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Talent Management Software Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Solution (Performance Management, Talent Acquisition, Learning Management, Compensation Management, and Others), By Enterprise Size (SMEs and Large Enterprises), By Deployment (Cloud and On-premise), By Industry (IT and Telecommunication, BFSI, Government, Healthcare, Education, Manufacturing, and Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI100374

 

KEY MARKET INSIGHTS

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The global talent management software market size was USD 6.45 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with talent management software/services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 8.8% in 2020 as compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 7.02 billion in 2021 to USD 13.21 billion in 2028 at a CAGR of 9.4% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The global talent management and HR management industry is undergoing significant technological changes mainly driven by mobile technology's major growth. The market is gaining substantial traction, supported by the constant adoption of advanced technologies and dynamic human resource practices. The need for hiring process automation and the growing need for better performance management among corporations are factors driving the growth of the market. Other important factors influencing the worldwide market include the alignment of personal goals with organizational objectives, team cooperation, and feedback. Key players operating in the market are taking key initiatives to strengthen market growth. For instance, in May 2020, Oracle Corporation launched Oracle Analytics, a cloud-based HCM platform, to improve HR teams' decision-making capabilities and increase company performance.


COVID-19 Impact


COVID-19 to Have Mixed Impact on the Global Market


Depending on the different end-user impacts, the short-term impact of the COVID-19 pandemic on the global market is mixed. Many companies that have been hit hardest by the pandemic crisis are forced to reduce their workforce, effectively halting mandatory hiring processes. These guidelines have adversely impacted the global adoption of talent management solutions. During the COVID-19 pandemic, the HR departments are facing several challenges, such as ensuring optimum business operations and managing the health of the workforce. Additionally, HR teams have to provide support to allow employees to work from home, and reviewing and enforcing legal changes regarding payroll and sick pay. Due to the decline in capital spending, HR's workload has increased considerably, and project resources and budgets have been constrained. For the time being, this is going to impact the implementation of talent management solutions adversely.


Furthermore, following the COVID-19 crisis, businesses are expected to focus on adopting advanced technology to improve business processes and cut costs, which will likely create lucrative market opportunities in the global market. Furthermore, AI-enabled platforms are expected to see high demand in the near future due to several benefits.


LATEST TRENDS


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Acceptance of Cloud-based Talent Management Solutions is a Key Trend


Companies have accumulated large quantities of data due to digitalization, putting pressure on them to use the data they've collected to gain competitive advantages. Agencies are shifting towards cloud-based solutions to transform big data into actionable intelligence. It is proving to be a significant competitive advantage in the area of talent management.


Talent acquisition is constantly under time and cost constraints to justify the costs involved. Licensing, maintenance, infrastructure, and personnel costs are typically high for on-premise talent management software. As a result of the flexible mode of payment and plans and the availability of personalized packages based on time of operation, the number of users, and other factors, businesses are migrating to cloud-based software. This reduces costs and puts the software within reach of small businesses. As a result, cloud-based solutions provide companies with a model tailored to their requirements, providing analytical functions and appropriate talent management capabilities.


DRIVING FACTORS


Various Benefits Associated with the Adoption of Talent Management Software Will Boost Growth


Employee development must be a key component of business strategy in technological advancements and digital transformation to sustain the global market competition. Organizational models are constantly evolving to adapt to rapid changes in technology, skills, and business models. Because of an agile approach's changing dynamics, HR teams must rethink how they currently support employees.


By putting employees and talent first, talent management systems help businesses and HR departments achieve long-term (business) goals. A talent management system enables enterprises and organizations to adopt an employee-centric business model eliminating the time and costs associated with employee hiring and onboarding processes.


Companies that adopt talent management software save money on training and onboarding by allowing employees to participate in goal setting, receive better training, and link performance to acknowledgment, rewards, and compensation. With this, workers and employees are in a greater position to cut down the time and hassle of onboarding and other verification processes. Because the people determine an organization's quality and reputation it has onboard and the people it employs, the main goal of deploying this software is to strengthen employee-company relationships. Moreover, key players are launching different talent management suits that help improve employee management and provide appropriate learning opportunities to the employees. Thus, the growing need to streamline HR processes has boosted talent management suits among enterprises.


RESTRAINING FACTORS


Limited Awareness of Talent Management Solutions Among Enterprises to Hinder Growth


Although analysis and data have long played a role in driving business decisions, most firms still have a long way to go when it comes to talent analytics. One of the big reasons impeding market growth is a lack of awareness about talent management software benefits. Furthermore, talent management costs in terms of resources, time, and costs may be substantial. Talent management entails using software to map out talent requirements at all organizational levels, which can be costly. Due to their limited budgets, small and medium businesses (SMEs) find it challenging to invest in advanced technologies. Thus, limited use of talent management technology among enterprises will hamper the market growth.


SEGMENTATION


By Component Analysis


Solution Segment Captured Maximum Market Share


By component, the market has been classified into solutions and services.


