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Managing Talent with ERP

iMac Monitor v2Sometimes life’s not fair. We’ve all been told this before, and if you are part of the human resources (HR) department, I’m sure you hear about fairness all the time. But what about you - the HR professional performing manual processes and navigating through a sea of paper work. Why do the accounting and operations departments have sophisticated software to make their lives easier? It’s just another one of life’s injustices, but it doesn’t have to be. That’s right, talent management systems are now being integrated into those awesome Enterprise Resource Planning (ERP) solutions your counterparts in other departments are using and are changing the way companies manage their human capital.

So how does managing talent with an ERP benefit your company? Let me explain. The purpose of a talent management system is to attract, retain, and develop a skilled workforce to ensure a company has the talent needed in order to grow in the future. More specifically, these systems are integrated software suites that address the three core areas of managing talent: recruitment, performance tracking, and employee development. Let’s look at how a talent management system can ease headaches for the HR department and can increase workforce engagement. 

Recruitment – Talent Acquisition

Admit it, the recruitment process is a daunting task and selecting the best candidate isn’t easy. One job posting can generate hundreds of responses from candidates with varying levels of skills, and reviewing all those resumes is a time consuming process. Why continue spending precious hours on the tedious recruitment process when a talent management system can reduce these headaches.

Talent management systems can eliminate several of the time consuming and tedious tasks related to the recruitment process. For starters, advertising new positions over multiple job board sites and social media sites happens with just one click, therefore reducing the time to advertise new positions. Speaking of saving time, the most time consuming component of the recruitment process is reviewing numerous cover letters and resumes. Quickly reduce the resume review time by eliminating underqualified candidates using pre-screening questions, and using standardized resume templates to enable an apples-to-apples comparison of qualified candidates.

Performance Tracking – Employee Acknowledgement and Engagement

When a company has an inconsistent appraisal processes, employees have a tendency to lose motivation. It’s human nature to desire to achieve goals and receive recognition for their accomplishments. Even worse, no one likes giving or receiving an unexpected poor review. Put an end to the inconsistent appraisal processes and create a process that motivates employee improvement.

By utilizing a talent management solution, the employee performance tracking program can increase accountability and the entire process is documented within one system, which ensures that the appraisal process is consistent across all departments. Talent management solutions are also designed to make sure the business goals align with employee goals and these individual impacts on the company bottom line are measured. Additionally, goals are tracked throughout the year enabling a multistage approach to the appraisal process so employees are aware their performance throughout the year.     

Employee Development – Succession Planning and Workforce Motivation

There’s nothing more demotivating at work than feeling pigeon-holed into a position. Sure, that recent raise was nice and even the bonus. But let’s get real, no one wants to be doing the same task day-in and day-out for an eternity and employees have aspirations of climbing the corporate ladder. Furthermore, employee development is a critical factor in succession planning. How does senior management identify the skills and talents of individual employees in rapidly growing organizations?  

The employee development component of a talent management system is critical for identifying top performing talent. For starters, these systems allow employees to build individual talent profiles where they add their skills and career goals to ensure alignment with their development plan. These profiles allow managers to create individual development plans based on the employee’s personal goals, strengths and weaknesses. As a result, employee learning and development are tracked within one centralized database where the employee and management can see their progress.  

Conclusion – Managing Talent by the Numbers

How important is it to have an effective talent management system in place? According to Josh Bersin, “Organizations with superior talent management practices generate 26% higher revenue per employee, 40% lower turnover among high potential employees and 29% higher employee engagement than their peers.” (Bersin by Deloitte 2013) Based on these stats, it only seems fair for HR to have a sophisticated ERP system. 

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