THE EFFECT OF EMPLOYEE COMPETENCY DEVELOPMENT AND TALENT MANAGEMENT ON EMPLOYEE PERFORMANCE WITH EMPLOYEE INVOLVEMENT AS A MEDIATOR

Abstract

Optimal performance is essential for achieving company targets. This study examines the influence of employee competency development and talent management on employee performance, with employee engagement as a mediating variable at PG Kebon Agung. In an era of dynamic business competition, organizations must strategically optimize human resources to gain a competitive edge. Employing a quantitative approach with a survey method, data were collected via questionnaires from 125 employees and analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The results indicate that both employee competency development and talent management have a positive and significant effect on employee engagement and performance. Furthermore, employee engagement significantly mediates the relationship between competency development, talent management, and performance. These findings highlight the strategic role of engagement as a bridge connecting HR development initiatives with optimal performance outcomes. Practically, the study recommends organizations to systematically invest in structured competency development and integrated talent management programs to enhance engagement and sustain high performance. Theoretically, this research strengthens the HR management literature by confirming employee engagement as a critical mediating factor, providing empirical evidence of its role in linking HR strategies to improved organizational performance.