Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 5

The Effect of Talent Management Optimization on Workforce Agility through Job Satisfaction and Employee Engagement to Develop Excellent Service in Private Hospital

Ahmad Azmy, Paramadina University

Eric Hermawan, STIAMI Institute

Antoni Ludfi Arifin, STIAMI Institute

Antaiwan Bowo Pranogyo, STEI Indonesia

Citation Information: Azmy, A., Hermawan, E., Arifin, A.L., & Pranogyo, A.B. (2022). The effect of talent management optimization on workforce agility through job satisfaction and employee engagement to develop excellent service in private hospital. Academy of Strategic Management Journal, 21(5), 1-20.

Abstract

The present study analyzed the effect of talent management optimization on workforce agility. The optimization was done through job satisfaction and employee engagement. The study took place in a hospital. The respondents were 470 out of 520 employees, which has been considered representative of the population. The respondents were recruited using a stratified sampling technique based on several criteria. Direct and Indirect effects were found. Talent management, job satisfaction, and employee engagement were found to improve workforce agility. However, talent management did not affect job satisfaction. The indirect effect shows that talent management can improve workforce agility through employee engagement. Job satisfaction was found to improve workforce agility through employee engagement. Hospitals, as healthcare institutions, should improve employee engagement to develop workforce agility. Talent management optimization is directed to improve employee capacity and engagement to provide quality and excellent service for patients.

Keywords

Talent management, Employee Engagement, Job Satisfaction, Workforce Agility.

Introduction

As a public health service, hospitals are required to provide an excellent service for the society (Agarwal, 2017; Hashjin et al., 2015). They are required to commit to excellent service, education, and health research. The organizational values should be the implementation of transparent and accountable management through human resources empowerment. This organization realizes that it requires professionalism, responsibility, high commitment, and integrity to deliver an excellent service. Health institutions should be oriented to accuracy, timeliness, comfort, and safety. The quality policy should be carried out consistently according to the excellent service procedure. Professional human resource management can optimize employees' potential and help the organization achieve its vision and mission.

This optimization can be carried out through talent management, a process of improving employees' capacity by reinforcing new characters according to the organization's business, competitive retention, human resources development, and unique competence recruitment (Meyers, 2020). This process needs employees whose competence suits the organization's business process. Employees should be committed to delivering excellent service for customers. The health institution should be oriented to the patients' comfort through excellent service. The implementation of Talent management should be focused on the organization's need to improve workforce agility.

Workforce agility describes some employees' characteristics to improve the organization's business capacity (Muduli & Pandya, 2018). These characters include being a problem solver, innovative, agent of change, adaptive to the latest technology, curious, willing to develop oneself according to the organization's needs (Paul et al., 2020). Workforce agility can be obtained through talent management optimization (Lawler III & Worley, 2015; Martin et al., 2015). Talent management can develop a character and competencies that suit the organization's business development, useful for business capacity improvement. The core business of a hospital rests in diagnosis and excellent services. The latest technology and diagnostic process development require workforce agility to meet the patients' expectations. Workforce agility refers to employees' ability to solve problems, embrace changes and new technologies, be innovative, be responsible, and be interested in self-development (Kukunda-Onyait, 2019). Talent management can improve workforce agility when employees perceive job satisfaction and are engaged in their work (Pratamasari, 2019).

Job satisfaction is the output of talent management in improving job contribution (Alparslan & Saner, 2020; Hayati, 2020). Employees with high job satisfaction will engage in hospital productivity (Brown et al., 2018; Chen et al., 2020). An organization's success in improving job satisfaction can be seen from the success in implementing talent management. Health institutions need to ensure that all facilities and procedures allow their employees to deliver excellent service. Employees’ productivity and real contribution may result in excellent service for patients. This may eventually improve the business's long-term sustainability.

Employee engagement represents employee participation in work outcomes (Pukkeeree et al., 2020; ?nidarši? & Bernik, 2021). Optimal talent management can improve employee engagement (Goestjahjanti et al., 2020). A competitive organization will perform selection and test in implementing employee engagement. The success in talent management may be affected by employee engagement in accomplishing the work target. The hospital should pay attention to job satisfaction and engagement (Lu et al., 2016). These two variables are the main factors of excellent service. The relationship between the two variables may affect talent management optimization (NareshBabu et al., 2017). It is expected to comprehensively deliver workforce agility in a health institution.

The research gap is found related to the suboptimal talent management implementation. Employees need to have workforce agility to provide excellent services for patients. Talent management should be able to develop employee management to improve employee participation during the work process. It is necessary for the hospital to pay attention to the employees’ competence and capability. An organization's attention is known to improve job satisfaction. This is expected to be positively associated with workforce agility. Employees are the organization’s spearhead to provide excellent service to the community. The present study aimed to find out the effect of talent management on workforce agility in the health service context.

