry. In addition, in terms of expenditure, GDP, which is supported by consumption
patterns, also has a close relationship with the retail industry. The Indonesian Retail
Association stated that the retail industry business in Indonesia grew by around 7.5% per
year, with 150 retail industry players (Suryantoro, 2020). The form of this retail is a
minimarket that we can find every inch. Minimarket is a form of retail that provides daily
necessities (Mandala et al., 2018).
In building a strong company, employee performance is very important (Darda et al.,
2022), including in the retail industry. Employee Performance is the result achieved by an
employee in the implementation of a job that has become his responsibility and the results
given in accordance with the company's operational standards. (Harmen, 2018). Performance
is an achievement of tasks in an organization that can be accounted for for its success and
measured by its efforts, abilities, abilities, and motivation (Windi et al., 2021). The ability of
each employee which includes aspects of knowledge, the ability to behave and act in working
and solving problems, which is a determinant of the level of good work product.
Performance is the result of work that can be achieved by employees, both
individuals and groups in an organization, in accordance with the authority and responsibility
given by the organization in an effort to achieve the vision, mission and objectives of the
organization concerned by including the ability, perseverance, independence, ability to
overcome problems according to the time limit given legally, not violating the law and in
accordance with morals and ethics (Busro in Ramadhani et al., 2020). Therefore, a thorough
process is needed by the company to observe employee performance in order to obtain the
quality needed by the organization (Widianingsih & Wulansari, 2018).
Previous research on factors that affect the performance of retail employees,
including by Y. Saputra et al. (2020) with respondents of all retail companies in Pekanbaru
https://doi.org/10.37010/lit.v4i1.778

showed that organizational citizenship behavior, job satisfaction, job stress had a
significant effect on retail employee performance. Gunawan & Munir Research (2016) at
Vol. 4, No. 1, PT. Trans Retail Indonesia (Carrefour) Panakkukang Makassar Branch shows that work
April 2022, discipline, organizational commitment, work environment have a significant effect on
pp. 272-282 employee performance. Furthermore, Satriawan & Fuadati's (2019) research on PT Mitra
Adiperkasa Store retail fashion resulted in conclusions that work loyalty, motivation, and
incentives have a significant effect on employee performance.
In this study, it will be studied about other factors that affect employee
e-ISSN: performance in the modern retail industry or minimarkets, namely talent management and
2686-5009 employee retention with knoledge management as a mediating variable, so this research is
different from previous research, this is based on the absence of strong and reliable human
resources the company cannot operate optimally, because human resources are the main
drivers of the company's business wheels. Talent management is very important for
companies to be able to manage highly talented human resources who can build the
The Effect of company to continue to achieve the company's vision (Harmen, 2018).
Talent Talent management can be used as a strategy in improving employee
Management and performance (Anisah & Sakinah, 2020). This is in accordance with the opinion of
Employee Armstrong (2013) which states that the company's high awareness of talent management
Retention on will make companies compete in getting highly talented employees, both with the
Employee recruitment process and from training or regenerationTalent management is a series of
Performance processes carried out by companies to identify, develop, retain, and put the right people in
with Knowledge the right place. (Harmen, 2018).
Management as a Talent management is a series of activities including searching for talented human
Mediator for resources, selecting talents, developing talents, and managing or retaining talents tailored
Minimarket to qualifications (Karina & Ardana, 2020; Windi et al., 2021), with the aim of ensuring the
Employees in availability of talent supply to align the right people with the right jobs at the right time
Jakarta based on the strategic objectives of the organization. (R. T. Saputra et al., 2020), the higher
the company's attention to talent management, then to get highly talented employees can
look for from outside as well as from training and regeneration (Busro in Ramadhani et al.,
2020). The benefit of implementing a talent management program is the continuous
availability of employees who reach their best potential and improve their
performance (Pella & Inayati, 2011).
Furthermore, employee retention also affects employee performance. in a
Joko Ariawan company a program is needed that can keep employees loyal to the company and is often
referred to as employee retention (I. D. Putri & Arwiyah, 2019) . Mathis and
Jackson (2016) state retention as a form of effort to retain employees, which has become a
major problem in many organizations for several reasons. Employee retention is a
company's ability to retain the best workers to continue to be in the
organization. Companies that have made investments in HR will be in vain, if they cannot
retain their employees to continue to be in the company (Suta & Ardana, 2019). The
purpose of employee retention is to retain employees who are considered to have quality
as long as possible, because employees who have the best quality are a supporting factor
in advancing the organization (Pradipta & Suwandana, 2019). The results of research by I.
D. Putri & Arwiyah (2019) at PT Kaltacitra Utama East Jakarta that employee retention
has a positive effect on employee performance, with a contribution of 92%. This can be
interpreted to mean that the amount of employee retention in the organization will result in
good performance.
Knowledge Management is also suspected to affect employee performance, in this
study Knowledge Management is also placed as a mediating variable. Knowledge
management is a company strategy in innovating to improve employee performance. Good
knowledge management in a company organization can have an impact on employee
performance. The success of the company's performance can be seen from the performance
that has been achieved by its employees. Therefore, the company demands that its
employees be able to display optimal performance because the good and bad performance
produced by employees will have an impact on the performance and overall results of the

