Negotiating the minefield of Talent Management Systems

The world of HR systems has become more complex in recent years as organisations continue to invest in various technologies; with Applicant Tracking Systems (ATS), people data management systems, Learning Management Systems (LMS) and Talent Management Systems (TMS) all supporting the measurement of people data within organisations. Of the three, the Talent Management Systems market is one of the fastest growing segments of HR systems and it is anticipate that the talent management software market will continue to increase at a significant annual rate over the next 5 years.

Multiple factors have contributed to this:

• More and more companies are using Talent Management Systems to attract and acquire the very best candidates, as well as retain existing talent while identifying future leaders. This enables them to ensure they are getting the best out of their talent while ensuring the organisation is as cost effective and productive as possible.
• We have seen a shift from on premise to cloud based talent management software. By doing so companies are benefiting from cost savings – you pay for what you need, as well as a reduced time to benefit ratios. The software application is already installed and configured, as well as being accessible via familiar web browsers and cloud apps often resulting in lower learning curves and higher adoption rates.
• The talent management systems contribute to engaging employees and making them feel valued.

As we all know, it’s often difficult for companies, and specifically HR to keep track of their employee’s career goals or training needs. This can lead to employees feeling undervalued and not recognised for their efforts which often results in employees resigning and businesses being forced to spend time and money to recruit and train new employees. Utilising a Talent Management System allows HR to track an employee’s career from the beginning, while gaining real insight into the extremely valuable workforce data captured throughout the employee lifecycle, thus increasing employee retention by documenting goals and rewarding success.

Competition in the systems market place is high with multiple firms offering various “solutions”. However, the market is dominated by just a few major players such as Oracle, SAP, Cornerstone On Demand, Workday and Lumesse (who have recently announced the launch of ETWeb empower - their Next Generation Talent Management Suite) who make up 60% or more of the market and are continuing to grow their share.

Most of the systems broadly offer the same analytics, which makes it challenging for organisations to select the system that best suits their needs, but suppliers have different strengths and focus areas, so this needs to be taken into account when HR leaders start the decision process.

Some vendors focus more on performance management, while others tend to focus more broadly on learning and development management, performance management and compensation management. When choosing the right system it is essential that a business has a clear understanding of what they are trying to achieve and have a clear strategy and processes in place to deliver this.

Many times the successful implementation of a system can fail and this tends to be down to the following reasons:

• Lack of clarity about what the business needs leads to implementing a system that does not deal with the issues of major importance to the business.
• Poor processes that do not work for the business means that the software cannot efficiently deliver the results expected.
• Perhaps the most important is the lack of buy-in from employees and poor deployment of the new system that can mean limited adoption of the software by end users, or incorrect usage leading to the system not being fit for purpose

In summary, overall the benefits of using talent management systems can definitely contribute to the overall effectiveness within an organisation leading to reduced administration, duplication of efforts and a self-empowered workforce.

This success can only happen however if the front end rationale for the system is clear and communicated effectively to the organisation. Successful deployment is also key and those firms that invest in headcount to effectively manage this are more likely to have successful data that they can use effectively at the end.

If you are looking for support implementing your talent management systems get in touch – [email protected] or visit our website www.mcgregor-boyall.com