The present study analyzes the optimization of talent management in delivering workforce agility in a hospital in Jakarta. Job satisfaction and employee engagement were used as a predictor of talent management. This study is different, as it examines how job satisfaction and employee engagement affect workforce agility. This study recommends more flexible jobs to improve excellent service for patients. Workforce agility plays a pivotal role in health service. This study was conducted to examine the effect of talent management on workforce agility with employee engagement and job satisfaction in a hospital. This study is expected to provide information to the hospital to improve employees' agility. This process may improve employee performance in pursuing the organizational goal, which leads to job satisfaction.

Literature Review

Employee Engagement on Workforce Agility

Employee engagement may significantly affect workforce agility (Müceldili et al., 2020; Natapoera, 2020). Employees are demanded to exhibit a high level of flexibility and participation. Employee engagement is the main component of the agile working process. The term workforce agility describes how employees can develop themselves autonomously, develop innovation, and make a contribution as the organization's expectation (Muduli, 2013). Organizations expect employee productivity. By having productivity, employees may deliver an excellent service to contribute to the organization's business. Several studies report a relationship between employee engagement and workforce agility. This may result in successful, quality service.

Employee engagement can lead to a work outcome that meets organization's expectations. Workforce agility needs employee engagement in the entire working process. Enthusiasm and optimism in the working process are indicators of employee engagement. Employees should exhibit professionalism and responsibility when performing the given task. Workforce agility plays a pivotal role in determining employee productivity. Service-based organizations need workforce agility on innovation (Sumukadas & Sawhney, 2004). Employee engagement may affect workforce agility. Psychological factors and working spirit may affect the employee work quality to meet the hospital expectation.

H1:      Employee engagement positively affects workforce agility.

Job Satisfaction on Employee Engagement

Job satisfaction is needed in employee engagement. Job satisfaction can be obtained through happiness, motivation, and loyalty (Biswas & Bhatnagar, 2013; Nimon et al., 2016). It helps to improve employee engagement in the work outcome. Service-based organizations realize that job satisfaction can affect employee engagement. Employees with adequate job satisfaction may exhibit passion and loyalty to the organization. This may improve awareness that organization's sustainability is determined by job satisfaction and employee engagement. Several studies report the effect of job satisfaction on employee engagement (Jutengren et al., 2020; Monica & Krishnaveni, 2018; Rashidin et al., 2020; Ye et al., 2018). Service-based business needs employee spirit and inspiration to improve their work quality. Employees with high work engagement are likely to have high job satisfaction.

To engage in working process, employees need to have a capacity that suits the organization’s business needs (Cartwright & Cooper, 2009). Hospital, as a health institution, should be able to fulfill their employees need to improve their job satisfaction. Employees are required to deliver creative idea and excellent service for patients. Meanwhile, organizations should be able to fulfill employees’ needs in terms of facility, environment, and technology (Johansen & Sowa, 2019; Swaminathan et al., 2016). Job satisfaction can improve employee engagement in healthcare institutions (Blake et al., 2020; Brimhall, 2019; Quek et al., 2021). Therefore, it is expected that:

H2:     Job satisfaction positively affects employee engagement

Job Satisfaction on Workforce Agility

Job satisfaction is an important factor in obtaining optimal work outcomes (Dessler, 2000; Mathis et al., 2015). It is important to help employees finish the given task. Job satisfaction can be obtained through appointment, environment, and employees’ attitude toward the job demands (Chongvisal, 2012; Wen & Zeng, 2010). Superior appropriate treatment may also improve workforce agility to meet the organization's expectations (Suan & Nasurdin, 2016; Salunke, 2015). This attitude may be reflected by morals, discipline, achievement. Job satisfaction can be obtained from work- and nonwork-related activities. Employees who can enjoy their job may exhibit better contributions. Job satisfaction can be measured through attitude and emotional condition regarding one’s job. This can encourage employees to exhibit their optimal contribution and achievement through workforce agility.

Several studies report that job satisfaction affects workforce agility (Aidan et al., 2018; Nabatchian et al., 2014; Pompa et al., 2017). Workforce agility may determine the quality of service for patients. It is important for organizations to pay attention to their employees’ job satisfaction. Some indicators are reported to affect job satisfaction, including salary, work process, coworkers, superiors, promotion, and working environment (Chamanifard et al., 2015; Maarefi et al., 2020; Nabatchian et al., 2014; Stavsky, 2020). The organization's expectations could be satisfied by improving, among other factors, job satisfaction. Organizations should be able to improve employees’ job satisfaction. Indicators of job satisfaction are known to positively affect workforce agility (Hanaysha & Majid, 2018; Tripp et al., 2016).

H3:      Job satisfaction positively affects work agility.

Talent Management on Employee Engagement

Talent Management is known to improve employee engagement. Employees with active engagement are likely to achieve the organization’s goal (Mitosis et al., 2021). Employees' talent can be seen in how they solve problems and create innovations (Gallardo-Gallardo et al., 2020). The service process needs employees' thoroughness and agility. Work outcome is determined by employees’ timeliness and responsiveness in providing service that suits employees’ needs. Information and timeliness are the main indicators of employee engagement. Talent management should be able to formulate a working process that requires employees’ high engagement.

