Talent Management Software Global Market Report 2024

The global talent management software market has grown rapidly in recent years. It will grow from $13.16 billion in 2023 to $15.24 billion in 2024 at a compound annual growth rate (CAGR) of 15.8%. The growth observed during the historical period can be credited to several factors, including innovation among vendors and increased competition within the market, the adoption of user-friendly interfaces in software, a significant shift towards cloud-based solutions, and a focus on performance and goal management functionalities within talent management software.

The global talent management software market is expected to see rapid growth in the next few years. It will grow to $27.61 billion in 2028 at a compound annual growth rate (CAGR) of 16.0%. Anticipated growth in the forecast period can be linked to several key factors, including the adaptation to hybrid work models, a heightened emphasis on employee well-being, addressing skill gaps and talent shortages, a focus on diversity, equity, and inclusion (DEI) initiatives, and the implementation of continuous performance management practices within talent management strategies. Key trends expected in the forecast period encompass talent mobility and internal career advancement opportunities, an increased focus on employee well-being and engagement, enhanced integration capabilities with HR ecosystems, the inclusion of robust security and compliance features, emphasis on succession planning and leadership development, and integration with HRIS (Human Resource Information Systems) and ERP (Enterprise Resource Planning) systems for seamless operations.

The escalating use of social network sites is a driving force behind the increasing demand for talent management software. Social network sites, including social media platforms, enable users to create profiles, connect with others, and navigate connections within the system. These platforms are valuable for employers in promoting their brand and accessing a large pool of talents. In October 2021, global active social media users reached 4.48 billion, marking a 13.13% annual increase from 3.69 billion in 2020, as reported by Backlinko, a US-based advertising services and SEO training company. The widespread use of social network sites is expected to fuel growth in the talent management software market.

The transition towards remote work is a key driver for the talent management software market. Remote work, or telecommuting, eliminates the need for employees to commute to a central workplace. Talent management software plays a vital role in supporting remote work by streamlining HR processes, fostering employee collaboration, and optimizing workforce productivity. A survey conducted in 2022 by FlexJobs' Career Pulse revealed that 65% of respondents expressed a strong preference for full-time remote work, while 32% desired a hybrid work arrangement. This data indicates that 97% of workers wish to have the option of working remotely in some capacity, highlighting the significant impact of the shift towards remote work on the talent management software market.

Technological advancement is a prominent trend in the talent management software market, with major players focusing on innovation to maintain their market positions. In October 2021, CEIPAL Corp, a US-based software development company, launched an AI-driven talent management platform addressing diversity, equity, and inclusion (DEI). This patent-pending DEI solution utilizes advanced AI technology to provide hiring organizations with comprehensive access to workforce and hiring procedures, helping to close diversity gaps. The AI-driven tool enables HR and talent acquisition professionals to automatically identify demographic gaps and define a precise and achievable path to meet specific DEI targets. This emphasis on technological advancement demonstrates the commitment of major players to evolving trends in the talent management software market.

Prominent companies in the talent management software market are actively launching new talent management platforms to secure a competitive advantage. These platforms are comprehensive systems designed to cater to an organization's human capital needs across the employee lifecycle. In April 2023, GSoft, a Canada-based technology company, introduced Talentscope, a cutting-edge talent management platform. Talentscope is specifically designed to assist organizations in effectively mapping and assessing their employees' skills. The platform's features, including skill mapping, workforce planning, career development, and an internal talent marketplace, aim to streamline workforce planning, promote skills-based career progression, and enhance internal mobility. By focusing on leveraging skills as a central element of the employee experience, Talentscope aims to help organizations adapt to changing needs and succeed in a dynamic market.

In August 2022, Litera, a US-based technology company, made a strategic acquisition by acquiring Micron Systems Inc. The acquisition, for an undisclosed amount, significantly expands Litera's solutions portfolio and reinforces its commitment to addressing talent engagement and retention challenges, particularly prevalent in the legal sector. Micron Systems Inc., a US-based developer of talent management software, is expected to enhance Litera's ability to address critical tasks related to talent management, providing solutions to streamline talent engagement and retention efforts for Litera's clients.

Major companies operating in the talent management software market report are Cornerstone OnDemand Inc., International Business Machines Corporation, Lumesse Limited, Oracle Corporation, PeopleFluent Holdings Corp., Skillsoft Corporation, Cornerstone OnDemand Inc., SAP SuccessFactors, TalentSoft SA, Halogen Software Inc., SumTotal Systems LLC, Workday Inc., TalentGuard Inc., Kenexa Corporation, Taleo Corporation, Haufe Group GmbH & Co. KG, Ultimate Software Group Inc., PageUp People Limited, Automatic Data Processing Inc., Eightfold AI Inc., Deltek Inc., ClickUp Inc., Cornerstone Growth Acquisition Corp., Deel Technologies Inc., Dun & Bradstreet Corporation), Paycor Inc., Remo First Oy, Cegid Group SA, Rippling Inc., Sage HR

North America was the largest region in the talent management software market share in 2023. The regions covered in the talent management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the talent management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of talent management software are solutions and services. The solution aspect involves tracking employee development and providing incentives, offering a platform for organizations, HR personnel, and managers to manage all aspects of an employee's lifecycle, from recruitment to departure. These solutions can be deployed either on-premises or in the cloud. The software caters to organizations of varying sizes, from small to medium-sized enterprises (SMEs) to large enterprises, and finds application across industry verticals such as BFSI, IT & telecom, manufacturing, government, healthcare, education, retail, among others.

This report provides talent management software market statistics, including talent management software industry global market size, regional shares, competitors with an talent management software market share, detailed talent management software market segments, market trends and opportunities, and any further data you may need to thrive in the talent management software industry. This talent management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The talent management software market includes revenues earned by entities recruiting and tracking applicant, managing compensation, managing talent relationship, and evaluating performance capabilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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