Gholam Sajadi Khah, Zeynab Elahi Nezhad, Mehdi Moradi

The Analysis of the Relationship between Employees Perceptions Talent Management and Job Engagement: The Mediating Effect of Loyalty and Job Satisfaction Gholam Sajadi Khah, Zeynab Elahi Nezhad, Mehdi Moradi Abstract In this research, the relationship between employees perceptions talent management, satisfaction, loyalty and employees engagement is investigated. The aim of the research is to examine the effect of talent management on employees engagement Through satisfaction and loyalty among the employees of the Intellectual Development The research method is a descriptive survey. The statistical population consists of employees the of the Intellectual Development center of Children and Adolescents in iran. The sample included 306 employees, which were selected randomly. Data have been collected by a researcherdeveloped questionnaire and sampling has been done through census and analyzed using SPSS and AMOS. The validity of the instrument was achieved through content validity and the reliability through Cronbach Alpha and composite reliability. It was concluded that the employees perceptions talent management variable has an efficient role in satisfaction, loyalty and employees engagement. Interestingly, talent management does indirectly influence in the employees engagement Through satisfaction and loyalty. companies can increase satisfaction, loyalty and employees engagement by improving the talent management. Index Terms Employee, Analysis, Job Engagement, Job Satisfaction. 1 INTRODUCTION T Department of Management, Science and Research Branch of Kerman, Islamic Azad University, Kerman, Iran. Department of Management, Science and Research Branch of Kohgiluyeh and Boyer-ahmad, Islamic Azad University, Yasouj, Iran. Department of Management, Najafabad Branch, Islamic Azad University, Najafabad, Iran. 49 ALENT management is fast gaining a top priority for organizations across the world. Trends for talent management, talent wars, talent raids and talent shortage, talent metrics retention and concerns for talent strategy are expressed in the literature, across various countries like the USA, the UK, Australia, Japan, China, India, and across Asia (see Yeung, 2006; Ruppe, 2006; Dunn, 2006; Chugh and Bhatnagar, 2006; Lewis and Heckman, 2006; Branham, 2005; Bennett and Bell, 2004). The methods used need to undergo assessment and need analysis to see if there is a relationship with employee engagement and satisfaction. Employee engagement is viewed as an important construct because it is has been linked to increasing the retention of top talent as an outcome of the talent management process (e.g. Bhatnagar, 2007). Increased employee engagement has been proposed to have many valued and sought after benefits for organisations, as well as for the individual employee. In general we can say that one of the mechanisms influencing the job satisfaction is a talent management that can use As a means to improve the hiring process and develop people with the skills and abilities needed to meet the current needs of the organization [8], By using it organization ensures that the qualified people with appropriate skills in the right place of employment in order to achieve the expected goals and strategy of the organization deployed and provides job satisfaction by identifying and optimize the use of capabilities of talents personnel and development them (Armstrong, 2007; Askari, 2013). we can say that talent management In addition to, Recruitment, talent development and evaluation, is leading to personal growth, employee satisfaction and added value. In fact, talent engagement (Fombrum, 2006) is an area which needs a special research focus. It raises questions such as: What is the engagement score? At what level are various talent segments and departments engaged? Are engagement levels increasing over time? 2 TALENT MANAGEMENT Talent management is a collection of Talent Management typical HR department practices (recruiting, selection, development, career/succession management) (Byham,2001; Heinen & O'Neill, 2004; Olsen, 2000). Also Buckingham and Vosburgh (2001) define talent management in terms of managing talent according to performance and as an undifferentiated good that emerges from both humanistic and demographic perceptions. the term talent management was first coined by McKinsey and Company in the mid-1990s and is a professional term that has recently gained popularity. It refers to the process of developing and fostering new workers through interviewing, hiring, orienting and successfully integrating new hires into an organization s culture, and thereafter, developing and keeping current workers and attracting highly skilled workers to work for an organisation. Consequently, it is considered that oganisa-

