Employee Engagement, Talent Management, and Organizational Performance: A Review of Literature

Abstract

This review synthesizes empirical and theoretical research on employee engagement, talent management, and their effects on organizational performance published between 2015 and 2024. Drawing on 94 peer-reviewed articles selected through PRISMA-guided systematic screening of Web of Science and Scopus, the review examines the conceptual development of employee engagement, the strategic talent management practices most strongly associated with engagement and retention, and the performance outcomes of high engagement workforces. The paper traces the evolution of engagement theory from Kahn's (1990) foundational conceptualization through to multi-dimensional frameworks incorporating cognitive, emotional, and behavioural engagement dimensions. Talent management practices including selective hiring, developmental investments, performance management systems, and inclusive leadership are synthesized for their engagement effects. The review documents robust evidence that employee engagement is positively associated with organizational citizenship behaviour, customer satisfaction, productivity, and reduced turnover intention, with effect sizes in the range of r = 0.40 to r = 0.55 across performance outcomes. Emerging themes including remote work and virtual engagement, generational workforce transitions, and artificial intelligence applications in talent management are examined. A future research agenda centred on sustainable engagement, diversity and inclusion as engagement drivers, and engagement in gig and platform economy contexts is proposed.