A Talent Management System is an integrated set of software applications that human resource management (HR) professionals use to cultivate and maintain a company's human capital.
Because the Talent Management System keeps track of an employee's career starting with the hire date, HR managers can compile valuable data about the workforce at various points in the employee lifecycle. They can try to use this data to recruit more efficiently and identify future organizational leaders.The four modules contained in talent management software are referred to as the "four pillars."
- Recruitment - helps the company identify quality applicants and organize applications through an application tracking system (ATS).
- Performance management - allows managers to define and keep track of employee goals and rate progress.
- Learning and development - facilitates the onboarding process by providing new employees with training materials and enables seasoned workers to further their skills by taking courses and pursuing certifications.
- Compensation management - helps ensure that performance is reflected in compensation.
Whereas traditional HRMS and enterprise resource planning (ERP) systems focus primarily on transaction processing and the administration of basic human resources processes such as personnel administration, payroll, time management, etc., talent management systems focus on providing strategic assistance to organizations in the accomplishment of long-term enterprise goals with respect to talent, or human capital. Talent Management Systems may also be referred to as or paired with an applicant tracking system (ATS) in either standalone application or as a suite of products. According to Bersin, talent management may be defined as the implementation of integrated strategies or systems designed to improve processes for recruiting, developing, and retaining people with the required skills and aptitude to meet current and future organizational needs.
Tips for choosing a Talent Management System
There are several important factors to keep in mind when choosing talent management software, according to industry experts. HR leaders should first examine the business' workforce, taking into consideration the number of employees, their geographic locations, and turnover rates. Any other software that the company uses, such as a CRM or ERP system, should also be taken into account for integration purposes.
HR leaders should go into the decision process with a clear idea of what they'd like to accomplish with the aid of new software. Is the goal to automate manual processes, standardize a number of disparate systems, or completely reinvent the HR approach? The answer will help HR managers choose the right talent management software to address the company's specific needs.
It's also important to calculate the TCO of a new HR system, a step that experts say often gets overlooked. A strong business plan can help win the support of a company's C-level executives, whose endorsement of talent management software is often critical for its success.