INFLUENCE OF TALENT MANAGEMENT AND CORE VALUES ON EMPLOYEE PERFORMANCE IN STATE-OWNED ENTERPRISES IN BANDUNG

Objective: The objective of this study was to examine the impact of talent management and company core values on employee work performance. Finding the relationship between all crucial components, this research is vital for the development of science, particularly in the domain of human capital and talent development. Research Design & Methods: Using a quantitative research method, the study collected data from a minimum sample of 100 employees of State-Owned Enterprises in Bandung. PLS-SEM analysis was conducted using SmartPLS 3.2.9 software to test the research hypotheses. Findings: The results revealed that talent management had no significant effect on employee work performance, while company core values had a positive and significant impact on this variable. It was also found that both talent management and company core values demonstrated simultaneous influences on employee work performance. Implications & Recommendations: This study has important implications for companies seeking to enhance the work performance of their employees. Specifically, the findings suggest that strengthening both company management talent and core values may be necessary to achieve this goal. Contribution & Value Added: In terms of contribution and value added, this research offers an overview of the challenges associated with poor talent management and company core values, and their potential impact on job performance. By providing insight into these issues, the study offers valuable guidance to organizations seeking to improve the performance of their employees.


INTRODUCTION
State-owned enterprises (SOEs) play a crucial role in Indonesia's economy as government-owned organizations that provide guidance to other SOEs in the country.SOEs are defined as business entities in which the government owns all or most of the capital through direct participation sourced from the state's separate wealth.These entities not only aim to achieve profitability but also fulfill social purposes such as providing public services.SOEs operate not only in domestic markets but also continue to expand by investing in foreign projects.
Research has shown that employee engagement plays a crucial role in enhancing employee performance (Achmad et al., 2023;Ekhsan et al., 2023;Gautam, 2023).By investigating whether employee engagement mediates the relationship between talent management, company core values, and employee performance, companies can gain a better understanding of the factors that influence employee performance and develop effective strategies to improve it.This could lead to increased productivity, job satisfaction, and employee retention, which are all important for the success of any JMER, 2023, 04(1), 30─42 organization.Organizations must also have HR (human resources) personnel who are dependable and competent in carrying out organizational and operational operations.One of Human Resources' strategic functions in the organization is to develop human resources with the capability and potential to support the achievement of the organization's strategy and increase employee performance.A good company is one that routinely analyzes the performance of its personnel.It is believed that with regular performance monitoring, no employee would perceive a decline in job quality (Achmada et al., 2022).To boost their performance, SOEs implement core values and talent management strategies.TASPEN, one of the leading SOEs, recently received three Human Capital on Resilience Awards 2022 recognizing its remarkable efforts in women empowerment strategy, HR support on business transformation, and CEO focus on HC.To increase its value, TASPEN has implemented a Human Capital Information System (HCIS), which comprises a talent management system, performance management system, and multi-rater tools (SOEs, 2022).According to Mensah et al. (2016), implementing talent management practices positively affects employees' task and contextual performance and decreases counterproductive behaviors.Besides, Al-Hussaini et al. (2019) found that talent management strategies have a positive relationship with employee performance behavior, with talent management outputs serving as a partial mediator between the two variables.
It has become a very vital and necessary talent for the workforce in the modern era to gain good skills, cognitive capacities, knowledge, and the potential to achieve well for the business plan to function more effectively.Talent management is the training strategy for employees who work within the framework of a business (Kaleem, 2019).Employees believe that improving learning and development initiatives and retention strategies can enhance talent management, performance, and productivity within organizations, leading to higher organizational performance and satisfaction (Sareen & Mishra, 2016).The relationship between talent management and employee performance is significant, with a positive association between the two (Taufiq & Sary, 2019).Therefore, effective talent management can be a critical factor affecting employee performance within SOEs.
In response to the aforementioned issue, the Ministry of State Owned Enterprise (SOE) has established AKHLAK as core values, values that would assist SOE employees in achieving improved performance (Lestari et al., 2022).It is critical to undertake study on how the effectiveness of AKHLAK core values might boost employee performance in SOEs in Bandung.ACT Consulting International reports an increase in the number of state-owned enterprises (SOEs) and their subsidiaries that conduct mapping and measurements, resulting in an average score closely matching the field situation on the latest AKHLAK implementation index (Qaniaputri, 2021).However, increasing numbers of SOEs and their subsidiaries have corresponded to a decreasing trend in the average AKHLAK implementation index.In February 2021, the average score was 44.5%, which declined to 42.9% in September 2021.Consistent communication of organizational values to employees, and modelling these values in work behaviours, positively impacts employee performance (Otwori & Juma, 2017).Core value systems are crucial for companies as they serve as the foundation for the company and a reference for employees to enhance their performance.Therefore, this research is vital for the development of science, particularly in the domain of human capital and talent development.The findings of this research will serve as guidelines for future research.Human resources can utilize these findings to improve SOE employee performance through talent management and AKHLAK implementation.

