Talent Management Software Market Research Report—Global Forecast till 2030

Talent Management Software Market, By Component (Solutions, Services), Deployment (On Premise, Cloud), Organization Size (SMEs and Large Enterprises) and Vertical – Global Forecast 2030

ID: MRFR/ICT/2641-CR | October 2022 | Region: Global | 110 Pages         

Talent Management Software Market

Talent Management Software Market Predicted to Grow at CAGR of 16.2% by 2030 with Revenue $19.10 Billion

Segmentation

By Component Solutions Services
By Deployment On Premise Cloud
By Organization Size SMEs and Large Enterprises

Key Players

  • Halogen Software (Canada)
  • Workday Inc.
  • Lumesse Ltd. (U.K.)
  • Saba Software (U.S.)
  • Cornerstone OnDemand (U.S.)
  • Kenexa (U.S.)
  • Taleo Corporation (U.S.)
  • iCims Inc. (U.S.)
  • Sumtotal Systems Inc. (U.S.)
  • Cegid (Talentsoft) (France)
  • Haufe Group
  • Learning Technologies Group (Peoplefluent)
  • Oracle Corporation
  • SAP SE
  • UKG Inc.

Drivers

  • Increasing demand of cloud-based talent management software module is driving the growth of cloud deployment model segment.
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Talent Management Software Market Overview   


Talent management software is technology that human resource management professionals use to manage employees as a competitive advantage. Talent management can refer to a standalone application from a niche vendor that specifically addresses one part of the process, such as a learning management system. The global talent management software market is expected to grow at 16.20% CAGR during the forecast period, 2020-2030. In 2021, the market was led by North America with 37.74% share, followed by Europe and the Asia Pacific with shares of 28.21% and 24.25%, respectively. The high demand for talent management software in BFSI, Education, Government, Healthcare, IT & Telecom, Manufacturing, Media & Entertainment, Retail, and other sector is aiding the market growth in the Asia Pacific region.


Based on region, the global Talent Management Software Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.

GLOBAL: TALENT MANAGEMENT SOFTWARE MARKET, 2018-2030
TALENT MANAGEMENT SOFTWARE MARKET, 2018-2030
Source: Industry Expert, Secondary Research, and MRFR Analysis


Covid-19 Analysis


The short-term impact of the COVID-19 pandemic on the global talent management software market is multifaceted, depending on the distinct end-user impact. The pandemic has a negative effect on businesses because it has forced them to cut staff and consequently scale back on hiring. These regulations have impeded the widespread use of talent management technologies. COVID-19 has presented several challenges for HR departments, including ensuring efficient business operations and keeping track of employee health. Additionally, HR teams had to provide support to allow employees to work from home and review and enforce legal changes regarding payroll and sick pay. Due to the decline in capital spending, HR's workload had increased significantly. This factor had a negative influence on the deployment of talent management solutions for the time being.


Following the COVID-19 issue, organizations have predicted to concentrate on implementing cutting-edge technologies to improve business operations and reduce costs, which would probably lead to lucrative opportunities. Al-enabled platforms are also anticipated to be in high demand shortly due to several benefits.


Talent Management Software Market Dynamics


The demand for real-time workforce engagement, social media integration for better management, and global communication for the workforce is boosting the TMS market. Also, the TMS market is expanding as a result of changing trends like social media, population growth, and the cloud-based solution. SaaS HR products are on the rise, and talent management systems are leading the way. By working with social media tools, these trends are well-nurtured, incorporated into the tool, and included in a number of mobile apps, which promotes the widespread use of TM software. The talent management module includes posting on a bespoke career site or social network which significantly rises the number of candidature applications during recruitment. It provides career site search, social media dissemination, and even search engine optimization for career sites. Additionally, this market presents a number of opportunities for developed players to explore new product lines through partnerships, collaboration, and mergers and acquisitions.


Talent Management Software Market Drivers



  • Increasing Demand of Cloud-Based Talent Management Software


The number of cloud computing services and the number of workers with the necessary skills in digital technology to create, maintain, and manage virtual infrastructure has increased as a result of new business models, modes of operation, and working styles. Organisations are preferring access to talent management software & other applications, data storage and other services over the Internet instead of a traditional physical setup. The talent management software (TMS) market is expanding as a result of a number of important factors, including the growing adoption of mobile personnel management systems and cloud-based platforms. Software-as-a-service (SaaS) platforms are being used more frequently by businesses and HR professionals to automate talent pool scouting, identification, and recruitment of new employees as well as employee retention. Additionally, a TMS can facilitate hiring, support workplace culture, offer flexible learning opportunities, and pinpoint top performers. The use of machine learning (ML) and artificial intelligence (AI), among other technological innovations, are assisting in the expansion of the economy. For Instance, In June 2021, Trakstar, a SaaS-based employee engagement and performance management company, announced the unification of its previous modular offerings into a single Trakstar Platform. Trakstar Hire is now accessible for better hiring, Trakstar Learn is now provided for faster onboarding and employee development, and Trakstar Perform is now accessible for ongoing performance tracking and engagement. Additionally, major players are launching a variety of talent management solutions that help with staff management and provide employees with appropriate development opportunities. Talent management software has increased in popularity among businesses as a result of the increased demand to optimise HR operations. Such factors are significantly driving the growth of TMS market.


