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Integrated Talent Management: Do You Have a Plan?

Plan Integrated Talent Management Software EvaluationThe integrated talent management market is exploding as leading organizations are responding to the need to manage talent effectively.

Consider some stats from the Bersin and Associates fifth annual Talent Management Systems and Providers Survey for 2013. Bersin’s definition of talent management software includes recruiting, performance and succession management, compensation management, and learning management. It does not include providers of content or data services.

  • The talent management software market grew by around 20% in 2012 and we expect 22% growth in 2013, reaching over $4 billion for this entire segment (this does not include the market for core HRMS and payroll software).
  • The Performance and Succession segment continues to grow the fastest (this is the newest and most rapidly changing part of the market), and we expect recruiting to pick up growth in the next year as new tools enter the market. “Companies are desperately implementing new goal and performance management tools”.
  • We are now well into the 7th year of the “integrated talent management” marketplace, so these products are becoming very integrated, with a new focus on mobile solutions, more social features, directory features, and new features for workforce management (time and attendance).
  • Thanks to market consolidation last year, Oracle, SAP, and SumTotal are revenue market share leaders by far, but fast-growing vendors like Halogen, SilkRoad, Kenexa, Lumesse, PageUp People, PeopleFluent, and Ultimate are growing faster than the market.
  • Our research does show that “talent management software does not create talent management,” by the way, so there is still a need for companies to continuously modernize and rethink the way they hire, train, manage, and engage people.

This last point is not a new theme, rather it has played out time and again in the HR systems world. Think ERP implementations that didn’t meet expectations. There is a tendency to think that a new system will fix all our problems, and these new “cloud based” solutions have lessened the implementation demand on technical IT resources.

The need for strategic planning, vendor selection, process integration and change management have never been greater. Before launching into a vendor selection process, you should make sure you know what you need and that you select a partner that can meet all your talent management needs

Implementing An Integrated Talent Management Capability

Following is a planning template for implementing an integrated a talent management capability.

HRMpact Integrated Talent Management Planning Template

1. Understand business requirements

  • What are the key business drivers for integrated talent management?
  • What talent management processes do your line manager consider most critical for meeting business objectives?

2. Assess current capabilities

  • Are your talent processes (hiring, on-boarding, performance, pay, development, succession) integrated or silo based?
  • What talent management applications do you currently have in place to support your talent management processes?
  • What is your current cost to deliver?
  • How satisfied are managers with current services?

3. Develop a plan

  • What are your user requirements?
  • What is the expected ROI on the investment in integrated talent management?
  • What is your timeline? (I suggest a 24 month roadmap with 6 month delivery cycles)

4. Phased implementation

  • Vendor selection process- select 3-5 potential vendors, define specific requirements and section criteria
  • Process integration –How will you need to change your processes to fit new platform?
  • Change management- Which processes do we implement first? How do we manage expectations and deliver results?

5. Assessment at the end of each cycle

  • What can we learn?
  • How can we improve?

I have used this template successfully, so I know it works for me, and it may work for you. But whether you use this template or another one, it is important that you have a plan and stick to it. There are a lot of vendors in the talent management space and each one has their strengths and weaknesses. Avoid buying the hottest application for one process (hiring or on-boarding for example), or buying the application with the best marketing pitch if it doesn’t meet all your needs.

Taking the time to plan out your evaluation, looking under the hood, and test driving before you buy will help ensure a successful transformation to an integrated talent management program.

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Media & Events

Webinar 11/7/12: How Integrated Talent Management Can Improve Your Return on People

In partnership with Halogen Software, Gary Kilzer, Managing Consultant of HRMpact, explores  Integrated Talent Management. More on the event