Several studies report that talent management may affect employee engagement (Bhatnagar, 2007; Pandita & Ray, 2018; Payambarpour & Hooi, 2015). Organizations should be able to give accurate and timely responses to employee engagement. This response could be manifested in the form of a procedure for employees to deliver excellent service to patients. Employees act as the main actor in providing information, service, and accurate communication for patients. Employee engagement is highly important in order to deliver new ideas. Employee engagement is the indicator of talent management optimization. It can be used to see how talent management improves employee engagement to deliver excellent service in the hospital. Therefore, it is proposed that:

H4:     Talent management positively affects employee engagement

Talent Management on Job Satisfaction

Talent management is one of the organizational components in preparing employee competence (Al-shalmh et al., 2020). Organizations are required to fulfill its capacity and skills to keep up with the business demands. Healthcare institutions should be responsive to new talents. They need to provide latest technology advancement and service process to meet the customers’ expectation. This is important in order to meet the patients’ need for comprehensive healthcare service. Integrated training programs, talent formulation, and competency improvement should be periodically performed by the organization (Sharma & Bhatnagar, 2009). In this regard, organizations need to provide facilities and technology to maintain employees’ job satisfaction. Several studies report that talent management may affect job satisfaction (Altinda? et al., 2018; Wickramaaratchi, 2020). Indicators used to measure talent management include facility, technology, working environment comfort, and organizational support. Job satisfaction can improve work quality. Organizations should be able to ensure optimal talent management in improving employees’ capacity. Therefore, it is expected that:

H5:   Talent management positively affects job satisfaction

Talent Management on Workforce Agility

Workforce agility is defined as an employee's skill, attitude, and behavior needed by a rapidly changing global business environment (Muduli, 2016). An agile workforce consists of proactive, adaptive, and persistent employees. Therefore, organizations need to prepare workforces that can adapt to organizational change and technology development. It can be done by adopting talent management practices that encourage employees to learn, develop, and reduce transaction costs related to changes in skill set (Lawler III & Worley, 2015). Regardless of the size of a healthcare institution, location, or classification, talent management can help develop a framework and foundation for organizations to succeed. By considering the concept of integrated talent, the management can prepare a prepared, agile workforce. Studies found that an agile workforce can be developed through the improvement of five pivotal skills: teamwork, problem-solving, information seeking, and decision-making skills. These skills can be obtained through six strategies, including education and training, supervisor support, employee engagement, financial reward, collaborative technology use, and flexible work condition. Several studies found that teamwork, reward system, and education and training may improve workforce agility (Alsafadi & Altahat, 2021; Munteanu et al., 2020; Oga & Onouha, 2020). Therefore, the following hypothesis was proposed:

H6:    Talent management positively affects workforce agility.

Research Methodology

The present study was categorized as an exploratory quantitative study. This study aimed to predict the relationship among variables being studied. The variables were analyzed for their relationship and effect on workforce agility. The quantitative method is a research method that employs instruments and scales determined by the researchers (Sekaran & Bougie, 2016). The variables examined in this study were job satisfaction, employee engagement, talent management, and workforce agility. These four variables were analyzed and interpreted to identify their relationships with workforce agility in hospital service. The research model to analyze is as follows (Figure 1).

Figure 1: Research Model.

As displayed in the figure above, talent management optimization can improve job satisfaction, employee engagement, and workforce agility. The indicators used to measure job satisfaction are work comfort, coordination accuracy, increased achievement, superior-subordinate relationship, competitive reward system, and work quality support (Ahmed Mohamed & Ali, 2016; Gupta et al., 2019; Pieters, 2018). In order to measure employee engagement, indicators including loyalty, being inspiring, professional, responsibility, optimism, spirit, work challenge, and enthusiasm were used (Ampofo, 2020; Anupama et al., 2019; Naiemaha et al., 2019; Na Songkhla et al., 2020). Talent management is represented through skill and competency-based capacity development programs, position-based professional development programs, and strategic career planning (Ali et al., 2019; Claussen et al., 2014; Crowley-Henry et al., 2019; Nawangsari & Sutawidjaya, 2019). Workforce agility is manifested by freedom in expressing new ideas, work flexibility, priority-based work plan, comfort, technological skill optimization, and adaptation to changes (Abrishamkar et al., 2021; Alavi et al., 2014; Hosein & Yousefi, 2012; Muduli, 2013). These four variables were analyzed as presented in the research model. Talent management optimization is assumed to improve job satisfaction, employee engagement, and workforce agility. Job satisfaction and employee engagement can improve workforce agility. The research model focused on measuring employee capacity in delivering excellent service for patients.

Respondents of the study were employees in a private hospital. The respondents were recruited using a stratified sampling technique with several criteria set based on the research needs. The sampling criteria include the minimum tenure of 2 years, working in a hospital, and having a position related to healthcare service. Several positions can be used as the data in this study. The respondents were 470 out of 520 employees, which have been considered representative of the population. Five scales were used, from 1 (Strongly disagree) to 5(strongly agree). The above Table 1 displays the indicators used to measure the variable.