Organizations are producing enormous amounts of data as a result of digitization, and pressure is mounting to use that data to their advantage in order to remain competitive. Agencies are increasingly implementing cloud-based solutions in talent management to transform massive data into pertinent insight, and it is proving to be a key competitive advantage for key players. Due to the numerous flexible payment and plan options, businesses are switching to cloud-based software. Additionally, the accessibility of customised packages depends on a variety of factors, including the hours of operation, the quantity of users, and others. For example, Cloud-based data privacy management software, made available by IBM OpenPages in March 2021, enables businesses to address new data privacy issues. This feature lowers the cost of the software and increases accessibility for small businesses. As a result, cloud-based solutions offer businesses a model that is tailored to their requirements and includes analytical features and talent management capabilities. Hence, the emerging adoption of cloud-based technologies are driving the talent management software market trend.


RESTRAINTS



  • Use Of Traditional Methodologies Due To Lack Of Awareness


The increased need for real-time employee engagement in businesses across all industries has been identified as the main market driver. The integration of talent management functionalities with social media platforms is another result of the growing popularity of these platforms. These features help the Talent Management Software Market grow even more. The market has demonstrated a high growth trend in recent years, and this trend is anticipated to last throughout the forecast period. The demand for more and more talent is rising as a result of globalisation and business horizon expansion in every industry, which is further boosting the market for talent management software. However, organizations still prefer the traditional methodologies for talent management due to a severe lack of awareness about the technologies. This acts as a hurdle for the market growth. Furthermore, the expenditure on talent management is massive in terms of investment, time, and money. The use of technology to map talent at all levels of the business is required for talent management, which is expensive as well. Moreover, due to the resource scarcity, most businesses find challenging to invest in innovative technologies. As a result, talent management systems are accepted by a limited enterprise which hinders the growth of the market.


Talent Management Software Market Opportunity



  • Growing need for big data analytics in human resource management


The global talent management software market is expected to grow owing to its growing application scope in almost all the human capital-centric industries. The workforce management in organisations is being disrupted by a number of new technologies, the most notable is big data analytics. Analytics are being used more and more in human resources initiatives, from applicant tracking to on-boarding, retention, and data-driven decision making. Small businesses can record, collect, and report the data they need to increase productivity with the aid of the talent management software market. This benefit is anticipated to fuel the Talent Management Software Market solutions.


Talent management software uses analytics to provide advantages such as better recruiting, increased diversity, equity, and inclusion (DE&I), deeper employee engagement, minimizing attrition, better succession planning, etc. Need to minimize attrition is expected to further boost the growth of the TMS market growth. Turnover metrics are important because they highlight numerous weaknesses in the talent management process. Replacement costs for a single employee can range from half to twice that employee's yearly salary, making turnovers expensive. Talent management systems help in gathering and making it simple to track and analyse data that will point to causes of attrition by enabling users to see, for instance, turnover by manager, demographic trends, and more. Hence, the growing demand for big data analytics in human resource management creates lucrative opportunities for TMS.


Talent Management Software Market Segmentation


The global Talent Management Software Market has been segmented based on component, deployment, organization size, vertical, and region


By component, the global Talent Management Software Market has been segmented into Software and Services.


By deployment, the Talent Management Software Market has been divided On-Premise and Cloud


By organization size, the Talent Management Software Market has been divided Small & Medium Enterprises, Large Enterprises


By vertical, the Talent Management Software Market has been divided BFSI, Education, Government, Healthcare, IT & Telecom, Manufacturing, Media & Entertainment, Retail and Others


Talent Management Software Market Regional Analysis


Geographically, the global Talent Management Software Market has been segmented into North America, Europe, the Middle East & Africa, and South America.


North America is expected to be the largest market for talent management software during the forecast period. Rapid advances in digital technologies and the presence of early adopters in the region are some of the factors driving the growth of the market. Given the evolving nature of the workplace, the traditional method of hiring the workforce by maintaining spreadsheets and registers for all activities has become a highly time-consuming and cumbersome process and is also prone to errors. Talent management software plays an important role in optimizing organizational performance, by enabling effective hiring process, business processes, labor costs, and talent management. Moreover, increasing mobile penetration and adoption of cloud across organizations are also some of the factors responsible for the growth of the market. A majority of the vendors of talent management software, such as Oracle, ADP LLC (ADP), and Cornerstone operate in this region. In countries such as the US and Canada, the IT and retail sectors are growing rapidly which assist the TMS market in growing further. The US is home to numerous enterprises and has a highly competitive workforce ecosystem. Hence, the North America region is expected to dominate the market throughout the forecast period.

