Until now, some research considered the situation about global talent management related to the business resilience of subsidiaries of multinational firms in some crises.. According to F
The necessity of the study
The COVID-19 pandemic has significantly impacted the global economy, prompting businesses to seek recovery strategies As skilled workers become increasingly scarce, there is a growing competition among policymakers to attract highly qualified talent.
A recent Korn Ferry report predicts a global shortfall of 85.2 million skilled workers by 2030 Additionally, a survey by ManpowerGroup revealed that 75% of over 40,000 employers across 40 economies reported experiencing a talent shortage in 2022 In response to this challenge, many countries are implementing preferential policies to attract skilled workers from around the globe, intensifying the competition for talent in the global workforce market.
In the competitive job market of Asian countries, particularly Vietnam, employers are actively seeking elite, specialized, and adaptable employees who can quickly learn and embrace new responsibilities in the aftermath of COVID-19 job cuts Conversely, those lacking specialized skills or possessing low morale are more likely to be affected by layoffs.
Talent management systems play a crucial role in a company's success, significantly impacting employee competence and wealth distribution across nations To enhance competitive advantage, businesses are increasingly focusing on talent recruitment and retention strategies The Sapient Insights Group's 2020–2021 HR Systems Survey reveals that over 30% of companies are reevaluating their hiring, learning, and scheduling practices Research by McDonnell and Wiblen (2020) shows that organizations with robust talent management systems achieve a success rate of 72%, compared to 58% for those lacking such systems, highlighting a critical 14% gap that poses substantial risks for companies without effective people management At Vinamilk, the emphasis on attracting talented individuals is evident, as the company recruits young professionals with strong academic backgrounds, resulting in only 26% of its workforce being unskilled, while the majority possess professional qualifications.
Talented employees are crucial for the commercial stability of institutions in the post-COVID-19 landscape Consequently, researchers investigated the impact of talent management systems on business recovery in Vietnam following the pandemic.
Literature review
Research by Borodulkina (2022) investigates the role of talent management practices in enhancing business resilience, focusing on employee resilience as a critical competency The study emphasizes the importance of understanding how employee resilience interacts with organizational resilience and the necessity of evaluating talent development, attraction, and retention strategies to implement effective resilience-oriented talent management practices Analyzing data from 75 Russian companies, the findings reveal that job rotation, performance-oriented feedback, and opportunities for employees to suggest task improvements significantly contribute to both business resilience and talent management, highlighting the indirect impact of employee resilience on organizational outcomes.
The research by Agunis and Burgi-Tian (2021) identifies key talent management issues arising from the COVID-19 pandemic, such as employment restrictions, layoffs, salary reductions, the shift to teleworking, and increased employee stress and burnout In light of these challenges, many companies have opted to eliminate or downgrade performance assessments, highlighting their reliance on outdated appraisal methods Despite the myriad of talent management difficulties presented by the pandemic, effective performance management can address these issues by fulfilling essential administrative, strategic, and developmental needs The study offers five evidence-based recommendations to tackle these challenges: (1) Measure employee behavior outcomes, (2) Assess adaptive capabilities.
9 performance, (3) Carrying out interviews to retain top performers, (4) Applying multi source management of performance systems into place, and (5) collecting and using PPS (Performance Promoter Score)
Jeoung Yul Lee et al (2022) emphasize that resilience is crucial for enhancing organizational capability to mitigate various global crises Recent research has focused on the relationship between global talent management and the business resilience of multinational firm subsidiaries during times of crisis.
In 2022, research highlighted the critical role of global talent management and organizational resilience in subsidiaries during the Covid-19 pandemic Effective global talent management enhances an organization’s ability to withstand crises, demonstrating the importance of leadership in navigating challenges However, multinational enterprises may experience varying roles at different organizational levels in talent management, particularly in identifying, developing, and implementing strategies for high-potential and high-productivity employees.
Agadah Mienipre et al (2016) highlighted the link between talent management and organizational resilience, emphasizing the role of company culture Organizational culture, defined by shared assumptions and perceptions, influences how skills are applied in the workplace and how threats are addressed (Amah, 2009) Research by Clugston (2000) and Wasti (2003) indicates that organizational culture significantly impacts behaviors, including the effectiveness of talent management strategies, which in turn affects productivity, efficiency, and recovery capabilities The success of any organization relies heavily on its cultural framework, shaping management communication, leadership, recruitment, and training practices A strong organizational culture serves as a unifying force that fosters employee engagement and supports talent development, making it crucial for enhancing skills and capabilities (Silverthorne, 2004).
Talent management practices have an important role in developing essential human resources to the survival of the organization (Aliji Okuwa et al., 2016; Mienipre et al.,
In an uncertain environment, a resilient company relies on talented employees who can aid in recovery from challenges (Mienipre et al., 2016) Effective management of these employees is crucial for enhancing organizational resilience, especially during crises like the Covid-19 pandemic (Lee et al., 2022) Transitioning from traditional human resource methods to modern practices is essential, as talented individuals adapt more readily to unpredictable situations According to Koninckx and Teneau (2010), businesses must evolve to maintain continuity in uncertain conditions, emphasizing the importance of talent management in fostering organizational resilience Talent management encompasses identifying, developing, and retaining skilled employees, which is vital for maintaining a competitive edge Identifying talent involves assessing productivity and individual responses to align employees with suitable roles, as highlighted by Das (2018) Employees who share the company's vision are instrumental in navigating and overcoming challenges (Njuguna et al., 2021).