Table 1
Research Indicator
Variables Indicator References
Talent Management TM1 The organization has a competency and skill programs that suit the employee’s needs. Ali et al. (2019); Claussen et al. (2014); Crowley-Henry et al. (2019); Nawangsari & Sutawidjaya (2019)
TM2 The organization has developed professional development program based on the employees’ positions.  
TM3 The organization has a strategic career plan for employees.  
Job Satisfaction JS1 I feel comfortable working in the organization Ahmed Mohamed & Ali (2016); Gupta et al. (2019); Pieters (2018)
JS2 My superior always gives direction and coordination for each employee, every day.  
JS3 The organization provides facilities to improve our work quality through training and development.  
JS4 The organization provides a competitive reward system based on employee contribution.  
JS5 Superior-subordinate relationship is good and professional.  
JS6 Employees are given opportunities to improve their work achievement.  
Employee Engagement EM1 Employees perform their job with loyalty. Ampofo (2020); Anupama et al. (2019); Naiemaha et al. (2019); Na Songkhla et al. (2020)
EM2 The job inspires the employee  
EM3 The job is important for employees  
EM4 Employees are proud of their jobs.  
EM5 Employees are enthusiastic in performing their job.  
EM6 Employees find the job challenging.  
EM7 Employees work with high level of totality.  
EM8 Employees are happy when they work hard.  
Workforce Agility WA1 Employees are comfortable with changes, new ideas, and new technologies in organization Abrishamkar et al. (2021); Alavi et al. (2014); Hosein & Yousefi (2012); Muduli (2013)
WA2 Employees can move from one task to another, flexibly.  
WA3 Employees can map their skill, setting their own standard to assess the level  
WA4 Employees are comfortable to work with other units or departments.  
WA5 Employees understand and are capable of using medical technologies.  
WA6 Employees can develop their skills and rapidly adapt to new environment  

In this study, the data were analyzed using Partial Least Square. This multivariate statistical technique can handle multiple responses and explanatory variables simultaneously (Geladi & Kowalski, 1986). This analysis is an alternative to multiple regression analysis as it is proven to be more robust. In other words, the model parameter is not significantly altered when new samples are taken from the total population. The first analysis was to examine the indicator based on its outer loadings (Schamberger et al., 2020). Indicators with outer loadings higher than 0.7 are considered to represent the variable of the study. The next step was to test the validity and reliability based on the Cronbach Alpha and Composite Reliability and Average Variance Extracted. The data were considered valid and reliable when the Cronbach Alpha and Composite reliability values were higher than 0.8 and the AVE higher than 0.5 (Sarstedt et al., 2019). AVE value was used to determine the discriminant validity of the variable (Rönkkö & Cho, 2020). The coefficient of determination was also examined through the R-Squared value. The proposed hypotheses were tested by examining the p values, and the t-table, p-values< 0.05 and t statistics > t-table indicates that the proposed hypothesis was accepted. PLS is considered suitable as it can describe the relationship among variables in more detail.

Results and Discussion

Respondent Profile

The respondents of the study were 470 employees of hospital, who were demanded to deliver excellent services to patients. The following Table 2 displays the respondents’ profile:

Table 2
Respondent Profile
Information Position Total
Level of Position Health 210
Non-Health 260
Age     Below 25 years old 130
26-30 Years old 110
31-35 Years old 100
36-40 Years old 60
Above 40 years old 70
Tenure   Under 5 Years 70
5-10 Years old 110
11-15 Years old 90
16-20 Years old 120
21-25 Years old 80

As displayed in the table above, the respondents' positions were categorized into health and non-health positions. The former refers to employees who directly interact with patients, including administration staff, radiologists, nurses, and therapists. Administration staff ensure patients' registration and doctor's availability and provide visiting information and patient's arrival according to the appointment. Nurses and therapists are responsible for maintaining the patients' condition and performing therapy according to the doctors' suggestion. Non-health position refers to positions that do not interact directly with the patients and ensure the hospital's fluent system and procedure. This position includes data analyst, personnel, archivist, treasurer, data & business unit staff, programmer, secretary, training and development teams, public health staff, electromedical operator, and occupational health advisor. Although these positions do not directly interact with patients, they ensure the procedure and service for patients to run properly and professionally. This study involved 210 respondents from health positions and 260 from nonhealth positions.

