Since human resources are now more frequently utilized for strategic than for administrative reasons, human resource management has changed from earlier times. Finding internal talent or human resources with the capacity and potential to boost staff productivity and, more crucially, employee happiness is one of the strategic roles of human resources in a company. Individual performance determines the performance of the organization; in other words, individual performance will give an overview of the performance of the organization (Afriyani et al., 2024).

In general, business and the environment are marked by ongoing change. The following are the primary changes: 2) new organizational forms that have supplanted old organizational structures to produce more dynamic and data- driven companies; and 3) macroenvironmental developments include globalization, information technology, knowledge-based skills, and a lack of political, economic, and social awareness; and 3) democratic changes that have changed educational institutions in ways that affect the employment of younger generations (Riswanto et al., 2023).

A key component of organizational success is employee performance, where organizations must be able to develop high employee performance in order to achieve high levels of success and a fulfilling life. The success of the organization in fostering employee engagement will be reflected in employee performance, (Febriana, 2023). According to Azizah (2021), a worker's performance is defined as their actual performance compared to their expected performance. Based on the results of interviews with the head of the Ofiicer section of PT Bank Mandiri, University of North Sumatra Branch regarding employee performance problems at PT Bank Mandiri, University of North Sumatra Branch, it was found that a number of employees were still unable to complete tasks according to predetermined targets. This is caused by non- optimal talent management where employee placement is not always in accordance with their expertise and interests, ineffective knowledge management so that the transfer of information and best practices between employees does not run smoothly, and low levels of employee engagement characterized by a lack of sense of belonging to the company and motivation to work. Apart from being based on data and interview results from the leadership of PT Bank Mandiri, University of North Sumatra Branch, researchers also obtained employee performance from pre-survey results as in the following table:

Table 1. Pre-Survey Results Regarding Employee Performance at PT. Bank Mandiri, University of North Sumatra Branch

Based on Table 1, the phenomenon that emerges from the results of the pre-survey questionnaire shows that 55% of employees of PT Bank Mandiri, University of North Sumatra Branch feel unable to complete tasks according to predetermined targets. This reflects difficulties in achieving set goals, which can be caused by various factors, such as excessive workload, lack of resources, or lack of support from management in providing the necessary training or guidance. This problem occurs as well as employees who find it difficult to complete a large amount of work and must be completed in a limited time. Time constraints, lack of planning, or unexpected interruptions can make targets difficult to achieve, potentially lowering overall motivation and productivity. In this context, companies need to review workloads, training support, and more efficient ways of working to ensure employees can better achieve targets.

One of the elements that influences both good and poor performance is employee engagement. The degree of interest, dedication, and excitement that workers feel for their jobs and the company they work for is known as employee engagement. Employees who have high engagement tend to be more motivated, proactive, and willing to give extra effort in carrying out their duties, which ultimately has a positive impact on improving performance, (Irfania & Rini, 2025). They do not only work to fulfill obligations, but also feel a sense of purpose and emotional attachment to the company, so they are more productive, innovative, and able to contribute to achieving organizational targets. Therefore, increasing employee engagement through good communication, rewards, development opportunities, and a positive work environment is an important strategy for companies in encouraging optimal employee performance, (Iswahyudi et al., 2021).

Previous research conducted by Diwanti (2021), Napitupulu (2025), Firdausi and Wajdi (2024) and Aziz (2022) stated that employee engagement affects employee performance. Other research results conducted by Kadri et al (2023), Amalia (2022) and Aldira et al (2024) state that employee engagement has no effect on employee performance. The following are the results of a pre-survey

regarding employee engagement at PT Bank Mandiri, University of North Sumatra.

