October 29, 2024 — Peoplebox

54% of HR technology leaders expect their budgets to increase in 2025, with the rising need to use GenAI in HR. If you’re not using AI in any way in the HR function, you’re spending way more time and effort than you should, and you need to update or change your Talent Management System. Choosing the right HR tech stack, especially the TMS is extremely important now – not just for being desirable to potential candidates but for survival itself. You need a tool that delivers on its promise, gives you a smooth ride through implementation, and ensures you get the most value out of the hefty investment you make. This detailed guide will break down all the steps you need to take to get there and ensure you get a positive ROI from your Talent Management System. Importance of an Integrated Talent Management System (TMS) Gartner's research shows that bad HR tech experiences hurt confidence in tech-driven change. This, in turn, affects overall organizational change. Moreover, 50% of HR professionals damage HR's reputation. Thus, choosing the right HR tech is crucial. On average, companies use 211 tools for support functions. Imagine the chaos if these tools don't integrate. Most companies have multiple HR tools. However, a single talent management system can cut manual work by over 50%. HR is a function that’s constantly bombarded with requests for data, to make business and people decisions. However, the capacity of the HR function to deliver all these requests is slowly decreasing, due to the mounting overload. Having an integrated talent management system that serves as the single source of truth. It can be the single data vault for your entire people function can be incredibly time-saving and labor-efficient. Cost-wise too, having one master tool to handle A-Z of HR, right from sourcing to recruitment, onboarding, goal setting, employee engagement, performance management, surveys, exit, and payroll is significantly going to be less expensive as licenses, and implementation costs as well. With the right automation, unnecessary paperwork and delays can be avoided. The system takes care of most tasks, making the team more accountable. Gartner studies say that 96% of HR professionals receive more requests for HR technology services. Every action is recorded in the system, ensuring transparency and easy error correction. This is especially useful during busy periods like recruitment. Having all the data in one place makes decision-making easier. There's no need to gather reports from different tools. Searching for a tool that can help you with Performance Management, Surveys, 1:1 reviews and more? Look no further! Peoplebox is a unified platform designed for performance management, OKR reviews, and 1:1s, enabling seamless goal tracking and feedback across teams. With customizable dashboards, it supports continuous performance reviews and fosters accountability through data-driven 1:1 conversations.It integrates with existing tools like Slack and Jira to automate progress tracking and provide real-time insights, reducing manual updates. Book a demo with Peoplebox today and transform your HR experience! Also Read: Strategic Talent Management: Definition, Implementation, and Best Practices How Can You Benefit By Implementing a Talent Management System? Did you know?“Until a few years ago, until they modernized the HR tech, Unilever used to have 8 different call centers for employee problems, in which 20% of the calls were misdirected, leading to long resolution times.” - Josh Brosin, Global Industry Analyst As the above example highlights, without an integrated talent management system to take care of all aspects of employee experience, your team will constantly be swamped with manual work that can be completely eliminated if all your functions are operated on one tool. Let’s look at some other benefits of implementing a talent management system for your organization: ✅Talent management systems help you cherry-pick the best of the best candidates from a maze of resumes (of varying formats) collected through an array of mediums, for thousands of positions and designations, in any time period. In a matter of seconds, you can retrieve the best resumes for any search keyword, assign scores, and keep track of conversations you had with the candidates before, their responses, any calls that happened, and interviewer notes. Similarly, when you connect all possible sources your potential candidates might be into the talent management system, whenever anyone applies through any channel, their application trickles down and reaches your TMS recruitment module, for you to move them to the next step automatically. ✅Instead of switching between the recruitment tool, email, Slack, and onboarding module in your HRMS, wipe out all of these tools and replace one TMS where the entire HR team can view each candidate in each stage, status of document submitted, pre-joining formalities, and pre-joining emails scheduled to keep them engaged, connection to the IT and admin team to get work laptop and ID card delivered before the joining date, and gradually move them to onboarding, so clear accountability is established. ✅Performance conversations happen all year long, especially in fast-growing organizations. There’s a huge need to keep track of every action item and area of improvement to see if there’s any work done to improve those areas. TMS offers tools for setting goals, tracking performance, and providing ongoing feedback. These systems facilitate real-time performance reviews, coaching, and development plans, helping employees stay engaged and aligned with