Most respondents (130) were less than 25 years old when this study was conducted; 110 respondents were between 26-30 years old, 100 respondents were 31-35 years old, 60 respondents were 36-40 years old, while 70 respondents were above 40 years old. Regarding tenure, the majority of respondents (120 respondents) have worked for 16-20 years, 110 respondents have worked for 6-10 years, 90 respondents have worked for 11-15 years, 80 respondents have worked for 21-25 years, and 70 respondents have worked for less than five years. The respondents were recruited based on a number of criteria. Workforce agility is determined by respondents' tenure and age. The tenure of 5 and 6-10 years is considered to be a potential organizational asset. Employees' competence and skill can be developed through programs that suit the organization's needs. The majority of respondents are still in a productive period and were capable of providing the information required in this study. The respondents were considered capable of answering all questions in the questionnaire. This is important to predict the capacity of respondents of the study. This indicates that the respondents' characteristics have met the research criteria. The collected information can represent the organization's ability to improve workforce agility through talent management optimization.

Partial Least Square

The first process includes examining the research model, including indicator, validity, reliability, discriminant validity, and coefficient of determination. The following Table 3 presents the of the model measurement.

Table 3
Model Measurement
Construct Indicator Outer Loading P-Values Original Sample Cronbach Alpha Rho-A Composite Reliability AVE R-Square
Employee Engagement EM1 0.848 0.000 0.848 0.951       0.955       0.959       0.747       0.388      
EM2 0.893 0.000 0.893
EM3 0.877 0.000 0.877
EM4 0.860 0.000 0.860
EM5 0.922 0.000 0.922
EM6 0.823 0.000 0.823
EM7 0.886 0.000 0.886
EM8 0.801 0.000 0.801
Job satisfaction JS1 0.841 0.000 0.841 0.898     0.915     0.922     0.665     0.089    
JS2 0.779 0.000 0.779
JS3 0.833 0.000 0.833
JS4 0.895 0.000 0.895
JS5 0.854 0.000 0.854
JS6 0.701 0.000 0.674
Talent Management TM1 0.920 0.000 0.920 0.851   0.944   0.902   0.756      
TM2 0.922 0.000 0.922
TM3 0.757 0.000 0.757
Workforce Agility WA1 0.779 0.000 0.779 0.859     0.869     0.899     0.547     0.765    
WA2 0.811 0.000 0.811
WA3 0.893 0.000 0.893
WA4 0.772 0.000 0.772
WA5 0.741 0.000 0.741

As displayed in the Table 3 below, each indicator of the variable exhibit outer loadings was > 0.7. In other words, all indicators of the questionnaire can be used as the data. Each question could represent the variable presented in the research model. The next step was to test the validity and reliability. All indicators exhibited Cronbach Alpha, Rho-a, and Composite Reliability values of higher than 0.7 can be used as the data of the study. The average score was represented by Average Variance Extracted (AVE) >0.5, meaning that the average of indicators in this study exhibit latent and construct values. AVE value proves that all constructs meet the aspect of discriminant validity. The indicators used in this study can represent the construct and latent variables. The data were ready for hypothesis test to see the direct and indirect effects among variables. It is interesting to see how a variable can, directly and indirectly, affect workforce agility. Talent management plays a central role in improving job satisfaction and employee engagement.

The next step was to analyze the determination among variables using r-Square. The coefficient of determination describes the strength of variance in describing a relationship between models. The research model was developed to see how all selected variables affect workforce agility. The table above displays talent management ability in describing relationships among employee engagement, job satisfaction, and workforce agility. Talent management was found to account for variance with employee engagement by 38.8%. This finding supports the theoretical explanation that talent management can improve employee engagement. Talent management was found to account for variance with job satisfaction by 8.9%. This indicates that talent management did not significantly improve employees’ job satisfaction. Talent management was found to have variance with workforce agility by 76.5%, meaning that the present study describes the effect of talent management optimization on workforce agility. These three variables were found to affect talent management.

The coefficient of Determination through R-square can explain the effect of talent management on workforce agility. This study found a high level of employee engagement. Talent management can improve employee engagement in the working process. Employees realize that they need to contribute to healthcare services. However, this study found a low level of job satisfaction (i.e., 8.9%). In this regard, several components of talent management should be evaluated to improve job satisfaction. Talent management optimization was found to affect workforce agility by 76.5%. Employees exhibit agile adaptation and problem-solving skills.

The next step was to examine the effect of indicators on variables. The table above showed that all indicators affect the variable of the study. This is indicated by p-value of <0.05 and t-statistic of >1.98 t-table. All indicators were found to affect the variable of the study. Talent management, job satisfaction, employee engagement, and workforce agility were represented by indicators of the study. The research model describes the effect of each variable in detail. The research model exhibits the indirect effect of talent management optimization on workforce agility.

The next step was the hypothesis test. The indicator applied in this study was p-values <0.05 and t-statistic > t-table. The following Table 4 presents the hypothesis test.

Table 4
Research Hyphotheses
Variables Original Sample T Statistics P Values
Employee Engagement -> Workforce Agility 0,773 12.320 0.000
Job Satisfaction -> Employee Engagement 0,436 3.217 0,001
Job Satisfaction -> Workforce Agility 0,337 2.918 0,004
Talent Management -> Employee Engagement 0,464 3.959 0.000
Talent Management -> Job Satisfaction 0,298 1.610 0,108
Talent Management -> Workforce Agility 0,544 6.005 0.000

Employee engagement was found to affect workforce agility. The p-value was 0.00 (<0.05), and t-statistics was 12.320 (>1.98). This means that H1 stating that employee engagement affects workforce agility was accepted. Employee engagement was found to affect workforce agility by 77.3%. This finding indicates that employee engagement has the highest impact on workforce agility in the healthcare institution context.

