A talent management solution is a type of technology that HR professionals use to manage employees in order to gain a competitive advantage. It can refer to standalone applications from a niche vendor that specifically addresses one part of the process, such as a learning management system, or it can refer to a completely integrated software suite. The main purpose of talent management software is to help companies and organizations manage their current employees, from performance management to benefits.
Some talent management software encompasses the hiring phase, and go as far as tracking employees as they prepare to leave a company. However, these phases of the employee lifecycle often have their own, dedicated software tools that stand alone. So, how do you know what the basic features even are?
With so many options available today, it’s hard to set apart which features and capabilities you actually need and which are just talked up by software vendors. Don’t worry, we are here to help. Below is a list of the must-have features you should expect to see when examining any talent management solution.
Employee Lifecycle Management
Also known as “employee tracking,” this is the most basic feature you’ll find in talent management software. The employee lifecycle begins when an employee starts working at your company. When they’re new and still learning the lay of the land, they’re in the onboarding stage. Then, as they grow and gain mastery of their job role, they move into employee development. Finally, when they’re ready to move on from the company, the employee enters the termination or transitional phase.
Lifecycle Management is a must-have feature because talent management software helps you track an employee in all stages of their lifecycle and provides you an overview of their progress. This way, you can help them reach their full potential at each individual stage.
Talent acquisition is the process of sourcing, recruiting, interviewing and hiring talent. Any recruiter or HR professional tasked with recruiting will tell you the Applicant Tracking System can make or break how effective this department or function can be. For that reason, it’s important to look for integration into your overall talent management platform and easy recordkeeping, smart forms, compliant records and the ability to source your own applicants from boomerang employees and former candidates who didn’t make the cut. The best talent management systems will contain features that make flipping a candidate’s status over to employee very easy. It should be a seamless transition from offer to onboard.
Compensation & Rewards Management
Are different employees bringing home different amounts of money? Depending on the size of your company or organization, this can be difficult to keep track of. How are you supposed to keep on top of who gets paid what and when? Compensation management helps you track these metrics and ensures your employees are being compensated fairly and on time. It can also assist you with compliance and safeguard accuracy at tax time, so it’s a must-have feature. Some types of compensation management can even handle direct deposit and paycheck management.
Rewards management tracks the perks and benefits an employee receives outside of their salary or wage. This can be anything from time off to a healthcare package, as long as it isn’t directly related to payroll. In a similar way that compensation differs between employees, benefits and rewards packages are unique to each individual employee as well. Instead of relying on Excel sheets and file folders jam-packed with employee information, a talent management solution can manage all of these benefits and track their use in one centralized place.
In the same way you track the overall lifecycle of an employee, succession planning helps you follow an employee’s career as it winds down, including offboarding and even identifying a replacement to take over the emptied position. Some of the more advanced succession planning features also have capabilities to help you track a replacement hire’s onboarding process as they take over the job role.
Every talent management solution worth its ROI should contain a performance management module and the ability for managers and employees to give one another feedback easily. Effective performance management is essential to businesses. Through both formal and informal processes, it helps them align their employees, resources, and systems to meet their strategic objectives. It works as a dashboard too, providing an early warning of potential problems and allowing managers to know when they must make adjustments to keep a business on track. If your current talent management system doesn’t allow you to measure employee performance against goals, values or real-time feedback, consider replacing it with a best in class talent management system built for growing companies.