(2016) highlighted that applicator identification affects organizational resilience
Research by Amira Bouterra et al (2023) indicates that identifying talented employees enhances organizational resilience through agility, robustness, and integrity Notably, the study highlights a positive correlation between talent identification and integrity Building on the findings of Bouaziz and Smaoui Hachicha (2018), it reveals that effective recruitment strategies not only improve integrity but also foster employee cohesion, thereby bolstering the resilience of enterprises in Tunisia.
Talent management, as highlighted by Friday Ogbu Edeh (2022), encompasses talent attraction, development, and retention, which are essential for enhancing the organizational resilience of hospitality companies When hospitality directors and managers actively promote talent management initiatives, employees become better equipped to handle external crises Consequently, effective talent management serves as a fundamental policy for human resource professionals, aiming to cultivate a balanced working environment that values and evaluates skilled individuals.
To enhance organizational resilience in the hospitality sector post-COVID-19, it is crucial to attract talented employees and continuously update their skills to avoid technological obsolescence Developing key competencies within the workforce can significantly contribute to this resilience Human resource experts must prioritize effective talent management strategies to ensure the ongoing growth and adaptability of hospitality companies in a rapidly changing environment.
Research gap
Despite the abundance of research on talent management, there is a notable absence of studies addressing the post-COVID-19 pandemic context Specifically, Ashton and Morton's (2005) paper on leveraging talent management for competitive advantage in the face of talent shortages, along with Avigador's research, fail to consider the unique challenges and dynamics introduced by the pandemic.
This study aims to explore talent management practices during Covid-19 in Vietnam, a developing country in Southeast Asia, specifically focusing on Hanoi Despite existing research highlighting various talent management strategies, there is a notable absence of studies addressing this topic within the Vietnamese context.
Unlike other studies that concentrate on a specific industry, our article takes a broader approach For instance, Staffelbach et al (2011) analyzed 138 Swiss firms across various sectors, while Khoram et al (2022) focused on the sports industry in Iran This comprehensive perspective sets our research apart.
(2023) have selected the hospitality industry in Egypt for their study; and Aina and Atan
This research examines the influence of talent management systems on business resilience in various industries, including banking, insurance, and education, in the aftermath of the Covid-19 pandemic.
Research objectives
- To investigate theoretically the relationship between talent management and business resilience
- To offer detailed evidence of how personnel management affects company resilience across a range of sectors
- To provide some practical suggestions for Vietnamese organizations looking to strengthen their resilience by using a talent management system.
Scope and access
This research paper aims to explore the relationship between talent management systems and business resilience in various industries following the Covid-19 pandemic The study involved analyzing the situational awareness and adaptive capacity of approximately 150 employees and managers across different sectors Data was collected through online questionnaires distributed from early March to late April The research encompassed a range of companies, including small and medium-sized enterprises (SMEs) and large organizations, primarily located in Hanoi, Vietnam.
Research method
In order to complete the research objective that is set out, this study uses the following two research methods that are analysis and synthesis method and quantitative data analysis
In their research, the authors conducted an extensive analysis and synthesis of information from various sources, including books, magazines, newspapers, and relevant documents, to explore the relationship between talent management systems and organizational resilience This comprehensive review laid the theoretical groundwork presented in Chapter I, where the researchers synthesized and analyzed existing studies to select pertinent research, develop an analytical framework, and establish hypotheses for their investigation.
The research employs quantitative data analysis through regression models utilizing SPSS software Key methods include the Cronbach’s alpha test for scale reliability, exploratory factor analysis (EFA) for discovering underlying factors, correlation analysis, and F-tests to assess the suitability of the regression model, while also examining multicollinearity phenomena.
Research structure
In addition to the introduction, conclusion, list of references and appendices, the topic
"the impact of the talent management system on business resilience in the post
COVID-19 period" is structured in 3 chapters as follow:
Chapter I: Theoretical and practical issues on talent management system and business resilience
Chapter II: Research methodology and result
THEORETICAL AND PRACTICAL ISSUES ON TALENT MANAGEMENT
Overview of business resilience
1.1.1 The concept of business resilience
Organizational resilience has emerged as a vital concept within management, human resource management (HRM), and organizational behavior to effectively address the unforeseen crises, uncertainties, and disruptions caused by both man-made and natural disasters (Edeh et al., 2019; Fukofuka et al., 2017; Ortiz-de-Mandojana & Bansal, 2016; Lee et al., 2013; Lengnick-Hall et al., 2013).
Organizational resilience is defined as a company's capacity to anticipate, withstand, and adapt to environmental challenges, as highlighted by researchers such as Stoverinket et al (2020) and Gonçalves et al (2019) This concept emphasizes the importance of preparing for unexpected crises and effectively managing them when they arise, ensuring that organizations can thrive amid uncertainty (Sanjeev, 2019; Johnson, 2010).