LITERATURE REVIEW Human Resource Management
Human resource management is the process of obtaining, training, assessing, and rewarding people, as well as preserving labour relations, health and safety, and assuring employee fairness (Dessler, 2020).Human Resource Management refers to a multitude of various systems for managing an organization's interaction with its employees.The basic activities of human resources in organizations are comprised of six major purposes, including staffing objectives, performance objectives, change-management objectives, administration objectives, reputational objectives, and well-being objectives (Torrington et al., 2020).

Talent Management
Knowledge management, employee relationship management, and workforce management are integral parts of talent management processes (Omotunde & Alegbeleye, 2021).Talent management is a crucial component of organizational success because it offers a competitive edge by identifying areas of weakness, devising novel strategies, and deploying talented employees in the appropriate roles to benefit the company (Khalil et al., 2022).Talent management is a combination of practices that aim to attract, cultivate, and retain high-potential employees at all levels to achieve the organization's strategic goals (Wahyuningtyas, 2015).
The talent management process involves three main components: (a) attracting talent, (b) developing talent, and (c) retaining talent (Sule & Wahyuningtyas, 2016).Each process includes several activities.Attracting talent encompasses planning, recruitment, selection, and orientation.Developing talent involves performance appraisal, talent mapping, analysis of development and learning needs, implementing training programs and talent reviews.Retaining talent consists of career planning, succession planning, and talent nurturing.

Company Core Values
Company core values are crucial components of a corporate brand's value foundation, influencing the nature, role, and function of the organization, including leadership, strategy, organization, product development, and communications (Urde, 2003).They are fundamental beliefs that have been ingrained in an organization for an extended period, serving as the organization's heart (Lundén & Utberg, 2017).Core values can be a reflection of a company, creating a corporate culture unique to the organization.They serve as the backbone of an organization, with employees implementing them throughout the company.
State-Owned Enterprises have their own set of core values, which serve as the foundation and culture of the SOE itself.These core values are known as AKHLAK, comprising the words amanah (trustworthiness), kompeten (competent), harmonis (harmonious), loyal (loyal), adaptif (adaptive), and kolaboratif (collaborative).

Employee Work Performance
The quality and quantity of an employee's work, as per the assigned responsibilities, is referred to as work performance (Utin & Yosepha, 2019).Employee performance is the capacity of an employee, or their ability to perform tasks.The tasks assigned to an employee typically determine their performance.Task performance includes aspects such as attendance, work quality, output quantity, timeliness, cooperation, and behavior (Kaleem, 2019).Performance is the outcome achieved by an employee that satisfies specific criteria related to the job (Robbins & Judge, 2016).Some indicators of employee performance include quality, quantity, timeliness, effectiveness, and independence (Robbins & Judge, 2016).
The factors examined in this study have interrelated influences that can be depicted in the form of a relationship diagram, as shown in Figure 1.Within the talent management group (X1), there are three important factors according to Sule & Wahyuningtyas (2016): attracting talent, developing talent, and retaining talent, which are combined into the H1 group in this study.Meanwhile, within the company core values group (X2), there are six important factors: trustworthiness, competence, harmony, loyalty, adaptability, and collaboration, which can be grouped under the H2 influence in diagram 1.Both H1 and H2 groups exert their influence on the employee performance factors (Y) represented by H3, which includes factors such as quality, quantity, timeliness, effectiveness, and independence, following the perspective of Robbins & Judge (2016).Consequently, the study proposes the following hypotheses: H1 suggests a positive relationship between talent management variables and employee performance of State-Owned Enterprises (SOEs).H2 proposes a positive influence of company core values variables on employee performance of SOEs.Lastly, H3 posits a positive influence of talent management and company core values on employees' performance of SOEs, both simultaneously and partially.

