A Study on the Evaluation of the Effects of Talent Management Practices on Employee Performance in the Pharmaceutical Companies in Türkiye

Aslı YALDIZ; Gülbin ÖZÇELİKAY

doi:10.4274/tjps.galenos.2025.25057

ABSTRACT

Objectives

It aimed to evaluate talent management practices in pharmaceutical companies according to different departments such as medical and marketing, and determine the effect of talent management on employee performance.

Materials and Methods

The impact of talent management practices on employee performance was evaluated by applying survey to medical directors/regional medical directors and product managers/brand managers/brand specialists working in pharmaceutical companies. The Talent Management Practices Scale and the Employee Performance Scale were used. The online survey was applied to volunteer participants between March 2021 and March 2023. The data obtained from the participants were analyzed using SPSS ver 22.0. The effect of the sub-dimensions of talent management on employee performance was determined. In this research, Pearson characteristic test, regression test, Independent Groups t-test, and analysis of variance test were used to determine the relationship between variables.

Results

A total of 112 people, 51 female (45.5%) and 61 men (54.5%), participated in the study. The impact of talent management practices on employee performance, it varies depending on age, gender, education level, position in the company, the company’s national or multinational status, and working period. This study revealed statistically significant differences in talent management perceptions based on gender (p<0.05), education level (p<0.05), age categories (p<0.05), and job categories (p<0.05), with job categories also significantly impacting employee performance (p<0.05). Correlation analyses indicated a statistically significant positive relationship between talent management's commitment (r=0.552; p<0.001) and retention (r=0.448; p<0.001) sub-dimensions and overall employee performance. Furthermore, a statistically significant regression model (F(7,104)=10.224; p<0.001) demonstrated that commitment, retention, and training aspects of talent management collectively explain 40.8% of the variance in employee performance. As a result of the analyses, it was determined that commitment and employee retention, which are sub-dimensions of talent management practices, has a positive relationship with employee performance.

Conclusion

According to survey results talent management affects employee performance. Evaluations of participants in the pharmaceutical industry revealed that the Attraction, Selection-Placement, Training, and Talent pool sub-dimensions of talent management practices implemented by businesses had a positive but weak effect on employee performance. The commitment and retention sub-dimensions were found to have a positive, moderate effect on employee performance.

Keywords:

Employee performance, pharmaceutical industry and performance, pharmaceutical industry and talent management

INTRODUCTION

Ability, in essence, encompasses an individual’s physiological and cognitive capacity to perform tasks effectively. From a business standpoint, it refers to the knowledge, proficiency, and competencies that employees possess to carry out their roles successfully.^{1, 2}

Identifying competent individuals, placing them in appropriate key positions, ensuring their commitment to the organization, keeping their motivation and performance high, and creating a development plan are within the scope of talent management.³ Talent management for organizations can be defined in its most basic form as ensuring that the right individual is in the appropriate occupation at the correct time. Additionally, in 2004, Pascal defined talent as managing the supply, demand, and flow of human resources.⁴

When the topics covered by talent management are considered, it becomes evident that each of them has an impact on the employee. Talent management is examined under seven sub-dimensions. These sub-dimensions: attraction, selection-placement, commitment, retention, training, reward, and talent pool.⁵ Effectively carried out talent management practices contribute to organizations in terms of financial, organizational and human resources.⁶

The concepts of talent management and human resources management can be confused with each other. Performance management serves as a model employed to assess employees’ performance within an organization, aiming to enhance performance and offer appropriate guidance for improvement. This model includes measuring a person’s individual and team performance, setting goals, providing feedback on performance and creating development plans. Performance management contributes to the business achieving its strategic goals.⁷

The correlation between talent management and performance management processes is that the data gathered through performance management serves as foundational information for talent management initiatives. For example, an employee’s past performance, potential, and areas of development can be utilized during the talent management process to evaluate that employee’s future role or promotion possibility.⁸ Businesses that implement talent management practices contribute to an innovative culture and employee development. This increases employees’ abilities and knowledge, thus helping them perform better.⁹