Job satisfaction was found to affect employee engagement. The p-value was 0.001 (<0.05), and the t-statistics was 3.3217 (>1.98), indicating that H2 was supported. It was found that job satisfaction can improve employee engagement by 43.6%. Employees may perceive satisfaction when they are engaged in the working process. This study found that job satisfaction affects workforce agility. The p-value was 0.00 (<0.05), and t-statistics was 2.918 (>1.98). This means that H3 stating that job satisfaction affects workforce agility was accepted.

Talent management was found to affect employee engagement and workforce agility. The P-Value of 0.00<0.05 and T-Statistic of 3.959>1.98 T-Table Indicates that H4, i.e., talent management affects employee engagement, was accepted. Talent management was found to improve employee engagement by 46.4%. The p-value was 0.00 (<0.05), and t-statistics was 6.005 (>1.98), meaning that H6 stating that talent management affects workforce agility was accepted. The talent management optimization was found to improve workforce agility by 54.4%. Regarding the effect of talent management on job satisfaction, the p-value of 0.108 (>0.05) and t-statistics of 1.618 (<1.98) indicated that H5, i.e., talent management positively affects job satisfaction, was rejected. If an effect is found between the variables, talent management will improve job satisfaction by 29.8%. The following Table 5 shows indirect effects through the PLS model:

Table 5
Indirect Effect
Variables Original Sample (O) T Statistics P Values
Talent Management→Job Satisfaction→ Employee Engagement 0.130 1.191 0.234
Job Satisfaction→ Employee Engagement→ Workforce Agility 0.337 2.828 0.005
Talent Management→ Job Satisfaction→ Employee Engagement→ Workforce Agility 0.100 1.126 0.261
Talent Management→ Employee Engagement→ Workforce Agility 0.258 2.360 0.019

The table below shows that talent management does not affect workforce agility through job satisfaction. The P-Value of 0.234>0.05 and T-Statistic of 1.191<1.98 T-Table indicate that workforce agility may be affected through job satisfaction by 13%. This study found that employee engagement affects workforce agility through job satisfaction. These three variables were found to simultaneously affect workforce agility. The P-Value was 0.05<0.005 and T-Statistic was 2.828>1.98 T-Table Workforce agility can be improved by 33.7% through employee engagement and job satisfaction.

Talent management was found to affect workforce agility through job satisfaction and employee engagement. These variables did not exhibit an indirect effect. The P-Value of 0.261>0.05 and T-Statistics 1.126<1.98 T-Table indicate that if there is any effect, workforce agility may be affected by 10%. Talent management optimization was found to indirectly affect work agility through job satisfaction. The P-Value of 0.019 (<0.05) and T-Statistics of 2.360 (>1.98 T-Table) indicates that Talent management optimization may improve workforce agility through employee engagement by 25.8%. It could be concluded that workforce agility can be improved through employee engagement. This variable can be considered when organizations attempt to improve workforce agility. Job satisfaction can be used as the main variable in improving workforce agility. This relationship can be improved by improving employee engagement in the working process and outcomes.

Discussion

This study found that employee engagement significantly affects workforce agility by 77%. The indicators of employee engagement can manifest workforce agility. Employee engagement was found to affect workforce agility, indicated by the p-value of 0.000 and t-statistics >1.98. In order to measure employee engagement, indicators including loyalty, being inspiring, professional, responsibility, optimism, spirit, work challenge, and enthusiasm were used. Employee engagement refers to employees’ emotional and intellectual relationship with their job, organization, manager, or coworkers, which may affect the employees’ discretionary effort. When organizations manage to develop an emotional relationship with their employees through the provision of supporting facilities, comfortable environment, employee engagement may be developed and affect workforce agility (Besharat et al., 2018; Muduli & Pandya, 2018; Natapoera, 2020; Garg & Sharma, 2015).

Several studies show that employee engagement affects workforce agility (Jaman, 2020; Lapoint & Liprie-Spence, 2017; Sahni, 2021). The highest indicator of employee engagement was job-related happiness (92.2%). Employees were happy in providing healthcare service for patients. It is important to deliver excellent services for patients. Employees should ensure registration process, consultation schedule, and appointment time is done properly. The lowest indicator of employee engagement was enthusiasm (80.1%). This indicates that the employee exhibited a working spirit. Organizations should realize that employee engagement plays an important role in affecting workforce agility. Other indicators also play pivotal roles in representing employee engagement, such as Loyalty (84.8%), inspiring (89.3%), professional (87.7%), responsibility (86%), enthusiasm (82,3%), and challenge (88.6%). These components were found to improve workforce agility through employee engagement. Employee engagement is important to deliver a quality work outcome that meets the organization's expectations.

