What Is The Difference Between Talent Management And Performance Management? | FAQs

TALENT MANAGEMENT   |   2 minutes  |   November 30, 2016

Within the HR industry, there are more focused roles that exist. Two of these are talent management and performance management. Wondering how these two functions differ? Or trying to decide which would be a better career option for you?

The function of each role varies from organisation to organisation, but in general:

  • Human resource management overarches talent management and performance management and involves creating a work environment where employees are most efficient
  • Talent management aims to secure employee engagement with the purpose of employee retention
  • Performance management aims to give employees direction by developing their goals in line with the business’ need

In this short video John Wilter, Head Tutor for the University of Cape Town Human Resource Management online short course, explains the difference between talent management and performance management in more detail.


Now that would vary from one organisation to another. Some organisations only have performance management in place, and they say that that caters for all of their employees, to give them direction, to set goals, to develop them appropriately, to be able to achieve their goals in line with the business’ needs. Other organisations see talent management as a very specialised and different programme, that is designed to attract, and retain, and develop their most talented people. And that is an elitist view of what talent management is all about. So, it really depends on the culture of the organisation – whether they view all their staff as talent, or whether they view only a subsection of their staff as talent.