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, 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, tools and systems needed to attract, retain, develop, engage and manage employees. It's typically carried out by the HR department with support from managers.
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 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 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 make certain changes and add information without 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, has rapidly grown in importance. 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 succession planning.
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 on the data. It also typically provides 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 also includes mechanisms for employees to recognize each other's achievements and receive awards.
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 enables HR staff to share additional information about the company with new hires, such as org charts and welcome videos.
Performance management enables users to apply performance data to other functions, such as compensation management and succession planning, and provides employees and managers a variety of options for discussing performance and career plans. It also supports customized employee feedback.
Compensation helps managers determine salary increases, bonuses, stock options and grants. It provides performance data for determining compensation and helps managers consider external data, such as salary rates, 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.
Learning and development enables users to establish a course curriculum, add content such as articles and videos and incorporate content from third-party vendors.
Succession planning helps identify employees who have 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.
The most critical aspect of a vendor evaluation is identifying the features that make the product stand out from its competitors and deciding whether the product meets the organization's requirements. Buying teams should also consider implementation and licensing costs.
When evaluating an all-in-one talent management package, 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, looking for 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 integration capabilities, since users will likely find it valuable to exchange data between systems. For example, users might like the ability to push performance management data to the compensation planning tool, 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 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) and learning experience platform (LXP), as well as the ability to create communities and AI tools that help employees find the content most relevant to them.
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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.
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Cons
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.
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ClearCompany's software can help companies with recruiting, onboarding, employee engagement and performance management. The system also includes a reporting and analytics tool so HR staff and company leaders can track the progress of their respective processes.
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HRSoft's software 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 -- and employee total rewards.
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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.
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Lattice's software includes performance management, compensation, development and employee engagement. The vendor is also in the process of developing an HRIS that will integrate each module's data, eliminating the need for a third-party HRIS.
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Salary.com's software focuses on total compensation, including salary surveys and associated data, pay equity features, job description management and tools for determining the pay for particular jobs. Salary.com acquired the compensation planning company CompXL to further round out its offering.
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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.
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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.
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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.
Editor's note: This article was updated in January 2025.
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.
08 Jan 2025