Job satisfaction can improve employee engagement by 43.6%. It helps employees feel comfortable at work and focus on the given task. Employees are expected to deliver excellent service for patients. They serve as a spearhead of healthcare service. A hospital, as a healthcare institution, should be able to fulfill its employees' need. In addition, a competitive reward system and work quality support should also be comprehensively considered. Employees are likely to support the organization's target. The result can be seen from patients’ satisfaction.

All indicators used in this study can represent job satisfaction. The p-value of <0.05 and t-statistics > 1.98 show that these indicators are associated with all variables in the research model. The competitive reward system was found to be the highest indicator by 89.4%. It defines an organization's ability to provide rewards for employees. It may support employees’ job satisfaction in terms of work quality. Work quality support was found to be the lowest indicator by 67.4%. However, this percentage was relatively high and can be improved by the provision of adequate facilities and technology that suits employee needs. Work comfort (84.1%), coordination accuracy (77.9%), achievement improvement (83.3%), and superior-subordinate good relationship (85.4%). It could be concluded that job satisfaction can improve employee engagement.

Job satisfaction was found to improve workforce agility by 33.4%. Several studies show that job satisfaction can improve workforce agility (Aidan et al., 2018; Madhukar et al., 2019; Muduli, 2017; Muduli & Pandya, 2018; Majid et al., 2020; Tripp et al., 2016). This variable shows that job satisfaction can improve work flexibility. Job satisfaction can be obtained from happiness and passion at work. Employees understand that work contribution and outcomes depend on workforce agility. The organization should realize that job satisfaction plays an important role in affecting workforce agility. The lowest indicator of job satisfaction was the work quality support. This means that organizations need to evaluate the facility, technology, and supporting infrastructures in providing health service. By paying serious attention to these aspects, organizations can improve workforce agility, which eventually leads to excellent service for the community.

Talent management was found to affect employee engagement by 46.4%. Talent management plays an important role in addressing needs for employee competence and development. Employee engagement may result in the achievement of work outcome that meets the organization’s expectation. Healthcare institutions should be able to ensure excellent service for all patients. Several studies found that talent management is related to employee engagement (Abdullahi et al., 2020; O’Connor & Crowley-Henry, 2019; Payambarpour & Hooi, 2015). Employee engagement is highly necessary for health service. Talent management is pivotal to make sure that employee engagement presents in the effort of achieving organizational goals. It is necessary to improve competence and skills to deliver excellent service for patients. Talent management plays pivotal role in formulating health-based competence policies.

All indicators used in this study can manifest the talent management in this study, proven by the p-value of <0.05 and t-statistics of >1.98. These values indicate that the indicators can represent the relationship between talent management and other variables. The highest indicator of talent management was the employee professionalism program by 92.2%. The organization has a professionalism improvement program for all positions. This program is directed at the managerial level and promotion. The value of the employee development program was 90%, and that of strategic career planning was 75.7%. These indicators are important, considering that talent management is one of the strategic units to formulate employees’ long-term capacity. Employees’ long-term capacity should be considered in order to adapt to the rapidly changing business process.

Talent management did not affect job satisfaction. If an effect was found, talent management might affect job satisfaction by 29.8%. Employees had not benefited from competence and strategic career planning programs. This study found limitations in talent management, both in terms of the organization's resources and ability. These two aspects can be further developed along with the organization’s long-term development. Several studies found that talent management improve job satisfaction (Altinda? et al., 2018). The organization should pay attention to this aspect by optimizing talent management in order to improve job satisfaction. This can be done so long employees work hard for the organization's sustainability.

The talent management optimization was found to improve workforce agility by 54.4%. Job satisfaction and employee engagement were found to account for the function of talent management. This research model describes that talent management serves as a strategic function in improving workforce agility. All indicators used in this study can represent the direct and indirect effects. Employee engagement was found to significantly affect workforce agility compared to job satisfaction. However, healthcare institutions should still pay attention to their employees’ job satisfaction, although it does not affect Talent management. Job satisfaction still can be the basic information in improving talent management quality.

Workforce agility serves as a pivotal component of work quality. A modern organization needs talent management functions to improve the work process and outcomes. It may also affect organizational productivity and performance comprehensively. Job satisfaction and employee engagement were found to account for the function of talent management. The two variables were selected to limit the study in evaluating workforce agility. It aims to see the effect of talent management optimization on workforce agility in a healthcare institution. Employee engagement plays an important role in improving workforce agility. Therefore, the result of this study can be used as basic information to improve service quality through the improvement of talent management quality.

Regarding the indirect effect, talent management, job satisfaction, and employee engagement did not exhibit any effect. Talent management did not affect job satisfaction and employee engagement. However, if any effect was found, talent management may affect employee engagement by 13%. This depends on the organization's ability to formulate strategic competence and employee talent to meet the business needs. This study found that talent management optimization may improve workforce agility through employee engagement by 25.8%. This finding indicates that talent management should focus on employee engagement. This relationship may directly affect workforce agility. Talent management needs to focus on improving employee engagement in the work process. Job satisfaction is the final outcome of talent management optimization.

