Talent management (talent management)

Term talent management

Talent management (engl. talent management) — set of management tools personnel which give the chance of the organization to attract, to effectively use and reproduce qualities of employees which allow them to contribute significantly to organization development.

The term talent management which appeared in the 1990s contains the activity in the field of personnel management directed to employee involvement in the innovation process, formation of creative incentives and development of creative potential of employees. This term was thought up by David Watkins from Softscape, for the first time using it in article published in 1998 and further developed it in the book "Management Systems for Talents" in 2004, however communication between human resources development and organizational effectiveness was recognized in the 1970th years.

In the late nineties the international consulting company McKinsey published the report "War for talents" which became a subject of discussion at corporate meetings. Directors of the largest companies, such as General Electric, Procter & Gamble thought of that as their companies work with talents. In the late nineties stocks and options became the main instrument of encouragement of employees instead of money. In many technology advanced companies, such as Microsoft and Cisco Systems there was a great number of employees of millionaires and disputes on that how to hold in the company of financially independent young employees began.

Management systems for talents (TMS)

The management system for talents (talent management system, TMS) is the integrated software product which provides the automated tools for solving of tasks in four key areas: recruitment, performance management, training and development and also formation of compensations.

Whereas traditional HRM and ERP systems are focused mainly on transaction processes and administration of basic human resources and such opportunities as payroll, management of working time and others include, the TMS systems are intended for achievement of long-term goals of the companies by means of a human capital. The TMS system at the same time can be used as it is autonomous, and in set with other products.

Usually functional modules TMS of systems are among:

• Performance management of personnel
• Management of achievement of goals
• Management of compensations
• Acquisition talents/recruiting
• Training management
• Career management
• Planning of success

Bersin, 2009

The role of instruments of acquisition of talents and performance management, according to Bersin, grows in comparison with management tools training, apparently on the chart given above. One more important trend in the market of TMS systems – growth of number of offers on the SaaS model.

For 2011-2012 most large vendors of HRM systems made acquisitions of the TMS systems so at the moment TMS are offered by them as the accompanying solutions for the main platforms of personnel management. Besides, the majority of TMS systems assume close integration with the main popular HRM systems.

World market of TMS systems

In more detail about segments of TMS: Suppliers of HRM systems: leaders in different segments

2013

In 2013 the attention of research companies was paid is chained to a talent management segment. At the same time Gartner, IDC and Forrester Research subjected this narrow market to in-depth examination and having even received similar outputs. So, unconditional market leaders of solutions for talent management called SuccessFactors, Cornerstone OnDemand and also Oracle Talent Management Cloud (in two researches from three).

Leaders of a segment of talent management

Forrester Research, 2013

Leaders of a segment of talent management

IDC, 2013

Magic square of Gartner for management systems for talents

Gartner, 2013

So, according to^[1], treats leaders also the solution of SumTotal Systems, Saba Software has also rather strong positions. Strong positions also at SilkRoad, Halogen Software, Kenexa and ADP.

^[2] in addition to above listed carried to strong players as well Infor and Peoplefluent, and and solutions proposed by it in this area called Technomedia company perspective.

As for a magic square of Gartner for 2013^[3], is listed much more solutions, including SAP ERP and other solutions of Oracle here.

As specialists of Gartner note, as of 2013 any vendor was not strong in one and all components of talent management, on the contrary, the majority of solutions, as a rule, had only one strength. At the same time most the organizations begin control automation with talents with work on efficiency of employees (performance management, 50%), another 30% begin with recruitment and 10% - with automation of corporate training.

It is interesting also that most of respondents of Gartner claim that they did not integrate a management system for talents with the main HRM system. Mobile and social tools though are used, but large-scale projects in this area still remain a big rarity.

2011-2012

The talent management systems are intended for HR services and allow to optimize process of hiring of personnel, management of its efficiency, distributions of compensations, development of skills of employees. According to the research Bersin & Associates Talent Management Systems 2013^[4] for the end of 2012, the number of projects in violently emerging market of the talent management systems in 2012 had to grow by 22%, and their aggregate value will approach $4 billion. In 2011 growth of the talent management market in terms of money was 12%.

Two-three years ago often when choosing automated systems of talent management of the company made the choice not for benefit of large HRM platforms, and for benefit of independent best of breed of products. However, in recent years the picture of the market began to change as mega-vendors began to work strenuously on development of the corresponding functionality of own platforms for what often resorted to purchase of already ready-made products of third-party developers.