tions involved in talent management are strategic and deliberate in how they source, attract, select, train, develop, promote, and move employees through the organization. Superior talent is increasingly recognised as the prime source of sustainable competitive advantage in high performance organisations. Underlying this trend is the rapidly changing business environment and the growing need for globally aware managers and professionals with multi-functional fluency, technological literacy, entrepreneurial skills, and the ability to operate in different cultures, structures and markets (Chambers et al., 1998). Lewis and Heckman (2006, p. 139) conducted an extensive and critical review of the talent management literature both in the professional and academic press and found a disturbing lack of clarity concerning its definition. They did, however, identify three primary conceptions of the term. The first is that talent management is comprised of a collection of typical human resource department practices. such as recruiting, selection, development and career and succession management (p. 140). From this perspective, they argued that talent management may be little more than a trendy term or euphemism for HRM. However, they also suggested that talent management may additionally imply a systems approach to carrying out these functions; one that involves technology (e.g. the internet or software) and takes place at the level of the whole enterprise. The competitive advantage for organizations comes from having superior talent and managing it appropriately throughout the organization. It is the responsibility and job of all managers. Michaels, Handfield-Jones and Axelrod (2001) found that on average companies that did a better job of attracting, developing and retaining talented employees earned a 22 percentage point higher return to shareholders. the five dimensions of talent management as follows (Sweem, 2009): - Communication: Communications was a final focal point. Employee communications meetings were held three times a year to provide updates and information to all employees. With the implementation of the communications meetings as well as the electronic means of e-mails and websites, employees were more readily informed and could commit to a path toward accomplishing departmental and organizational goals. - Employee Development: There was a lot of dissatisfaction from the employee's perception. Based upon the focus group results after the initial 2006 survey results, the employees generally perceived employee development as taking a class or going to a seminar. And, even this was seen as a privilege and not a "right" of all employees. These would be recorded and reviewed twice a year to ensure that employees were making progress and utilizing the opportunities for growth. - Rewards and Recognition: Recognition and rewards were other areas of focus. A spot award program was initiated where supervisors could recognize an employee for a job well done or a project completed with a monetary reward. It was important to time the recognition with the successful completion of a task or project. This allowed supervisors to acknowledge an employee for a specific task even if the employee was an "average" performer. It accentuated the positive. - Managing Performance: developing employees and encouraging a higher level of performance. Performance management includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas. - Open Climate: It provided an opportunity for all levels of employees to come together to influence and build the culture for the future. organizational culture and climate will be a key factor to changing this direction and human resource strategy will become decentralized into organizations in order to become integrated with the overall corporate activity. 3 JOB ENGAGEMENT Employee engagement is a relatively new concept. Talent management and leadership have taken on new importance as competition to attract and retain strong employees becomes increasingly fierce. Thus, the employee experience becomes just as important as the customer s. talent management strategy should contribute to employee engagement. According to Gibbons (2006) employee engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that in turn influences him/her to apply additional discretionary effort to his/her work (p. 5). Perhaps a more accessible definition comes from Hewitt and Associates (2004). According to their research, engagement is: A measure of the energy and passion that employees have for their organizations. Engaged employees are individuals who take action to improve business results for their organizations. They stay, say, and strive-stay with and are committed to the organization, say positive things about their workplace, and strive to go above and beyond to deliver extraordinary work (p. 12). In other words, the more highly engaged the employee, the more likely he or she will be to say positive things about the organization, thereby contributing to the development of a positive employer brand; want to remain within the organization, thereby minimizing turnover; and regularly exert a superior level of effort, thereby potentially influencing such variables as service quality, customer satisfaction, productivity, sales, profitability, etc. employee engagement represents an alignment of maximum job satisfaction with maximum job contribution. Employees are enthused and use their talents to make a difference in their employer's quest for sustainable business success. And, Towers Perrin (Global Workforce Study, 2005) views it as employees' willingness and ability to help their companies succeed by freely and consistently delivering discretionary effort on the job. In general, most definitions include employee commitment, a connection to the job and organization and an understanding of the organization's goals and strategies. Engaged employees exhibit a willingness to make an extra effort for the 50

