https://www.techtarget.com/searchhrsoftware/tip/5-best-talent-management-software-systems
The right talent management software can streamline tasks and save time. But as the talent management software market grows and AI continues its dominance, buying teams need to get savvier about which products should make their shortlist. They also need to understand some of the pros and cons of the leading vendors and systems before buying a new one or replacing their legacy software.
Before getting into specifics on the product choices, it's important to have a clear idea of what talent management is and how it gets automated in software.
Talent management spans an employee's entire lifecycle at a company and includes all the processes, guidelines, policies, tools and systems needed to attract, retain, develop, engage, reward and manage employees. It's typically carried out by the HR department with support from managers and company leaders.
Talent management is intended to meet the human capital needs of the enterprise by hiring people with the right skill sets, training them, evaluating their performance and compensating them appropriately.
The need to attract, reward and engage employees is critical -- but it isn't easy. Talent management software can help automate and simplify those processes.
Talent management software refers to the systems and applications that digitize the major stages and business processes of the employee lifecycle.
Many companies use several HR systems for talent management. For example, they might use a core HR system to track basic employee data, another system for performance management and a third for learning management. However, there are software suites that provide most, if not all, of the talent management functions in one system with a consistent look and feel. Talent management software often includes self-service options for employees and managers that enable them to look up information and make changes based on their permissions without requiring HR's assistance.
Talent management software features are usually categorized by modules, each of which handles a specific function. For example, a compensation module helps manage pay-related functions like raises and bonuses.
Another key software feature, AI, continues to grow in importance across the entire talent management system. Vendors are introducing new AI features that can simplify and automate some of the most important tasks. The initial push for AI was for use in recruiting, but it's gaining momentum in many other areas of talent management as well, such as performance management, learning and data analytics.
The current emphasis on skills-based hiring and employee evaluation could lead to vendors also incorporating skills tracking, development and reporting across their platform.
Here's an overview of each talent management system module. Standard functions are often similar across vendors.
Core HR, the administrative foundation of talent management, stores information about every employee in one database and provides comprehensive reports and dashboards on the data. It also typically offers the employee and manager self-service options. Some vendors include benefit administration in core HR.
Employee engagement provides employee surveys and tools for comparing employee satisfaction to that of peer organizations. It can include mechanisms for employees to recognize each other's achievements and receive awards. Some systems also incorporate employee communications into this module.
Recruiting includes a portal for candidates to apply for open positions and integrates with popular job boards and the core HR module. It also helps identify candidates already in the database who match new job postings.
Onboarding enables new hires to complete employment forms and digitally sign documents. It also gives new hires access to onboarding before and after their start date, and it enables HR staff to share additional information about the company with new hires, such as org charts and welcome videos.
Performance management provides employees and managers with a variety of ways to discuss performance and career plans, including one-on-ones and formal reviews. It also enables users to apply performance data to other functions, such as compensation management and succession planning.
Compensation helps managers determine salary increases, bonuses, stock options and grants. It incorporates performance data and external data, such as salary rates, for managers to refer to when deciding on salary increases.
Reporting and analytics combines data from different modules into one report if the system is all-in-one. It also provides the ability to create custom dashboards or use default dashboards, as well as configure reports and dashboards to automatically send to certain users. Companies using multiple systems can acquire a third-party data analytics package that amalgamates data into one system for more comprehensive analysis.
Learning and development enables users to establish a course curriculum, add content such as articles and videos, and incorporate content from third-party vendors. Tests and quizzes for students might also be available.
Succession planning helps identify employees who possess the skills and competencies for other positions, in part by incorporating performance-related data, and provides employees with career-planning tools.
Document management facilitates the sharing of corporate documents with employees and controls permissions for certain documents. This module usually includes capabilities for storing employee and e-signing documents.
Payroll is sometimes included in all-in-one systems, since HR and payroll work closely together. Also, payroll processes rely on HR data from recruiting, compensation planning and benefits administration.
The most critical aspects of a vendor evaluation are deciding whether the product meets the organization's requirements and identifying the features that make the product stand out from its competitors. Buying teams should also consider implementation and licensing costs.
When evaluating an all-in-one talent management system, the buying team should consider whether the platform enables users to work with data across different modules. For example, skills data might be valuable in various situations, such as rating employees in performance management, seeking internal candidates to fill open positions and auto-assigning development training to employees.
When evaluating vendors that are more specialized, the buying team should consider products' integration capabilities, since users will likely find it valuable to see related data in multiple systems. For example, it might be helpful to see performance management data in the compensation planning tool and then transfer employee compensation changes to the company's core HR module.
A plethora of talent management software products are available and can benefit companies in various ways. These 10, shown alphabetically, are among the top software products based on sources such as G2, Capterra, Gartner, Forbes, Software Advice and vendor websites, as well as the author's personal experience. The list includes both all-in-one talent management suites and standalone applications that focus on one aspect of talent management, such as compensation planning.
360Learning is a collaborative learning platform that employees can use to share their expertise with others. Features include a learning management system (LMS), a learning experience platform (LXP), tools focused on skill assessments and development, and the ability to create unique communities called Academies. The platform also includes AI tools that can help in situations such as course creation and content searching.
ADP focuses on payroll but also offers a full suite of modules that covers the employee lifecycle. The company offers different applications for organizations of different sizes and geographies. For example, RUN Powered by ADP might be a good fit for a small company, while bigger companies would likely use ADP Workforce Now. The pros and cons section below focuses on ADP Workforce Now.
Developed for SMBs, BambooHR offers many features to support the employee lifecycle and a UI that's intuitive for employees and the HR team. The system is easy to integrate with niche products that have prebuilt BambooHR interfaces.
Dayforce was designed for global companies that want payroll included in their HR systems. The system also includes the most common HR modules, including recruitment and core HR. In 2024, the company changed its name from Ceridian to Dayforce, the name of its HCM product.
HiBob, or Bob, is an all-in-one HR platform aimed at SMBs. The system offers the HR functionality usually present in a comprehensive HR system, including payroll and financial planning.
HRSoft's application enables users to automate performance management, compensation, pay equity and total reward statements. The overall focus of the software is compensation -- including making it easier to allocate pay increases and examine pay equity -- along with employee total rewards. Newer AI features include employee salary change recommendations and data cleaning.
Kudos is employee reward and recognition software. It also includes employee surveys and features for sharing photos and information. Companies can integrate the system with many common applications.
Lattice's software includes performance management, compensation, development and employee engagement. The system has new AI features, such as the ability to summarize data from one-on-one meetings.
SAP SuccessFactors HXM is a suite that offers all the functionality needed for talent management under the umbrella of human experience management (HXM). The software is targeted at large organizations. It's configurable and has a consistent look and feel across the platform.
Like SAP, Workday is one of the biggest vendors in the HR software market. Workday offers a comprehensive and configurable SaaS talent management system for U.S. and international users.
Although no system will fully remove the complexity of talent management, taking the right approach to choosing software can help HR create a positive candidate and employee experience.
Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.
30 Jan 2026