organizational objectives. The system also identifies high performers and offers career pathing opportunities, leading to better retention. ✅Integrating talent management systems into one platform gives you a competitive advantage – comprehensive data analytics that empowers HR leaders to make informed, proactive decisions. By analyzing workforce data, you can accurately predict future talent needs, identify skill gaps, and build succession plans. This ensures a steady pipeline of talent ready to step into key roles as business needs evolve. The insights derived from TMS data help HR teams align their talent strategies with broader organizational goals, guaranteeing the right people are placed in the right roles at the optimal time. Did you know you can use AI to unify employees' data and converts it into actionable insights?Yes you read that right! Peoplebox's AI powered People Analytics Software can help you bring data from various HR and business systems at one place. It can also provide you with a single source of truth so that you can align teams, make right decisions on time, and drive outstanding business results. Build a culture of data-driven decision-making in your organization with secured people analytics software. Book your demo with Peoplebox today and witness the magic of AI! ✅The major difference between small organizations and enterprises is how closely-knit small companies are, and how easy it is for people to get their hands on the data they need instantly. You can bring this quickness to enterprises too, by making the best of employee self-service and truly giving them autonomy, instead of having employees rely on a team member for even basic information. Self-service portals put control in the hands of employees, enabling them to take charge of their own learning, development, and career progression. These systems provide visibility into potential career paths within the organization, fostering a sense of purpose and direction. Continuous feedback loops enable two-way communication between employees and management, creating a more engaged and motivated workforce. That’s why talent management systems make way for a better connected, and more fulfilling employee experience. Features to Look For Talent Management Systems at this point have to do three things for your business. They are: Building novel capabilities so that the systems keep up with the changing needs of HR. The ability for team members to drag and drop and do basic customization without relying on external developers is amazing. Incorporating AI for future forecasting is a desirable capability to have. Tailoring solutions to organizational context, and changing needs without treating customization as another implementation project. Empowering managers with HR solutions that become part of work tools, and are accessible at all levels. Hanne Nieberg, Director Analyst at Gartner says, “CHROs need to ruthlessly prioritize investments that support business growth and talent retention while pausing or stopping funding for low ROI activities.” Stage of Employee LifecycleFeatures Essential For the StageRecruitment and Applicant Tracking System (ATS)1. Scanning job boards, social media, and internal databases to find the best candidates2. Filters out unsuitable candidates based on predefined criteria3. Schedule interviews by creating and sharing hiring managers' links with candidates for easy booking.4. Advanced CRM to track candidate interactions to enhance engagement and build talent pipelinesFeedback and Goal-setting System1. Real-time, ongoing feedback between managers and employees2. Customizable goal-setting templates to help set goals for all departments and designations3. Visual insights into progress on goals, enabling transparent performance reviews and development trackingLearning Management System (LMS)1. Personalized learning paths to help all kinds of learners process learn at their own pace and style2. Access to both internal and external training resources to make the best use of existing expertise3. Gamified learning modules, leaderboards, and peer collaborationLeadership and Career Development1. Identify potential leaders based on critical incident diaries, performance scores, and feedback mechanisms2. Competency and skill gap analysis3. Outlines potential career trajectories within the organizationWorkforce Planning1. Tracks employee competencies, availability, and readiness for new roles2. Scenario planning tools to model different workforce scenarios3. Internal skill inventory and development mapping4. Advanced turnover and retention analysisEmployee Engagement and Surveys1. Long surveys and quick pulse checks2. Real-time sentiment analysis3. Translates survey data into actionable reports Step-by-Step Guide to Choosing the Right Talent Management System Josh Bersin, Global Industry Analyst says, “Successful HCM implementations were focused on employee experience first, technology and data second. They did a careful analysis of user experience, tool’s flexibility, the ability to design and customize it based on user needs.” Step 1: Assess Your Organization’s Needs Did you know? IBM’s CHRO Nickle LaMoreaux says the initial AI rollout to employees in 2018 didn’t work. The technology was there, the tool was there, but the behavior wasn’t there’, she remarks. The HR Department’s employee CSAT score dipped to -35. She says the HR team hadn’t thought about the experience from the employees’ POV and that was the reason for the low score. They started listening to what employees wanted and found employees wanted a personalized response to their policy-related questions. They introduced