Talent Management Software Market

Demand for streamlining the hiring process is driving the market growth

Market CAGR for talent management software is driven by the rising demand for streamlining the hiring process. The market is developing due to several important factors, including the rising use of cloud-based platforms and mobile people management systems. Businesses and HR specialists use software-as-a-service (SaaS) platforms to automate employee retention, recruitment of new hires, and talent pool scouting. A TMS may also aid in hiring, support organizational culture, provide flexible learning opportunities, and identify top performers. Among other technological advancements, machine learning (ML) and artificial intelligence (AI) utilization are promoting economic growth.

For example, The SaaS-based employee engagement and performance management startup Trakstar announced in June 2021 that its prior modular solutions would be combined into a single Trakstar Platform. Trakstar Learn is now available for quicker onboarding and employee development, Trakstar Perform is now available for continuing performance tracking and engagement, and Trakstar Hire is now available for better hiring.

Organizations are producing massive amounts of data due to digitization, and pressure is growing on them to use that data strategically to stay competitive. Agencies are increasingly using cloud-based technologies to convert massive amounts of data into information that can be used. Talent management has been shown to be a key competitive advantage for major players. Businesses are converting to cloud-based software due to the many flexible payment and plan options. Also, customized packages' availability depends on several variables, such as the number of users and operating hours.

For example, IBM OpenPages announced cloud-based data privacy management software in March 2021, enabling businesses to address new data privacy problems. Thus, driving the talent management software market revenue.

Recent Development - Talent Management Software Market

The talent management platform ClearCompany, which enables HR to maximise talent throughout the employee lifecycle, today announced the launching of six new products and eleven updates to its end-to-end platform in 2023. By bringing people, processes, and platforms together and bringing clarity to the whole talent spectrum, ClearCompany enables businesses to maximise talent by empowering individuals to realise their full potential.

The latest product from Paycom Software, Inc., a top provider of HR software, EverydayTM, was released in 2023. It enables users to receive payments daily* without having to pay a high fee to do so, while also ensuring employers are compliant and are not exposed to potential losses from things like early employee departures.

SAP SE announced the introduction of a new partner reward programme in 2022 that will use partner competency and client results as its two main performance metrics. The SAP PartnerEdge Competency Framework highlights the expertise and skill sets of partners to raise vendor, partner, and customer satisfaction.

On May 25, 2023, Salary.com, a leading global provider of cloud-based compensation software and data solutions, announced that Lighthouse Research & Advisory 2023 HR Tech Awards named its pay equity suite - CompAnalyst, as the Best DEI-Enabling Solution in the talent management category. Today, achieving pay equity has become imperative for businesses. Salary.com's CompAnalyst Pay Equity Suite was selected for its ability to examine pay across internal and external factors.

On Apr. 17, 2023, BetterPlace, a leading workforce management Software-as-a-Service (SaaS) platform in Asia, announced the acquisition of Malaysia's leading flexi talent solutions technology player, TROOPERS to strengthen its tech platform and Workforce-as-a-Service (WaaS) capabilities for Southeast Asia's frontline workforce. The acquisition will accelerate BetterPlace's regional presence and establish a stronger foothold in Southeast Asia. The acquisition marks BetterPlace's second major move in 2023, following its MyRobin majority stake acquisition in Indonesia earlier this year.

On May 17, 2023, Avature, a leading provider of innovative Human Capital Management (HCM) software, released details about its upcoming conference, AvatureUpfront China, to be held on Jun. 9 in Shanghai. Avature is a configurable enterprise SaaS platform for talent acquisition and management.

Building on the success of the virtual edition in 2022, the 2023 event will gather over 80 HR executives and technical professionals from large enterprises. With a focus on the latest HR trends and best practices for success, the event will provide a unique opportunity for HR leaders and their teams to explore the strategies, operations, and tools needed to shape the future of work in the region.

The Global Talent Management Software Market Industry is poised for substantial growth, with projections indicating a market size of 7.24 USD Billion in 2024 and an anticipated increase to 41.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 17.13% from 2025 to 2035. The increasing adoption of technology in human resource management, coupled with the need for effective talent acquisition and retention strategies, drives this expansion. As organizations recognize the value of investing in talent management solutions, the market is likely to witness significant advancements and innovations in the coming years.

As organizations navigate complex regulatory environments, the importance of compliance and data security in the Global Talent Management Software Market Industry cannot be overstated. Companies are increasingly required to adhere to various labor laws and data protection regulations, necessitating robust talent management solutions that ensure compliance. Software that integrates compliance features helps organizations mitigate risks associated with non-compliance. The focus on data security is paramount, especially with the rise of cyber threats. As businesses prioritize safeguarding sensitive employee information, the demand for secure and compliant talent management software is likely to grow, shaping the future of the Global Talent Management Software Market Industry.

The Global Talent Management Software Market Industry experiences heightened demand for solutions that facilitate remote work. As organizations adapt to flexible work arrangements, talent management software becomes essential for managing employee performance, engagement, and development remotely. This shift is reflected in the projected market growth, with the industry expected to reach 7.24 USD Billion in 2024. Companies are increasingly investing in these technologies to ensure seamless collaboration and communication among remote teams, thus enhancing productivity and employee satisfaction. The emphasis on remote work capabilities is likely to drive innovation and expansion within the Global Talent Management Software Market Industry.

