Why have companies spent billions over the course of the last 10 years on Talent Management software if they are missing significant functional areas to manage employees?

My colleague, Mike Maiorino, shares his insight into this topic in his recent blog.


Here is a snippet of his blog:
There seems to be some very strong opinions about the fundamental differences between Talent Management vs Human Capital Management (HCM). While there is certainly no simple answer nor any type of downloadable checklist or analyst report to distinguish the difference, there are certainly specific characteristics that are better aligned for each strategy. It is very similar to a recent blog written about the Types of HRIS Systems: HRIS vs. HCM vs. HRMS. In order to share the significance of each, I thought I would provide my definition of “Talent Management” vs “HCM”.

Talent Management software is an integrated set of applications, or as the marketing likes to pitch – “Unified Talent Management”, that are commonly used by HR professionals to hire, develop, connect and retain employees. HCM software is similar except it takes a comprehensive end-to-end approach to managing a company’s workforce. Many describe it as “cradle to grave” or “hire to retire”.

So what is the difference? The simplest explanation is Talent Management software focuses on six primary functional areas for managing employees:

Recruiting or ATS
- Onboarding
- Performance and Goal Management
- Learning Management System (LMS)
- Compensation and Salary Planning
- Career Development and Succession Planning.

A HCM system would incorporate all of these functional areas including capabilities for administrating benefits and open enrollment, FMLA tracking, life events, electronic 834 carrier connections, absence plans (e.g. vacation, sick, holiday, PTO) and accruals, timesheets, and self service for employees and managers. A HCM would also include U.S. Federal compliance reporting for employers (e.g. EEO-1, OSHA 300/300A, Vets-100 and ACA 1094/1095). In general terms, the breadth of HCM functionality is much broader allowing a more complete approach to managing an organization’s workforce.

Read the rest of the blog here: http://bit.ly/1KPy8Xy