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company (Panungkelan, 2020). Knowledge Management is an organizational activity in
managing knowledge and is used as an asset, in various strategies there is the right
distribution of knowledge to the right people and in a fast time, so that they can interact
with each other, share knowledge and apply it in daily work to improve organizational LITERATUS is a
performance (Irawan & Djastuti, 2016). journal published
by Neolectura,
One of the functions of this knowledge management is as a solution that can be issued two times
used as a function or a way out of an existing problem, even as an innovation or in one year.
development of ideas from existing knowledge / skills / systems so that it can improve the Literatus is a
performance of the employees themselves and the performance of the company which then scientific
makes the company able to face challenges in the present and in the publication
media in the
future (Considerraja, 2016). The results of Ferdian &Devita's (2020) research on Telkom form of
Pension Fund employees stated that knowledge management has a significantly positive conceptual paper
effect on employee performance. The results of Panungkelan's research (2020) also stated and field research
that knowledge management has a significantly positive effect on employee performance. related to social
impact and
The framework of thought in this study is as follows. cultural studies.
It is hoped that
LITERATUS can
become a media
for academics
and researchers
to publish their
scientific work
and become a
reference source
for the
development of
science and
knowledge.
Figure 1. Research Framework of Thought

The hypotheses in this study are:

Our focus:
Social and
Culture

Our Scope:
Humanities,
Education,
Management,
History,
Economics,
Linguistics,
Literature,
Religion,
METHOD Politics,
Sociology,
Employees of minimarkets in Jakarta are respondents to this study, this study Anthropology,
and others.
was conducted by distributing questionnaires on a likert scale from February 2022 to
May 2022. In the selection of research samples using purposive sampling, with the
criteria of minimarket employees who have worked for at least 1 year and voluntarily
fill out the questionnaire provided by the researcher. The collected data is processed
using the path analysis method with the help of AMOS software. The sample is the part
of the population that serves to describe the actual state of the population (Sugiyono,
2016), the sampling must represent the characteristics of the entire population because
the sample will be the basis for answering the hypothesis proposed in the study on the
object of study. 2007).

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https://doi.org/10.37010/lit.v4i1.778

Vol. 4, No. 1,
April 2022, Information:
pp. 272-282 n = Number of samples
Zα/2 = confidence level a = 0.05 (95% confidence level means
Z0.05 = 1.96
e = The degree of determination used by declaring an error
e-ISSN: maximum 20% or 0.20 (estimation error)
2686-5009

Based on sample calculations, researchers believe with a 95% confidence level that
The Effect of the minimum random sample size is 96.04, but in order to provide better test results, the
Talent number of samples in the study was rounded to 100 respondents.
Management and
Employee
Retention on RESULTS AND DISCUSSION
Employee
Performance The following is presented respondent data based on the results of data
with Knowledge recapitulation.
Management as a
Mediator for
Minimarket
Employees in
Jakarta

The highest number of samples in this study were women as many as 57 people.

Joko Ariawan

The highest number of samples in the study was educated in high school /
equivalent, which was 62 people.

Validity and Reliability Test

The validity test with 30 respondents, where the degree of freedom n-k = 30 - 3 =
27 and the confidence interval of 0.05 resulted in atable r of 0.3115. As for the reliability
test, it uses a standard cronbach alpha value of 0.60. Here are the validity test results.

275 | Visit our Open Journal System at http://journal.neolectura.com/index.php/Literatus


LITERATUS is a
journal published
by Neolectura,
issued two times
in one year.
Literatus is a
scientific
publication
media in the
form of
conceptual paper
and field research
related to social
impact and
cultural studies.
It is hoped that
LITERATUS can
become a media
In table 3, it can be seen thatthe calculated r value is above 0.3115, so all the for academics
questions in the talent management variable are valid. and researchers
to publish their
scientific work
and become a
reference source
for the
development of
science and
knowledge.