The concept of talent management has gained importance in the pharmaceutical industry, as it has all businesses. The Turkish pharmaceutical industry is a sector with a large scale and variety of exports, which has production opportunities and high economic value. Due to the obligation of businesses in this sector to employ qualified personnel, the sector is evaluated slightly differently than other businesses.¹⁰

Considering the drug development processes, many people are employed in this sector and they are assigned to different fields. There are numerous external factors affecting businesses in the pharmaceutical industry. Legislative updates, crisis environments, various competitive conditions, and environmental factors are some of these. Since it is a sector that is open to being affected by external factors, it is important to differentiate management styles within the business. Due to the emphasis on human health and the increasing awareness of this issue, these businesses readily embrace innovations to detect significant talents and ensure the continuity of their employment.^{11, 12}

Türkiye’s total employment increased by 9.7% in 2021. On the other hand, the pharmaceutical industry workforce increased by 4.2% and reached 44,071 people.¹³ Considering 2022, the data shows that the value was 47511 according to Turkish Statistical Institute data.¹⁴

Talent management practices in the pharmaceutical industry have a direct impact on organizational effectiveness.¹⁵ Talent management is critical for improving operational excellence and achieving strategic goals in the pharmaceutical industry.¹⁶ Retaining talent is crucial to the long-term success of the organization.¹⁷ The pharmaceutical industry ought to constantly develop novel products, treatment methods, and technologies. This emphasizes the need for personnel with a high level of scientific and technical abilities.^{18, 19}All over the globe in our country, strict regulations are applied in the pharmaceutical industry due to health concerns. Government institutions have determined these regulation limits through various regulations and guidelines.²⁰The safety and effectiveness of pharmaceuticals are strictly regulated. Therefore, expertise needs to comply with these regulations. Talent management in the pharmaceutical industry plays a critical role, considering the complexity and needs of the sector. A proper talent management strategy supports scientific progress, maintains competitive advantage and ensures compliance with regulations.²¹

In the contemporary era, possessing essential competencies, cognitive abilities, knowledge, and potential is crucial for workforce agility, ensuring that business strategies operate more effectively.²²Organizations where the most productive employees can choose assignments according to their aspirations and competencies are seen as more beneficial and efficient for both the organizations and their employees. Multi-employee companies, such as those in the pharmaceutical industry, strive to properly use the talent management system, making it a way to optimize the performance of each employee.²³

Effective performance management with suited talents plays a critical role in the pharmaceutical industry. It is thought that, in businesses where talent management practices are implemented effectively, the desire of individuals working there increases, enabling them to make a significant contribution to the businesses. Therefore, an effective talent management process in this sector is of great importance for both the success of the business and the quality of patient care.^{24, 25}

Considering the importance of talent management for all businesses, it is much more significant, especially for some departments in the pharmaceutical industry. The degree of importance of this issue may differ in separate companies within the same sector, and these behaviors affect employee performance and provide added value to companies. In this study, it aimed to evaluate talent management practices in pharmaceutical companies according to different departments, such as medical and marketing, and determine the effect of talent management on employee performance.

MATERIALS AND METHODS

This study was a descriptive study. An online survey was conducted to determine whether talent management practices are implemented by pharmaceutical companies and their impact on employee performance. The survey gathered responses from employees in separate departments, such as medical and marketing. These departments were chosen because their working strategies are different.

After receiving the ethics committee approval with the decision numbered: 28 and dated 12.02.2021 of the Ankara University Health Sciences Sub-Committee of Ethics, a survey form was requested to be sent to Medical Managers/Regional Medical Managers and Product Managers/Brand Managers/Brand Specialists working in the medical and marketing departments of pharmaceutical companies registered with the association and union through the Association of Research-Based Pharmaceutical Companies and the Pharmaceutical Industry Employers’ Union, to volunteer participants between March 2021 and March 2023.

Employees working as Medical Manager/Regional Medical Manager or Product Manager/Brand Manager/Brand Specialist in a pharmaceutical company in Türkiye were included in the research. In this context, the population of the research consisted of medical managers, regional medical managers, product managers, brand managers, and brand experts working in the Turkish Pharmaceutical Industry.

The sample was calculated using Gpower 1.1.9 software and was determined to be 102. While using this software, a priori: Compute required sample size analysis was used and the effect size was selected as 0.5, the significance level was selected as 0.05, and the power as 0.80.