Business resilience refers to an organization's ability to effectively adapt to change and respond promptly to challenges that threaten its survival (Lengnick-Hall et al., 2011) It involves having pre-established strategies to manage crises and uncertainties that could disrupt operations Many companies have integrated business resilience into their human resources management systems to better navigate potential disruptions caused by factors such as natural disasters or health crises Failure to ensure the safety of employees and resources can lead to significant negative consequences for the organization.
Organizational resilience is defined as an organization's ability to anticipate, adapt to, and respond swiftly to unforeseen challenges while returning to normal operations This study highlights that resilient organizations can effectively manage and learn from unexpected crises, such as the COVID-19 pandemic, which has significantly affected many businesses Notably, some resilient organizations have managed to withstand the impact of such disruptions without severe consequences.
The COVID-19 pandemic has highlighted a stark divide among businesses: those that can effectively manage the crisis are thriving, while others struggle to cope, resulting in workforce reductions, scaled-back operations, or even market exit.
1.1.2 The measures of business resilience
Organizational resilience, as defined by Mafabi et al (2012), encompasses a company's worth, viability, and its ability to learn and adapt, which collectively reduce the likelihood of significant negative impacts from unforeseen events like the COVID-19 outbreak While various methods exist to assess an organization's resilience, not all have proven effective Key measures identified by researchers include the management of keystone vulnerabilities, situational awareness, adaptive capacity, and the use of digital applications.
Organizational resilience can be assessed through various factors, with Edeh et al (2021) identifying staff engagement, innovation, and creativity as key variables In contrast, Rai et al (2021) emphasize crisis preparation and recoverability as essential measures of business resilience Crisis preparation involves a firm's ability to foresee potential risks that could adversely affect the organization, as highlighted by Motoc (2020) This entails collecting relevant information on government regulations, global events, labor market trends, competitive products, consumer feedback, supplier behaviors, and employee insights Recoverability, as defined by Brusset & Teller (2017) and Chowdhury, refers to an organization’s ability to restore its systems to their original or enhanced state.
Moreover, according to Brusset and Teller (2017) and Chowdhury & Quaddus
Organizational resilience is defined as the proactive capability to establish infrastructure that can withstand and mitigate disruptive changes in the environment This study utilizes established measures of organizational resilience, incorporating talent management insights from Yener et al (2017) and Edeh and Mlanga (2019) to formulate research hypotheses.
Edeh et al (2022) identify situation awareness (SA) and adaptive capacity (AC) as key variables for measuring business resilience, a view supported by Mama & Onuoha (2020) SA refers to an organization’s capability to evaluate external uncertainties and implement countermeasures to mitigate negative impacts, emphasizing the need for businesses to comprehend both internal and external events (Mafabi et al., 2012) To achieve effective SA, enterprise managers should foster communication across all levels of the organization Conversely, adaptive capacity signifies an organization’s readiness to make strategic or structural changes in response to unforeseen challenges (Starr et al., 2008).
This research paper examines business resilience by utilizing situational awareness (SA) and adaptive capacity (AC), two widely recognized variables in the studies conducted by Edeh et al (2022).
Overview of talent management system
1.2.1 The talent management system’s types
Talent management encompasses systematic activities and techniques aimed at nurturing and supporting skilled employees By effectively engaging these individuals, organizations can enhance their performance and drive the achievement of corporate goals (Ghost, 2021).
Talent management is a crucial aspect of human resource management that effectively illustrates the dynamics of workforce management It serves as a vital link between managers and employees, facilitating the achievement of their respective goals (Mitchell, 2010; Berker, 2009).
Talent management is a strategic process aimed at retaining skilled employees by aligning their abilities with the right roles and timing This ongoing effort involves planning for the organization's knowledge and skill requirements, enhancing the company's image to attract top talent, ensuring new hires are well-suited for their positions, and effectively placing and retaining talented individuals in optimal roles within the enterprise.
(Henderson, 2008) Boudreau and Ramstad (2007) argued that talent management is knowledge about laborers and others who want to participate
Talent management, as described by Jubert (2007), involves the ability to motivate others, leading organizations to retain effective employees High-performing individuals attract similar talent, fostering productive teams characterized by ambition and collaboration, which ultimately enhances efficiency and profitability Moreover, innovative ideas contribute to business growth and customer satisfaction Companies that prioritize talent management create environments that promote professional development, job satisfaction, and employee retention, thereby enhancing the credibility of both the organization and its management.
Talent management goes beyond simply hiring new employees; it involves the strategic development and retention of skilled workers According to Tarique and Schuler (2010), effective talent management ensures that organizations attract and maintain top talent, which is essential for business success This approach focuses on recruiting the right individuals at the right time, equipped with the necessary skill sets to drive the company forward.
Talent management has become a crucial focus for organizations today, as it significantly enhances the recruitment, retention, and development of employees (Baheshtiffar & Nekoie-Moghadam, 2011) This strategic approach encompasses the essential processes of attracting, retaining, and nurturing the human resources within an organization, aligning with the insights of D’Annunzio-Green (2008).
Talent management primarily focuses on recruiting, attracting, retaining, and developing employees, as highlighted by previous research This study emphasizes the importance of prioritizing talent management strategies, particularly in recruitment, due to their proven effectiveness in enhancing employee attraction, retention, and development.
