Although human resources and talent management are inextricably linked and have a great deal in common, they serve two separate functions in an organization. HR performs tactical functions, dealing with the day-to-day management of personnel, while the purpose of talent management is strategic, with actions aligning with long-term company goals. As both functions are vital to the health of an organization, your human capital management software should support both human resources and talent management functions.
What Is Human Resource Management?
Human resource management is the link between employees and company management. It handles management functions associated with compensation, benefits, training, safety, and performance. HR is responsible for recruiting, interviewing, hiring, managing, and directing employee-related processes in the organization.
It is charged with improving the environment and culture of the workplace, oversees employee relations, and works to increase productivity. HR consults with executives on strategic planning to develop an approach to employee management that helps the company accomplish specific objectives and goals.
What Is Talent Management?
Talent management, on the other hand, is a business strategy. It must be fully integrated into all company processes and activities relating to employees. Where certain duties, such as hiring, training, and retention were formerly centralized in HR, with talent management, many of these functions are performed by the supervisors leading and directing specific employees.
Talent management can be defined as a set of integrated HR processes designed to attract, motivate, develop, and retain engaged, productive employees. It is a company-wide, holistic, long-term strategy with a focus on hiring, assisting, training, promoting, and retaining the top talent of the organization. From a talent management perspective, the question is not simply whether a candidate is a good fit for a specific position, but whether he or she is a good fit for the current position, the company, and future roles within the organization.
Talent Management: An Important Aspect of Human Capital Management
Human capital management (HCM) is essentially people resource management. It is an approach to staffing that perceives employees as assets with a current value that can be measured and a future value that can be enhanced through investment. Talent management is an important aspect of HCM that focuses on critical company activities, including:
- Recruiting: Talent management begins with hiring the right people. A seamlessly integrated recruiting and applicant tracking system can help you source and select the right candidates and improve the efficiency of the hiring process.
- Performance management: This is key to both HR and talent management functions. Performance management software that streamlines HR, facilitates coaching and feedback, and aids in nurturing employee development can help you inspire a high-performance workplace culture that propels your business forward.
- Career management: To retain top talent, which is a key talent management objective, it is important to work with employees on career development plans. Career management is a crucial component of talent management and important to reducing turnover and improving employee satisfaction.
Human Resources vs. Personnel Management
Traditionally, personnel management focuses on the administrative management of a workforce, which includes hiring, onboarding, administering payroll and benefits, and addressing complaints. Human resource management is more people-centered and treats employees as a resource that must be developed to achieve company goals.
EPAY Systems cloud based workforce management software is a uniquely flexible system that adapts to your enterprise. Our integrated human capital management solutions can ease HR’s workload and support every aspect of talent management, including recruiting and applicant tracking, onboarding, time and attendance tracking, HR management, benefits administration, and performance management. Schedule a live demonstration, so you can see how our HCM system brings all of your HR technology together in one seamless platform.