METHODS
The research methodology employed in this study is quantitative research, which is rooted in the positivist philosophy.The study will utilize research instruments and statistical data analysis to explore hypotheses established in advance (Sugiyono, 2016).The dependent variables in this study are talent management (X1) and company core values (X2), while the independent variable is employee performance (Y).A questionnaire was constructed to obtain primary data and test the research hypotheses.It consisted of 55 statements covering variables with certain measurement instruments.The talent management category contained detailed questions pertaining to attracting, developing, and retaining talent (Sule & Wahyuningtyas, 2016).The company core values category encompassed questions related to trustworthiness, competent, harmonious, loyal, adaptive, and collaborative (SOEs, 2022).Lastly, the employee performance category consisted of questions regarding quality, quantity, timeliness, effectiveness, and independence (Robbins & Judge, 2016).
Respondents were selected from employees of a state-owned enterprise (SOE) in Bandung, through proportional random sampling.There are several many sectors from respondent responses which are energy, oil and gas industry, manufacturing industry, food and fertilizer industry, health industry, insurance and pension fund services, infrastructure services, financial services, logistics services, tourism and support services, and telecommunication and media services.
Due to the uncertainty of the population size, this study employed Lemeshow's to determine the sample size formula (Lemeshow et al., 1988).The calculated result was 96.04, but to ensure optimal outcomes, the final sample size was set at 100 respondents.Consequently, the minimum required sample for this research was rounded up to 100 participants, representing diverse backgrounds from various businesses, as displayed in Table 1.
The data in this study was collected using an online Google Forms questionnaire with respondents providing their responses on a Likert scale ranging from 1-5, where 5 indicates "strongly agree," and 1 indicates "strongly disagree."Questionnaires are disseminated through acquaintances of friends and family who work in state-owned companies.This collected data was analyzed through Partial Least Squares-Structural Equation Modeling (PLS-SEM).The first test involved evaluating several indicators, such as convergent validity, discriminant validity, and composite reliability through the outer model.The second test examined the inner model, which assesses R square, Q square, and the path coefficient.The final test assessed the overall Goodness of fit.The SmartPLS 3.2.9application was used to conduct the analysis across all these testing stages.The assessment criteria for each question item are based on a percentage, and the procedures are as follows: 1) the cumulative value is the sum of each statement that is the result of 100 respondents sample of SOE employees in Bandung; 2) the percentage is the cumulative value of the item divided by the frequency value then multiplied by 100%; 3) the number of respondents is 100 people, the largest value measurement scale is 5 and the smallest is 1, so the results are obtained: largest and smallest cumulative sum = 500 and 100; 4) determination of the largest and smallest percentage values: largest and smallest percentage value = 100% and 20%; 5) the value of the percentage range can be defined by the calculation of 100%-20%=80%/5=16%.

