Talent management has become one of the most prevalent topics in the field of people management and development for practitioners and academics alike. However, while managers do appear to appreciate the importance of talent management, they often fail to manage it effectively, and the linkages between talent management and organizational performance remain unclear. In this invited feature article, I argue that the failure to effectively manage and develop talent can be traced, in part, to a narrow conceptualization of performance in much thinking on talent management. At an organizational level, this means that performance is generally considered solely in terms of shareholder returns while ignoring other stakeholders. This translates into HR systems that fail to effectively align individuals and organizations in the generation of value. This article foregrounds employees as stakeholders and argues that organizations that are defined by a sense of purpose and that prioritize employees as stakeholders generally have higher levels of alignment between organizational and employee goals with more highly motivated employees and ultimately more sustainable performance. Some implications for research on talent management are developed.