The solution segment currently has the highest market share and is expected to maintain this position throughout the forecast period. Talent management software aids companies in providing a better employee experience and increasing productivity. However, due to the need for consultancy, implementation, and training services during the pre-and post-deployment of this software, the services segment is expected to expand at the fastest rate during the forecast period. Professional services involve planning and strategy and implementing the software for the organization's future growth.


By Solution Analysis


 Adoption of Talent Management Software for Performance Management is a Key Driver


The solution segment is categorized into performance management, talent acquisition, learning management, compensation management, and others.


The talent acquisition segment captured maximum share in 2020 and is expected to gain momentum in the near future. Talent acquisition comprises several tasks such as on-boarding, recruiting, and sourcing. Performance management dashboard allows HR and recruitment teams to monitor and manage the overall recruitment process.


Performance management is expected to gain traction in the future, as analytics-driven talent management will address issues such as actionable insights into employee and company performance, among other things. Performance management software can help companies navigate the entire employee experience journey and identify major points and stages where experience levels may deteriorate. Large companies primarily use talent management solutions to drive employee experience and generate more engaging interactions, so talent acquisition and learning management have a sizable market share.


By Deployment Analysis


Cloud-based Software to Witness High Growth


By deployment, the market has been segmented into cloud and on-premises.


The cloud segment captured maximum market share in 2020. The growing popularity of cloud-based services is propelling the segment's growth, as it provides numerous additional benefits such as on-demand services, flexibility, and agility of solutions. Cloud-based solutions and services are expected to grow in popularity in the coming years.


Cloud-based services and solutions provide numerous benefits such as regular software updates, improved user experience, and better dashboard and analytics.


By Enterprise Size Analysis


Growing Adoption of talent Management Among SMEs to Aid Growth


Based on enterprise size, the market has been divided into SMEs and large enterprises.


Large enterprises dominated the market in 2019. Large companies are likely to merge their talent management systems in order to move beyond basic metrics like employee headcount and working hours to more significant analytics. Large companies use analytical solutions to solve complex problems like identifying turn-over risks for high-potential employees in different countries and critical functions.


The fastest-growing segment for new HR technology users is expected to be small and mid-sized businesses. As a result, market players are increasingly required to provide affordable and cost-effective alternatives that produce positive high-value outcomes. Similarly, in the coming years, mid-sized businesses are likely to see a significant increase in HR technology spending.


By Industry Analysis


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IT and telecommunications Segment Captured Maximum Market Share


By Industry, the market has been segmented into IT and Telecommunication, BFSI, government, healthcare, education, manufacturing, others.


Due to digital competition, an uncertain economy, and a new generation of customers with precise knowledge and high demands, the IT and telecom industries around the world are facing significant challenges. Regardless of the difficulty, the conventional aspects of the business remain unchanged. As a result, there is a greater demand for a more skilled workforce and different recruiting strategies. With the need for adequate criteria, talent management platforms provide comprehensive insights and effective and efficient business strategies.


The changing dynamics of employee relationships and the domain's increasing reliance on digitization for management are driving demand for talent management solutions in the BFSI sector. The need for skilled manpower in the healthcare sector has been growing, which is expected to aid in the development of human capital management tools in the sector.


REGIONAL INSIGHTS


North America Talent Management Software Market Size, 2020 (USD Billion)

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Geographically, the market is segmented across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.


North America captured maximum market share and is expected to maintain its dominance in the near future. According to a survey conducted by Cornerstone OnDemand Inc., North America is a potential adopting region for talent management, core HR, and recruitment technologies. The presence of established HCM software vendors such as Ceridian HCM Holding Inc., Oracle Corporation, and IBM Corporation, among others, and significant investments in cloud applications are likely to contribute to the talent management software market growth in the region.


Asia Pacific is expected to witness substantial growth in the global market. The development of the market is mainly attributed to the region’s sustainability to adopt advanced technologies. Also, demand in developed countries is driven by a radical shift in companies' organizational management technologies. SMEs are expected to drive the adoption of this software in countries like Japan, India, and Australia owing to their vibrant ecosystems. Large businesses in the IT and telecom, BFSI, manufacturing, education, and other sectors, on the other hand, are expected to produce the most revenue in the market.


Following North America, Europe is expected to be the second largest market. The demand for more robust talent management software tools and services for employee selection, mobility, and assessment is likely to be fueled by active government initiatives and policies regarding talent management. The European government is implementing such policies to create a competent, knowledgeable, flexible, and networked workforce at the service of Europe.


The Middle East and Africa and Latin America market are expected to witness steady growth in the near future. Some of the region's high-tech investors include IT and telecommunications, healthcare, manufacturing, and government. As a result, prospective customers for this software are expected to increase.