The data collection tool of the research was a survey form consisting of three parts. The first part included questions to determine the demographic information of the participants. The second part consisted of the talent management practices scale, and the third part consisted the performance scale. Talent Management Practices Scale was developed by Duran et al.⁵ Employee Performance Scale was developed by Uludağ.²⁶ The survey was conducted online, and survey was shared with companies which are included in IEIS and AIFD and peopleparticipate in the study voluntarily.

Statistical analysis

Study results were evaluated using SPSS v22.0 the program. Analysis was performed with a 95% confidence interval. Parametric tests were used in our analysis, and the Kurtosis and Skewness values of the scale scores were between +2 and -2. In the study, the Pearson correlation test, regression test, independent groups t-test, and analysis of variance (ANOVA) test were used to determine the relationship between variables and the direction of the relationship.

Two criteria were considered when examining the normality assumption for the scales and sub-dimensions used in this study. First, a small difference between the mean and median values was observed. Second, the values obtained by multiplying the skewness and kurtosis values by their respective standard errors were within the range of ±2.00. Both of these criteria led to the conclusion that the normal distribution assumption was met.²⁷ This examination revealed that the measurement tools generally exhibited a bell-shaped curve appearance. In light of all these evaluations, it was decided to use parametric tests.

Correlation analysis was used to interpret the relationship between two variables, and different levels of relationships were found. Therefore, regression analysis was subsequently performed.²⁹

When evaluating the results of the correlation test, the p-value was examined to determine if there was a relationship between the two variables. If p<0.05, it was concluded that a relationship exists between these variables. After concluding that there was a relationship, the two variables were evaluated as weak or strong by looking at the correlation number, i.e., the r value.

The sub-dimensions of the talent management practice scale were assigned to the regression analysis, and the “enter” method was preferred. This method, one of the frequently used methods in SPSS software, allows independent variables to be entered and evaluated as a block in a single step. As a result of this method, the regression model, in which the significant parameters were included, was estimated

RESULTS

All demographic information, the differences between the sub-dimensions of the talent management practices scale (attraction, selection-placement, commitment, retention, training, reward, and talent pool), and the average score of the employee performance scale were examined, and the results with significant differences (p<0.05) are listed in Table 1.

The correlation analysis in Table 2 examined the relationship between sub-dimensional total scores of the talent management practices scale and the overall total score averages of the employee performance scale. The p and r values are given in Table 2. The study concluded that a weak yet statistically significant positive association exists between the total scores of the talent management practices scale’s various sub-dimensions (attraction, selection, placement, training, reward, and talent pool) and the overall total score of the employee performance scale (p<0.05). It was observed that a statistically significant positive and moderate-level relationship exists between the commitment and retention sub-dimensional total scores of the talent management practices scale and the overall total score of the employee performance scale (p<0.05).

The model, which was based on the significant parameters, was statistically significant [F(7,104)=10.224; p<0.001]. In the analysis, the total scores of the commitment, retention, and training sub-dimensions of the talent management practices scale were considered predictive parameters. The results, as displays in Table 3, indicated that this regression model accounts for 40.8% of the variability in the total score of the employee performance scale.

DISCUSSION

Talent management practices that are thought to affect employee performance. The study examined in detail the sub-dimensions of allocation, designation, placement, commitment, retention, training, reward, and talent pool, and it revealed the current situation. It is thought that employees are positively affected by Talent Management Practices because they provide added value for their business due to their increased loyalty. This study was conducted on people working in certain roles in the medical and marketing departments in the pharmaceutical industry. It shows some similarities with the results of various studies conducted on talent management practices and employee performance.

Talent management practices in pharmaceutical companies affect employee performance. In the analysis, the total scores of the Loyalty, Retention, and Training sub-dimensions of the Talent Management Practices Scale were considered independent variable parameters. Regression analysis shows that employee performance can be predicted by the development in the sub-dimensions of commitment, retention, and training.

Supporting this, Al-Qeed et al.³⁰ found that talent management significantly impacts organizational performance within pharmaceutical companies in Jordan. Their study highlighted that skilled employees possessing high competence and knowledge perform better. A positive relationship exists between talent management and organizational performance.