1.2.2 The measures of talent management system
According to Maha al Dalahmeh (2020), talent management is measured through talented workforce planning, talent attraction, and talent development Talented
Workforce planning is an analytical process that integrates forecasting and strategic planning with talent management systems This approach ensures that companies have the right employees in the right positions, enabling them to effectively conduct their business operations.
Effective workforce planning involves key measures such as talent inventory, workforce forecasting, action plans, and ongoing evaluation (Schweyer, 2010) Talent attraction, a critical aspect of talent management, is assessed through competitive salaries and engaging job roles (Maha al Dalameh, 2020; Pruis, 2011) Additionally, both financial and non-financial factors play a role in this evaluation (Lyria et al., 2017) Opportunities for professional development, interesting challenges, and meaningful work within successful organizations are essential variables that contribute to effective talent attraction.
In 2020, talent management was assessed through talent development, focusing on factors such as development opportunities, certification, and managerial support Similarly, Ogbu Edeh (2022) evaluated talent management by examining talent retention, which was determined by salary levels and the support provided by supervisors.
Talent management encompasses three key components: talent attraction, talent retention, and talent development, as highlighted by Jimoh Adams Lukman et al (2022) Implementing effective human resource policies is crucial for enhancing efficiency and shaping the expected behaviors of employees, according to Jayaraman et al.
2018) Talent development is measured through knowledge, skill, ability, behavior of the employees (Manning, 2015) (Treven et al., 2015) Result of working activities is variable that measure talent retention (Nestor et al., 2019)
Talent management, as outlined by Nicholas Ochieng’ Ojwang (2019), encompasses several key components: recruitment and selection, employee engagement, performance management, learning and development, compensation and rewards, and career management Effective recruitment and selection hinge on qualifications, orientation, and referral programs Employee engagement is reflected in the pride and enthusiasm of employees, while performance management is assessed through efficiency metrics Compensation and rewards focus on fair payment structures, salaries, and healthcare benefits Additionally, learning and development are evaluated based on available work opportunities for employees.
19 development, promotion Promotion and working development are variables to measure career management
In this study, researchers identified four key factors to evaluate talent management: recruitment and attraction, talent development through promotion programs, talent retention, and compensation and rewards via performance bonuses These variables were chosen based on previous research that demonstrated their effectiveness in measuring talent management outcomes The aim was to ensure a clear and effective assessment of talent management, allowing the researchers to successfully complete their study.
Theoretical underpinning
This research paper explores the interplay between business resilience theory and talent management theory, as introduced by Lengnick-Hall et al in 2011 and developed by Valaei and Rezaei in 2016, respectively The unexpected COVID-19 outbreak highlighted the importance of organizational resilience, suggesting that resilient businesses are less likely to suffer severe negative impacts during crises Key factors contributing to enterprise resilience include the business's value, profitability, and its ability to learn and adapt.
Talent management theory is a strategic approach focused on retaining skilled workers by ensuring their abilities are utilized effectively within the organization This ongoing process involves assessing the organization's knowledge and skill needs, enhancing its image to attract top candidates, and placing new hires in suitable roles Key components of this philosophy include recruitment and attraction, opportunities for advancement, talent retention, and competitive compensation Scholars emphasize that effectively managing these elements is crucial for maintaining a talented workforce.
To maintain commercial operations, it is crucial for the company to retain skilled employees by offering necessary incentives, as their expertise is the organization's most valuable asset.
Relationship between business resilience and talent management system
Talent management is defined as the systematic approach to human resource management aimed at attracting, identifying, developing, and retaining high-potential employees and those in key strategic positions (Blass, 2007; Tarique & Schuler, 2010) It encompasses a range of activities designed to enhance the efficiency of talented employees while aligning with business objectives (Moczydłowska, 2012) Furthermore, effective talent management systems must prioritize the identification of critical talent, reflecting a shift in focus within the talent management literature (Collings & Mellahi, 2009).
"A performers" to finding "key positions which have the potential to differentially impact on sustainable competitive advantage."
Resilience is a multifaceted concept that involves the ability to adapt and function effectively in the face of challenges Norris et al (2008) describe resilience as a process that enhances a group's adaptability, while Gilbert (2017) emphasizes the importance of recovering to a condition that meets or exceeds pre-disaster levels in the shortest time possible Tierney (2003) further defines resilience as the capacity to handle both expected stresses and unexpected shocks This concept includes proactive measures to prevent disaster-related damage and reactive strategies to mitigate the impact of disasters.
The Covid-19 pandemic has significantly impacted talent management, prompting many companies to reduce employee salaries and implement layoffs Consequently, numerous skilled workers have chosen to seek opportunities at more promising organizations, which in turn diminishes overall organizational performance and undermines business resilience According to Fernandes et al (2022), this trend highlights the ongoing challenges faced by companies in retaining top talent in a post-pandemic landscape.
The Covid-19 pandemic has led to a notable decline in unemployment rates, presenting unique challenges for multinational organizations in managing their global talent In stable times, these methods are already complex, but the ongoing turbulence has intensified the difficulties in effectively navigating talent management.
The study by Ugboego et al (2022) reveals that the Covid-19 pandemic has caused significant talent and profit losses in the hospitality sector, severely impacting the economic stability of many nations and negatively affecting organizational resilience The research highlights the crucial role of talent management in enhancing the resilience of hospitality businesses in Sub-Saharan Africa, demonstrating that effective talent acquisition, development, and retention are vital In the wake of the pandemic, organizations must focus on recruiting adaptable talent equipped with new skills to thrive in the digital era, thereby ensuring sustainable business resilience.