success of the company. 4 JOB SATISFACTION Job satisfaction is one of the Employee job attitudes. In general we can say that job satisfaction is personal s attitude to job and is called sets of positive desires or positive feelings that people have toward their jobs, When we say a person has a high job satisfaction that s mean he loves his job very much And through it To satisfy his needs therefore has positive feelings (Born et al, 2009). Job satisfaction is the employees response on their work itself and work environment and is caused when one s need is satisfied at the workplace. Regarding the definition of job satisfaction, Hopkins (1983) defined it as the fulfillment or gratification of certain needs that are associated with one s work (Armstrong, 2007). Knral and Smith pointed to the five dimensions of job. This dimensions show that the most important features of a job in relation to the subject of which people have effective positive reactions to it. One can get person s satisfaction in relation of the five dimensions of job. These dimensions are: A) Nature of Work: means the properties and features of job duties there. B) Salary: the amount of money a person receives and the degree to which he considers salary just and equitable against the salary of others. C) Promotion opportunities: opportunities for improvement in the organizational hierarchy. D) Supervision and care: how to communicate with their direct supervisor and the supervisor's ability to offer support behavioral and technical assistance. E) Colleagues: Degrees to which job colleagues are technically efficient and in the social dimension are person s sponsor. Obviously without considering job satisfaction cannot be expected efficiency and productivity of the staff and especially talented people in organization. 5 EMPLOYEE LOYALTY According to Allen and Grisaffe (2001), loyalty is a psychological state and it characterizes the relationship of an employee with the organization for which they work and that has implications for their decision to remain with the organization. According to the definition of Mathieu and Zajac (1990), loyalty means as attachment to the organization that may be considered an emotional response, especially when an employee believes strongly in organizational goals and values and has a strong desire to maintain membership of the organization. According to Becker et al. (1995), loyalty could be defined as a strong desire to maintain a member of an organization; a willingness to slug on high levels of efforts for the sake of the organization; and a definite belief in and admissibility of the values and goals of the organization. Thus, loyalty is characterized by the strong wish to continue membership of an organization, which plays a positive role in retention of members in the organization. Organizational loyalty of employees could be defined as the relative strength of an individual s 51 identification with and involvement in a particular organization (Wu and Norman, 2006). J. Meyer and N. Allen (1997) define organizational loyalty as a conditional drive for personal identification and involvement in a particular organisation. Conceptually that can be defined by the following factors (Savareikiene, 2009: pp 86): Strong belief in the values and goals of the organization; Determination to put efforts for the good of the organization; Strong intention to stay with the organization. 6 EMPLOYEE ENGAGEMENT AND ITS RELATIONSHIP TO TALENT MANAGEMENT Talent management practices and policies that demonstrate commitment to human resources result in more engaged employees and lower turnover (Driving Performance and Retention Through Employee Engagement, 2004). Consequently, employee engagement has a substantial influence on employee productivity and talent retention. Employee engagement and talent management combined can make or break the bottom line (Lockwood, 2006). Employee engagement as a key to the retention of talent (one-of-a-kind hire in 100 employees; Glen, 2006) is an area in which the lead has been taken by practitioners (Parsley, 2006; Baumruk et al., 2006; Woodruffe, 2005; Gallup Management Journal, 2006; Bennett and Bell, 2004; Hay Group, 2002). It is an area where rigorous academic research is required (Cartwright and Holmes, 2006; Joo and Mclean, 2006; Luthans and Peterson, 2002). Effective talent management policies and practices that demonstrate commitment to human capital result in more engaged employees and lower turnover. Consequently, employee engagement has a substantial impact on employee productivity and talent retention. Employee engagement, in fact, can make or break the bottom line. Employees who are most committed perform 20% better and are 87% less likely to resign. In addition, the foundation for an engaged workforce is established by the quality, depth and authenticity of communication by HR and senior management to employees, as well as the quality of supervision. The role of the manager as the most important enabler of employee commitment to the job, organization and teams cannot be overemphasized. Furthermore, when done well, practices that support talent management also support employee engagement (e.g., work-life balance programs flex time, telecommuting, compressed workweeks, reward programs, performance management systems).( Corporate Leadership Council, 2004). Therefore the objectives of this study are three fold: a. To examine the relationship between the employees perceptions talent management and the job engagement. a. To examine the relationship between the employees perceptions talent management with the satisfaction and emolpyee loyalty. a. To examine the relationship between the employees perceptions talent management and the job engagement through the satisfaction and emolpyee loyalty. Conceptual model of research which is made by researcher,

