Talent management and performance management are not two sides of the same coin. Talent management is a broader term in human resource management that helps HR managers recruit, retain, develop, reward employees. Performance management is a more niche and dedicated term that helps HR managers measure the performance of employees based on metrics and feedback.
Most HR managers use talent management software to also manage employee performance. However, there are tons of performance management software solutions in the market that are specifically dedicated to providing employee assessments.
According to a Gartner's Technology Insight for Talent Acquisition Applications report (available to Gartner clients only), "By 2020, more than 20 million job seekers will look for automated advice on how to improve their ranking in job matching algorithms." In this context, it's important that your business should choose talent or performance management software to enhance your HR's digital footprint and automate tasks.
This article differentiates between talent and performance management by providing a brief breakdown of some of the features for both, and identifies some talent management and performance management software to help streamline the process of making crucial/important HR decisions.
(Please note: The feedback given in each of the "Common user feedback trends" sections are the opinions of GetApp's reviewers, and do not represent the opinion of GetApp)
Talent management software focuses on recruiting, training, and rewarding your employees to upskill their job roles to enhance their careers further. HR managers often limit talent management to just attracting the best people in the industry, without realizing that talent management is a continuous process that is based on the four pillars (sourcing talent and training, retaining, and promoting employees) in line with the business requirements.
As an HR strategy, talent management enables your business to retain highly skilled employees by upskilling them with the latest industry skills, thus reducing attrition in your company. Your HR department can use talent management software to determine the effectiveness of your talent management strategies. Some of the essential features of talent management software are as follows:
Applicant tracking - Helps recruiters store applicant information in a centralized database and features tools for hiring and onboarding potential candidates.
Resume database - Resumes of potential candidates are stored in a centralized database to make it easier for HR managers to filter resumes based on hiring parameters.
Employee onboarding - Helps new employees integrate with the business environment by documenting and storing paper work related to work eligibility and tax documents in a database. This feature streamlines the process of setting up payroll accounts for new joiners.
Employee recognition - Rewards employees for their accomplishments to make them feel more valued in an organization and increase retention.
Learning management - Helps business upskill employees by training them through e-learning modules. Employees can also test their knowledge online via quizzes and attend online classrooms.
For more information on other essential features related to talent management software, scroll down to the section "Recruitment and applicant tracking features" of our HR features guide.
Performance management software helps define your relationship with the employee at every stage his/her lifecycle from by monitoring performance, feedback, and appraisal. Moreover, performance management helps you create a learning environment for your employees so that they are aware of potential opportunities within the organization.
Performance management software can help you rate and give feedback to employees by automating redundant and time-consuming tasks by identifying most talented employee and developing their skillsets that match your organization. The software helps you provide feedback on an employee's overall performance based on a quarter or a year through a rating system that integrates with the appraisal management.
Some of the essential features of a performance management software are as follows:
360-degree feedback - Collects performance feedback from multiple stakeholders and stores it in a centralized database with rights-based access to supervisors. Helps employees summarize feedback in real-time to give an accurate and objective assessment of an employee's skills and performance.
Career development - Helps managers create an individual development plan (IDP) that is uploaded on the employee portal. The employee can track career objective based on areas of improvement and associated training.
Feedback management - Streamlines the process to submitting feedback to peers, managers, and employees from feedback forms submitted online by multiple stakeholders.
Goal management - Helps managers create and assign career goals for employees in a specific appraisal cycle. This feature also matches and maps the organizational goals with individual goals.
For more information on other essential features related to performance management software, scroll down to the section "Performance management features" of ourHR features guide.
Talent and performance management software is made for unique HR requirements that help you develop a better HR management strategy and hire the top talent. A software can help you automate redundant tasks, store applicant data in a centralized database, set career development goals, and more.
Below we have listed some of the top-rated talent and performance management software based on GetApp reviews.
BambooHR helps to streamline the process of creating, managing, and storing employee related data in a centralized database. The software helps HR managers build employee and candidate profiles for applicant tracking. These profiles are accessible to anyone within your organization with rights-based access.
Employee profiles store information that include an employee's personal information, photo, benefit's details, salary, time off, training, and much more. The software's user interface features custom fields to help you store additional employee information and manage the talent pool of employees.
