- Over the last number of years, the Talent Management (TM) market has experienced widespread consolidation: larger talent management vendors have bought up niche players and large ERP vendors have begun purchasing talent management suites.
- As a result, talent management competition in the mid-market is now dominated by large, established multi-nationals with a broad user base and extensive resources.
- Some vendors offer fully homegrown solutions, but the vast majority are a result of acquisitions. For vendors in the latter group, their legacy product tends to be their strongest, though this is changing; these vendors are focused on creating suites that are uniform in look and feel.
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Our Advice
Critical Insight
- Organizations should carefully consider their short-term social and mobile requirements before focusing too heavily on social and mobile functionalities; vendor offerings will improve across the board over the next few years.
- Advanced reporting and analytics functionality that allows the integration of data points from separate modules has become a point of differentiation for some vendors.
- Vendors that have a suite which contains disparate pieces obtained through acquisition will work toward even more robust back-end integration between modules to ensure the user experience is seamless.
Impact and Result
- Look for first-class module integration in a TM suite. Seamless integration of all talent management modules creates a top quality user experience from end to end.
- Look to vendors with recruitment, performance management, learning, and compensation functionality for full employee lifecycle management.