Caligiuri et al (2020) emphasize the importance of selecting employees with key cultural agility traits—tolerance for ambiguity, resilience, and curiosity—especially in multicultural environments amid global uncertainty These characteristics are essential for effective interactions with diverse clients, suppliers, and coworkers, even in remote settings Organizations should leverage this time to evaluate their talent pools for individuals with cultural agility, identifying candidates who can thrive in increasingly unique circumstances The talent landscape is evolving due to the crisis, prompting multinational enterprises to reassess their talent management strategies based on how employees have adapted This situation may redefine leadership pipelines and high-potential talent, highlighting the need for a fresh perspective on who will excel in future challenges.
Research by Borodulkina (2022) investigates how talent management practices contribute to business resilience, focusing on the role of employee resilience as a critical talent-based competency The study emphasizes the need to understand employee resilience's influence on the relationship between organizational resilience and talent management, highlighting the importance of talent development, attraction, and retention strategies Analyzing data from 75 Russian companies, the findings reveal that job rotation, performance-oriented feedback, and the ability to suggest task modifications significantly enhance resilience-oriented talent management practices Overall, the study reinforces the connection between business resilience and talent management, underscoring the indirect impact of employee resilience.
Aina and Atan (2020) conducted a study examining the impact of Talent Management Practices on Sustainable Organizational Performance within the real estate sector in the United Arab Emirates Utilizing quantitative methods, the research aimed to provide an empirical analysis of talent management, focusing on factors such as talent retention and attraction A standardized questionnaire was distributed to a sample of 306 managers in real estate firms The findings revealed that both talent retention and attraction did not significantly influence the sustainability of organizational performance.
Resilience plays a crucial role in enhancing organizational capability to mitigate various global crises, as highlighted by Jeoung Yul Lee et al (2022) Recent research has focused on the relationship between global talent management and the business resilience of multinational subsidiaries during challenging times.
In 2022, research highlighted the significance of global talent management and organizational resilience in subsidiaries amid the Covid-19 pandemic The study emphasized that effective talent management plays a crucial leadership role in helping organizations navigate crises, ultimately enhancing their global resilience Additionally, it was noted that varying organizational levels impact the effectiveness of these strategies.
23 multinational enterprises may have different roles in global talent management specifically in identifying, improving, and conducting plans for employees having high productivity and potential
Agadah Mienipre et al (2016) highlighted the connection between talent management and organizational resilience, emphasizing the role of company culture Organizational culture encompasses the assumptions, perceptions, and experiences that influence how skills are applied in the workplace and address various challenges (Amah, 2009) Research by Clugston (2000) and Wasti (2003) indicates that organizational culture significantly impacts company behavior, including the effectiveness of talent management practices, which in turn affect productivity, efficiency, and recovery capabilities The success of an organization is rooted in its cultural framework, influencing management communication, leadership, recruitment, and training strategies Furthermore, organizational culture serves as a crucial link between the organization and its employees, fostering continuity and support for initiatives, and is vital for developing talent, skills, and abilities (Silverthorne, 2004).
Table 1.1: List of literature review
1 Talent recruiting Positive Dehghaman et al (2018),
2 Talent attracting Positive Dogan and Christina (2020),
3 Talent development Positive Brendan Mcconnell (2023)
4 Talent retention Positive Friday Ogbu Edeh (2022),
5 Talent retention No effect Aina and Atan (2020)
6 Performance bonus Positive Asiama and Cudjoe (2019),
RESEARCH METHODOLOGY AND RESULT
Research model
Figure 2.1 : Conceptual framework for talent management and business resilience
The research team developed a model illustrating the impact of demographics and talent management on business resilience, with business resilience as the dependent variable This resilience is defined by two key components: situational awareness and adaptive capacity The independent variables in the model encompass demographic factors and talent management strategies, which include recruiting and attracting talent, offering performance bonuses, providing promotion opportunities, and ensuring talent retention.
Hypothesis development
Hypothesis 1: Performance bonus has a positive impact on situation awareness
Kerr (1985) highlights that many talented employees view salary and bonuses as crucial for fostering their creative work The effective integration of company bonuses significantly enhances employee innovation and creativity.
26 employees, according to Girma Taye Niguse et al (2019), concurred that the organization's incentive can inspire people to be more innovative According to Zanelli
Performance bonuses are incentives designed to reward employees for behaviors aligned with organizational goals, including pay raises and additional rewards These bonuses are based on an employee's skills and achievements, ensuring that high-performing individuals receive appropriate recognition for their hard work (O'Doherty et al., 2017) To maintain exceptional performance, talented employees must consistently excel throughout the year, particularly during periodic evaluations (Imam et al., 2019) Ultimately, performance bonuses not only motivate dedicated individuals but also enhance overall productivity within the organization (Armstrong).
In 2012, it was noted that employees who do not receive performance bonuses may lack motivation and fail to focus on their responsibilities Baer et al (2003) discussed motivation theories, highlighting that when employees are rewarded with valuable incentives, such as financial bonuses, they tend to act in ways that benefit their own interests Furthermore, Lopez et al (2009) suggested that this utilitarian aspect can enhance creativity in organizations where ideas and proposals are viewed as integral to the functional system and product development.