Most users find the applicant tracking software (ATS) and onboarding features of the software helpful and it lets them screen potential candidates and streamline the onboarding process of candidates that are selected during interviews. Users indicate that software facilitates communication between recruiters and and candidates as it keeps both stakeholders up to date with hiring process through automated emails and notifications.
Another user commented that the software is scalable for all types of small to large companies, which makes integrating the software to existing HR software solutions easier. Lastly, some users felt that the org chart could have better navigation as sometimes it is difficult to setup a "matrix structure" of employees under one manager.
UltiPro offers talent management solutions that enables managers and employees to communicate on performance ratings through a dedicated employee management portal. Employees can you this portal to help them onboard, attend trainings. view appraisal feedback, and update personal information.
UltiPro helps HR managers create and implement dynamic people-management strategies with the help of online collaboration tools that link the HR, supervisors, and employees via a single platform. Through its dedicated onboarding modules, the software provides a personalized recruiting experience for each employee to help manage their talent.
GetApp reviewers find the software very user friendly as it it easy to navigate, view candidate resumes, and upload documents. Users also like the integration features of the software and the software can integrate with other HR software to help HR managers remain compliant with the HR laws.
However, some users would like the software to be more intuitive as key functions are not directly visible in the main interface. For example modifying leave time requests can only be done through the 'advanced options' function.
Halogen TalentSpace's navigation menus and tabs help HR managers create talent management process for recruiting and onboarding interview candidates. The software helps you customize your talent management process based on your company hiring principles through dedicated HR manager and employee portals.
Halogen TalentSpace's eAppraisal features helps you manage employee feedback workflow and send reminders through automated emails. The software also features electronic signatures to legally sign payroll, benefits, and leave documents.
As per GetAppp user reviews the software helps to streamline several projects and processes by providing more visibility towards goals, performance, and feedback for both managers and employees. Users like the customer service offered by the software vendor as it helps troubleshoot technical questions.
Some of the improvement areas cited by users is having more customization options to integrate with their business and administrative features such as generating detailed leave reports.
Trakstar helps is storing historical employee records related to appraisals along with 360-feedback, performance goals, and training requirements. Supervisors can add their own feedback to employee appraisal documents, which helps to collaborate in the process of performance management during the time of appraisals.
Trackstar helps in providing real-time feedback during interactions between employee and supervisors that are based on year round journal entries made by employee. The software also provides an optional peer-to-peer communication feature to facilitate discussions regarding employee's career development.
GetApp reviewers said that the software is has an intuitive dashboard. The software does not have a steep learning curve and new managers or employees shouldn't run into much difficulty using the software to provide performance rating and feedback.
Users like the Annual Performance Review/Assessment feature of the software as it helps them automate tasks related to performance evaluation. However, some users indicate that they would like an improved user interface (UI) to generate reports easily.
Reviewsnap helps HR personnel streamline the performance review process by integrating 360-degree feedback, compensation dashboard, and training into one software platform. The software automates the annual performance review process through e-signatures, task reminders, customized workflow templates, and notifications.
GetApp reviewers indicate that the software isn't too expensive in terms of the specialized performance review feature that the software offers. Most users also comment the customer service to resolving technical glitches on the spot.
Users would like the software to have more performance review templates for different roles in the organization to easily distinguish role based reviews between managers and junior employees.
Engagedly focuses on providing performance review by increasing employee engagement through gamification techniques through rewards, objectives alignment, and integration with social social media. Features of the software include real time feedback, peer-to-peer recognition, performance review templates, and employee surveys.
GetApp reviewers said that the software is easy to use as it has as reports can be generate in various templates. The software does not have a steep learning curve and new managers or employees shouldn't run into much difficulty using the software to provide performance rating and feedback.
However, some users indicated some difficulty with reporting features in regards to analytics.
Talent and performance management are mutually exclusive concepts that interact with each other for providing an enhanced employee management life cycle. With an HR software specific to talent or performance, you can streamline your HR goals and achieve better employee satisfaction. You can learn more about talent and performance management software by clicking on the following GetApp links: