Managing talent consumes 30 percent of a manager’s time, which is quite a significant amount on a manager’s schedule. Although attracting new talent is challenging in every industry, retaining them is even more difficult. Technology plays a big role in efficient and effective talent management. In the light of this, why should talent management software be overlooked? The complete talent management cycle can be enhanced with the use of technology.
Employees need to believe that their contribution matters. Even if they are working remotely, they must feel connected. Talent management software assists businesses in precisely doing that. It not only helps organizations manage the talent lifecycle, but also provides a quick insight into the potential of their workforce.
This article will discuss talent management software, why it’s essential in HR, and how its solutions can help organizations generate a more engaged, skilled, and productive workforce in 2022.
What is talent management software?
Talent management software (TMS) is a technology or tool used by a human resource professional or senior management to manage the employees within the organization. It helps employees to deliver their fullest potential in an organization. TMS provides solutions that supports employees not only in their day-to-day work but also in career development.
How does talent management software work?
Most talent management solutions available in the market have inbuilt modules to support employee performance management and development. As most of them are cloud-based applications, they provide robust security, easy integration, and a range of complementary applications like training programs, payroll, career planning, and secure storage of employee data such as personal information, demographics, and compensation.
The advantages of having a talent management process are many, but some key ones include:
- Plan: to align the strategies with talent and the company’s requirements. Work with teams to understand the goal and develop a talent strategy to help them achieve it.
- Onboard employees: improve the new hire engagement with an onboarding portal that’s well planned. Provide a paperless hiring process to attract and retain employees. Implement workflow automation in the onboarding, offboarding, and cross-boarding processes.
- Manage employee performance: it helps employees to manage their goals. Use proper action planning for continuous performance management.
- Plan and design compensation models: recognize and reward the organization’s best performers.
- Develop employees: provide an effective and engaging experience to the learners. Schedule and carry out all types of training. It develops the employees as active leaders and helps them succeed. When employees see that organization cares for their learning and developmental needs, they feel secured and valued. They tend to stay in the organization for a longer time.
Need of talent management software
The primary goal of using talent management tools is to streamline and optimize the entire talent management process within the organization. Particularly, the COVID-19 pandemic has made it difficult for medium and large businesses to keep track of their employees.
HR can use a talent management system to handle development, performance, and retention. Here are the 5 most common uses of TMS:
Let us start with the data, as it is the most important. When data becomes more mainstream, the storage and accessibility of the information seem messier. It’s not uncommon for data to be held in silos, making access and analysis difficult.
An integrated talent management application allows the organization to synchronize its essential HR activities from onboarding through performance evaluation. It provides data exchange inside the company to obtain a complete picture of the employee’s information on a year-on-year basis.
Retaining the top talent
Retaining an existing team or employee is as vital as focusing on recruitment and bringing in new talent.
Talent management software helps organizations to track employee performance, skills, training, goal setting and tracking, real-time feedback, rewards, and recognition, future aspirations, compensations, and more. It helps employers to identify employees who are doing well and who need help. This helps employers to retain top talent and guide employees who need help.
Improved employee experience
A talent management system makes HR life more accessible and improves employee performance. It can be a handy tool for the employees to access historical, performance-related, and future data. All data is available at the same place and there would not be required to track separately.
As an organization’s talent management system can also be used to onboard employees, employees will be familiar with it from day one.
Modern employee development
An integral part of the talent management software is employee learning and development. It should be an essential benefit that a company should provide to its employees.
For most employees, continuous learning and career development are more important than pay. Around, 80% of employees prefer talent management systems for learning and development. Based on their information, these employees also provide course recommendations, such as courses completed by colleagues with comparable qualities.
How to choose a talent management software?
Choosing TMS often implies a considerable investment for any organization. Capterra published a report with survey results based on 350 questionnaires completed by TMS users. They asked the users about the factors that made them buy TMS. Below are the factors which Capterra found in their survey.
Needs of your organization
There is much to say when you think of your organization’s needs. It is about choosing a talent management tool that meets its requirements. Aligning current and future strategies, managing employee performance and development, employee recognition and rewards, etc.
Select a software which is stable to version updates and supports your future needs at the same time.
Find a vendor suitable for you.
Implementing the talent management tool is a big project. It often involves a lot of employees with close collaboration with the provider of the software. While it is essential to choose a system that meets your needs, it is also necessary to select a suitable vendor. It is because investing in TMS is a long-term commitment.
Request for a demo
Before purchasing a TMS, get a demonstration from the provider you’ve chosen. It will assist you in observing the software’s behavior and determining whether it is user-friendly. It also gives you another chance to learn more about your potential provider and ask questions regarding their installation, user training, additional costs, and so on.
Running a pilot program is also recommended.
Benefits of talent management for the organization
The following are some of the business advantages of TMS.
Deeper employee engagement
On-job training, goal setting and tracking, timely feedback, rewards and recognition, and growth promote employee engagement. Companies with excellent employee experience, such as Accenture, have a highly engaged workforce with higher profits than those with poor engagement.
Turnover metrics are crucial since they reveal a lot about talent management systems. Attrition data may be collected, tracked, and analyzed using TMS.
Better succession planning
Employees in senior roles hold a unique knowledge critical to completing key business processes. A talent management tool can help succession planning by visualizing strengths and identifying areas of concern.
Benefits of talent management for employees
Talent management has several advantages for employees, as noted below:
Better onboarding experience
Onboarding is an employee’s first encounter with the organization. It shouldn’t start and end with a PowerPoint presentation, as it is an essential element of the talent management process. It allows organizations to customize and interactively onboard new employees by introducing mentors, buddies, welcoming employees on the social platform, and employing individuals from other departments.
More opportunities for training and reskilling
Robust training programs attract many candidates. Once hired, the training program provides a way to help advance employees’ careers. It is more important for experienced employees. TMS makes it simple to discover skill shortages and link workers with training options.
Linked training and development opportunities lead to higher employee engagement and improved retention. The talent management tool helps you track and manage the employee with suitable options to help them progress in their careers.
Improved performance management
TMS helps the organization shift to dynamic performance management. Setting goals and OKRs to track them, along with intermittent feedback, helps both managers and employees stay engaged and on track.
It acknowledges that workers seek feedback that helps them overcome their deficiencies while also working on their strengths.
These tactics work together to improve the employee experience, which is determined by an employee’s overall sentiment towards the company and whether or not they want to create a long-term relationship with it.
A talent management system can help employees to feel engaged by empowering the employees and managers to interact with the employee’s professional career progression and encourages them to contribute to their fullest potential by aligning their daily work with business goals
A purpose-driven organization has a higher retention rate because employees tend to stay in the organization for an extended time.
In a nutshell, talent management is necessary for any business to maintain a stable workforce. It focuses on the development of the organization as a whole. With new opportunities coming up, developing the employee’s potential within the organization is essential for the profitability and sustainability of the business. In the current scenario, having a talent management software makes the process of managing talent a lot easier.
Looking for a talent management software for your organization? Request us for a live demo.