Further, a study focusing on Jordanian pharmaceutical companies showed that effective talent management aligns with strategic goals, emphasizing its role in meeting future personnel needs.³¹

Almohtaseb is cited in their study to Nafei. Nafei (2016) investigated the impact of talent management on performance within Egyptian industrial firms and identified a correlation between talent management practices and organizational performance. Nafei recommended that Egyptian industrial companies enhance performance by improving their talent management strategies.³²

Akar et al.² research underscored the necessity of skilled human resources for business sustainability.² He suggested that employee performance improves when businesses provide appropriate training, development opportunities, recognition, and a reward system for high performers.

Thilagham et al.³³ explored factors contributing to employee turnover in the Indian pharmaceutical industry, noting that effective management of talent assignment, retention, and engagement constitutes a significant competitive advantage. They emphasized that talent retention is crucial for organizational success and market sustainability, with management effectiveness reliant on aligning talent with strategic business goals.

Another study investigated the impact of talent management practices on employee motivation, finding a positive relationship between talent management dimensions and work motivation. This suggests that implementing talent management practices significantly influences performance by enhancing employee motivation.³⁴

In Nigeria, research among pharmaceutical industry employees revealed that talent management, particularly in training and development, has a direct positive relationship with organizational performance. The study advocates for not only attracting but also retaining top talent to boost growth and sustainability.³⁵

These findings collectively highlight the critical role of talent management practices in enhancing employee performance and organizational success, reinforcing the need for effective implementation and continuous improvement in these practices.

Study limitations

Since pharmaceutical industry employees are also private sector employees, they have a busy work schedule and have difficulty in allocating time for the survey. It was not possible to access individual employee information due to the protection of personal data rights. Communication was attempted through companies, general information addresses, associations, and social media. Since one-on-one communication could not be established, it was difficult to reach the relevant group.³⁶ However, some companies responded that it was not possible for them to participate in the study or inform their employees. It is thought that it took a little longer to answer the survey questions online, which may have also created a limitation. However, it is known that online fatigue is high among private sector employees.³⁷

CONCLUSION

This study evaluated the relationship between talent management and employee performance. A significant difference was observed in the selection and placement dimension based on gender, with male participants perceiving a more effective selection process. Younger employees placed greater emphasis on organizational loyalty in the commitment dimension. Participants with postgraduate education believed companies exert more effort in attracting the right talent. Employees in multinational companies scored higher in commitment, retention, and reward sub-dimensions compared to those in national companies.

Medical managers, regional medical managers, brand managers, and experts gave themselves lower performance ratings than product managers, potentially due to the frequency and rigor of evaluations within marketing departments.

Overall, the study concluded that talent management practices positively influence employee performance. There was a moderate positive relationship between the commitment and retention aspects of talent management and overall employee performance. However, the relationships with other dimensions were weaker.

To improve talent engagement and organizational effectiveness, especially in the pharmaceutical sector, it is recommended that talent management practices include initiatives such as better workplace management, emotional intelligence, and employee competencies.

Given the ongoing global challenges in talent management, further research is needed to examine how performance management systems impact the relationship between talent management and organizational outcomes across various sectors and economic contexts.

Ethics

Ethics Committee Approval: Ethics committee approval was obtained from the Ankara University Health Sciences Sub-Committee of Ethics (decision number: 28, dated 12.02.2021).

Informed Consent: There is no patient in this study.

Acknowledgments

Pharmaceutical industry employees who participated in the study: We would like to thank Cengiz DURAN, Dursun BOZ, Sema BEHDİOĞLU, and Songül KUTLU for developing the Talent Management Practices Scale used in the study, and Gökhan Uludağ for developing the Employee Performance Scale.

Authorship Contributions

Concept: A.Y., G.Ö., Design: A.Y., G.Ö., Data Collection or Processing: A.Y., Analysis or Interpretation: A.Y., G.Ö., Literature Search: A.Y., G.Ö., Writing: A.Y.

Conflict of Interest: The authors declare no conflicts of interest.

Financial Disclosure: The authors declared that this study received no financial support.

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