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Rise of ERP in Talent Management Systems

-- By Ajay Kolla

Enterprise learning includes employee training and developmental plans to nurture the skills of employees so that they can align their individual objectives with the organisation's goals

The rise of talent management systems has paved the way for improved applicant tracking in organisations. Over a period of time, it has evolved to goal setting, performance management, career & succession management, employee development, and compensation. Talent management is crucial to attract new talent, retain the existing talent and develop them to achieve the long term vision of the organisation.

The key pillars of talent management facilitate organisations to find the right people at the right place and at the right time. These pillars further support corporate goals with manpower, optimising the training impact and also the retention of top performers. Talent management system helps in integrating people processes with businesses and simplifies challenges such as developing leaders, locating and hiring relevant technically skilled employees; diagnosing & improving organisational culture, and creating an enhanced process for global talent mobility.

The Talent Management System manages all these HR functions such as recruiting, performance management, development and planning in an effective manner. The market today is dominated by Enterprise Resource Planning (ERP) providers, which are integrated with core HR systems providing social recognition, real-time employee feedback, and employee engagement.

These Enterprise Resource Planning solutions include the below mentioned components:

1. Recruitment: Some new age solutions like Systems Applications Products (SAP), specifically e-recruiting in SAP ERP, enables organisations to build a talent pool with better recruits through an efficient hiring process. The Enterprise Resource Planning process serves as an effective channel in finding potential recruits, from a talent warehouse that maintains the database of applicants and candidates. It is one of the quickest and the most efficient channels in finding top talent through various methods such as innovative online screening tools, filtering, sorting, ranking, advanced applicant tracking, analytics, etc. The candidates can also use this talent warehouse to upload their profiles and submit their professional details. Along with that, they can also create a personal page and establish a long term relationship with employers. This module supports recruiters from ‘job posting to job closure’ for ‘specific requirements on specific dates.’

2. Career Management: This component manages every employee’s career goals and aims to fulfil their aspirations through self development and other training programs. Further, it helps employees to fill their knowledge gaps with necessary training programs and online courses to get shortlisted for suitable roles of their choice. Career management and development programs also aid in boosting employees’ personal achievement and job satisfaction through a feedback channel. In a broader perspective, Career Management is a lifelong process that must be well structured in order to prevent stagnation and persistently evolve in reaching one’s career goals.

3. Employee Succession Programs: This component enables organisations to identify high performers to offer leadership roles for long-term sustainability. Companies also identify key positions to target potential employees for long term growth. It is imperative to understand that strategic succession planning is more about an employee’s talent projection, knowledge and expertise rather than the talent an organisation requires. It is not only beneficial for the employee, but also vital for the future of the entire organisation.

4. Enterprise Learning: Enterprise learning includes employee training and developmental plans to nurture the skills of employees so that they can align their individual objectives with the organisation’s goals. ERP products provide an e-learning platform that offers abundant courses for the users, with access to multiple courses across portals. Candidates are trained in virtual classrooms in collaboration with online tutors.

5. Employee Performance Management: Employee performance management tools help in creating employee reviews and appraisals, and support employee compensation plans. ERP HR solutions support self assessments, 360 degree performance appraisal systems, and performance-based calculation methods as a part of the enterprise performance management process. To create a performance driven workforce, great amount of effort must be put towards improvement, learning and development that ultimately lead to achievement of the overall business strategy. Another effective approach is correlating the objectives of the employees with the organisation’s objective and having discussions on regular intervals during the performance period that comprise of training, mentoring, feedback and appraisal.

6. Compensation Management: This component includes plans such as salary based on performance and competency, variable pay plans and incentives. It helps to analyse the compensation packages with internal and external data. It also integrates with salary structure, salary administration and incentive management. This facilitates a proper balance between the output of the employee and the monetary & non-monetary benefits offered to them.

7. Workforce Process Management: Under this, various functional areas such as employee administration, payroll administration, time management and reporting are covered. It includes the below sub components:

• Employee Administration: This enables the organisation to manage its employee data.

• Organizational Management: It manages organisational planning and simulation, development and job analysis.

• Benefits Management: It covers all kind of benefits offered to employees and helps in managing them more effectively.

• Time and Attendance: This supports various processes such as timekeeping, work evaluation, etc.

• Payroll Reporting: It supports all legal mechanisms related to payroll processes such as payroll accounting and tax, incentives and travel expenses. Key functional areas include basic pay calculation, absence payroll, benefits and legal deductions.

• HCM Processes: It supports automation of paper work processes such as termination, hiring processes, resignation and leaves.


ERP solutions offer the latest technologies based on workplace requirements. Technology platforms such as Oracle, ADP, PeopleSoft, IBM, Worktoday, Cornerstone OnDemand and SAP HANA help customers to build agile and effective solutions for their HR systems. They provide end-to-end talent management solutions across the functional areas of global core HCM, workforce management, workforce service delivery, integrated talent management and HR analytics. These solutions help to gain a competitive edge with effective streamlining of HR processes, decision making process and quality results that drive business growth.

Talent Management System solutions thus offer greater flexibility, leading-edge functionality with other human capital management tools.

Most ERP solutions have been upgraded from their basic versions and offer several new features. For example, Oracle has launched a new product iRecruitment, PeopleSoft has developed eRecruit and SAP has brought out mySAP HR E-Recruiting to offer updated ERP solutions to the industry.

The Bottomline

Enterprise Resource Planning is definitely a complex framework tool where an efficient implementation can only be performed through the right assessment of the right solution provider with suitable expertise.

There are a few bottlenecks in implementing Enterprise Resource Planning solutions such as high costs, and complexity in selection of the right tool suitable for the organisation’s needs. Hence, every organisation needs to overcome these challenges with careful evaluation with respect to different vendors that will help them in mitigating the challenges considerably.

ERPs are set to play a key role in the Talent Management of companies in the coming years, and will be a significant factor in them achieving their organisational goals.

The writer is Founder & CEO,












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