Times are good in the U.S. economy and in the workforce. It’s hard to imagine there could be any downsides to this boom, but for many small and medium-sized businesses competing with large enterprises and corporations, attracting, retaining and investing in talent becomes a big challenge. The solution for small and medium-sized businesses to keep their competitive edge lies in talent management software.
Talent management software is a tool to manage talent that automates, consolidates and streamlines talent management. It is a vital component to any sized business. Talent management software focuses on employee recruiting, development, performance management, compensation and succession planning. All of which are crucial in keeping businesses thriving and holding on to their most vital resource: employees.
We’ve added nearly three million jobs in the last couple years and we have the lowest unemployment rate in 18 years.This is all fantastic news, right? In many respects, yes, but as more and more people find jobs, the market becomes talent-driven and large businesses with the capital often siphon off the best talent. As that talent pool evaporates, small and medium-sized businesses (SMB) are facing a crisis in talent management. Talent management software can sometimes make the difference in whether SMBs sink or swim in this new market.
According to the State of Small Business Report, 50% of SMB owners report that hiring new employees was one of their top challenges. Hiring is a tough, time consuming and expensive process. Employee turnover is high, 32% total separations was the national average in 2017, according to Mercer. This is a big cost for businesses already struggling with human capital management.
It is often a monumental task for HR departments and managers to effectively manage constantly evolving industries, technologies and work culture shifts, while also interviewing and managing new hires. HR departments stay small as companies grow and it is often improbable, if not impossible, to effectively manage talent with the systems used in the past. With the latest technology of talent management software, SMBs can transition talent management from a hectic, pain-filled process into a thriving environment for employees, management and owners alike.
One of SMBs greatest assets is their familial workplace culture. Many employees choose to work for smaller businesses as opposed to corporations because they value relationships and employee-centered work culture. In the current economy, with competition for talent so aggressive, management is often stretched so thin with attracting and retaining their talent that they are unable to find time for those on-on-one interactions and meaningful connections that originally brought employees to SMBs in the first place. The end result, more employee turnover.
In order to continue to retain and manage employees, identify areas for new trainings and employee development, HR departments and managers are finding increased resilience and new opportunities for managing human capital with talent management software.
Growth is often a primary drive for SMBs. While some may be focusing on revenue growth, others may be geared toward expansion in the industry or reaching consumers on a larger level. No matter the reason or mechanism behind the growth, any sized business can benefit from talent management software. In the growth stage from small to medium-sized, or medium-sized to large, businesses want to keep their personable nature. The key to maintaining employee-manager relationships and letting HR departments most effectively do their job, of course, lies in technology.
Any company’s greatest asset is its human asset. People matter, their satisfaction in the workplace matters. Happy employees often signal to the overall health of the company. It may seem counterintuitive for a software to be able to foster the happiness and health of workplace culture, but the overwhelming majority of businesses who employ some form of talent management inevitably experience greater employee retention, and recognized the strategic value of talent management systems and software.
With the use of talent management software, SMBs create the framework to be able to: accurately identify employee skills, place employees on projects or in areas where their strengths can be put to best use, target key trainings that will increase productivity, identify areas for employee development, increase productivity and save time and resources for the company.
Identifying the best investments for SMBs is essential for the vitality of so many organizations. Talent management software is one of the best ways to invest in the human asset of any company. Investment in technology, vs investment in the debilitating hiring process yields a far greater ROI. Talent management software is often the long term solution that business have been seeking for their employees.
Contact us today for a free estimate and demo of the talent management software that will take your small or medium-sized business to the next level.