A talent management system (TMS) is an integrated software suite that addresses the “four pillars” of talent management: recruitment; performance management; learning and development; and compensation management.
Purpose of talent management solution
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, and time management. 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.
Functional modules of talent management software
TMS solutions typically offer one or many disparate or integrated modules which provide business functionality in areas of human capital management / human resources typically referred to as “strategic”.
- Employee lifestyle management
Manage employees in all stages of their lifecycle starting with onboarding, job function, career & development and offboarding. Lifecycle management helps companies maximize new hire potential and ensure they contribute towards overall progress of the organization.
- Performance management
Performance management is a process of ensuring that employee activities and performance meets an organization’s goals in an effective and efficient manner. Monitor employee performance throughout the year, keeping the strategic objectives of the organization in mind. Here the management set expectations, clarify objectives, pinpoint goals, give feedback, and track results.
- Talent acquisition
Talent acquisition is the process of planning, attracting, sourcing, engaging, recruiting, and hiring talent. Talent acquisition strategy includes long term planning, building employer brand, nurturing prospective relationships, and attracting and engaging talent. This is a a continuous and long term process.
- Compensation and benefits management
Compensation management helps you monitor employee compensation to ensure compliance with policy, deliver timely salaries and appraisals. It can also help you stay compliant and keep data error free. It manages the process of providing perks and benefits to an employee for their work. Types of compensation include salary, bonuses, and benefit packages.
- Career development
Career development is the process of managing an employee’s career in an organizational. It involves training on new competencies, transition to higher job function with enhanced responsibilities. Career growth should be an essential part of company culture. Organizations should take time to speak to their employees about their goals and dreams, and design a career growth plan in alignment with an employee’s vision and organizational needs.
- Succession planning
Succession planning manages the process of planning, forecasting, identifying and developing new talent to replace offboarded employees when they leave, retire or terminated. Succession planning ensures there is an availability of quality talent that are trained to handle roles as and when they become available.
The role of talent acquisition and performance management has increased many folds compared to learning management systems in the talent management market. Many companies which were earlier working on only one of these domains have moved to developing integrated talent management systems.
Benefits of Talent Management Software
Other benefits of having a talent management software are simplified HR processes and seamless integration with key modules of HR software or HCM that includes onboarding, payroll, benefits, and time and attendance. We list out few key benefits below
- Streamlined recruitment processes
- Increased employee engagement
- Improved employee retention
- Effective onboarding of new hires
- Employee career growth and development
- Faster integration to company culture
- Improved team dynamics and performance
- Leveraging key HR data to meet organizational goals