This research discusses the importance of talent management as a key element in improving employee performance and maintaining an organization's competitive advantage. Using a literature review approach, this research examines theory and empirical results that are relevant to understanding the impact of talent management on company productivity and competitiveness. The analysis results show that talent management makes a positive contribution to improving the quality of recruitment, employee retention and work productivity through training, career development and mentoring programs. Research also finds a significant relationship between talent management and the creation of unique organizational capabilities that are difficult for competitors to imitate.