Price replaced ease of use as the second biggest consideration for buyers of talent management software, according to a survey of 350 users by Capterra. The software as a service (SaaS) company said the talent management software market is a $12 billion industry for which uninformed first-time buyers can easily overpay or buy an unsuitable system with unexpected post-installation outcomes.
Of the 40% of respondents who paid a different price for software than expected, half paid more and half paid less, Capterra said. Nearly half of users spent 10 months or more researching and choosing their talent management software, but only about one-fifth expected their search to take that long. Succession planning and 360-degree feedback features are both the least used by those who have them and the most in-demand for those without them, Capterra’s survey found.
According to the survey, users fall into three categories: 1) those without software or who managed talent manually on paper; 2) those who had a different HR or talent management system and changed providers; and 3) users of non-HR software such as a customer relations management or proprietary systems. Talent management software users are satisfied with their choices 80% of the time, Capterra said.
As the search for talent became more competitive in recent years, the term “talent management” was coined to describe the specialization of HR professionals shifting to a purely people-centered focus. Tabitha Scott, former CEO of consulting company Cole Scott Group, explained the evolution in an interview with HR Dive: “Talent management gets future forward,” she said. “People are thinking of what is coming down the pike and how do I prepare my workforce for that, including everything from acquisition, talent management and how do we retain them over time as things are changing so fast.”
The scramble for talent has brought a need for technology to speed up time-to-hire, appeal to candidates as consumers and help talent professionals source candidates with the right skills. HR departments that avoid adopting new technologies altogether may miss out on their benefits, while talent professionals who buy software without understanding their organizations’ talent needs may suffer buyer’s remorse, Capterra’s research confirms.
The company suggested employers in closely regulated industries such as healthcare, banking and financial services and education invest in more digital solutions to ensure that mandated record-keeping and tracking are precise. As more human capital management companies consolidate their offerings, talent professionals might need to reassess their needs on a rolling basis.