Human capital is an essential part of any business. Businesses must be able adapt to changing market conditions and invest in its proper management, development, and preservation. As such, many companies today use human resource information systems (HRIS), which are simple databases that store basic information as well as employee records. HRIS could not meet the needs of successful human resource management. Thanks to rapid technological advancements, talent management systems were created to allow companies to not only store basic information about their employees but also to perform complex HR functions efficiently and effectively.
As the article mentions, talent management systems typically consist of four modules. They are also known as “pillars”, which are recruitment, corporatelearning and performance management. While vendors offer all four modules as one complete solution, companies are less likely to purchase them because it is expensive. So they usually purchase one module at the time to manage their cashflow and evaluate the system’s ability. Once the module has been proven to be able to meet their requirements, they might decide to buy another module. This is to ensure that the system meets the company’s needs and to assess its capabilities. HR department relies on traditional job search engines like Jobstreet and LinkedIn to find the right candidate. Head hunters are also used in order to assist them. HR department should ensure that the job is filled by the right person. This is an essential function and HR department should have reliable tools or systems to help them perform their duties efficiently and effectively. HR department will be able perform their tasks more efficiently and effectively by using the recruitment management program. The system automates and simplifies the process of job opening, hiring new staff, and assessing and selecting the right candidate.
The second pillar, corporate learning, is not just about recruitment. They need to make sure that newly hired staff have ongoing opportunities for learning and development. They have to determine what each staff member needs. A seminar or training program is not suitable for all employees because they have different jobs and levels. Corporate learning is open to new ways of developing employees. Trainings/learnings do not have to be restricted to the four corners. They will usually find the best seminar or training for each individual. They must keep track of every employee’s career accomplishments and learning paths. Learning management system is a tool that HR departments can use to track the staff’s career development. It can also be used by department heads (e.g. Finance Department will be able to plan their workforce to temporarily substitute someone who is currently enrolled in certain training/seminars. If they have to promote people internally, the learning management system may be beneficial. They can easily evaluate potential employees by reviewing the training and seminars they have attended. They will be able to compare competing personnel in a matter of hours, rather than spending days or months comparing them manually. It is vital to foster and expand each employee’s potential and capabilities through corporate learning.
Performance management follows corporate education. The annual performance evaluation is still the standard way for assessing employee performance. This assessment allows for the manager to meet with the employee and have a one on one discussion on the performance of the previous year. This includes setting goals and identifying tools to help employees achieve these goals. Companies are becoming more frequent in reviewing employees. This is to help identify areas that need coaching. The best way to reward employees for their hard work, dedication, excellence, and commitment is performance management. It also allows the heads to openly encourage and support employees that are not performing to their potential. They will be able to think of new and innovative ways to motivate and inspire their employees.
The final pillar is called “Compensation Management”. Many companies prefer Microsoft Excel for handling compensation calculations. To automate complicated tasks, however, many companies use Microsoft Excel. It will allow users retrieve data and perform computations as required. An organization can attract the best talent by managing their compensation. Top talent won’t leave if they get what they deserve or more. He/she will stay if the pay is fair for his/her experience and if he/she gets rewarded for contributing to the company’s growth.
The other option is to purchase a talent management package that includes all of the above pillars. Although this may seem appealing to companies with the resources and capacity to buy it, companies still need to evaluate, test and raise all relevant questions to make a sound decision about whether they want to invest in a complete talent management suite or just one pillar.
