Competition for talent in the market, forces companies to reevaluate and redefine their talent management processes. Thanks to technological changes and the digital transformation of various business processes, companies have made huge steps as to how they orchestrate, automate and organize a host of HR-oriented processes. In particular, with the help of a talent management system, they are now able to keep pace with growth needs and make strategic workforce decisions, to maintain and grow their high-performing workforce.
What is a talent management system?
A talent management system is a software tool that helps automate and efficiently manage various tasks and processes in the human resources management area. By making the most out of such software solutions, HR professionals and companies are, in a broader perspective, able to make smarter decisions, with respect to the recruitment strategy they apply and support the entire employee lifecycle. In a similar fashion, they’re also able to make improvements in employee training and development, to keep them engaged and productive. All in all, a talent management system helps bridge the gap between the company’s objectives — as defined with respect to the talent management strategy — and the related day-to-day business decisions.
What does talent management include?
Talent management is made up of a set of activities and practices that are implemented within a company or an organization, in an effort to develop and strengthen the acquired and future human capital. In particular, talent management, among other things, helps move toward with the following objectives:
- Attracting high-potential employees and creating a talent pool
- Optimizing and accelerating talent acquisition
- Supporting the on-boarding of new hires and evaluating their post-hiring performance
- Improving employee engagement and increasing employee retention
- Coordinating, supporting and enhancing talent development, with pertinent training and educational programs
- And, finally, promoting leadership management and succession planning
Who is responsible for talent management?
Though HR professionals and HR departments are the ones that practice talent management, the tone is usually set by the organization’s leaders. CEOs and C-level executives are the ones to communicate the importance of talent management; and drive pertinent decisions forward. Talent management practitioners — recruiters and HR people — are the ones responsible for coordinating, overseeing and establishing relevant hiring, on-boarding, training and assessment processes and procedures. And, the way to efficiently accomplish all of these responsibilities is with the help of a talent management system.
What does a talent management system do?
Over the years, companies have been able to streamline basic HR processes and tasks, using traditional HR management systems. The key contribution of a talent management system to a company isn’t just that it keeps track of the talent flow that enters the organization and the status of the talent acquired so far. It also helps meet the company’s long-term human resource acquisition goals.
Features included in a talent management system
A talent management system helps companies achieve all the above-mentioned tasks and goals, thanks to a well-rounded set of features. In particular, most solutions in this category usually come with a list of core features:
- Employee management
- Compensation management
- Recruitment management
- On-boarding management
- Competency management
- Goal setting tracking
- Designing individual development plans
- Training Management
- Performance management
- Succession Planning
Key talent management processes, supported by a talent management system
In addition to the features and utilities mentioned above, talent management systems typically support the following processes:
Employee management
Keep all employee information gathered in one place. Make the most of the employee profiles, by storing information related to their role; along with any complementary information needed, such as schedules, availability etc. HR teams are then able to complete tasks, such as managing shifts and payroll; while employees can make requests for leave of absence and get notifications on their status.
Compensation and benefits management
Keep tabs on salary, bonuses and benefit packages employees receive throughout their tenure in the organization.
Recruitment management
Organize, schedule and run digital recruitment processes, by setting up job postings, prescreening applications and efficiently managing applicant responses.
On-boarding management
Make it easier for new hires to find everything they need, with an on-boarding portal that contains all the necessary introductory information.
Competency management
Implement practices that allow HR professionals to identify essential employee skills. With the help of add-on survey tools, they can design, create and run digital surveys to screen employees and determine their strengths and weaknesses.
Goal setting tracking
Set measurable goals and objectives related to employee’s overall performance, track progress and evaluate results and outcomes so as to make adjustments and improvements.
Designing individual development plans
Strategically map employees’ existing skills and proficiencies with expected job roles, to cover future workforce needs. Make the most of the intrinsic visibility that allows both managers and employees to get in the game and share feedback and insights, with the aforementioned objectives in mind.
Training Management
Upskill and/or reskill employees with a standardized and enhanced training experience. Create engaging training material and training programs that are tailor-made to address the needs of each role. Assign training sessions or whole programs to employees, track their progress and make strategic internal business decisions, related to existing and future roles.
Performance management
Monitor performance at an organizational, departmental and employee level. Make the most out of digital performance reviews, track feedback and one-on-one digital notes. Get insights from self-assessments, skill set assessments and weighted performance measurements, all gathered in one place.
Succession Planning
Set up a strategy, as to how it would be more efficient to deal with withdrawals. Identify and develop internal talent, such as employees with knowledge, skills and abilities to fulfill key roles; and assume these responsibilities, in order to prepare for employee turnover or retirement.
What are the benefits of using a talent management system?
With a talent management system in place, companies — and, more specifically, HR departments — can make the most out of the available functionality, which benefits the whole organization in the following ways:
- Leave all the paper-based processes behind and make the on-boarding process as smooth as possible; offering your new hires everything they need to get started, without a hitch.
- Identify employees’ skills and make further strategic improvements to support their growth.
- Improve employee experience, increase employee engagement and decrease attrition rate.
- Increase transparency and eliminate data silos, connecting HR tasks and processes with strategic company goals and objectives.
- Make well-informed decisions, based on HR analytics.
Categories of software tools adjacent to a talent management system
Companies and organizations may opt for a 360 HR solution such as a talent management system, in case they need to resolve various relevant issues related to human capital, or improve multiple HR processes. Alternatively, they may opt for a specialized software solution, such as these:
- Applicant tracking software
- Reference Check Software
- Training Software and Learning Management Systems
- Succession Planning Software
- Recruiting Software
- Performance Management System Software
- Onboarding Software
- Human Resources Software
- Employee Recognition Software
- Employee Engagement Software
- Compensation Management Software
Last but not least, another software category which lies close to a talent management system is
the talent assessment tools that support the hiring process.
TraitForward, for example, helps measure job-specific traits, with easy-to-share online questionnaires and interview guides.
TL; DR
To be successful, companies and organizations need to invest, not only in making improvements in core business processes, related to production. They also need to strategically develop and expand their human assets. A talent management system helps HR departments and HR professionals make progress, as to how they manage the whole employee lifecycle.
With it, recruitment strategy, employee training, leadership management, succession planning, and other core human resources management aspects, become much more efficient. On a practical level, the functionality included in a talent management system supports and enhances a host of HR processes and tasks. From fundamental HR tasks, such as managing shifts and payroll, to assessing personnel — to cover future workforce needs through promotion — a talent management system serves as a 360 HR solution. And, as such, it incorporates some of the functionality usually found in various other tools. All in all, a talent management system helps companies maintain, improve and develop the quality of their personnel.
But, first things first; none of these steps can be taken hastily. New and existing talent is assessed, before anything else. And, for that, one can take advantage of the ease-of-use, speed, brevity, and affordability of TraitForward.