So, for example, Oracle in 2012 purchased Taleo company for $1.9 billion, this event used to be purchased soon after the SAP solution of SuccessFactors, the close competitor of Taleo, for $3.4 billion. In August, 2012 the transaction on purchase of vendor of Kenexa by IBM corporation was closed behind $1.3 billion. And earlier in 2011 Infor purchased Lawson Software for $2 billion, and the main competence Lawson is concentrated in the field of personnel management systems. All listed above acquired companies have wide experience in creation of management systems for talents.

Nevertheless, analysts of Bersin note, still the market of solutions of talent management remains rather fragmented, and it despite high M&A activity of the companies in this market.

Shares of vendors in the world market of talent management

Bersin,2013

According to Bersin for 2012, about a half of the talent management market was the share of other vendors, a little more than 25% - of SAP solutions and Oracle in total, another slightly less than 25% were divided between SumTotal, Infor, Saba, Comerstone (see the chart).

Positions of vendors in the world market of talent management

IDC, 2012

According to IDC IDC MarketScape Shows Worldwide Integrated Talent Management Market Was Dominated by High Profile Acquisitions in 2012, Emerges as Hottest Submarket in HCM^[5] for 2012, in the market of TMS systems the following companies were in the lead: Cornerstone, Taleo, SuccessFactors, Oracle, Halogen Software, Lawson Software. Saba Software, SumTotal Systems,SilkRoad, ADP, Kenexa, SAP, Peoplefluent,Lumesse belonged to the category of large players.

Experts of IDC at the same time note that in 2012 the segment of TMS systems came under powerful influence of consolidation: M&A the activity of vendors was so high here that the segment became "hottest" in the world market of HRM systems. Even more often users at the same time selected the solutions TMS offering integration into the main platform of personnel management.

Russian realities

The Russian companies even more often show interest in management systems for talents more actively, certified TAdviser the majority among the polled system integrators. However, so far implementation and use of such solutions remains destiny of large business which not only has funds for development of additional opportunities of HRM, but also there is a powerful platform of personnel management covering basic processes without which the superstructure in the form of talent management just does not work.

Nevertheless, system integrators note that for the last three years demand for process automation of talent management grew many times and continues to grow. The proposal of qualified personnel and especially managers promptly lags behind demand growing together with the market. Complex approach on talent management is interesting first of all to large holding structures in which there is an opportunity to construct career ladders and the full-fledged system of corporate training.

However, and for small and medium business there are interesting solutions, including in the field of automation. Become very popular the cloud services (for example Oracle Taleo SAP SuccessFactors) allowing the companies to use all power of modern solutions on talent management without implementation of heavy complex IT solution.

Talent management is one of a common ground in HR of policy of the Russian and foreign companies. Many Russian companies intend to review the strategy of management of personnel potential, at the same time the increasing use including not financial forms of remuneration for motivation of talented employees will be the main change.

In the field of talent management are most deeply worked for the western vendors, such as Oracle and SAP, the solution. In the Russian market, for example, the whole line of the systems from SAP automating performance management of personnel, training, personnel recruitment and other areas is available. The central place in a line is taken by SAP ERP HCM Talent Management. Oracle also has a solution within Oracle HCM.

Domestic developers HRM also support "a hot trend", including management tools by talents in the systems. For example, system "Monolith: The personnel" contain modules of assessment of activity of staff of the company, preparation of a talent pool, individual development plans. Project of this sort was implemented based on "the Monolith: Personnel" for Baltika brewery.

In the same row - implementation of control functions by talents in JSC Saratov Refinery which enters into group of TNK-BP company. At this enterprise it is implemented and successfully a system on search, development and personnel training based on SAP HCM functions. Also, as the platform for effective management of the personnel in JSC Tatneft selected the SAP solution Talent Vizualisation by NAKISA. The United Metallurgical Company (UMC) automated practically everything from above-mentioned processes. Especially it would be desirable to note use of the SAP solution Talent & Succession Management by it for automation of work with a talent pool.

The IBS company proposes a number of the standard automated solutions in the field of talent management, such as: recruiting, corporate training, management of career and succession, to performance management of personnel. Examples of the IBS projects: automated control system for personnel of JSC Gazprom, management system for career development of JSC Sberbank, system of talent pools of ROSATOM State Corporation. In 2012 IBS automated personnel management in Mail.ru, a system had to be brought into commercial operation in January, 2013.

Notes