examines the impact of talent management that influence job engagement through the satisfaction and emolpyee loyalty. Fig. 1. Conceptual model of research. 7 RESEARCH HYPOTHESES 1- There is a positive and significant relationship between the employees perceptions talent management and the job engagement among the employees of the Intellectual Development 2- There is a significant and positive relationship between the employees perceptions talent management and the employee loyalty among the employees of the Intellectual Development 3- There is a significant and positive relationship between the employees perceptions talent management and the job satisfaction among the employees of the Intellectual Development 4- There is a positive and significant relationship between the employee loyalty and the job engagement among the employees of the Intellectual Development center of Children and Adolescents in iran. 5- There is a positive and significant relationship between the job satisfaction and the job engagement among the employees of the Intellectual Development center of Children and Adolescents in iran. 8 METHODOLOGY The current research enjoys a descriptive-correlative design. The subjects are chosen among the employees of the Intellectual Development center of Children and Adolescents in iran. Data collection is done through random sampling. First, a group of 30 persons were selected from the subjects and the questionnaire distributed among them. After extracting the data from the responses of the intended groupand the variance estimate, the volume of the sample of the study was drawn by using cookran formula. 306 persons were selected randomely as the subjects of the study. In this study, questionnaire was used as a data collection tool The validity of its content was ensured by using the expert viewpoints and consensus. The validity of its structure was measured through using the structural functions. The composite reliability of each construct was assessed using Cronbach s alpha. Robinson, Shaver and Wrightsman (1991) and DeVellis (2003) suggested that an alpha value of.70 should be considered acceptable. As shown in Table 1, the reliabilities of all the constructs are between.82 and.89, well within the range suggested by Robinson et al. (1991) and DeVellis (2003) (Teo,2008). Feature TABLE 1 RELIABILITY COEFFICIENT OF RESEARCH VARIABLES RELATED TO GIVEN HYPOTHESES Number of Questions talent management 15 0.898 job satisfaction 6 0.852 employee loyalty 9 0.87 job engagement 5 0.821 Total 35 0.935 Cronbach s Alpha Coefficient Both quantities indicate that the research tool is reliable. To describe the demographic variables and research variables, descriptive statistics was used. Furthermore, to study the relationship between the research variables, Pearson correlationcoefficient was used. The spss and the Amos 18 software were also used to determine the correlation and analyze the data. 52

9 DESCRIPTIVE DATA This study attempts to understand the relationships among the employees perceptions talent management, job engagement, satisfaction and employee loyalty. Table 2 Descriptive statistical data shows the relation to the customers participated to the research (n = 306). The social demographic qualification of the participants are as follows: 140 male (45.7 %) and 166 female (54.3%) participated to the research: TABLE 2 DEMOGRAPHIC QUALIFICATIONS OF PARTICIPANTS: GENDER Gender Frequency (%) Male 140 45.7 Female 166 54.3 The educational background of the participants are; 69 people (% 22.5) diploma, 72 people (% 23.5) have Associate course, 116 people have b.sc degree (% 37.9), 44 people (% 14.3) have m. sc degree and 5 people (% 1.6) phd degree: TABLE 3 DEMOGRAPHIC QUALIFICATIONS OF PARTICIPANTS: EDUCATION Education Frequency (%) Diploma 69 22.5 Associate course 72 23.5 b.sc 116 37.9 m. sc 44 14.3 phd 5 1.6 The age classification of participants are; 16 people (% 05.2) are between 15-20; 128 people (% 41.8) are between 21-30; 98 people (% 32.0) are between 31-40, ; 49 people (% 16.0) are between 41-50 and 15 people (% 04.9) are more than the age of 50: TABLE 4 DEMOGRAPHIC QUALIFICATIONS OF PARTICIPANTS: AGE Age Frequency (%) <20 16 05.2 30 128 41.8 40 98 32.0 50 49 16.0 50 < 15 04.9 In the Table 5, Means, standard deviations and Correlation Between research variables was examined: TABLE 5 MEANS, STANDARD DEVIATIONS, AND CORRELATIONS Mean STD employee talent management job satisfaction loyalty job engagement talent management 1 - - - 4.65 1.04 job satisfaction 5.05 1.07.717 1 - - employee loyalty 4.8.96.850.777 1 - job engagement 4.72.93.804.721.909 1 Structural relationships in the conceptual model were tested with AMOS. The maximum likelihood fitting function was used to estimated parameters. The CFI comparative index could be used to determine the properness of the model. In this study, CFI equals 1 since this value is more than the standard value.9, this could be argued that the designed model suits the collected data. the mean square error (RMSE) is also another index whose value is below 0.1 and indicates an acceptable value and In the current study RMSEe is 0.036. the Tier Luis Index (TLI) is another index which indicates the suitability of the selected variables for the properness of the mode and its value is 1 in the current research. Finally, the concept validity of the research is approved from statistical point of view. According to the indexes it can be concluded that the model have a relatively good fitness. Index Acceptable value Amount RMSE Less than.1.036 TABLE 6 RESULTS OF THE BEST FITTING MODEL CFI NFI RFI 1.99 98.4 GFI.99 AGFI 94.6 TLI 1 10 RESULTS Hypothesis 1 2 3 TABLE 7 ANALYZING THE HYPOTHESES OF RESEARCH Independent variable Dependent variable Beta talent management job engagement 0.291 talent management employee loyalty 0.169 talent management job satisfaction 0.533 T 4.273 3.525 4.62 Sig.000.003.001 Result Accepted Accepted Accepted 53

