Talent Management Software (TMS), generally speaking, is a technology tool used by HR professionals to manage employees within an organization. Closely related to HR software, Gartner Inc., defines TMS as an integrated set of applications that support an organization’s need to plan, attract, develop, reward, engage and retain talent. Such applications include workforce planning, talent acquisition & onboarding, performance appraisal/assessment, goal management, learning management, competency management, career development, succession management & compensation management.
“These functional components align with the key human capital management (HCM) processes of plan to source, acquire to onboard, perform to reward & assess to develop. The talent management market is boosted by functionality to improve workforce engagement & collaboration, as well as to provide greater analysis and even predictive insights to improve decision making around workforce actions,” Gartner adds.
Reasons to buy….
With the current market becoming highly competitive for quality workers, otherwise known as the “war for talent,” companies are considering HR capital a top priority. And since companies are only as successful as the people within them, it’s important to find, hire and retain quality candidates and top performers. Implementing a strong and efficient talent management system can help with attracting and retaining top talent as well as making a bottom-line impact on productivity.
Obvious benefits of having a talent management solution are: streamlined HR operations and the integration with core HR software or HCM suites that provides a suite of functions for payroll, benefits, time and attendance, etc. But here are some others you might not have thought of:
Improve Hiring Techniques
A better, more educated and engaged workforce is most often times more productive and achieves greater results. Its for this reason you want to make sure you’re looking at only the best of the best when hiring new employees. Talent management software provides a number of ways to enhance sourcing and recruiting. For instance, the talent management system can help you recruit those really talented individuals by integrating asks such as posting job descriptions, tracking applicants and making it easy to manage job offers, resumes, etc. Ultimately, a talent management system streamlines your hiring process, giving you more time to focus on the candidates themselves instead of worrying about keeping track of their information.
Easily Develop Employees
Once you have retained top talent within your organization, it’s extremely important to keep them in order to build leaders for tomorrow. According to a study by Go2HR, 40 percent of employees who receive poor training leave their job positions within the first year. Organizations that fail to retain their top talent risk themselves to losing their competitive advantage. As such, employee growth within any career must be taken care of, and a talent management system can do just that.
A good talent management system should include options for employee learning and development (L&D) to enable employees to take courses, develop skills and other basic training. Having a talent management system in place to capture all of this data allow you to easily analyze, monitor and report on which employees need more developing.
Access to Accurate Data Leading to Smarter Business Decisions
Integrated talent management systems have the ability to align core HR processes throughout the HR lifecycle, from recruitment, to benefits management, ongoing performance assessments, and so forth. Talent management systems allow for data sharing/connecting across the entire organization, giving you an end-to-end view of employee information. In turn, this enables you more opportunities to make better-informed, strategic business decisions with all the information you’d ever need.
Improve Cultural Connections and Employee Engagement
In some instances, motivating and engaging employees go beyond just having a solid talent managemnet system in place. Meeting with your employees frequently for performance reviews, appraisals, whatever it may be, can give management an opportunity to create a true understanding of the company’s goals. When employees understand the culture, values and goals of the organization – they realize their connection to the development of the company and can find ways in order to help it’s growth while being valued for it.
However, a talent management system can help employees feel engaged by empowering employees and managers to interact with the employee’s professional career progression and encourages them to invest in the organization by aligning their daily work with business goals – all while focusing on their personal goals too. Employee profiles stored within talent management systems being when resumes are sourced and continues through the employees time at the company. This also allows you to maintain long-term relationships with top performers and could even lead to reduced turnover.
Retain Top Talent
Losing your top talent to competitors is something every organization should be on the lookout for, as replacing them can be very costly. A CAP study found that it cost 20 percent of annual salary to replace mid-level positions – this is something managers, CEOs and other C-suite executives definitely want to avoid. Luckily, with all of the employee information hosted on one talent management platform, you can track employee performance, review goals, skills and career aspirations to make sure your employees are engaged, happy, and on the right path.
Looking for more? Download our talent management buyers guide and check out the top-24 products available in the market with full page vendor profiles, key capabilities and questions to ask yourself and the vendor before purchasing a talent management solution. For those just starting the talent management software search process, this is truly the best resource to help get you going.