The COVID-19 pandemic has transformed work environments and reshaped human resource management strategies To sustain and enhance work performance, it is crucial for managers to understand the overall business landscape Human resource leaders must swiftly identify talent and establish a robust framework that encourages employees to excel and fulfill diverse objectives Implementing performance bonuses for skilled employees can significantly motivate them to contribute to the organization’s success Research by O'Doherty et al (2017) and Armstrong (2012) supports the notion that performance bonuses positively influence the productivity of talented workers, reinforcing the hypothesis of their beneficial impact.
Hypothesis 2: Performance bonus has a positive impact on adaptive capacity
Research indicates that performance bonuses significantly enhance employees' creativity and adaptive capacity Van Dijk et al (2022) emphasize the strong correlation between extrinsic rewards, such as monetary incentives and promotions, and employee creativity Kerr (1985) highlights that talented employees view compensation and bonuses as crucial for fostering creative work Girma Taye Niguse et al (2019) found that nearly all employees believe organizational rewards stimulate their creativity, while Zanelli (2004) notes that performance bonuses, like salary increases and rewards, motivate workers by aligning with organizational desires The preference for extrinsic rewards, particularly performance bonuses, is evident as they offer financial benefits, including promotions Providing employees with regular performance bonuses can enhance their creativity, leading to higher productivity and effective achievement of organizational goals Conversely, a lack of performance bonuses may result in decreased motivation and focus Baer et al (2003) suggest that motivation linked to performance can yield valuable financial rewards, prompting employees to engage in behaviors that foster creativity According to Lopez et al (2009), rewards serve as a managerial expression of appreciation for successful job completion, further enhancing employee creativity, as noted by Amabile (1996) Ultimately, motivated individuals often strive for improved performance, particularly when they feel a lack of clear goals, as highlighted by Eisenberger et al.
In 2009, research indicated that performance bonuses are designed to enhance employee creativity The study hypothesizes a connection between performance bonuses and adaptive capacity, suggesting that financial incentives may play a crucial role in fostering an organization's ability to adapt and innovate.
28 illustrated through the organization’s level of rewards affecting performance bonus that may develop creativity of the employees
Hypothesis 3: Promotion program has a positive impact on situation awareness
Promotion opportunities are often extended to employees who demonstrate the ability to handle responsibilities beyond their original assignments (Blattberg et al., 2016) Such advancements may come from their current agency or another division within the organization Furthermore, research indicates that high-performing employees who showcase their skills are significantly more likely to receive promotions (Ferreira & Ribeiro, 2017).
(2019) said that promotion also means an increase in rank at work The employee will be given a higher salary, a nicer working environment, and more tasks than previously
According to Rongen et al (2013), achieving a promotion involves not only ascending to a higher position but also receiving enhanced treatment, gaining increased influence, and earning the respect of colleagues.
Talented employees perform exceptionally well when given opportunities for advancement within an organization, leading to increased motivation and job satisfaction.
Research by Kiruja and Mukuru (2018) and Asaari et al (2019) highlights that deliberate promotion strategies are effective in motivating high-performing employees to excel This practice explains why promotion opportunities are often awarded to skilled individuals, as organizations recognize their significant contributions by offering various advancement opportunities The correlation between the success of talented employees and their career growth is evident across all industries (Gathungu et al.).
Talented employees who have opportunities for advancement experience significant improvements in their quality of life, as these opportunities reflect their success and recognition in the workplace When employees can showcase their skills and achievements, it not only enhances their personal fulfillment but also benefits the organization as a whole A transparent and equitable promotion strategy fosters a sense of respect among employees, motivating them to excel further.
Employees with extensive experience in a company are likely to remain committed to their roles, aiming for career advancement and improved quality of life (Gathungu et al., 2015) Their long tenure fosters a deep understanding of organizational dynamics and enhances their situational awareness, allowing them to assess current conditions and anticipate market changes influenced by social issues (Ferreira & Ribeiro, 2017) By leveraging their insights, these employees can offer valuable recommendations and solutions that address challenges and support the company’s future growth.
Hypothesis 4 : Promotion program has a positive impact on adaptive capacity
Promotion programs are crucial in human resources as they enhance employees' working conditions and facilitate their advancement within the organizational hierarchy According to Anuj (2022), these programs enable employees to align their skills and mindsets with new opportunities, benefiting both their personal growth and the company's talent development Additionally, attractive promotion opportunities help organizations retain top talent eager to progress to higher-level positions.
The intention to remain employed is often driven by promotion programs that directly influence career advancement (Miller and Wheeler, 1992) Employees are motivated to excel in their roles, believing their efforts contribute to the business's success and enhance their chances for advancement This motivation increases their likelihood of staying with the company and utilizing their skills for its benefit Furthermore, Quarles (1994) found that the evaluation criteria within promotion programs and incentive systems significantly impact employees, underscoring the importance of these programs in fostering employees' intention to stay.
