Talent Management Software Market - Forecasts from 2024 to 2029

The talent management software market is anticipated to grow at 13.93% CAGR to reach US$17.367 billion in 2029 from US$9.047 billion in 2024.

Talent management software is anticipated to show steady growth during the forecast period. Talent management software is software for managerial personnel that can deal with recruitment, work performance and monitoring, training, and benefit systems. Performance management is one of the jobs of talent management, and it includes reviewing each employee's performance within an established period to see how performance compares to clear goals. This knowledge collectively serves as the foundation for other essential talent management responsibilities like job promotion and the development of skills.

The main factor behind the increased amount of software demand is the rise of internet-based applications, which is also being led by swift digitization. The rate at which different industries take in talent management tools, and solutions may result in increased use of Talent management tools and solutions in the marketplace. Growing transition towards hybrid and remote, progressive work standards, and increased demand for HR tools are driving the talent management software market growth.

Talent Management Software Market Drivers

• Growing transition towards hybrid and remote workforce drives the talent management software market growth

Talent management software is an important tool due to the increased trends of remote and hybrid work models and is a major driver for software. In the past, physical proximity was commonplace, and teams worked under the same roof, but companies needed to find suitable measures to handle the newly emerging situation. Navigating talent management issues for offline work is a difficult task. Because of this, talent management software takes on the challenge of providing a set of features tailored for offline work.

Using interactive performance monitoring tools in the remotely operated system, effective goal setting, progress tracking, and feedback channels can be included to make sure that each party is aligned and accountable. Communication platforms work hand in hand to promote quick networking, bonding, and a sense of belonging while the workers are scattered even in different places. In general, talent management software works as a means, which leads the employees to cooperation way, involvement, and effective approach to their productive workplaces no matter the location.

• Progressive work environment standards enhance the talent management software market growth.

Due to changes, the workforce has come up with a new list of what they expect from their jobs. Software addressing talent management is one of the most important tools to be prioritized when planning for the future of work, given the emerging worker's expectations. It ultimately improves flexibility. Self-service interfaces give employees the power to organize schedules, pull their paychecks, and request unpaid time off, which builds a culture of independence. This is held with high priority among other focal points like transparency.

With this software, one can create an environment where information, ideas, and feedback are communicated freely through a space provided, where employees and managers can interact and exchange feedback. The performance reviews become conversations rather than a single performance evaluation. This, in turn, allows modern companies to adjust their work environment to the requirements of the modern workforce.

• Increased demand for human resource management tools propels the talent management software market.

Organizations appoint HR to hire new talent and maintain aspects of the business with this software, including payments, employee attrition rate, policy making, and tracking of employee work. For example, a single system has all of this, including attracting talent through recruitment and onboarding to develop and manage performance. The centralization of all employee data and processes plays the role of the minerals in the soil, supplying the entire HR with the energies required for data-driven decisions.

They can make use of recruitment trends and customized programs that target identified areas specifically. Performance management delivers more like objectives, and it is more efficient with clear goals, regularized feedback systems, and progress monitoring tools. Lastly, the HR teams' strategy moves from administrative tasks towards transforming them into partners of the company that assist in realizing their objectives, which, in turn, leads to a more productive and motivated workforce.

Talent Management Software Market - Geographical Outlook

• The North American market is anticipated to grow significantly.

North America is projected to account for a significant share of the talent management software market due to various reasons. The special importance placed on strategic HR functions is creating a need for centralized systems that manage the employee life cycle throughout the scope. Using this software to bridge this opportunity is very effective. Furthermore, the emergence of remote and hybrid work models also brings about the challenges of teamwork relationships performed in a separate area.

This software includes tools for remote performance management and communication, which are vital to geographically distributed teams. The cutthroat job market in North America requires companies to prioritize employee retention and engagement. With software such as talent management, recognition programs, and employee empowerment, North America provides a stimulus for the growth and expansion of a sustainable and environmentally friendly business.

Talent Management Software Market Restraints

• Execution cost and intricacy hinder the talent management software market growth.

Using talent management software may seem unaffordable at first glance, as it can have a hefty price that covers premium payments for a subscription service. Besides, utilizing the software alongside the already existing HR systems can be tricky, which might require an expert. Sometimes, this step can be very difficult and require data migration between systems.

• Shifting towards tools like human resource management software is difficult.

If not properly guided, the change in the software system may cause the workforce to resist it. Addressing concerns, along with effective training and design to ensure ease of use, is crucial for the software to be fully adopted and utilized to its maximum potential.

Talent Management Software Key Industrial Updates

• April 2023: GSoft introduced Talentscope, a user-friendly platform where all employees and companies can manage the available resource options. An existing AI tool utilizes its skill mapping capability to suit an individual and a business's needs by identifying strengths and weaknesses, followed by recommendations of development paths for each segment. This helps to develop data-driven talent management for enterprises.
• April 2023: Infor introduced a "Talent Empowerment Solution" that applies AI and behavioral evaluation to enable the creation of individual routes, streamline onboarding and transfers, and provide learning accessibility. The encouragement for more active participation, as well as deeper connections, leads to better engagement and retention.

Talent Management Software Market Players and Products

• Cegid Talentsoft: Cegid Talentsoft is not a single product but a Human Capital Management (HCM) suite. It provides the HR function and links all processes, typically e.g., recruitment and employment of staff, performance management, learning and development, and human resources in general.

Talent Management Software market is segmented and analyzed as follows:

By Type

• Performance Management
• Talent Acquisition
• Learning Management
• Compensation Management
• Others

By Analysis

• Service
• Solution

By Deployment

• On-Premise
• Cloud

By End-User

• IT & Telecommunication
• BFSI
• Government
• Healthcare
• Education
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others