Table 2. Pre-Survey Results Regarding Employee Engagement at PT Bank Mandiri, University of North Sumatra Branch

Based on the results of the pre-survey questionnaire in Table 1.4 conducted at PT Bank Mandiri, University Branch, North Sumatra, it was found that 60% of employees answered "No" to the statement "Employees feel motivated to achieve work targets and goals." This indicates a problem in the level of employee engagement and motivation in their work. This indicates a problem in the level of employee involvement and motivation in their work. This phenomenon occurs because employees feel less motivated to achieve their goals. For example, employees who don't feel valued or don't see the direct benefits of the job tend to lose enthusiasm and interest in contributing more. This can be caused by a lack of effective communication between management and employees, the absence of adequate rewards or incentives, or excessive workload without a clear balance between work and personal life. In this case, looking at the problems that occur when an employee feels unappreciated in a particular activity or role, it leads to a decrease in their motivation and involvement in the task at hand.

One way that companies can improve employee performance within their organization is by using Talent Management and Knowledge Management. Businesses today are expected to have superior human resources, so it is necessary to manage the talents possessed by employees through talent management strategies. One method to identify, develop, and improve talented employees is through talent management, (Gunawan et al., 2023).

According to Dharmanegara (2022), talent management is a process to ensure that companies can fill vacancies for future leaders and positions that increase the internal competence of the organization. Talent management can be defined as a systematic strategic approach that companies use to implement

various human resource management practices, such as employee recruitment and evaluation, training and development, performance management, and compensation to inspire, encourage, and motivate employees. This research has previously been conducted by Fajriyah (2024), Diwanti (2021), Setyawan and Maharani (2024), Rahman et al (2023), Napitupulu (2025), Darvin and Setyawan (2024) which state that talent management affects employee performance. In addition, this research has also previously been conducted by Basuki and Marliyana (2021), Wang (2021), Rahardjo (2020), which states that talent management has no effect on employee performance.

At PT Bank Mandiri, University Branch of North Sumatra, talent management is used to address the importance of management in identifying employees who are able to receive promotions, rotations, and transfers without any problems, so that ultimately efficiency in the work process will be carried out effectively. The results of the survey regarding talent management at PT Bank Mandiri University of North Sumatra are as follows.

Table 3. Pre-Survey Results Regarding Talent Management at PT. Bank Mandiri, University of North Sumatra Branch

Based on Table 3, it can be seen that the results of the pre-survey questionnaire show that 55% of employees at PT Bank Mandiri Cabang Universitas Sumatera Utara answered "No" to the statement "PT Bank Mandiri Cabang Universitas Sumatera Utara provides adequate opportunities for employee career development," this reflects significant dissatisfaction with talent management at PT Bank Mandiri Cabang Universitas Sumatera Utara. This

phenomenon shows that many employees feel that they do not get enough opportunities to develop in their careers, both in the form of training, promotions, and increasing competence in accordance with the professional aspirations of employees. This problem often occurs because employees feel trapped in the same position without a clear career path, which can ultimately reduce their motivation and performance. Without serious attention to career development, this can lead to high turnover rates and loss of valuable talent for the company.

Knowledge Management plays an important role in improving employee performance by ensuring that the knowledge owned by individuals or organizations can be accessed, shared, and applied effectively. Through the process of acquiring, storing, distributing, and utilizing knowledge, employees can work more efficiently, increase innovation, and reduce errors in decision making, (Anwar et al., 2024). Knowledge Management also encourages a culture of continuous learning, where employees are encouraged to share insights and experiences, thereby increasing the productivity and competitiveness of the company. With a good knowledge management system, employees can more easily find solutions to work problems, accelerate adaptation to change, and increase collaboration between teams, which in turn has a positive impact on achieving organizational goals, (Adhari., 2021).