Promotion programs are essential for effective talent management and retention, requiring employers to invest in training and performance improvement (Dowling and Welch, 2004) By fostering employee growth, companies not only achieve their objectives but also benefit from a workforce that possesses deeper industry knowledge and expertise These seasoned employees are better equipped to navigate market changes and challenges, such as those posed by the pandemic Ultimately, well-structured promotion programs that reward high performers enhance employee retention and strengthen the organization’s adaptability to evolving circumstances.
Hypothesis 5: Recruiting and attracting has a positive impact on situation awareness
Research methods
Primary data was gathered by conducting surveys with 200 employees and managers from various industries The questionnaires were designed to assess the impact of talent management systems on business resilience, following a specific framework.
Figure 2.2: The research process to measure organizational resilience
From there, questionnaire includes two parts:
Part 1: Information about the interviewee
Part 2: Answers of the managers and employees contain questions that are easy to understand as well as choose in order to find opinions of the managers and employees about the impact of talent management system on business resilience post Covid 19 pandemic
Researchers employed a five-point Likert scale to assess evaluation questions, with response options ranging from Strongly Disagree (1) to Strongly Agree (5) This scale is used to measure six influential factors, as detailed in Table 2.4.1b.
Upon completing the questionnaire, it will be distributed to managers and employees across various companies and industries The concise format, featuring five clear scales and no requirement for specialized legal knowledge, ensures that participants can quickly and easily engage with the survey, minimizing their time commitment.
From March 15th to 31st, the researcher conducted an online survey targeting managers and employees across various industries After two weeks of collecting responses, a total of 175 surveys were gathered, with 150 meeting the specified criteria for analysis.
Step 1: Data clearing and encryption
This study will utilize the Statistical Package for the Social Sciences (SPSS) for data analysis, a comprehensive suite of software applications designed to analyze empirical data related to social sciences SPSS is essential for tasks such as data extraction, surveys, and market research To ensure accuracy and completeness, any responses containing errors or fraudulent information will be excluded from the analysis.
Step 2: Reliability and factor analysis assessment
Focusing on two factors, which are factor analysis regression and reliability, is crucial for the assessment
Cronbach's alpha is a key metric for assessing the internal consistency and reliability of questionnaires and test items (Bonett & Wright, 2014) To ensure that a variable contributes meaningfully to the overall factor, its correlation coefficient must exceed 0.3 The model is deemed appropriate when the Cronbach's alpha value is at least 0.6.
The Exploratory Factor Analysis (EFA) method, as outlined by DeCoster and Claypool (2004), is utilized to identify the constructs influencing a set of responses The main goals of EFA include determining the number of factors that impact a series of measurements and assessing the strength of the relationship between each factor and its corresponding observed measure For effective EFA, a factor should have an eigenvalue of at least 1, the Kaiser-Meyer-Olkin (KMO) value must range from 0.5 to 1.0, and the total variance explained should be a minimum of 50%.
Step 3: Regression analysis of the influence of factors
The Ordinary Least Squares (OLS) regression model is a valuable method for examining the relationships between multiple variables, as highlighted in the research by DeCoster & Claypool (2004) This model operates on the premise of a linear relationship, enabling predictions about one variable based on another With SPSS accommodating two independent variables and four dependent variables, it serves as an effective tool for analyzing the impact of these variables on business resilience The analysis reveals that a positive coefficient beta indicates a beneficial influence of independent variables on the dependent variable, while a negative coefficient beta suggests a detrimental effect.
Step 4: Analyze and discuss results
Result
Table 2.2: Overview of the study sample (n = 136)
Source:Extracted results from data analysis software SPSS
The survey received 105 responses, revealing that the majority of participants, 18 to 30 years old, significantly outnumber those aged 30 to 40 and over 41, who had only 12 and 19 respondents, respectively This indicates a predominantly younger workforce Gender distribution showed 91 female respondents, making up 66.9% of the total, highlighting a higher number of female employees compared to males Additionally, 106 respondents, or 77.9%, reported having worked at their current company for 1 to 5 years Educationally, 117 participants held bachelor's degrees, while 10 had master's degrees, representing 86.0% and 7.4% of respondents, respectively.
137 respondents, only 1 have a Ph.D degree and 8 have a diploma degree
Table 2.3: Descriptive statistics measure the talent management
N Minimum Maximum Mean Std.Deviation
Source: Extracted results from data analysis software SPSS
The Likert scale, featuring five response options—Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4), and Strongly Agree (5)—is an effective tool for measuring talent management In this scale, a mean score of 3 or above for the variables indicates an acceptable level of talent management.
The analysis reveals that all factors influencing adaptive capacity and situational awareness have a minimum value of 3.6, indicating a generally positive perception among participants regarding the organization's talent management system Notably, promotion programs received the highest rating, with a mean score of 3.9792, demonstrating strong agreement among participants Additionally, performance bonuses also garnered favorable feedback, achieving a mean value of 3.9765 This suggests that the organization's strategies for talent management, particularly in promotion and performance incentives, are well-received and contribute to effective adaptive capacity and situational awareness.
Table 2.4: Descriptive statistics measure the business resilience
N Minimum Maximum Mean Std.Deviation
Source:Extracted results from data analysis software SPSS
The analysis revealed that both Situation Awareness (SA) and Adaptive Capacity (AC) achieved mean values of up to 3.6, indicating that these elements remained at a normal level when evaluated alongside performance bonuses, promotion programs, recruitment efforts, and talent retention strategies Notably, Situation Awareness scored higher than Adaptive Capacity, with mean values of 3.9809 and 3.6985, respectively, reflecting a stronger consensus in favor of SA among respondents.
