SELAM TILAHUN2025-06-032025-09The effects of poor talent management practices in banks are multifaceted, leading to decreased productivity, high turnover rates, poor customer service, challenges in attracting talent, and reduced organizational agility. Addressing these issues through effective talent management strategies is crucial for enhancing organizational performance and ensuring long-term success in the competitive banking industry. Therefore, this study aimed at to investigate the effect of talent management practices on organizational performance in private banks of Wolkite Town, Central Ethiopia Regional State. The research design was both descriptive and explanatory in nature and the quantitative method supported by qualitative approach. Census sampling technique was utilized. The target population consisted of employees and managers. Descriptive statistics, correlation analysis and multiple linear regression analysis were employed to analyze the quantitative data. Talent management practices such as talent planning, talent engagement, talent auditing, talent retention, and talent development were expected to have positive effect on the overall organizational performance in the study area. The qualitative data was analyzed using thematic approach and used for supplement to the results of the quantitative data analysis. The findings of the study unraveled that talent management practices as well as organizational performance were at moderate statuses in the private CBs. Besides, there was positive, strong, and significant correlation between talent management practices such as talent planning, talent engagement, talent auditing, talent retention and organizational performance. Moreover, the regression analyses result reveals 72.5% of the variation in the organizational performance of the private CBs in Wolkite town attributed to the effect of the these practices in combination. Of which, talent retention practice has the greatest effect on Organizational performance. Therefore, this study recommended that while talent retention is critical, it is essential to maintain a balanced approach. The CBs better to continue to strengthen and refine their talent planning, engagement, auditing, and development initiatives to ensure a comprehensive and robust talent management framework.enThesis