Talent management and performance management
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.
Talent Management vs. Performance Management
Talent Management
Talent management 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.
Performance Management
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.
