What is a Talent Management System?

A talent management system goes one step beyond the industry standard human resource information system (HRIS) program. This traditional program contains employee records and business information, but talent management systems add a deeper level by focusing on the four pillars of HR: recruitment, performance management, employee development and compensation administration. Talent management systems help employers attract, develop, motivate and retain employees who are engaged and productive.

Recruitment and Performance Management

Recruitment software helps companies to get high-quality candidates in the door before their competitors do. Recruitment software facilitates the talent acquisition process by helping HR professionals to find, research and communicate with potential job candidates. The recruitment software offers dynamic technology innovations with video and social media functionality. The purpose of performance management is to bring out the best in employees, but most companies use the historically weak process of annual formal reviews.

This usually involves a rushed meeting between a busy supervisor and employee where they discuss goals, strengths and improvement areas. One time per year is simply inadequate when it comes to the ongoing demands of performance management. Instead, many companies use talent management systems to implement a coaching-based model that involves frequent contact and encouragement. A software program is needed to manage hundreds of employees and their changing needs and goals.

Employee Development and Benefits Administration

Employee development is critical to engaging employees and increasing their satisfaction and motivation levels. Continual learning will help employees reach their fullest potential. While learning management systems offer online courses and training programs, they tend to be limited and inflexible. A more informal and integrated educational experience is needed. Flexible employee development options allow employees to receive customized training.

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When it comes to compensation administration, it can be hard to quickly, fairly and appropriately reward employees with different talents and contributions to the company. Most companies use Microsoft Excel spreadsheets, but these increase manual labor and the potential for errors. Using software to automate the process ensures fair bonuses and rewards, which in turn increases motivation and employee engagement. It also helps management to keep a close eye on employee labor costs, which is usually the largest accounting expense.

The Benefits

Talent management systems help HR professionals find the right person for the right job through advanced screening and comparison of job candidate’s skills and strengths. They offer skill or competency mapping functions that allow HR professionals to comparatively review skill inventories within the organization. This is especially important for selecting individuals for promotions and ensuring that the right employee is deployed in the right position to increase productivity.

These programs help to retain the top talent during difficult economic times. Organizations that fail to retain their top talent will lose out to competitors, which can affect their sales, market share and number of loyal consumers. Customized employee retention programs will provide successful strategies to recruit, develop, retain and engage the best people. Opportunities for growth and the increase of satisfaction will naturally reduce employee turnover rates.

A talent management system will also help HR professionals with understanding potential and existing employees, which will improve the quality of hiring and professional development decisions.