Evaluating talent management practices in Indonesia state-own enterprises: A case of Adhi Karya Ltd.

Abstract

Companies must be aware of increasingly intense competition, so as not to lose their quality human resources who are important assets for company growth. This study aimed to evaluate the implementation of Talent Management (TM) practices in one of the Indonesian State-Owned Enterprises (SOE), Adhi Karya Ltd. Kalimantan Construction Division V. Specifically, this study examined the effect of TM components, namely Talent Retention, Talent Attraction, Learning and Development, and Career Management on Organizational Commitment and Turnover Intention of employees at Adhi Karya Ltd. This study used Structural Equation Modeling (SEM) data analysis techniques for the final number of 107 respondents. The results showed that Talent Retention, Talent Attraction, Learning and Development, and Career Management had positive effects on Organizational Commitment. Proper TM implementation showed that the company's willingness to invest in human resource management would increase employees’ commitment to the company. This study also found that the practices of TM had adverse effects on Turnover Intention. In this case, the better the implementation of TM, the lower the Turnover Intention level. The implication for managers of SOEs is that they need to pay attention to their human resources management strategy, especially in handling potential employees. Key words: Talent Management, Organizational Commitment, Turnover Intention, Structural Equation Modeling, State-owned Enterprises, Construction Company