KEY INDUSTRY PLAYERS


Key Players to Emphasis on Mergers and Acquisitions to Strengthen Competition


Talentsoft, IBM Corporation, Oracle Corporation, Cisco Systems Inc., CornerStone OnDemand Inc., and others are some of the market's major players. They are currently offering advanced solutions integrated with advanced technologies such as artificial intelligence (AI), cloud, and others. Additionally, the high market competition is forcing key players to focus on the acquisition strategy for strengthening their positions. For instance,



  • June 2020 - Talentsoft acquired Crafty, an HR technology startup, to incorporate Crafty skills graphs with Talentsoft's talent acquisition, learning, and management platform. Through the talent marketplace and employee talent profile, the enterprise will manage skills and receive matching recommendations. The purchase was made with the goal of better managing talent growth and internal organizational mobility.

  • October 2020 - Lattice and ADP, Inc. have announced a strategic partnership to provide an integration that allows users to manage and share employee data between the two platforms easily. This integration would help human resource (HR) teams manage their workforce data more effectively, decrease redundant data entry time, and improve security.


LIST OF KEY COMPANIES PROFILED:



  • ABB Ltd (Zürich, Switzerland)

  • IBM Corporation (New York, United States)

  • Cornerstone OnDemand (Saba Software, Inc.) (California, United States)

  • Workday Inc. (California, United States)

  • Learning Technologies Group plc (London, United Kingdom)

  • Applied Training Systems, Inc. (Trakstar) (Seattle, WA, United States)

  • Talentsoft (Boulogne-Billancourt, France)

  • Lattice (California, United States)

  • BambooHR LLC (Utah, United States)

  • 15Five, Inc. (California, United States)

  • Hi bob Inc. (England, United Kingdom)

  • Oracle Corporation (Texas, United States)

  • SAP SE (Walldorf, Germany)

  • Culture Amp Pty Ltd (Richmond, Victoria, Melbourne)

  • Betterworks Systems, Inc. (New York, United States)

  • Kazoo, Inc. (Austin, Texas)

  • Infor Inc. (New York, United States)

  • Sumtotal Systems, LLC (Florida, United States)


KEY INDUSTRY DEVELOPMENTS:



  • In April 2020 – Cornerstone OnDemand, Inc., a leading digital solution provider acquired Saba Software, a talent experience solution leader. With this acquisition, Cornerstone aims to strengthen its market position and better serve its global customers.

  • October 2018 - Applied Training Systems (ATSI) acquired Mindflas, a leading learning management software provider. Applied Training Systems existing brands, such as Reviewsnap, Trakstar, and Recruiterbox, will benefit from the acquisition. It will also encourage the company to advertise its people management solution, which assists in recruiting, training, and motivating excellent employees.


REPORT COVERAGE


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The global talent management software market research report provides an in-depth analysis of the market and focuses on key aspects such as leading companies, applications, and adoption of advanced technologies among several industry verticals depending on the organization size. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors that have contributed to the growth of the market in recent years.


Report Scope and Segmentation





















































  ATTRIBUTE



  DETAILS



Study Period



  2017 – 2028



Base Year



  2020



Forecast Period



  2021 – 2028



Historical Period



  2017 – 2019



Unit



  Value (USD billion) 



Segment



  Component; Solution; Enterprise Size; Deployment; End User and Region



 



By Component



  • Solutions

  • Services



By Solution



  • Performance Management

  • Talent Acquisition

  • Learning Management

  • Compensation Management

  • Others



By Enterprise Size



  • SME's

  • Large Enterprises



By Deployment



  • Cloud

  • On-premise



By Industry



  • IT and Telecommunication

  • BFSI

  • Government

  • Healthcare

  • Education

  • Manufacturing

  • Others (Retail, M&E)



By Region



  • North America (By Component, Solution, Enterprise Size, Deployment, End-User)

    • U.S.

    • Canada



  • Europe (By Component, Solution, Enterprise Size, Deployment, End-User)

    • UK

    • Germany

    • France

    • Scandinavia

    • Rest of Europe



  • Asia Pacific (By Component, Solution, Enterprise Size, Deployment, End-User)

    • China

    • India

    • Japan

    • Southeast Asia

    • Rest of Asia Pacific





  • The Middle East & Africa (By Component, Solution, Enterprise Size, Deployment, End-User)

    • GCC

    • South Africa

    • Rest of Middle East & Africa



  • Latin America (By Component, Solution, Enterprise Size, Deployment, End-User)

    • Brazil

    • Mexico

    • Rest of LATAM





Frequently Asked Questions

According to Fortune Business Insights, the global size market is expected to reach USD 13.21 billion by 2028.

Fortune Business Insights says that the market value stood at USD 6.45 billion in 2020.

By 2028, the market size is expected to reach USD 13.21 billion.

The market is expected to grow at a CAGR of 9.4% in the forecast period (2021-2028).

By component, the solution segment is expected to lead the market during the forecast period.

The increased adoption of talent management services/software is a key driver for market growth.

IBM Corporation, Cornerstone OnDemand (Saba Software, Inc.), Workday Inc., Learning Technologies Group plc, Applied Training Systems, Inc. (Trakstar), Talentsoft, Lattice BambooHR LLC, among others are the top companies in the market.

By vertical, the IT and Telecommunications segment holds the major market share.

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