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.
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.
Functional modules and their market worth
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”.
- Performance management
- Goal management
- Compensation management
- Talent acquisition / recruiting
- Learning management systems
- Career development
- Succession planning
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