The Rise of Talent Management
In 2012, the Economist Intelligence Unit (EIU) conducted a survey on 313 global CEOs, CFOs, and HR Directors from companies with over $10 million in revenue and 45 percent of them from companies with over $1 billion in annual revenue. The survey, Talent pipeline draining growth: Connecting human capital to the growth agenda, found that “43 percent of respondents partially attributed the failure of their firms to achieve key financial targets to ineffective people management, while 40 percent said it had reduced their company’s ability to innovate.” Additionally, 40 percent of respondents believed that “while their firm had a lot of data regarding human capital, its usefulness was questionable and that they did not receive enough data-based insights or analysis to help their firm with human resource planning.” Employees are the single largest investment every company has to make, yet most companies have inadequate tools and metrics to accurately analyze and monitor their effect on the company. Current Human Resource Management Software is often outdated and incapable of giving employers the information they need to make better business decisions.
The Growth of Talent Management Software
Talent Management (TM) software helps companies with recruiting, retention, and employee development programs. According to research from Bersin, the TM software business grew 20 percent in 2012 and is expected to grow 22 percent in 2013. There has also been a surge in the use of social media for hiring and recruiting qualified individuals. LinkedIn and Facebook integration is key for many software companies, as it allows employers to screen their applicants in real time. It also serves to convey to potential employees the company’s brand: the culture, atmosphere, and philosophies of the company. Cloud-based TM software is also gaining traction, with companies like Success Factors leading the way and offering a robust and fully featured Human Capital Management (HCM) system that includes Software-as-a-Service (SaaS) based talent solutions, HR, recruiting, and workforce analytics. Cloud-based software are desirable because they are flexible, efficient, and fast to integrate/deploy. Additionally, they can be accessed from anywhere that has internet connectivity and from mobile devices.
The Promise of Talent Management Software
TM software offers companies crucial data so that they can better manage or acquire employees. This manifests itself in multiple ways, such as streamlining the application process, improving the candidate experience, or providing employee metrics so that companies can see which individuals perform better and put them in positions to better succeed. SilkRoad is another company that offers cloud-based social talent management solutions. Their software ensures that you hire the right people the first time by providing better screening and evaluation tools, as well as creating a work environment that allows employees to do meaningful work and to grow and learn (job satisfaction). Their software gives companies the “big data” and benchmarking data it needs to determine if any given individual is having a positive impact on the company. It increases employee return on investment and minimizes risk when dealing with human capital.
The Future of Talent Management
This is an exciting time for TM Software and HR personnel. Research conducted by Bersin showed that the average age of existing HR systems is around 7 years old. We’re long overdue for a change, and that change is occurring at this very moment. TM software providers that understand and leverage new technologies (such as cloud, social, and mobile) are the ones who will benefit. TM software and the integration of TM software to existing HR systems is the future of Human Resource Management (HRM). In particular, the leveraging of mobile technology will be paramount. Another important change that will occur is with the notion of talent management itself. Currently the responsibility of talent management falls solely on the shoulders of HR directors, but this will soon change. People are realizing that managing talent occurs at every level of the office hierarchy. Everyone in a leadership position (CFOs and CEOs included) has the responsibility to manage their subordinates. Instead of pushing that responsibility off to HR, managers and executives should be focused on fostering the personnel around them. In the coming years, we will see great strides and much-needed changes being made in the area of talent management. Embrace these changes as they will benefit everyone involved, from job applicants to businesses as a whole; talent management is the future of HR.
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