Our focus:
Social and
Culture

Our Scope:
Humanities,
In table 4, it can be seen thatthe calculated r value is above 0.3115, so all questions on Education,
the employee retention variable are valid. Management,
History,
Economics,
Linguistics,
Literature,
Religion,
Politics,
Sociology,
Anthropology,
and others.

Join with us at http://journal.neolectura.com/index.php/Literatus | 276


https://doi.org/10.37010/lit.v4i1.778

In table 5, it can be seen thatthe calculated r value is above 0.3115, so all questions in
the knowledge management variable are valid.
Vol. 4, No. 1,
April 2022,
pp. 272-282

e-ISSN:
2686-5009

The Effect of
Talent
Management and
Employee In table 6, it can be seen thatthe calculated r value is above 0.3115, so all questions on
Retention on the performance variable are valid.
Employee
Performance
with Knowledge
Management as a
Mediator for
Minimarket
Employees in
Jakarta

In table 7, it can be seen that the values of Cronbach's Alpha of all variables are
greater than 0.6 (> 0.60) so it can be concluded that all variables in this study are already
reliable.
Joko Ariawan
Descriptive Statistics

The results of data processing using descriptive statistics are as follows:

Path Analysis

a. Early Models

The initial image of the path analysis is as follows:

277 | Visit our Open Journal System at http://journal.neolectura.com/index.php/Literatus


LITERATUS is a
journal published
by Neolectura,
issued two times
in one year.
Literatus is a
scientific
publication
media in the
form of
conceptual paper
Figure 2. Early Research Models and field research
related to social
impact and
b. Conformity Test cultural studies.
It is hoped that
LITERATUS can
The results of the goodness of fit test are based on the following table: become a media
for academics
and researchers
to publish their
scientific work
and become a
reference source
for the
development of
science and
knowledge.

Our focus:
Social and
Culture
From Table 9, chi square 0.000 (small), RMSEA values of 0.0056 (below 0.08),
NFI 1.000 (>0.8), TLI 1.000 (>0.8) and NFI 1.000 (>0.80) all criteria are included in the
good fit conclusion so that hypothesis testing can continue.
Our Scope:
c. Hypothesis Test Humanities,
Education,
Management,
Test the hypothesis from the results of data processing with AMOS 23, in summary can History,
be seen in the following figure: Economics,
Linguistics,
Literature,
Religion,
Politics,
Sociology,
Anthropology,
and others.

Figure 3. Final Model of Research

To clarify the results of data processing in figure 3, a summary table of path


analysis is presented:

Join with us at http://journal.neolectura.com/index.php/Literatus | 278


https://doi.org/10.37010/lit.v4i1.778

Vol. 4, No. 1,
April 2022,
pp. 272-282

e-ISSN:
2686-5009 From the results of data processing in table 10, the results of hypothesis testing can
be seen as follows:
1. The Influence of Talent Management on Knowledge Management
Based on table 10, the P Value value of 0.000 is smaller than 0.05 (0.000 > 0.05),
thus it can be concluded that Talent Management has a significant effect on
The Effect of Knowledge Management
Talent 2. The Effect of Employee Retention on Knowledge Management
Management and Based on table 10, the P Value value is 0.000, less than 0.05 (0.000 < 0.05), thus it
Employee can be concluded that Employee Retention has a significant effect on Knowledge
Retention on Management
Employee
3. The Effect of Knowledge Management on Performance
Performance
Based on table 10, the P Value value is 0.132, more besar than 0.05 (0.132 > 0.05),
with Knowledge
Management as a thus it can be concluded that Knowledge Management does not affect performance
Mediator for 4. The Influence of Talent Management on Performance
Minimarket Based on table 10, the P Value value is 0.022, smaller than 0.05 (0.022 < 0.05), thus
Employees in it can be concluded that Talent Management has a significant effect on Performance.
Jakarta 5. The Effect of Employee Retention on Performance
Based on table 10, the P Value value is 0.001, less than 0.05 (0.001 < 0.05), thus it
can be concluded that Employee Retention has a significant effect on performance.
Furthermore, to test the hypothesis of the influence of knowledge management as
a mediator of talent management and employee retention on performance can be calculated
using a sobel test whose results can be seen in the following table.
Joko Ariawan

Based on calculations using the sobel test, knowledge management has no effect
in mediating talent management and employee retention, because the p-value is greater
than 0.05.

