The relationship of talent management and job performance of local employees mediated by engagement and satisfaction

Organizations worldwide are facing the challenge of managing talent effectively. It has been a continual struggle for organizations to retain talents to attain their competitive advantage. Specifically, the UAE government’s emphasis on localization (Emiratization) requires companies to effectively manage the talent of local employees. Managing the local talent for high performance is crucial for companies’ productivity and competitive advantage. As the major supplier of the oil and gas sector, the oil and gas companies in the UAE are also facing the challenge to ensure their local talents achieve their job performance. Further, even though there have been extensive studies that investigate the direct relationship of satisfaction and engagement on job performance, there have been very limited studies that consider their mediating roles in facilitating talent management and job performance. This research aims to conceptualize the talent management as a multi-faceted concept, consisting of two main concepts: talent mindset and talent strategies. It also investigated the relationship of the talent management and job performance, mediated by engagement and satisfaction among the local employees. For this purpose, 12 hypotheses that tested eight direct and four indirect relationships among the variables frame the research. Survey questionnaires were employed and data from 321 respondents were analyzed. A two-stage structural equation modelling approach was adopted in the analysis. The research found that the management of both talent mindset and talent strategies has significant positive relationship with job performance. Further, employee engagement and satisfaction were found to have partial mediating roles with talent management and job performance. This research suggests that the oil and gas companies should implement and invest in the TM practices that will trigger satisfaction and engagement to achieve high performance among local employees. In this case, the attention should be given to implementing multi-faceted talent management, consisting of talent mindset and talent strategies. Talent management is not exclusive for the specific employees, but inclusive to all employees based on the requirements critical to their job performance