Why You Need a Talent Management System

Whether it’s a startup or an enterprise-level business, hiring and managing talents is the most essential thing that an entrepreneur can do to ensure long-term growth and stability. Since there’re many human resource software options on the market today, we’ve developed a guideline for business owners to help them choose the right talent management system, writes Alex Sokolov, senior software engineer, iTechArt Group.

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Employees are the backbone and lifeblood of your business. They are also what determines your overall success or failure as a company. Hiring the right people and keeping them is the most important thing you can do to ensure long-term growth and stability. But it can be extremely hard and time-consuming to keep track of all things related to human resources - from recruiting and hiring to employee development, career planning, mentoring and more.

Whether you have a large or small HR team or run a startup or enterprise-level business, you need a talent management system (TMS) to help automate some of the day-to-day tasks and free your staff to focus on growing the business.

There are many human resource software options on the market today, but before you can choose the one that is right for you, you need to do a little research and a lot of planning.

In this article, we’ll discuss what a talent management system is, why you need one, and how to select the right one. Let’s get started.

What is talent management software anyway?

A talent management solution encompasses all of the activities involved in hiring and retaining the best employees and staying one step ahead of your competitors. It is designed to track an employee’s performance and engagement with your company from the day they start to the day they retire. This includes the following:

Recruiting - A recruiting module helps hiring managers become aware of the best candidates for each position and features easy solutions for job postings, submissions, skills testing, and the entire interview process.

Hiring -  An automated TMS system can assist with offer letters, background checks, e-signing of hiring documents and contracts, signing bonuses, relocation expenses, and more.

Onboarding - The onboarding process can be automated to provide corporate training and presentations either electronically or in a physical office. This can be done through a series of videos, a corporate intranet with special tools and information for new hires, a FAQs database, mentoring scheduling, and anything else that can help a new employee hit the ground running.

Compensation and Performance Management - The TMS system can be utilized to set employees’ pay grades, hiring levels, annual review scheduling and tracking, career advancement, incentives, and provide management with a 360-degree view of an employee’s performance throughout their tenure with the company.

Continuing education and development - Through online or in-person classes, continuing education and corporate e-learning programs can make it easy for staff to enhance their skills and move up the corporate ladder. It can also be an important asset when it comes to meeting governmental and legal requirements for certifications in industries such as government, healthcare, education, and more.

Learn more: How to Make the Talent Development Evolution Work for Your Organization

Why should business owners consider talent management software?

One of the main purposes of an HR talent management software system is to automate and streamline the entire hiring and nurturing process. It also provides useful analytics and feedback to help management see which employees are excelling and which ones need more attention and development.

Talent management technology can capture, store and analyze important data throughout the entire lifecycle of an employee that can be utilized to improve business processes as well as the work lives of a company’s staff. This “big data” approach leads to better recruiting, more qualified candidates, a shorter and more efficient hiring process, and a decrease in employee turnover.

According to a recent report from Capterra, 73% of talent management software users stated that their system had a positive effect on the time they spend performing HR administrative tasks. They also reported a reduction in the amount of time spent recruiting, lower costs, and an increase in employee engagement and satisfaction.

How to choose talent management software

Shopping for a new talent management solution can be intimidating and confusing. There are so many options available and so much to think about when implementing new technology throughout your organization. People are reluctant to any type of change and having to learn a new system might not go over well with all of your staff.

Here are a few best practices that can help you choose the right TMS and get your entire organization on board.

1. Get input from your team and involve them in the final decision.

In order to ensure a solution is the right fit and feel for your organization, start with getting feedback from your entire team. Your HR team should have a lot of input, considering the fact that they will be the ones using it the most. But you should also discuss the decision with your entire management team, since everyone will be involved in utilizing the system for performance reviews, feedback, mentoring, and more.

2. Think about the level of integration and specialization you need.

Do you have specific or legacy programs that would need to be customized and integrated with a new system, or could you just simply make the switch over to an out-of-the-box solution? Are you in an industry that has to meet specific regulations that will require special programming or a certain type of software? Keep in mind that you might not be able to find everything you’re looking for in one solution. You may need to consider a customized software program built specifically for your organization and your requirements.

3. Decide if you need an on-premise, cloud-based, or hybrid solution.

If you have several locations, you’ll probably want to go with a cloud-based TMS option. However, if you work with highly classified or privileged information, a more secure on-premise application would be the best choice. Perhaps you need a hybrid combination of both. Knowing exactly what type works best for your organization before you start shopping for a solution will save you a lot of time.

4. Look for a solution with a detailed analytics module.

You want your TMS software to be able to gather valuable information, analyze that data, and provide you with actionable insights that can help improve every aspect of your business. A lot of solutions come with standard analytics as part of the package and some have an upgraded option. Spending a little extra on software that has a built-in big data solution will be well worth the additional costs.

5. Choose your vendor wisely.

You are making a large investment in your TMS solution, so you need to know that the vendor you choose will be there for you over the long haul. What type of support do they offer? Is it 24/7? Do you have a trial period where you can test the product before signing a long contract? What happens if your vendor gets bought out by a larger company? It’s always a good idea to check vendor references and read online reviews of other companies who have used or are currently using the product.

Conclusion

Talent management systems are not just for large enterprise businesses. Startups and small to medium size companies can also benefit from the automation, increased efficiencies, and analytical data provided by these types of software solutions.

Whatever you’re looking for, rest assured that there is a TMS solution for you. You may need a bit of customization or training, but the upfront costs and time spent learning a new system will be well worth the investment when you’re hiring and retaining the highest quality employees. It’s a win for everybody.