In the Global Talent Management Software Market Industry, there is a growing emphasis on employee development and retention strategies. Organizations recognize that investing in their workforce leads to improved performance and reduced turnover rates. Talent management software provides tools for personalized learning and career development, enabling companies to nurture their talent effectively. This trend is underscored by the anticipated growth of the market, which is projected to expand to 41.2 USD Billion by 2035. As businesses strive to create a culture of continuous learning, the demand for robust talent management solutions is likely to increase, further propelling the Global Talent Management Software Market Industry.

Globalization has led to increasingly diverse workforces, presenting both challenges and opportunities for organizations. The Global Talent Management Software Market Industry is responding to this trend by offering solutions that cater to the needs of a multicultural workforce. Talent management software enables companies to manage global talent pools, ensuring compliance with local regulations and cultural nuances. This adaptability is crucial as businesses expand their operations internationally. The growing need for effective workforce management across borders is likely to drive the demand for specialized talent management solutions, further influencing the trajectory of the Global Talent Management Software Market Industry.

The integration of artificial intelligence and automation technologies is transforming the Global Talent Management Software Market Industry. AI-driven analytics enable organizations to make data-informed decisions regarding talent acquisition, performance management, and employee engagement. Automation streamlines administrative tasks, allowing HR professionals to focus on strategic initiatives. This technological advancement is expected to contribute to a compound annual growth rate of 17.13% from 2025 to 2035. As companies seek to enhance efficiency and effectiveness in their talent management processes, the adoption of AI and automation tools is likely to surge, shaping the future landscape of the Global Talent Management Software Market Industry.

By Region, the report provides market insights into Asia-Pacific, Europe, North America, and Rest of the World. The Asia Pacific talent management software market will dominate this market because of the area's willingness to accept cutting-edge and new technologies. Also, a fundamental transformation in the region's organizational management structure is fueling demand in the developing world. China has the fastest-growing cloud computing market in the entire world. Early adopters of cloud computing services include China.

The size of the Chinese market for cloud infrastructure services will increase by 45% to USD 27.4 billion in 2021, claims Canalys. Moreover, China’s talent management software market held the largest market share, and the Indian talent management software market was the fastest-growing market in the Asia-Pacific region.

Further, the leading countries studied in the market report are U.S., Canada, German, UK, France, Spain, Italy, Japan, China, Australia, India, South Korea, and Brazil.

Figure 3: TALENT MANAGEMENT SOFTWARE SHARE BY REGION 2022 (%)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Europe talent management software market accounts for the second-largest market share. Strong talent management software for staff selection, mobility, and assessment is expected to be in high demand due to active government initiatives and policies connected to talent management. The European government is implementing such policies to create a capable, skilled, flexible workforce for the benefit of Europe. Further, the German talent management software market held the largest market share, and the UK talent management software market was the fastest-growing market in the European region

The North American Talent Management Software Market is estimated to expand at a rapid rate from 2023 to 2032. North America is a potentially developed region for the adoption of talent management, core HR, and recruitment technologies, according to a survey conducted by Cornerstone OnDemand, Inc. The market is expanding due to well-known HCM software providers like Ceridian HCM Holding Inc., Oracle Corporation, and IBM Corporation, among others.

Leading market players are investing heavily in research and development to expand their product lines, which will help the talent management software market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the talent management software industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global talent management software industry to benefit clients and increase the market sector. In recent years, the talent management software industry has offered some of the most significant advantages to medicine. Major players in the talent management software market, including Lumesse Ltd. (U.K.), SAP SE, Cornerstone OnDemand (U.S.), Saba Software (U.S.), and others, are attempting to increase market demand by investing in research and development operations.

Ceipal is the creator of a human capital management platform that aims to improve workforce management. With complete alerts, the company's platform helps organizations manage their talent pool and employees by managing job posts, applicant profiles, interviews, feedback, hiring of appropriate applicants, and onboarding. In October 2021, Ceipal introduced the industry's first AI-powered solution for addressing diversity, equality, and inclusion (DEI) across any organization's workforce and all talent acquisition channels. Ceipal's ground-breaking, patent-pending DEI solution uses powerful AI technology to provide recruiting businesses with total visibility into their workforce and hiring processes and then assists in closing diversity gaps.

BambooHR is the premier software vendor fueling the strategic transformation of HR in small and medium businesses, with over 26,000 clients and 2,500,000 employees. BambooHR's cloud-based system provides a simple and cost-effective approach for expanding businesses to handle critical personnel information in a tailored Human Resources Information System (HRIS). In May 2022, BambooHR launched Employee Wellness. Users of the new feature can survey employees to gauge their general well-being and level of career satisfaction. Employee Wellness investigates how employees feel and how organizations help them. Employee Well-being measures employee satisfaction in four areas: happiness, relationships, personal motivators, and company motivators.