Talent Management Software Market

According to Stratistics MRC, the Global Talent Management Software Market is accounted for $8.14 billion in 2022 and is expected to reach $18.34 billion by 2028 growing at a CAGR of 14.5% during the forecast period. Performance management, effective hiring, and staff development are all features of talent management software (TMS), a workforce management tool. Setting goals, identifying and filling skill gaps, offering personal development plans, and facilitating review are all ways that organisations can manage and organise their workforce. It equips employers with the means of controlling, assessing, and rewarding workers in accordance with their output.



Market Dynamics:

Driver:

Streamlining hiring process through technological innovations

The growing adoption of cloud-based platforms and mobile personnel management systems is one of the key reasons propelling the talent management software market's expansion. Software-as-a-Service (SaaS) platforms are being used more frequently by businesses and HR professionals to automate talent pool scouting, identification, and recruitment of new employees as well as employee retention. The economy is also boosted by a number of technological developments, including machine learning (ML) and artificial intelligence (AI). Additionally, major players are launching a variety of personnel management tools that help with staff management and provide employees with appropriate growth possibilities.

Restraint:

Limited awareness of talent management software solutions

The majority of businesses still have a long way to go before implementing personnel analytics, despite the fact that data and analytics have long been utilised to make wise business decisions. One major obstacle to the market's expansion is a lack of awareness of the advantages of talent management software. Furthermore, there may be significant resource, time, and financial implications associated with talent management. Using technologies to map out talent requirements across the organisation is necessary for talent management, but doing so can be expensive. Small and medium-sized businesses (SMEs) find it difficult to invest in cutting-edge technologies because of their constrained resources. As a result, the market expansion will be restrained by the low adoption of talent management systems among SMEs.

Opportunity:

Growing use of social media as a real-time data source

Social media use is expanding as a result of the Internet's expanding global use. To reach a big audience, internet users use online platforms to promote their products, services, or talents. In order to combine several web databases and discover the finest personnel for their company, firms are using talent management software. There are many benefits to using social media platforms for hiring processes, including having access to a sizable pool of possible candidates who haven't officially applied but are looking for work. Employers can cross-check an applicant's credentials using the databases of numerous social media platforms. As a result, a lot of companies and organisations are embracing talent management software to automate their hiring process. As a result, these elements will fuel the market's expansion.

Threat:

Data privacy and security concerns

One of the primary challenges to the expansion of the global talent management software market is the data privacy and security issues associated with cloud-based products and services. Concerns regarding privacy have been raised in response to reports of cyberattacks on data centres because, if uncontrolled, unauthorised users could possibly disseminate, destroy, or corrupt data. Outsourced IT services put sensitive data at risk since businesses have little control over how service providers handle data. Cyber attackers can easily access cloud-based data storage systems because of the open architecture and shared resources that cloud-based infrastructure is founded upon. Due to this, future market growth may be constrained by such concerns.

Covid-19 Impact

Depending on the specific end-user impact, the COVID-19 pandemic's short-term effects on the worldwide market are complex. The epidemic had a detrimental effect on businesses since it forced them to cut back on hiring because of the need to reduce their personnel. The adoption of talent management software systems was impeded by these limitations. Following the COVID-19 outbreak, organisations are predicted to concentrate on implementing cutting-edge technology to improve company operations and cut expenses, which would probably lead to lucrative opportunities.

The large enterprises segment is expected to be the largest during the forecast period

The large enterprises segment is estimated to have a lucrative growth. In order to deliver services like employee headcount and shift availability, large businesses are likely to link their talent management systems with future technology. These businesses use analytical approaches to deal with issues including identifying the risk of high-potential individuals departing for other nations and crucial roles.

The banking, financial services, and insurance (BFSI) segment is expected to have the highest CAGR during the forecast period

The banking, financial services, and insurance (BFSI) segment is anticipated to witness the highest CAGR growth during the forecast period, due to factors including the industry's rapid growth across numerous geographies and the growing demand for human capital in this area. During the anticipated period, the manufacturing segment is anticipated to have considerable market expansion in the worldwide talent management software market. Due to the complicated and quickly evolving business environment, the need for talent management solutions from the industrial industry has been steadily increasing.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to growing acceptance of cutting-edge technology. The demand for the product is being driven by a considerable change in organisational management technology throughout industrialised nations. SMEs are expected to encourage the adoption of this software in Japan, India, and Australia due to active ecosystems. On the other hand, it is anticipated that big businesses in the BFSI, manufacturing, education, and other sectors will make a great deal of money.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to demand for capable talent management software for staff selection, mobility, and assessment may be sparked by active government activities and policies connected to talent management. Such measures are being implemented by the European government to create a capable, trained, flexible, and networked workforce in the area.



Key players in the market

Some of the key players profiled in the Talent Management Software Market include Talentsoft, Oracle Corporation, IBM Corporation, Sage Group plc, SAP SE, BambooHR LLC, 15Five, Cornerstone OnDemand (Saba Software, Inc.), Applied Training Systems, Inc., Workday, Inc., Halogen Software, Lumesse, Peoplefluent, ELMO Software Ltd., Paylocity and SumTotal Systems LLC.

Key Developments:

In May 2022, TriHealth chose Oracle Human Capital Management (HCM) to streamline and integrate its present HR systems. This allowed TriHealth’s staff to reduce manual processes and enhance employee engagement.

In May 2022, IBM and EY announced a program that aids organizations and businesses in identifying workforce challenges, such as employee retention, recruitment, and upskilling, and showcases the need to integrate HR systems technology at pace.

In January 2022, Workday Inc. acquired VNDLY for USD 510 million. This acquisition allowed VNDLY to boost its value to customers by offering greater visibility, collaboration, and oversight of workforce opportunities and needs.

In October 2021, CEIPAL launched an AI-powered solution for addressing diversity, equity, and inclusion across companies for talent management sources. This solution enabled hiring companies to simplify their workforce and hiring processes.

In November 2020, IBM acquired Instana, a software company focused on developing application performance management software. The acquisition signified IBM’s continual investment in Big Data, hybrid cloud, and artificial intelligence (AI) capabilities.

Types Covered:
• Learning Management
• Performance Management
• Compensation Management
• Talent Acquisition
• Other Types

Enterprise Types Covered:
• Large Enterprises
• Small and Medium Enterprises (SMEs)

Deployments Covered:
• On-Premise
• Cloud

Platform Types Covered:
• Services
• Solutions
• Other Platform Types

End Users Covered:
• Healthcare
• IT and Telecommunication
• Manufacturing
• Government
• Banking, Financial Services, and Insurance (BFSI)
• Education
• Retail
• Media & Entertainment
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances