Purpose The purpose of this paper is to provide a critical review of the literature on talent management (TM) and highlight the potential downsides of exclusive TM approaches and workforce differentiation. Design/methodology/approach A literature review of 32 theoretical and empirical studies published in peer-reviewed scholarly journals in the field of TM was conducted. Findings The review resulted in four overarching themes that highlight the dysfunctional aspects of exclusive TM approaches and workforce differentiation: (a) organizational justice, (b) ethics, (c) internal competition and (d) workplace diversity. Based on the four themes, the authors present a conceptual model that includes a feedback loop for reevaluating and improving on existing TM processes. Several research questions and propositions are also presented for consideration in future TM research. Research limitations/implications This paper highlights the need for more empirical studies and statistically rigorous evidence to demonstrate and justify the effectiveness of TM. Practical implications The authors suggest that the locus of TM practices should be shifted from managing individual job competencies to managing organizational capabilities. Originality/value This review illuminates the need to reevaluate existing TM approaches and minimize TM's potential downsides for long-term organizational health and competitiveness.