a chatbot after the survey and saw a drastic improvement in adoption. Their CSAT score also rose to +80s, showing how much employees loved it. Depending on the nature of the industry you're in, the kind of people who work with you, their skill level, and the goals you want to be able to achieve through the HR function, your talent management system needs to differ. These aren't the only requirements you need to look into. Take stock of the systems you have in place, what aspects of the system are working for you, what don't, and what is a huge pain right now that immediately needs to be fixed, to prevent employees from being disgruntled. How to decide if your team needs a comprehensive suite or point solutions? When to Choose comprehensive talent management systems When to Choose talent management system point solutions Your legacy tool is constantly crashingYou have a fairly modern tech foundationThe tool doesn’t support important integrationsHave a strong IT team and a tech-savvy HR teamSmall IT team and an HR team with minimal technical know-howSome tech tools are already on the cloudCannot scaleCan scale with some effort Step 2: Identifying Top TMS Providers Set aside some time to identify top talent management system providers for your industry, and the ones your competition is using. A TMS meant for a shipping company may not work for a software company, unless and until it’s completely customizable. Investigate how the customer support function of the TMS provider works, and the extent of modules they provide – do they cover the entire employee lifecycle or only to a certain extent? Make a list of at least 10 TMS providers and as you do your research, sit for demos for at least 3-5 tools, so that you understand what the market standards are right now, what extraordinary features each TMS holds and what level of customization is possible with it. Step 3: Evaluate System Capabilities and Vendor Support There are three core areas to cover in this step. Start with the product due diligence. Is the product feature-rich? Is it capable of doing what you need – assess the features right from taking RFP, demo, prototype testing, and user testing? To get it right, involve core team members from the management team. Include them in the product vetting stage, so you need to be looking at product roadmaps, and capabilities and asking for help. Assess what the turnaround time is for customer support. Do they offer asynchronous support? Do they have a 24/7 and multichannel support system? If you need custom requests, what is the timeline they quote, depending on the difficulty of the request? Do they have dedicated account managers who meet with you once a month or a quarter to take note of your experience and solve any problems you have? How long is their hypercare period after implementation? Do they support your change management process (transition to the new tool from the old one), or do you have to hire someone externally? What is their approach to implementation? Do they have workshops to straighten out and streamline the HR process before freezing them? Do they stop giving you the product, or do they go above and beyond and service you after? Check all these by carefully considering ratings and reviews, and talking to people who have used the tools you’re evaluating. You need as much support as possible from the vendor to make any type of digital transformation possible, more so, Step 4: Consider the Total Cost of Ownership It's crucial to evaluate the Total Cost of Ownership (TCO) beyond just the upfront price. While the initial investment may include licensing fees or subscription costs, several other factors can significantly impact the overall cost. Factor in the time and resources needed for system setup, data migration, and integration with existing HR systems. Implementation services may also require external consultants or specialized internal staff, adding to the total expense. Many TMS platforms offer customization to suit specific business needs, but these custom features often come with additional costs. Consider whether the platform offers out-of-the-box functionality that fits your organization or if significant customization will be needed. SaaS-based TMS platforms often include updates in the subscription fee, but if you're opting for on-premise solutions, ongoing maintenance, security patches, and upgrades could become costly. Understanding the cost structure for long-term system maintenance is key to avoiding unexpected expenses. As your organization grows, so will your need for additional features, modules, or user licenses. Consider how scalable the platform is and what it will cost to add new users, locations, or integrations in the future. Step 5: Prioritize User Experience and Adoption Marcus Buckingham, Researcher and Founder of the Strengths Revolution says, “Employees want 5 different experiences from the HR function. Make technology systems, programs, and solutions that make people feel this way and your employee experience will improve significantly.” Experience Employee WantsHow TMS can HelpBasic needs to be metEasily accessible data, company policies, and all resources to help understand benefits, privileges, and rightsFeeling safe and cared forUser-friendly interface, quick issue resolution, consistent impromptu surveys, and employee listening toolsFeeling valuedQuick turnaround on custom requests, insights to address pain points revealed in surveysPaving the growth pathVisibility to internal talent marketplace, guidance to grow, learning, and development made easy, performance reviews made transparent and reliableDeep trustCustomized