4 5 employee loyalty job satisfaction 1 hypothesis: There is a positive and significant relationship between the employees perceptions talent management and the job engagement among the employees of the Intellectual Development As shown in table 7, since observed value is equal to P-value and 0.000 is less than Sig level (a=0.5), so there is a relationship between talent management and job engagement among the employees of the Intellectual Development center of Children and Adolescents with 95% confidence. 2 hypotheses: There is a positive and significant relationship between the employees perceptions talent management and employee loyalty among the employees of the Intellectual Development center of Children and Adolescents: As it is obvious in table 7,since observed value is equal to P-value and 0.003 is less than Sig level (a=0.5), so there is a relationship between the employees perceptions talent management and employee among the employees of the Intellectual Development center of Children and Adolescents with 95% confidence. 3 hypotheses: There is a significant and positive relationship between the employees perceptions talent management and the job satisfaction among the employees of the Intellectual Development center of Children and Adolescents: As it is shown it table 7, since observed value is equal to P-value and 0.001 is less than Sig level (a=0.5), so there is a relationship between the employees perceptions talent management and the job satisfaction among the employees of the Intellectual Development center of Children and Adolescents with 95% confidence. 4 hypotheses: There is a positive and significant relationship between the employee loyalty and the job engagement among the employees of the Intellectual Development center of Children and Adolescents: According to results of table 7, since observed value is equal to P- value and 0.013 is less than Sig level (a=0.5), so there is a relationship between between the employee loyalty and the job engagement among the employees of the Intellectual Development center of Children and Adolescents with 95% confidence. 5 hypotheses: There is a positive and significant relationship between the job satisfaction and the job engagement among the employees of the Intellectual Development center of Children and Adolescents: As it is obvious from the results of table 7, since observed value is equal to P-value and 0.021 is less than Sig level (a=0.5), so there is a relationship between job satisfaction and the job engagement among the employees of the Intellectual Development center of Children and Adolescents with 95% confidence. 11 CONCLUSIONS This study follows to examine the effects of implementing talent management on satisfaction, loyalty and engagement employees of the Intellectual Development center of Children and Adolescents in iran. Research findings is indicating a positive and significant effect between talent management and satisfaction, loyalty and engagement employees According to the data obtained in researching. According to positive impact 54 job engagement 0.522 8.323.013 Accepted job engagement 0.135 5.82.021 Accepted talent management components of job satisfaction, loyalty and engagement employees that was in this study satisfaction, loyalty and engagement is considered as an appropriate measure to evaluate the success or failure of organization in the proper implementation of talent management. Based on these findings, it appears that many organizations, regardless of size or industry, could benefit from the increased formalization and integration of some HRM practices that fall clearly within the talent management domain, including Communication, Employee Development, Rewards and Recognition, Managing Performance and Open Climate. The managers have an important role to play in this regard, particularly with respect to understanding what motivates people, ensuring access to learning opportunities, and treating people with respect. Instead, reflecting a reactionary approach, in many organizations raises or other sweetening of the compensation package are common responses when a valued employee shows signs of leaving (Dell and Hickey, 2002, p. 10). In summary, talent management is arguably a compelling approach for dealing with the impending labour crisis as well as an effective strategy for enhancing the competitive positioning of an organization as well as its employer brand. If an organization wants to manage his talents well In addition to the proper using them in proportion to the organization's needs, noticed motivational factors to improve job satisfaction and encouraging them to keep and engagement. 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