Talent Management Software

Talent management is a hot topic within the Human Resources (HR) software market. This software category refers to two primary functions: the acquisition of new hires and development of employees. There are more than 100 different talent management software solutions available to improve your processes of interviewing, hiring, onboarding, and retaining employees. Learning management is also increasingly being considered as part of this application category. With the HR market in constant evolution, we thought this guide would help you make better, more informed buying decisions in the area of talent management software.

Here’s what we’ll cover:

What Is Talent Management Software?
What Type of Buyer Are You?
Market Trends You Should Understand

The Talent Management Vendor Landscape
Benefits & Potential Issues

What is Talent Management Software?

Talent management software is the trump card when it comes to successful acquisition, development, and retention of talent within an organization. That’s because with the right software, hiring managers can easily track applicants, stay organized throughout the interview process, and minimize the paper trail when onboarding new hires.

The top talent management platforms also help modernize and streamline the performance review processes. Employees and managers can track individual performance goals and accomplishments throughout the year, making the review process a collaborative effort with measurable success.

With the evolution of cloud computing, complex talent management processes have been revolutionized by engaging and involving a broader set of employees and managers. Cloud computing, or Software as a Service (SaaS), gives users the ability to tap into talent management resources from anywhere there is Internet access. These web-hosted, feature-rich solutions enable candidates to view and apply for your open positions online, answering specific questions and submitting important documents without flooding email in-boxes. Hiring managers can quickly access key information and identify their best applicants, minimizing time spent filtering through countless emails.

Talent management software functionality includes:

• Online applications

• Interdepartmental communications

• Resume import function

• Applicant flagging/fast-tracking

• Candidate tracking

• Real-time performance documentation

• Key document tracking

• Goal tracking

• Electronic record-keeping

• Employee self-service

What Type of Buyer Are You?

Before you purchase talent management software, it is important to assess what kind of talent management buyer you are. We believe that the majority of buyers fall into one of these categories:

• Integrated suite buyers. These buyers work for organizations where some, or all, of the HR processes have become disjointed and inconsistent. They need reliable solutions to improve operational efficiency within their existing HR processes, while effectively updating their management of top talent. Quite simply, these buyers are looking to implement a range of applications, all within one integrated suite. Integrated HR suites with robust talent management functionality are often the best solution.
• Best-of-breed buyers. These buyers work for large organizations specifically interested in updating acquisition, development, and retention strategies and processes. They need straightforward, easy-to-use tools that can be implemented into a complex operation with minimal interruption. Functional depth is critical to meet demanding departmental requirements, and best-of-breed talent management systems with high SaaS capability offer the best solutions.
• Cost-conscious buyers. These buyers work for organizations that are looking to update their existing talent management systems while keeping costs low. Although there are less expensive on-premise options available, the evolution of SaaS in HR software is changing the industry. That’s because organizations with more limited resources are able to access a broad range of solutions. Cost-conscious buyers looking to enhance their talent acquisition process should consider stand-alone, best-of-breed applications to integrate with their existing HR systems, either on-premise or on in a hosted, SaaS-based model.

The Talent Management Vendor Landscape

Market Trends You Should Understand

These trends in talent management software should be considered as you select a product and vendor.

• Consolidation. Recently, larger HR and talent management software companies have aggressively acquired many best-of-breed solutions as a means of strengthening the arsenal of their integrated suites. For buyers, this means increased functionality and integration with the rest of your HR system. These integrated suites offer across-the-board functionality, which provide users with a one-stop shop for managing talent. Larger vendors have the resources to offer more customer support, and offer easy-to-implement talent management solutions. The downside? Service sometimes experiences disruptions as vendors are acquired. Locking in rates and service/maintenance terms should minimize any discrepancies.
• Software as a Service. SaaS has changed the HR landscape, offering exceptional usability for managers and employees at every step in the process. With its web-based interface, SaaS offers buyers the tools to simplify and streamline complicated talent management processes, such as applicant tracking and performance appraisal. Improved accessibility translates to increased usability, which in turn creates a more cohesive and collaborative effort when interviewing candidates or reviewing employee performance.
• Strategic HR.Regardless of industry or size, an organization’s greatest resource is its people. Today, some of the most successful companies are focused on enabling HR professionals to harness this resource to its fullest. Analysts have been coining phrases like proactive management, talent pooling, and retention strategies for a while now, and branding this category of software as “strategic HR.” Modernization the process of attracting, acquiring, and developing talent with these strategic tools enables an organization to consistently build the value of its talent pool. Buyers should consider whether they purchase these strategic HR tools from an existing HRMS vendor or a pure-play strategic HR vendor.

Benefits & Potential Issues

Modernizing the approach a company takes to attracting and retaining talent makes it easier to keep employees motivated and engaged. Furthermore, by streamlining the processes for acquiring and retaining talent, employers can stay better organized and communicate more effectively. With candidate and employee information available at their fingertips, managers and HR professionals can quickly accomplish routine talent management tasks to focus on more strategic initiatives. And employees that have a sense of their value within an organization are far less likely to leave than those who don’t. Having the right software is a key component to taking your talent management to the next level.

Have an opinion on this guide? Email the authors. We appreciate the feedback.