well-being initiatives, and predictive analysis to proactively solve problems Step 6: Assess Data Security and Compliance HR teams handle sensitive employee data such as personal information, payroll details, performance records, and more, making it essential that the chosen TMS provides robust security measures. First, ensure the system adheres to industry-standard security protocols, such as data encryption, multi-factor authentication, and secure user access controls. This protects against unauthorized access and potential data breaches. The system should also provide regular security updates to safeguard against evolving cyber threats. Next, consider compliance with relevant data protection laws, such as GDPR or CCPA, depending on the regions where your organization operates. The TMS should include built-in features to facilitate compliance, such as data anonymization, employee consent management, and audit trails. Finally, inquire about the provider’s data backup and recovery policies. A strong disaster recovery plan ensures that critical employee data is protected in case of an unexpected outage or cyberattack. By thoroughly assessing these factors, you can choose a TMS that not only optimizes talent management but also keeps your organization’s data safe and compliant. Step 7: Integration Capabilities The Talent Management System you choose has to integrate with your existing systems, content, capability models, recruiting applications, employee engagement survey tools, payroll tools, etc. The TMS you choose needs to be able to handle the downtime of the other tools you have, meet server requirements, and have the bandwidth to handle traffic from other tools. Most tools have a common set of tools that integrate with theirs, so there’s an ecosystem built based on frequently requested integrations. Check with the TMS providers if they’ll be able to integrate your unique combination of tools with theirs. Verify the downtime and uptime of your TMS options to avoid disrupting daily operations. If you opt for middleware to connect different systems, ensure the middleware's downtime is factored in. Additionally, if your organization operates primarily in specific countries, prioritize tools with servers and datasets located within those regions. Be sure to confirm where the TMS provider's servers are hosted, and whether they are owned or outsourced. Step 8: Make a Decision and Implement After evaluating, choose the best Talent Management System (TMS) for your organization. Consider functionality, cost, integration ease, and growth potential. Involve IT, HR, and finance teams in the decision. Then, create a detailed plan. This should cover data migration, system integration, and training. Start with a pilot test in select departments. This helps identify issues before a full rollout. Monitor performance and gather feedback for improvements. Suggested Read: 20 Best Talent Management Software in 2024 Conclusion Once you’ve picked out the TMS and it’s fully operational, continuously review its impact on HR functions like recruitment, employee development, and retention. By doing so, you can adjust and enhance the system’s use over time to maximize its long-term value and ensure it continues to meet the needs of your organization. Peoplebox is a powerful talent management software designed to help you unlock the full potential of your teams. With features like OKR alignment, continuous feedback, and real-time performance insights, you can easily track progress and support employee growth. Plus, with seamless integrations into tools like Slack and Jira, you can manage talent more efficiently and keep your teams engaged and motivated, all from one place. Ready to transform how you manage talent? Book a demo with us right now ! Frequently Asked Questions What is the talent management system? A talent management system (TMS) is software that helps organizations attract, develop, retain, and manage employees effectively. It includes features like recruitment, onboarding, performance management, learning & development, and succession planning to optimize workforce potential. How does a talent management system work? A TMS works by automating HR processes like hiring, training, and performance tracking. It integrates recruitment, employee engagement, career development, and succession planning to ensure businesses can identify, develop, and retain top talent. Many systems use analytics to optimize workforce planning. What are the 5 steps of talent management? The five key steps of talent management are: (1) Attracting talent – Recruiting skilled employees, (2) Developing talent – Training and skill-building, (3) Retaining talent – Employee engagement and motivation, (4) Performance management – Regular feedback and evaluation, and (5) Succession planning – Preparing employees for future leadership roles. What are the three basic principles of talent management? The three basic principles of talent management are: (1) Alignment with business goals – Ensuring talent strategies support organizational objectives, (2) Employee development – Providing continuous learning and career growth, and (3) Retention and engagement – Creating a positive work culture to retain top talent. What is a talent management framework? A talent management framework is a structured approach to attracting, developing, and retaining employees. It includes recruitment, learning & development, performance management, succession planning, and workforce analytics to ensure businesses have the right talent for long-term success.

Day: October 29, 2024

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