What Is a Talent Management System?
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A talent management system can be a useful tool for human resources teams when following the onboarding process from start to finish. It’s also often helpful for supporting employees throughout their career journey, as they move between performance goals and different roles. Talent management systems may also integrate with background check solutions so you can screen potential candidates through your HR platform.
Key takeaways:
- Talent management systems (TMS) streamline HR processes, providing a centralized platform for managing the entire employee lifecycle
- TMS helps provide a more personalized and engaging experience for employees
- TMS can improve career development opportunities for employees
- Get started today and order your first background check
What is a talent management system?
A talent management system (TMS) is an integrated software platform that connects numerous standalone HR software modules across the entire talent lifecycle.
A typical TMS is designed to support software for core HR functions, including workforce planning, onboarding, performance management, professional development, compensation, and succession planning. TMS capabilities also typically include the ability to generate personal information and store confidential data. Plus, most TMS solutions perform detailed analytics and reporting.
HR software solutions have been around for decades, but until recent years they relied heavily on outdated workflows, paperwork, and a siloed approach. While individual HR modules still play an important role, modern talent management systems allow for centralized planning, data sharing, and other operational efficiencies.
How does a talent management system work?
Talent management systems use built-in, automated workflows to centralize and organize HR data, a wide range of talent management processes, and employee information. Here’s a closer look at how a TMS typically works at every state of the talent management lifecycle:
- Talent recruitment: Employers can easily recruit new talent and nurture candidates through the entire hiring process. Talent management systems integrate with applicant tracking systems (ATS) workflows and data, further streamlining recruitment on job boards, working with third-party recruiters, pre-employment background checks, and time to hire.
- Employee onboarding: New hires experience a seamless onboarding process with easy access to onboarding resources, such as a dedicated onboarding portal. This eliminates the need for some manual onboarding processes, allows new employees to get up and running more quickly, and reduces the burden on HR staff and managers.
- Performance management: Talent management systems gives employees more visibility into their performance and helps them take actionable steps to meet goals. Managers may also be able to access their team’s performance metrics to help guide conversations and performance reviews.
- Compensation management: Employees can typically access information about compensation and benefits through the TMS, while employers can create compensation plans and demonstrate compliance with specific industry and government regulations as needed.
- Employee training and education: Employers can curate engaging learning paths and experiences, compliance training, succession plans, and other training tools to further employee development. Employees can access training and education as part of meeting specific goals, leadership development, or upskilling.
Top benefits of a talent management system
With a sophisticated talent management system in place, busy HR teams often benefit from automated workflows and single-point access to the many HR talent modules an organization may use. Recruiters, managers, employees, and candidates also commonly access an employer’s TMS at various stages during the talent lifecycle.
Here’s a closer look at some key benefits of a talent management system for employers and other individuals.
For employment purposes
Talent management systems offer employers many advantages, including:
- Improved efficiencies: Automated workflows and streamlined processes reduce the administrative burden on HR staff, employee managers, and other team members with talent management responsibilities — like recruitment, performance management, and compensation management.
- Enhanced talent acquisition and retention strategies: Data-driven insights from embedded analytics and reporting help organizations make workforce planning decisions that align with short- and long-term business goals. With data in hand, HR teams can identify strategies for workforce retention, development, and succession planning.
- Increased employee engagement, productivity, and satisfaction: Employees often see an uptick in key employee performance indicators as well as employee satisfaction. This can in turn lead to increased employee retention, internal promotions, and attracting new talent to the team.
- Reduced costs: Employers often save on costly administrative overhead by cutting out manual processes. Decreased employee turnover also means employers can spend less on recruitment and onboarding.
- Streamlined compliance and risk mitigation: HR tools are often designed to help employers stay compliant with industry and government regulations. By using an integrated talent management system with automated workflows, employers can better comply with relevant standards and mitigate business risk.
For personal use
Talent management systems provide individuals, including both candidates and employees, with numerous benefits. These include:
- Greater transparency: With easy access to personal and career-related information, including compensation, benefits, and performance feedback, employees can be active participants in their career journey. Candidates also benefit from transparency during the hiring process, with access to important information like background check results.
- Improved career development opportunities: Employees gain a clearer understanding of their performance goals and have access to tools, training, and other resources to help meet professional milestones. Promotion opportunities may also be accessible on internal job boards, helping employees explore other ways to advance their career within the organization.
- Reduced administrative tasks: Streamlined process and less manual paperwork often free up team members to focus on core work. This may mean starting their job sooner after onboarding, instead of spending several days in training or filling out paperwork. Or it could mean a more focused approach to goal-setting and performance reviews for both employees and their managers.
- More personalized experience:Talent management systems offer employees a more engaging employee experience through their tenure, from onboarding through succession. Dashboards and access to personal information, educational training, and other data give employees autonomy over their “employee file” while also helping them take actionable steps toward their performance and career goals.
How background checks work with talent management systems
Background checks can be complicated, since they require employers to follow specific compliance requirements, many of which may be required by federal, state, or local law. Certain industries, like commercial trucking, also have very strict background check regulations. Employers can choose to run background checks themselves. But to streamline the background check process and improve turnaround times, employers often work with a consumer reporting agency (CRA).
Checkr’s technology, for instance, easily integrates with many top talent management software partners, offering a turnkey experience for both employers and candidates. Background checks are typically included as part of the recruitment process and happen after an offer of employment has been made. But timing may vary depending on industry and government regulations.
While the process may vary depending on the background check provider and TMS, here’s how background checks typically work with a talent management system:
- Candidate receives an invite link: The candidate receives an automated invitation to complete a background check. The link may come by email or text. Generally, this happens after an offer of employment.
- Candidate provides consent: Under the federal guidelines of the Fair Credit Reporting Act (FRCA), the candidate must provide written consent in order for the background check to proceed.
- Information is transferred: The candidate submits their personal information using the link, and the data is transferred from the TMS to the background provider.
- Background check report review: After the background check is complete, the employer will receive a report with the findings of the screenings.
- Hiring decision: The employer makes a hiring decision based on their background check policy and any applicable regulations or compliance requirements. Employers that choose not to hire a candidate based on information found in a background check are required under the Fair Credit Reporting Act (FCRA) to follow the adverse action process.
Run a background check with Checkr today
Employers that choose to run a background check with Checkr benefit from automated workflows, built-in compliance tools, and access to 100+ ATS, human resources, and onboarding system integrations. Checkr’s comprehensive background packages offer multiple screening options, and our candidate portal provides real-time transparency for candidates and hiring managers. Get started today.
Individuals can order personal background checks to understand what a potential employer may see and prepare to provide context when necessary. Personal background checks also allow candidates the opportunity to correct potential errors to be reflected on their Checkr report. Order online.
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Disclaimer
The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.
