Talent management software is designed to make it easier for companies to attract and develop new talent while motivating and retaining existing employees. This solution covers the employee lifecycle from recruitment and initial onboarding to succession planning and final offboarding. The goal is to provide a company with workers who generate a large return on investment.
Part of human resource management (HR) solutions, talent management tends to focus more on recruitment, retention and motivation of high performing employees like HCM systems. However, unlike HR software, talent management functionality also helps hiring managers by determining who should be promoted based on competency and how to develop long-term succession plans.
There are several benefits businesses can enjoy if they use a talent management system:
When your company is expanding, you want the best and the brightest to fill new labor roles. Talent management software includes recruitment and acquisition tools to help you reach out to the right people with the right skills. Set clear expectations for your candidates, like previous industry experience and education requirements.
One way to draw in the best talent is to promote all the employee benefits offered by your company. The better your incentive package, the more talented people will want to apply with your than your competitors.
Another tool included with talent management software is an applicant tracking system. This lets your recruiters keep tabs on all job candidates in one platform, no more juggling multiple resumes and misplacing physical applications even when working across multiple job boards. And after hiring, you’ll have a head start on storing the new employee information.
Of course, one of the easiest ways to attract new workers and hold on to existing talent is to promote a healthy work culture. Talent management software helps you establish your employer branding to attract the best possible employees and keep the ones you already have. Even something as simple as a mobile app or self-service employee portal for clocking in and out can show workers they have control over their employment.
Your company’s brand will reflect the internal worker culture. If employees are not happy, your brand will suffer and you won’t be able to draw in new talent. Quarterly or annual performance reviews give employees the chance to provide feedback directly to your HR department or management team.
No one wants to get lost in the shuffle of a repetitive 9-5 job. Once you have new and motivated talent, you can begin to enjoy more productive work by keeping them engaged. One way to improve employee engagement is to reward high performers with incentive programs or offer special bonuses for meeting quarterly goals.
A compensation management system within your talent management software lets you determine payroll changes from these benefits. You can even automate who receives bonuses based on pre-set performance metrics. In turn, this helps you avoid any possible HR conflicts from manually determining additional compensation.
Talent management solutions track worker performance so you can find areas of improvement. If you find consistent problem areas, learning management helps you control the development of your top talent by letting you set up training to address these issues. With a talent management learning and development program in place for new hires, you can ensure all your workers receive the same training.
A changeover in management can cause the entire company to dramatically transform. It doesn’t matter if a CEO is stepping down or a long-lasting manager is leaving. Having the right successors in place can assuage fears of unnecessary changes to the corporate structure.
A succession plan is made before an employee announces their plans to retire, resign, or otherwise leave your company. You’ll want a contingency plan in place well before any unexpected resignations or terminations.
Talent management software pricing depends on several factors, such as whether you want an on-premise system or a cloud-hosted solution. Many SaaS providers charge based on how many employees will be using the software, starting as low as $5 per user per month up to $185 per month. Other perpetual license plans are available for a one-time fee.
Talent management services often fall into the realm of human resources (HR). Talent management software has more of an emphasis on keeping employees, especially those who offer long-term benefits to the company. With the right talent management solution, you can plan for the expansion of new departments and the replacement of retiring workers.
Human capital management (HCM) is another branch of HR which overlaps with talent management. However, HCM only focuses on recruiting and hiring new employees. There may be some performance management, though it is not necessarily included like it is with talent management software.
Additionally, employee management software focuses on monitoring the performance of existing employees and keeping up their productivity. While talent management offers some tools for rewarding and disciplining workers, it overall is focused on the entire recruiting, acquisition, hiring, and onboarding process. A full HR suite may include HCM, employee management, and talent management, though there are advantages to having separate software depending on the needs of your organization.