Improving talent management practices in the organization by the tool of competency-based HR functions

Purpose Organizations invest in competency frameworks and talent programmes, yet the two are mostly run and studied apart. This paper closes that gap. It tests a single model showing how competency-based HR functions (recruitment, training and development, performance appraisal, career development and succession planning) work together to turn employee competencies into lasting talent. Design/methodology/approach Primary data were collected from 546 employees across four manufacturing industries in Gujarat, India: Agro and Food Processing, Oil and Gas, Pharmaceuticals and Biotechnology and Chemical and Petrochemical. Responses were recorded on a five-point Likert scale. PLS-SEM was used to test the measurement and structural models, while Importance-Performance Map Analysis (IPMA) showed where action matters most. Findings Competencies and competency-based applications significantly shaped Competency-Based HR Functions (ß = 0.432, R2 = 0.542), which in turn significantly predicted Talent Development (ß = 0.641, R2 = 0.411). The message is clear: competency-based HR delivers results when its functions work as one connected system, not as isolated routines. IPMA placed competency-based HR functions high on both importance and performance, while talent retention stood out as the clearest gap. Practical implications Manufacturing firms should use competency information across the employee lifecycle, build career paths around competencies and strengthen retention through open, participative competency assessment. Originality/value Grounded in the resource-based view and dynamic capabilities theory, the study repositions competency management as a capability-building engine rather than a personnel routine. It offers rare empirical evidence from emerging-economy manufacturing, giving HR scholars, managers and policymakers a tested route from competencies to talent.