6 Reasons Why Talent Management Systems are Crucial to Your Business

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6 Reasons Why Talent Management Systems are Crucial to Your Business

The business climate today is more competitive than ever; as a result, HR has experienced a role shift from providing administrative support to strategically managing the greatest assets of any organization: the people. Research from various business fields indicate the most rapidly growing part of the market of human capital management is talent management. As a result, companies have begun to deploy systems for talent management at rates higher than ever before. This article describes why companies are doing so and what it means for you. Additionally, the article explores the factors behind growth in deployment of talent management systems.

The first reason why talent management systems are so popular is because boards in businesses are looking for talent and succession plans as well as workforce analytics. These two areas are extremely strategic and integral to company and corporate success, which is why talent management applications are in high demand. No matter the size of the organization, it is necessary to have succession planning at all levels of the company. If you cannot manage the talent pool of your company, it is as severe as being incapable of managing your supply chain, which spells disaster for your business and future profits. The second reason involves the need to catch and hold on to top talents in the field. Employers have become increasingly concerned in recent years about a shortage of workers who are both skilled and talented. It is estimated that in the United States alone, there will be at least 3.3 million fewer skilled workers than are needed to fulfill valuable roles. For example, 50 percent of the workforce in the United States government is already capable of retiring; there is a much smaller pool of skilled workers who are immediately in line to succeed these experienced retiring workers.

 

The third reason is because new strategies are required to keep the current changing workforce fully engaged. If modern corporate cultures are to stay current, they will need to figure out how to manage a fully new generation of workers, also known as millenials. To do so, generation y workplace priorities must be integrated into corporate settings. Millenials are interested in 360 degree feedback that occurs in real time; they also have a desire to quickly advance in their work positions. These considerations are important for businesses that are interested in planning for succession and managing talent.

The fourth reason why talent management systems are so popular is because businesses are looking to HR to play increasingly strategic roles in business optimization and employee service. Today, HR is located right in the middle of a competitive business environment, where companies are willing to fight tooth and nail to take advantage of the ultimate resource in the workforce: talented employees. It has long been thought in some circles that HR would advance to being considered a strategic and essential function, and it appears that that day has come in business environments everywhere in the United States. Companies prize human capital because it is a treasured and essential asset.

The fifth reason is related to HR, and it is that HR is desperately in need of processes for talent management that are automated. Such systems are increasingly being moved online, because the online environment is not only more efficient, it carries with it less bureaucracy. As a result, businesses that are to survive in today's ultra competitive environment will need to look into methods that are driven by data and facts rather than by nepotism and hearsay in order to reward, pay, and even hire skilled and top performers in their fields.

The sixth reason involves the return on investment from talent management systems as well as from employee performance in business settings. When talent management functions are automated, payback can occur rapidly in all areas of the business involved. Organizations that put in the work needed to fully automate their efforts for succession planning are rewarded with performance increases significantly greater than those experienced by companies that do not put in the requisite legwork. No matter the size of the company, whether it is large or small, if it invests in practices related to talent management, the company will be more likely to pull ahead of peers in its industry.