PUBLISHER: The Business Research Company | PRODUCT CODE: 1662359
PUBLISHER: The Business Research Company | PRODUCT CODE: 1662359
Talent management software encompasses tools designed to oversee the complete employee journey within an organization, starting from recruitment to succession planning. This software facilitates various talent management functions, including recruitment processes, new employee onboarding, performance assessments, learning and development initiatives, compensation management, and succession planning strategies.
The primary components of talent management software are solutions and services. The solution aspect involves tracking employee development and providing incentives, offering a platform for organizations, HR personnel, and managers to manage all aspects of an employee's lifecycle, from recruitment to departure. These solutions can be deployed either on-premises or in the cloud. The software caters to organizations of varying sizes, from small to medium-sized enterprises (SMEs) to large enterprises, and finds application across industry verticals such as BFSI, IT & telecom, manufacturing, government, healthcare, education, retail, among others.
The talent management software market research report is one of a series of new reports from The Business Research Company that provides talent management software market statistics, including talent management software industry global market size, regional shares, competitors with an talent management software market share, detailed talent management software market segments, market trends and opportunities, and any further data you may need to thrive in the talent management software industry. This talent management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The talent management software market size has grown rapidly in recent years. It will grow from $13.05 billion in 2024 to $14.56 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to vendor innovation and market competition, user-friendly interfaces, shift to cloud-based solutions, performance and goal management.
The talent management software market size is expected to see rapid growth in the next few years. It will grow to $24.83 billion in 2029 at a compound annual growth rate (CAGR) of 14.3%. The growth in the forecast period can be attributed to shift to hybrid work models, focus on employee well-being, skills gap and talent scarcity, diversity, equity, and inclusion (DEI), continuous performance management. Major trends in the forecast period include talent mobility and internal mobility, employee well-being and engagement, integration with HR ecosystem, security and compliance features, succession planning and leadership development, integration with HRIS and ERP systems.
The growing utilization of social networking sites is propelling the demand for the talent management software market. Social networking sites are web-based services that allow users to create public or semi-public profiles within a confined system, establish a list of connections, and explore both their connections and those made by other users within the network. These social media platforms serve as effective tools for promoting an employer's brand and are utilized by employers to reach a vast pool of talent. For example, according to the University of Maine, a US-based public research university, there are 4.8 billion social media users globally, with 150 million new users joining between April 2022 and April 2023-an average of 410,000 new users each day, or 4.7 every second. Consequently, the increased use of social networking sites is expected to drive the growth of the talent management software market.
The transition to remote work is anticipated to drive the talent management software market in the future. Remote work, often referred to as telecommuting or telework, describes a work arrangement where employees are not required to travel to a central office. Talent management software supports remote work by streamlining HR processes, promoting employee collaboration, and enhancing workforce productivity. For instance, in 2022, FlexJobs' Career Pulse, a US-based platform catering to the freelance community, conducted a survey involving 4,000 participants from July to August 2022. The results showed that 65% of respondents strongly preferred full-time remote work, while 32% favored a hybrid work model. This significant total of 97% indicates that the majority of workers want the option to work remotely to some extent. Thus, the shift towards remote work is fueling the growth of the talent management software market.
Technological advancement is a significant trend gaining traction in the talent management software market. Major players within this sector are concentrating on technological innovations to maintain their competitive edge. For example, in May 2024, ADP, an Indian-based service company, introduced a new integrated Talent Management Suite designed to assist organizations in acquiring, developing, and retaining top talent through a comprehensive end-to-end solution. This suite features modules for talent acquisition, performance management, compensation management, succession management, and learning management. The main objective is to ensure seamless integration of various talent management processes, addressing the challenges organizations encounter in effectively managing their workforce. By utilizing advanced learning tools and insights from Bersin & Associates, ADP aims to enhance its clients' overall human capital management strategies, helping them streamline operations while improving employee engagement and performance.
Major companies in the talent management software market are introducing new talent management platforms to achieve a competitive advantage. Talent management platforms are all-encompassing systems designed to address an organization's human capital requirements throughout the employee lifecycle. For example, in April 2023, GSoft, a US-based technology firm, launched Talentscope, a talent management platform intended to assist organizations in more effectively mapping and assessing their employees' skills. Talentscope seeks to simplify workforce planning, promote skills-based career advancement, and improve internal mobility through features such as skill mapping, workforce planning, career development, and an internal talent marketplace. The platform emphasizes the importance of skills as a core component of the employee experience, enabling organizations to adapt to evolving needs and thrive in a dynamic market.
In August 2022, Litera, a US-based technology company, made a strategic acquisition by acquiring Micron Systems Inc. The acquisition, for an undisclosed amount, significantly expands Litera's solutions portfolio and reinforces its commitment to addressing talent engagement and retention challenges, particularly prevalent in the legal sector. Micron Systems Inc., a US-based developer of talent management software, is expected to enhance Litera's ability to address critical tasks related to talent management, providing solutions to streamline talent engagement and retention efforts for Litera's clients.
Major companies operating in the talent management software market are Cornerstone OnDemand Inc., International Business Machines Corporation, Oracle Corporation, PeopleFluent Holdings Corp., Skillsoft Corporation, SAP SuccessFactors, TalentSoft SA, SumTotal Systems LLC, Workday Inc., TalentGuard Inc., Haufe Group GmbH & Co. KG, Ultimate Software Group Inc., PageUp People Limited, Automatic Data Processing Inc., Eightfold AI Inc., Deltek Inc., ClickUp Inc., Cornerstone Growth Acquisition Corp., Deel Technologies Inc., Dun & Bradstreet Corporation), Paycor Inc., Remo First Oy, Cegid Group SA, Rippling Inc., Sage HR
North America was the largest region in the talent management software market share in 2024. The regions covered in the talent management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the talent management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The talent management software market includes revenues earned by entities recruiting and tracking applicant, managing compensation, managing talent relationship, and evaluating performance capabilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Talent Management Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on talent management software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for talent management software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The talent management software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.