The combination of the four variables did not exhibit an indirect effect on workforce agility. If an effect was found, it can only indirectly improve workforce agility by 10%. This result is interesting that these four variables did not improve workforce agility simultaneously. This study shows that organizations need to focus on improving workforce agility. This effort can be initiated by improving employee engagement, such as formulating strategic competence, recruitment process, and long-term employee development. Job satisfaction, employee engagement, indirectly affect workforce agility by 33.7%. This result shows that job satisfaction may stem from employee engagement. Several studies report that job satisfaction affects employee engagement (Hossen et al., 2020; Jelenko, 2020; LaGree et al., 2021; Maleka et al., 2019). These variables can indirectly affect workforce agility through talent management. Healthcare institutions cannot separate job satisfaction from employee engagement, as the two variables support the improvement of workforce agility.

Organizational Implication

This study showed that employee engagement could improve workforce agility. Talent management may play strategic roles in increasing the effect of employee engagement on workforce agility. The function of talent management is to upgrade the employees’ skills and knowledge, leading to better professionalism. Work quality may be related to work outcomes that meet the organization's expectations. In the healthcare context, patients need to receive excellent service. An excellent service could be delivered an improvement of talent management and employee engagement. Workforce agility describes employees’ agility and flexibility to adjust themselves to the changing demands. In the end, agile employees are expected to deliver novel ideas and innovation in healthcare services. Talent management was not found to affect job satisfaction. This indirect effect should gain the organization's attention. However, employees’ job satisfaction in this study is still at an acceptable level. The organization should improve its employees’ job satisfaction. Employees should understand that they are the main actor in the healthcare service.

The role of talent management is pivotal in improving workforce agility. Employee engagement was found to exhibit the highest factor in delivering excellent service to patients. Organizations need to evaluate job satisfaction. It is necessary to adjust the workload to suit the employee's capacity. Patients are the main object of healthcare service. Employees should be agile in serving patients’ needs. Excellent service is the key to delivering excellent service to patients. Therefore, it is important to improve the talent management capacity to improve the competence to suit the hospital's core values.

Theoretical Implication

Talent management was found to play a strategic role in improving workforce agility. Job satisfaction and employee engagement serve as the factors to optimize talent management. Employee management was found to exhibit the highest effect on workforce agility. In other words, workforce agility depends on employee engagement. Employees’ preparedness to achieve high-quality work outcomes should be adjusted to their skills and capacity. In this regard, talent management plays a pivotal role in improving employee engagement based on positions and levels. Employee development programs and skill development programs should be performed continuously. Talent management should prepare employees to deliver new ideas and innovations at work. This is related to high-quality service that meets the organization's expectations.

Employees may perceive job satisfaction in all facilities and comfort provided by their organization. Theoretically, job satisfaction emerges from the talent management optimization process. The organization should pay attention to employees’ needs. This study found that job satisfaction affects workforce agility. Therefore, job satisfaction and employee engagement are variables affecting workforce agility. Healthcare institutions should be responsive and adaptive to changes to suit patients’ needs.

Conclusion

The present study concludes that talent management can improve workforce agility. This optimization could be done through employee engagement and job satisfaction. This study showed that talent management could improve work agility more optimally through employee engagement. Direct and indirect effects found in this study indicate that workforce agility should be developed through strategic competence, employee development, and contribution-based promotion. In addition, healthcare institutions should also pay attention to employee job satisfaction. Work outcome quality may be determined by employee job satisfaction. Quality services are likely to enhance customers’ loyalty. Such a service depends on the employee's contribution. Hence, the hospital should be responsive to the patients' needs.

Competence improvement and employee talent mapping should be carried out based on the organization's needs. Employees should be viewed as long-term assets, and their job satisfaction should be treated as a priority. High employee engagement in the work process should be balanced with job satisfaction. This can positively relate to work outcome quality and excellent service that meets the organization's expectations. Workforce agility can improve both organizational and employee performances. This study can be extended by analyzing the effect of workforce agility on employee performance.

Similar studies are recommended to be done in other sectors, such as public service, technology, government, and private sectors. Workforce agility is highly necessary for business processes. Some variables could be examined, such as technology advancement, employee involvement, knowledge management, and job innovation. The research model can be developed according to the problem's urgency. Statistical instruments such as Confirmatory Factor Analysis and panel regression are suitable to rank factors of workforce agility.

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Received: 17-Apr-2022, Manuscript No. ASMJ-22-11779; Editor assigned: 18-Apr-2022, PreQC No. ASMJ-22-11779(PQ); Reviewed: 27-Apr-2022, QC No. ASMJ-22-11779; Revised: 27-Aug-2022, Manuscript No. ASMJ-22-11779(R); Published: 03-Sep-2022

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