GLOBAL: TALENT MANAGEMENT SOFTWARE MARKET, BY REGION, 2021 (% SHARE)
TALENT MANAGEMENT SOFTWARE MARKET, BY REGION, 2021 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis


Talent Management Software Market Competitive Landscape


The talent management software market is characterized by the presence of many global, regional, and local players. The market is competitive, with all the players competing to gain maximum market share. Increasing demand of cloud-based talent management software and emergence of social platform are key factors that drive the market growth. Use of traditional methodologies due to lack of awareness restraints the growth of talent management software market. However, growing need for big data analytics in human resource management will create opportunity for the market’s growth.


According to MRFR analysis, the growth of the talent management software market is dependent on market conditions. The key vendors in the market are Workday, Inc., SAP SE, Cornerstone OnDemand, IBM Corporation, CEGID, Haufe Group, Sumtotal Systems, LLC, Learning Technologies Group PLC, Oracle Corporation, and UKG INC.


These companies are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are prominent providers of talent management software and compete in the talent management software market to increase their geographic presence, expand their customer base, and form strategic partnerships.


The top 5 players in the strategy consulting market are Workday, Inc, Cornerstone OnDemand, Automatic Data Processing Inc, Cegid (Talentsoft), SumTotal Systems, LLC (Skillsoft).


Talent Management Software Market Recent Developments



  • January 2022, Workday Inc. had acquired VNDLY for $510 million. With this acquisition, VNDLY will be able to expand the value it gives to customers, helping provide greater visibility, collaboration, and oversight of workforce needs and opportunities.

  • March 2021, Workday, Inc. acquired Peakon ApS, an employee success platform that converts feedback into actionable insights. With Peakon ApS operating as a part of Workday, organizations will have access to a continuous listening platform, including real-time visibility into employee sentiment, experience, and productivity, which can help drive engagement and improve organizational performance. The company will operate as Peakon, a Workday company, reporting to Workday Vice Chairman Tom Bogan.

  • May 2020, Workday, Inc. partnered with salesforce to further integrate Workday and Salesforce's new suite of applications and enable joint customers to forge ahead in their plans to return to work safely.

  • June 2022, Cornerstone OnDemand had entered into a definitive agreement with Skillsoft to acquire SumTotal, a learning and human capital management software-as-a-service provider for customers in highly regulated and complex industries.

  • August 2021, Cornerstone OnDemand, Inc. had made an agreement to be acquired by Clearlake. Under the terms of the agreement, Clearlake will acquire the outstanding shares of Cornerstone common stock for $57.50 per share in cash. The transaction has an enterprise value of approximately $5.2 billion.

  • November 2020, IBM acquired Instana, a German-American software firm specializing in developing application performance management software. The acquisition represents IBM’s continued investment in hybrid cloud, big data, and AI capabilities.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2020 to 2030. For this analysis, MRFR segmented the global Talent Management Software Market has been segmented based on component, deployment, organization size, vertical, and region


TMS Market By component



  • Software

  • Services


By deployment



  • On-Premise

  • Cloud


By organization size



  • Small & Medium Enterprises

  • Large Enterprises


TMS Market By Vertical



  • BFSI

  • Education

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Media & Entertainment

  • Retail

  • Others



Report Scope:

Report Attribute/Metric Details
  Market Size   2021: USD 13,684.6 Million 2030: USD 37,158.7 Million
  CAGR   37.74%
  Base Year   2021
  Forecast Period   2022–2030
  Historical Data   2018-2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Component, Deployment, Organization Size, Vertical
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Halogen Software (Canada), Workday, Inc., Lumesse Ltd. (U.K.), Saba Software (U.S.), Cornerstone OnDemand (U.S.), Kenexa (U.S.), Taleo Corporation (U.S.), iCims, Inc. (U.S.), Sumtotal Systems, Inc. (U.S.), Cegid (Talentsoft) (France), Haufe Group, Learning Technologies Group (Peoplefluent), Oracle Corporation, SAP SE, UKG Inc.
  Key Market Opportunities   Growing need for big data analytics in human resource management
  Key Market Drivers   Increasing demand of cloud-based talent management software, Emergence of social platform


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Frequently Asked Questions (FAQ) :

North America regional market is projected to be the major driver of the market.

The segments in the market are component, deployment, organization size, vertical

The major contenders in the global market are Workday, Inc., SAP SE, Cornerstone OnDemand, IBM Corporation and CEGID

Component, deployment, organization size, and vertical are the segments made to understand the market better.