Discussion

1. The Influence of Talent Management on Knowledge Management


Based on the research, talent management has a significant effect on knowledge
management, the results of this study to the author's knowledge have not been in
previous research, because in previous studies, talent management and knowledge
management are generally placed as independent variables that affect
performance. Based on the results of this study, modern minimarkets in Jakarta based
on respondents' perceptions have carried out a series of HR management processes that
have been integrated with one another. Employees feel that from the recruitment and
selection process to placement, personnel management has professional and

279 | Visit our Open Journal System at http://journal.neolectura.com/index.php/Literatus


standardized standards and assessment processes, this also has an impact on the way
the company manages to carry out the learning process for employees. Employees
feel that the modern retail management in which they work has strategies and methods
for organizing and sharing and also improving information in the company's LITERATUS is a
operations. journal published
by Neolectura,
issued two times
2. The Effect of Employee Retention on Knowledge Management in one year.
Based on research, retention has a significant effect on knowledge Literatus is a
management, the results of this study to the author's knowledge have not been in scientific
previous studies, because in previous studies, retention and knowledge management publication
media in the
are generally placed as independent variables that affect performance, while in form of
research (Banuari, 2021) entitled analysis of the influence of talent management and conceptual paper
knowledge management on employee performance with employee retention as an and field research
intervening variable at PT Bhanda Ghara Reksa Divre I Medan, has differences in related to social
impact and
placement in intervening positions. With the results of this study it can be confirmed cultural studies.
that, the organization's strategy to retain potential employees owned by the It is hoped that
organization to remain loyal to the organization has an impact on knowledge LITERATUS can
management. become a media
3. The Effect of Knowledge Management on Performance for academics
and researchers
The results showed that Knowledge Management did not affect the to publish their
performance of minimarket employees in Jakarta, the results of this study were in line scientific work
with research (Afqarina, 2018), in minimarket employees who undergo a routine of and become a
serving, the most important learning is in the first year of work, where there is training reference source
for the
and education, and on the job training in a probationary period that forms a work development of
culture, but after that a minimarket employee only works routines, so knowledge science and
management does not play a major role, what affects performance is more focused on knowledge.
motivation and discipline.
4. The Influence of Talent Management on Performance
The results showed that talent management had a significant effect on
Performance, respondents' perceptions that management had carried out a series of
Our focus:
HR management processes that had been integrated between one another, Social and
professional performance appraisals spurred employees to perform well, especially Culture
many of them wanted to be appointed as permanent employees.
5. The Effect of Employee Retention on Performance
The results showed that employee retention has a significant effect on
Our Scope:
performance, organizational strategies to retain potential employees make employees Humanities,
try to improve performance so that they are not inferior to colleagues. Education,
6. The influence of knowledge management in mediating Talent Management and Management,
Employee Retention on performance History,
The results of knowledge management research have no effect in mediating Economics,
Linguistics,
talent management and employee retention, this is inseparable from the Literature,
characteristics of work as minimarket employees who prioritize discipline, Religion,
friendliness and dexterity in serving, while in terms of innovation and creative Politics,
thinking are not too necessary Sociology,
Anthropology,
and others.

CONCLUSION

The conclusions of this study are:


1. Talent management has a significant effect on knowledge management,
employees feel that from the recruitment and selection process to placement,
personnel management has professional and standardized standards and
assessment processes, this also has an impact on the way the company manages to
carry out the learning process for employees.

Join with us at http://journal.neolectura.com/index.php/Literatus | 280


https://doi.org/10.37010/lit.v4i1.778

2. Retention has a significant effect on knowledge management, the organization's


strategy to retain potential employees owned by the organization to remain loyal to
Vol. 4, No. 1, the organization has an impact on knowledge management.
April 2022, 3. Knowledge management does not affect the performance of minimarket employees
pp. 272-282 in Jakarta, this is because minimarket employees only work on routines, so
knowledge management does not play a major role, what affects performance is more
focused on motivation and discipline.
4. Talent management has a significant effect on performance, the integrated HR
e-ISSN: management process including a professional performance appraisal spurs
2686-5009 employees to perform well.
5. Employee retention has a significant effect on performance, the organization's
strategy to retain potential employees makes employees try to improve performance.
6. Knowledge management has no effect in mediating talent management and
employee retention, this is inseparable from the characteristics of work as a
The Effect of minimarket employee who prioritizes discipline, friendliness and dexterity in
Talent serving, while in terms of innovation and creative thinking are not too necessary
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