FINDINGS
Descriptive statistics organize data by illustrating the relationship between variables within a sample or population.Before making inferences using statistical comparisons, descriptive statistics should be calculated (Kaur et al., 2018).The output of descriptive statistical analysis summarizes the research findings related to the variables of talent management, company core values, and employee work performance based on respondents' responses to each dimension.
The results of the descriptive analysis of the scores obtained, which range from 20% to 100% and are categorized as "very poor" to "very good," can be found in Table 2. Respondents' answers about variable X1, or talent management, can be seen in Appendix A1, and attracting talent dimension, developing talent, and retaining talent scores were rated as very good.The average percentage obtained from the aggregation of respondents' results for the talent management variable was 87.35%, indicating a very good performance rating.
Upon examining the respondents' answer results on variable X2, namely company core values, the details can be found in Appendix A1.The summary shows that the scores obtained for the dimensions of trustworthiness, competent, harmonious, loyal, adaptive, and collaborative are very good.The average percentage obtained from the aggregation of respondents' results for the company core values variable was 90.4%, indicating a very good performance rating.
Appendix A2 provides an overview of the respondents' answer results on variable Y, namely employee work performance.The results demonstrate that the scores obtained for the dimensions of quality of work, quantity of work, timeliness, effectiveness, and independence are very good.The average percentage obtained from the aggregation of respondents' results for employee work performance category was 89.2%, indicating a very good performance rating.
| 35 JMER, 2023, 04(1), 30─42 Following the descriptive statistics analysis, the data was analyzed using the SEM-PLS method, which involves the measurement model (outer model), the structural model (inner model), and the goodness of fit assessment (GoF).The SEM-PLS analysis was conducted using SmartPLS 3.2.9software to facilitate data analysis.

The Measurement Model (Outer model)
To assess validity, three measurement criteria are used for the outer model; convergent validity, discriminant validity, and composite reliability (Indrawati et al., 2017).As displayed on Appendix A1, each variable's loading factor has a value greater than 0.7, indicating valid measured items.The AVE values for all variables, which are greater than 0.5, signify valid variable indicators that have met the convergent validity criteria.The cross-loading value is used in evaluating discriminant validity, which represents the correlation extent between each variable and indicators from other block constructs (Indrawati et al., 2017).
The cross-loading value for all variables can be found in Appendix A1, and they exceed the other variables, indicating that each indicator variable meets the discriminant validity criteria.Reliability is measured using composite reliability and Cronbach's alpha values.If the values of a variable are greater than 0.7, then it is considered highly reliable.

The Structural Model (Inner Model)
A structural model connects exogenous variables with endogenous variables, and it is determined based on the results obtained from the bootstrapping test from the full structural model.The model diagram can be found in Appendix A3.Employee work performance is influenced by 82.4% from talent management and company core values, and the remaining 17.6% is influenced by other variables.The inner model utilizes predictive relevance, Q 2 > 0 indicates that the model has predictive relevance and if Q 2 < 0 indicates that the model lacks predictive relevance, Q 2 with values of 0.02, 0.15, and 0.35 indicates that the model is "weak", "moderate", and "strong" (Ghozali, 2021).The Q² value for work performance is 0.534, which exceeds 0, indicating strong predictive relevance for the variable in this study.

Goodness of Fit
The overall fit of the model is evaluated using the Goodness-of-Fit (GoF) index to ensure that the model appropriately explains the empirical data (Hair et al., 2012).GoF values range from 0 to 1, with a value of 0.10 indicating small GoF, 0.25 indicating medium GoF, and 0.36 indicating large GoF, indicating global validation of the path model.A good model fit implies that the model is rational and credible (Henseler et al., 2016).Equation calculates the GoF of the model using the geometric mean value of AVE values and the average R-square value(s) (Hair et al., 2012).With a GoF value of 0.732 obtained from the data, this research model is classified as having high GoF since the value is greater than 0.36.

Hypothesis Testing
The significance level used is 0.05.If the p-value < 0.05, a positive and significant influence exists between each variable.Table 3 shows that H1, which is related to talent management (X1), needs to be rejected because the p-value is greater than 0.05.However, H2 can be approved based on the same table because the p-value is less than 0.05 for company core values.