Besides, this study further analyzes the differences of situation awareness (SA) and adaptive capacity (AC) in separate fields of work
Table 2.5: Comparison results among fields of work (SA)
Levene test showed no difference in variance between the two groups (Sig
There was no difference in organizational situational awareness (SA) between these groups
The study utilizes One Way ANOVA to assess differences in situational awareness across various industries The analysis revealed a Levene's significance value of 0.408 and an ANOVA significance value of 0.562, indicating no statistically significant differences in situational awareness among the fields of work examined.
42 results are > 0.05, so it is unable to find the difference of situation awareness among different fields of work in the survey
Table 2.6: Comparison results among fields of work (AC)
Levene test showed no difference in variance between the two groups (Sig
There was no difference in organizational adaptive capacity (AC) between these groups
The One Way ANOVA test was employed to assess the differences in adaptive capacity across various fields of work within the organization The results indicated that the Levene's test for equality of variances yielded a significance value of 0.655, which is greater than 0.05, suggesting consistent variances among the groups Additionally, the F-test produced a value of 1.378 with a significance level of 0.198, also exceeding 0.05 Consequently, there is no statistical evidence to support significant differences in adaptive capacity across the different fields of work.
Table 2.7 : Cronbach's Alpha reliability analysis results
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Source: Results of data analysis from SPSS software
Cronbach's Alpha coefficient is essential for assessing the reliability of a scale, enabling the removal of unsuitable variables from the research model The analysis revealed that out of 30 observed variables across four independent factors, 23 variables were retained to enhance result accuracy These variables demonstrated an appropriate total correlation coefficient (Corrected Item - Total Correlation > 0.3) and a Cronbach's Alpha coefficient exceeding 0.6, thereby meeting the reliability criteria Consequently, all 23 observed variables are deemed reliable and suitable for subsequent analytical steps.
Exploratory factor analysis (EFA) is a statistical technique that groups observed variables into fewer, more relevant variables while preserving most of the information from the original set.
The Kaiser-Meyer-Olkin (KMO) coefficient is a crucial metric used to evaluate the adequacy of sample size for factor analysis A higher KMO score indicates a more suitable sample size, with the accepted range for KMO values being between 0.5 and 1.
Statistical significance for the Bartlett test is (Sig < 0.05): This statistical measure is used to examine the null hypothesis which has no association between the variables in
46 the population In the population, the observed variables are correlated with one another if this test is statistically significant (Sig < 0.05)
In factor analysis, a variable is considered significant if it has a loading value exceeding 0.5, indicating that only one factor is retained Additionally, a variable is classified as having the highest absolute load factor when the difference between its maximum load factor and other load factors for the same variable exceeds 0.3 in absolute terms This approach is particularly relevant given our sample size.
140, the factor loading should be at 0.5 or higher
Table 2.8: KMO and Barlett result analysis of independent variables
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.836
Source: Results of data analysis from SPSS software
The KMO coefficient of 0.836 indicates that the data meets the necessary criteria for exploratory factor analysis (EFA), as it falls within the acceptable range of greater than 0.5 and less than 1 Additionally, Bartlett's Test of Sphericity shows statistical significance with a p-value of 0.000, confirming that the observed variables are correlated with one another.
Table 2.9: Total Variance explained of independent variables
Component Initial Eigenvalues Extraction Sums of Squared
Extraction Method: Principal Component Analysis
Source: Results of data analysis from SPSS software
The analysis identified 23 observed variables, which were categorized into four primary factors based on Initial Eigenvalues greater than 1 Additionally, the independent variables accounted for an overall variance of 63.672%, exceeding the 50% threshold, thereby meeting the criteria for appropriate Exploratory Factor Analysis (EFA).
Table 2.10: Factor loading result analysis of independent variables
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 28 iterations
Source: Results of data analysis from SPSS software
Table 2.10 indicates that all factor loadings exceed 0.5, confirming the model's adequacy The analysis includes 23 observed variables, which are categorized into four main factors, with all variables accurately aligning with their respective factor groups.
51 original hypothesis suggests The 4 main factors include talent retention, performance bonus, recruiting and attracting, promotion program
Table 2.11: KMO and Barlett result analysis of dependent variables
Kaiser-Meyer-Olkin Measure of Sampling
Source: Results of data analysis from SPSS software
The KMO coefficient of 0.857 indicates that the data meets the necessary conditions for exploratory factor analysis (EFA), as it falls between 0.5 and 1 Additionally, Bartlett's Test shows statistical significance (Sig = 0.000), confirming that the observed variables are correlated with one another.
Table 2.12: Total Variance explained of dependent variables
Component Initial Eigenvalues Extraction Sums of Squared
Source: Results of data analysis from SPSS software
The analysis identified nine observed variables, which were categorized into two primary factor groups with Initial Eigenvalues exceeding 1 The independent variables accounted for a total variance of 66.052%, surpassing the 50% threshold, thereby meeting the criteria for an appropriate exploratory factor analysis (EFA).
Table 2.13: Factor loading result analysis of dependent variables
Source: Results of data analysis from SPSS software