Talent Management Software Market Size, Share, Growth Analysis, By Solution(Recruiting Management, Compensation Management, Employee Lifecycle Management, Learning and Training Management and Performance), By Deployment(On-Premise and Cloud-Based), By Application(BFSI (Banking, Financial Services, and Insurance), Retail), By Region - Industry Forecast 2024-2031

Talent Management Software Market Drivers

Rising Popularity of Remote and Hybrid Work Models 

• The COVID-19 pandemic gave rise to the trend of remote and hybrid work models, and this has only grown in popularity post-pandemic. The need for centralized platforms that streamline talent acquisition, onboarding, performance management, and learning is quite high in remote and hybrid work models, which is projected to favor the demand for talent management software as well.

Demand for Upskilling and Reskilling 

• Organizations as well as employees around the world are focusing on upskilling and reskilling to keep up with rapidly changing technologies and business solutions. Talent management software integrates learning management systems (LMS) to facilitate continuous employee development and skill enhancement, which makes it easy for organizations to boost their productivity and capabilities.  

Restraints 

Resistance to Change 

• Complexities of transitioning from manual or legacy systems to new talent management software, alongside the need for training on new platforms leads to resistance to change among employees in organizations. This resistance to change is projected to hamper the overall talent management software adoption rates on a global level.  

Challenges in Customization

• Every organization has different needs for talent management and customizing talent management software to each organization’s preferences is a herculean task. Creating custom talent management software is a very capital and time-intensive process that makes the solution more expensive and therefore reduces the profit margins of talent management software providers.