DISCUSSION
Descriptive analysis of talent management indicates that respondents have an extremely high level of agreement in terms of attracting and developing talented employees, as well as succession planning, thereby categorizing talent management as extremely good.These findings align with a previous study conducted by Banuari et al. (2021), However, the study on employee performance in banking context found that talent management practices increase positive talented employee performance of task, contextual, and adaptive, whereas it reduces counterproductive behaviors, and it found that employee work attitudes of job satisfaction and affective commitment partially mediate the relationship between talent management practices and four dimensions of talented employees' performance (Mensah et al., 2016).This highlights the importance of not only attracting and developing talented employees but also implementing effective talent management practices to improve employee performance.
Similarly, the analysis of company core values suggests an extremely high level of agreement among the respondents, with organizational culture in the AKHLAK dimension indicating a good organizational culture.These findings are consistent with the research conducted by Wicaksono & Brahmasari (2021).However, the study on incentives and employee satisfaction performance found that the incentive variable partially has a positive and significant effect on employee work loyalty, and the performance satisfaction variable partially has a positive and significant effect on employee work loyalty (León et al., 2021).This finding highlights the importance of not only promoting a positive organizational culture but also providing incentives and ensuring employee satisfaction to improve work loyalty.
The analysis of employee performance highlights that a majority of employees indicating excellent performance.Leadership implemented by a leader is expected to be a supporter and lead to the achievement of maximum performance, which will be a sign of the existence of a leader in an agency/organization.This finding resonates with the research by Prasetya (2018).However, the study on the mediating role of communication in the relationship between organizational culture, employee motivation, workload, and employee performance found that communication is a significant factor in determining employee performance and plays a significant role as a mediating variable between workload and employee performance (Ibrahim et al., 2022).This highlights the importance of not only providing proper leadership but also ensuring effective communication to improve employee performance.

Effect of Talent Management on Employee Work Performance
Finding of this study suggests that the talent management variable has a negative influence on employee work performance, which Sopiah et al. (2020) claim that talent management positively affects employee performance.Additionally, this study deviates from previous research indicating that talent management practices, such as attraction, training and development, retention, career management, and organizational culture, significantly relate to job performance (Omotunde & Alegbeleye, 2021).Consequently, this study concludes that talent management has no significant impact on employee work performance.

Effect of Company Core Value on Employee Work Performance
The influence of company core values on employee work performance in this study implies that the company core values variable positively and significantly affects employee work performance, which aligns with Lestari et al. (2022) statement indicating that AKHLAK's effectiveness of core values significantly impacts employee performance.Furthermore, this study supports prior research, where AKHLAK's organizational culture variable had both direct and indirect effects on employee performance (Anam & Suyoto, 2021).Hence, this study finds that company core values has a positive and significant influence on employee work performance.

CONCLUSION
The main issue addressed in this study is the impact of talent management and company core values on employees' work performance in SOEs in Bandung, both simultaneously and partially.Descriptive analysis of the data shows that talent management, company core values, and employees' performance in SOEs in Bandung are all very good.Interestingly, based on the hypothetical results obtained, talent management was found to have no significant effect on employees' work performance.The findings revealed that talent management had no statistically significant effect on employee work performance, whereas company core values had a positive and significant influence.These findings contradict prior research, which had suggested that talent management practices enhance job performance.The current study aligns with the literature that asserts the importance of core values in promoting employee performance.Furthermore, it was discovered that both talent management and company core values have a simultaneous effect on employee work performance, which supports previous research highlighting talent management's positive and simultaneous impact on job performance.This study records that SOEs employees in Bandung have high job performance with an average rate of 83.4%.This is matched by good talent management and core values.Therefore, investigating the mediating effect of employee engagement on the relationship between talent management, company core values, and employee performance can provide valuable insights into the importance of employee engagement in improving employee performance and help companies develop effective strategies to enhance employee engagement.However, the study had several limitations, including a small sample size and limited geographical scope.As such, further studies with larger sample sizes and different companies are required to replicate this research model.

Figure 1 .
Figure 1.Relationship Diagram for Important Factors on This Study Source: Processed information by Author (2023)

Table 1 .
Sector of Business' Background of the Respondents

Table 2 .
Categories Score Interpretation

Table 3 .
Hypothesis Test ResultIn Table4, it can be observed that the influence of company core values and talent management factors on employee work performance, as indicated by the R 2 test results, exceeds the value of 0.33.This signifies that both factors have a moderate impact on employee work performance.Therefore, enhancing company core values and implementing effective talent management practices will lead to improved employee work performance and generally enhance overall organizational performance.