Modern HR professionals don’t rely only on their intuition and experience but also on talent management software. This is a contemporary tool which helps companies to successfully hire and retain employees.
The U.S. Labor Bureau recently stated that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. That’s why HR departments use talent management software to reduce mistakes as much as possible.
Even more, software solutions enable companies to choose the most talented, young professionals. With a tool like this, human resource managers improve employee efficiency, engagement, productivity, and the overall quality of work. In this article, we will go through the 9 most important features of a successful talent management software.
There are two types of talent management solutions: off-the-shelf and custom software. The first solution usually offers a wide scope of possibilities, covering the needs of all sorts of businesses in general.
This kind of software is adequate for a variety of industries that don’t require more detailed and complex elements. On the other side, custom talent management software provides companies with functions designed specially to adapt to their specific needs.
This is very important for talent management and planning in companies which have a clear vision of their future development.
Additionally, it is perfect for organizations which are proactive and always come up with new ways of handling human resources. Custom software allows companies to be creative and add new elements to their HR strategies, giving them the comparative advantage over competitors.
Whether you use a generic model or custom software, there are some most important features that are inherent to all of these tools. Here are the top 9 elements of all talent management software:
- Recruiting process
Talent management software helps HR teams to elect the most promising individuals. It automates a significant amount of work otherwise done by HR staff, assessing skills and knowledge of applicants through reliable social networks.
It is developed to track potential acquisitions based on a number of criteria. These include previous work experience, academic titles, practical skills, and so on. The recruiting process relies heavily on keywords, meaning that this part of talent management software encourages the so-called recruitment optimization.
With all the relevant information coming from a multi-channel source, TMS helps in decision making when it comes to new staff members. It is perfect to determine and evaluate the applicant’s knowledge and professional skills prior to the actual face-to-face interview.
- Learning management
Contemporary industries demand constant adaptations and new knowledge, which is why companies dedicate a lot of time and resources to learning management. This feature is essential to keep employees productive and engaged, so talent management tools encourage it through their functions.
According to recent Glassdoor’s analysis, a 10% increase in employee engagement investments grows profits by $2,400 per worker each year. Therefore, software points out the strong sides of employee’s education but also emphasizes the potential for additional education opportunities.
The TMS learning management provides companies with a unique and uniform system for all team members. The learning feature helps organizations to create a generic library of all the necessary study materials, while also analyzing the outcome of learning practices for each of the participants. This element is very important to determine if the course results are compatible with company goals.
- Performance management
It is not enough to simply hire an employee. As a matter of fact, real challenges begin at that point, as companies have to carefully monitor a worker’s progress. In that regard, the TMS performance management measures each employee’s achievements to determine if these meet the expected results.
Performance management is crucial for long-term control and extensive governance. When applied perfectly, performance features improve the overall quality of work and lead to better cooperation among employees on a vertical scale. Additionally, managers are able to follow the progress of their subordinates and to let them know when results are not satisfactory.
Talent management also comes in the form of a software-as-a-service (SaaS) application, which is convenient due to continuous changes in the field and new market releases. It is cost-effective since the cost is determined by the number of team members who use it, and by the functions it provides.
Furthermore, you don’t have to worry about software updates or upgrades since you can switch to another platform almost instantly. SaaS is superb in the early stages of a company’s talent management process because it offers testing potential and great mobility. Once you figure out how a specific SaaS works, you are free to move on and explore another, more suitable option.
- Social media integration
Talent management software gains much of its power from successful social media integration. This feature is essential for both the employers and employees, as according to Job Seeker Nation Study 59% of candidates use social media to research the company culture of organizations they are interested in.
On the other side, organizations use social media to send targeted messages or investigate candidate profiles instead of their official resumes.
As social media networks keep playing important roles in our everyday lives, it is also evident that HR staff must have the right tool to keep an eye on all potential candidates and current employees. And even employees benefit from social media integration because it helps them relax from time to time and then go back to planned duties with more commitment.
- Compensation management
Compensation management is an extremely sensitive part of the employment process, so it requires special attention. Employees in big organizations can often be unsatisfied with their income, and their managers might not even know it.
That’s why the TMS compensation management feature keeps an eye on such delicate details all the time. It serves to analyze all expenses and pay, suggesting modifications or bonuses according to key indicators. This kind of management makes it easier for HR staff to administer salaries, plan budgets, make bonus recommendations, and evaluate productivity. Even more, compensation management follows how salary modifications affect employees in terms of engagement, productivity, and performance.
International organizations face the challenge of establishing a uniform corporate culture and general principles for all branches. Therefore, their biggest problem is how to develop human resource practices which can produce similar results in all environments and conditions.
The same goes for companies situated in one country but with a huge variety of commodities and services. This problem is usually too difficult for traditional HR sectors, whereas talent management software offers practical solutions, compatible with local cultural preferences. At the same time, software respects general company rules, so it creates some sort of glocalization while dealing with talent acquisition.
- Succession management
Succession management is crucial for stable company functioning over longer periods of time. Big companies are like a living organism, requiring all parts to work together to achieve the planned results.
When HR staff is not well-prepared for sudden changes in executive or managerial positions, it can cause enormous damage to the organization. That’s why succession planning is one of the most important features of talent management software.
It offers an overview of the most suitable talents, both internally and externally, who can step in and take over specific duties. TMS also suggests the right kind of training and preparation for targeted employees, who are supposed to take over available positions.
It’s no wonder that 75% of recruiters use some model of TMS, while 94% of those claim that it improved their recruiting process. Obviously, this kind of approach to succession management leads to smooth changes in employee structure, making sure that the business as a whole doesn’t suffer.
- Holistic approach
Human resources management demands a lot of precise work and attention since there are so many elements involved in the process.
We mentioned the majority of these features as part of the talent management software. Obviously, HR professionals must take care of talent acquisition, career paths, promotions, succession management, salaries, bonuses, and all sorts of other features.
All this cannot be executed without a holistic approach and strategic thinking. In that regard, it is surprising to know how many talent management tools offer one or only a few of these features. Therefore, the final feature of an efficient TMS is to cover all aspects of human resources. Only such complete tools can provide companies with adequate talent recruitment solutions.
HR technology is widely accepted among the big business players and international corporations. This kind of software brings more comfort in workforce planning and allows HR teams to make better decisions. It seems like organizations which use the most recent TMS solutions are spending 22% less per employee on human resources.
The value of talent management software is undisputed but we tried to explain the features that make it so productive. From talent acquisition and compensation management to succession planning and a holistic view of the process – it is all there. Feel free to analyze it step by step and let us know if you have something to add to our observations.