The results of previous research conducted by Fajriyah (2024), Diwanti (2021), Rahman et al (2023), Napitupulu (2025), Darvin and Setyawan (2024), Ramadhani et al (2020), Cahyani (2024) which state that knowledge management affects employee performance. In addition, the results of research conducted by Laila et al (2021) and Panuji et al (2024) explain that knowledge management has no effect on employee performance. The application of knowledge management that has been made by Bank Mandiri to its employees can be seen by conducting a pre-survey, which is as follows:

Table 4. Pre-Survey Results Regarding Knowledge Management at PT. Bank Mandiri, University of North Sumatra Branch

The phenomenon of problems that arise based on the results of the pre- survey questionnaire, where 60% of employees answered "No" to the statement "PT Bank Mandiri Cabang Universitas Sumatera Utara has a culture that encourages employees to continue to learn and share knowledge openly," shows that there are obstacles in creating an organizational culture that supports collaboration and knowledge sharing. This can result in decreased effectiveness in knowledge transfer between employees, potentially affecting the quality of service to customers and operational efficiency. Employees feel less motivated to share their information or experience, given the lack of support or rewards for such initiatives. In addition, powerlessness in knowledge sharing can slow down faster problem solving and make it difficult to improve individual and team performance.

This research has previously been conducted by Diwanti (2021), Setyawan and Maharani (2024), Rahman et al (2023), Napitupulu (2025), Putri (2023) which state that talent management knowledge management affects employee performance through employee engagement. In addition, research conducted by Afrio (2023), Khatimah & Simanjorang (2023) explains that talent management and knowledge management have no effect on employee performance through employee engagement.

This study employs a quantitative methodology, gathering data using questionnaires distributed to 36 employees as research samples. Path analysis is the analysis technique employed, with statistical software's assistance.

Convergent validity has a provision that must be measured through highly related constructs. Testing the validity of SMART PLS 3.0 by knowing the loading factor value, which is above 0.7 (Ghozali, 2018).

Table 5. Outer Loading Factors Test Results

Based on Table 5, it can be seen that most of the indicators of each research variable have an outer loading value greater than 0.7. This indicates that these indicators have a strong correlation with the constructs they measure.

Table 6. Construct Validity and Reliability Test Results

All of the variables in this study have values that satisfy the suggested standards, according to the results of tests of construct validity and reliability. Each variable's Cronbach's Alpha value is more than 0.7, suggesting that the instrument in use has outstanding internal reliability. All variables' Composite Reliability (CR) values are higher than the 0.7 threshold, indicating strong internal consistency amongst indicators. Convergent validity is further demonstrated by the fact that the Average variation Extracted (AVE) value for all variables is more than 0.5, indicating that each construct can account for over 50% of the variation of its indicators. Therefore, it can be said that this research tool is dependable and legitimate for use in additional analysis.

The R² (R-squared) value or coefficient of determination is a statistical measure used to explain how large a proportion of the variation in the dependent variable can be explained by the independent variables in a model. The results of the R2value on the variables according to the measurement results are shown in Table 7.

Table 7. Results of R Square Value

The R2 value for employee performance is 0.738. This value means that talent management and knowledge management can influence employee performance by 73.8%, with the remaining 26.2% determined by other factors. The R² value for employee engagement is 0.246. This value indicates that the variables of talent management and knowledge management can influence

employee engagement by 24.6%, with the remaining 75.4% determined by the influence of other factors.

Total effect is essentially the accumulation of all effects exerted by an independent variable on a dependent variable, both direct effects and indirect effects through one or more mediating variables. Thus, the total effect can describe the overall contribution of the independent variable in explaining changes in the dependent variable, taking into account the complex and interrelated pathways among the variables involved in the research model.

Table 8. Path Coefficients (Direct Effect)

Based on Table 8, it can be explained that:

0.141 and a p-value of 0.031. These results demonstrate that talent management in work outcomes is driven by the level of employee engagement.

The author's gratitude goes to all those who have provided support and assistance in the preparation of this article, especially to the leaders and employees of PT Bank Mandiri, University of North Sumatra Branch who have given permission, time, and information needed in the research process. Thanks also go to the supervisor and colleagues who provided input and motivation so that this article can be completed properly.