Talent Management Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.13 Billion |
| Market Size (2029) | USD 22.86 Billion |
| CAGR (2024 - 2029) | 15.48 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Talent Management Market Analysis
The Talent Management Market size is estimated at USD 11.13 billion in 2024, and is expected to reach USD 22.86 billion by 2029, at a CAGR of 15.48% during the forecast period (2024-2029).
- As workforce dynamics shift and technology advances, the demand for talent management solutions is evolving rapidly. Organizations are prioritizing lifelong learning and upskilling initiatives to keep pace with these technological changes.
- Companies are investing in tailored learning paths and training programs, ensuring employees acquire skills for emerging roles. According to Talentgames, about 93% of top-performing companies assert that personalized learning enhances employee efficiency and engagement.
- DEI (Diversity, Equity, and Inclusion) initiatives are gaining prominence in talent management strategies. Companies are not only seeking diverse talent but are also fostering inclusivity and addressing unconscious biases to cultivate a vibrant organizational culture.
- Moreover, there's a notable trend towards innovative hiring solutions for early-career talent, a momentum expected to persist into 2025 and beyond. Major organizations, including Nestlé, Coca-Cola, and global football associations, are leveraging gamified assessments for large-scale recruitment of young talent. These interactive tools, offering a data-driven approach, enhance both engagement and efficiency in the hiring process. While the average hiring cost hovers around USD 4,000 (as reported by SHRM), gamified assessments can slash this expense by up to 43%.
- With the rapid evolution of technology reshaping the skills landscape, continuous learning and skill development have become paramount for workforce competitiveness. To bridge the widening skills gap and future-proof their teams, organizations are channeling investments into reskilling and upskilling initiatives.
- However, many organizations grapple with budget constraints, hindering the implementation of comprehensive talent development programs. Thus, a strategic allocation of resources becomes crucial to amplify the impact of talent management efforts.
- The post-pandemic landscape is characterized by a pronounced shift to hybrid work. As organizations embrace flexible arrangements blending remote and in-office work, talent management strategies must adapt, emphasizing collaboration, communication, and employee engagement in this distributed setting.
Talent Management Market Trends
Recruiting Management to Hold Major Growth
- Globally, companies are streamlining high-volume hiring by integrating recruitment software into their operations. The recruitment software market is primarily driven by the surging demand for cloud-based platforms and the growing technological adoption in recruitment systems. Furthermore, the use of AI (artificial intelligence) for automated resume screening, assessing candidates' experience and skills, has further propelled market growth.
- Cloud-based HR solutions are adept at navigating today's volatile environment, allowing HR to make swift decisions. The main objective of cloud computing in HR is to centralize information, facilitating quick and efficient storage and retrieval of HR data from anywhere, all without the need for paperwork. As a result, traditional organizations have seen a significant transformation in their operations due to these HR cloud technology solutions.
- Over the last ten years, the U.S. labor market has undergone significant changes. As talent shortages grow and the labor market tightens, businesses are reshaping their hiring strategies. A key driver of this shift is the gap between the skills employers seek and those candidates offer. Data from the Bureau of Labor Statistics reveals that in July 2024, the U.S. recorded approximately 5.52 million employee hires. In tandem, total separations hit 5.42 million, marking a significant jump from the previous month's 5.08 million. This rise in separations heightens the urgency for new hires.
- Moreover, the transition to remote work has normalized virtual recruiting. About 70% of companies indicate their recruiting processes are at least partially virtual, with many fully adopting remote hiring to access a wider talent pool. This trend is poised to persist as organizations embrace flexible work models.
- On the technological front, chatbots are increasingly being utilized for initial candidate interactions, promptly addressing inquiries and guiding applicants through the recruitment journey. This advancement not only boosts communication efficiency but also ensures a positive experience for candidates.
North America to Hold Significant Share
- North America's demand for talent management solutions is surging, fueled by technological advancements and evolving workforce dynamics. Companies are harnessing AI capabilities within these solutions to derive actionable workforce insights, refine recruitment processes, pinpoint skill gaps, and align talent strategies with overarching business goals.
- In recent years, the U.S. IT and telecom sector has witnessed rapid growth, spurred by digital transformation, a rising appetite for cloud services, and the emergence of cutting-edge technologies like 5G, AI, and the Internet of Things (IoT). Amid this expansion, industry players grapple with an urgent imperative: attracting, hiring, and retaining elite talent to maintain their competitive edge. As the race for skilled professionals heats up, talent management has emerged as a linchpin for IT and telecom firms, enabling them to refine recruitment processes and adapt to shifting hiring needs.
- According to the U.S. Bureau of Labor Statistics, employment in computer and information technology roles is set to outpace the average growth rate for all occupations between 2023 and 2033. In 2024 alone, projections indicate approximately 356,700 job openings in these fields, driven by both growth and the need to replace departing workers.
- The rising adoption of cloud-based platforms and mobile worker management systems is propelling the demand for talent management software in North America. Businesses are rolling out services and flexible cloud access to bolster their operations. In a recent move, Oracle Corporation unveiled its "Oracle Fusion Cloud Human Capital Management" platform, designed to enhance employee success through improved communication, engagement, and productivity.
- In the realm of innovations, in April 2024, SmartRecruiters announced the release of its latest product. Packed with features tailored to streamline recruitment, this offering empowers hiring teams for heightened efficiency. Enhancements include advanced AI functionalities, better integration options, and a revamped user interface, all accessible within the SmartRecruiters platform.
Talent Management Industry Overview
The Talent Management market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include iMocha, The Talent Strategy Group, Jarred Consulting, and others.
The demand for talent management solutions is set to grow significantly in 2024 and beyond, driven by technological advancements, a focus on DEI initiatives, and the need for effective remote work strategies. As organizations continue to adapt to evolving workforce dynamics, investing in comprehensive talent management solutions will be crucial for attracting, developing, and retaining top talent effectively.
Talent Management Market Leaders
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iMocha
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The Talent Strategy Group
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Jarred Consulting
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Talentrise
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Accenture plc
*Disclaimer: Major Players sorted in no particular order
Talent Management Market News
- November 2024: SAP announced New AI across the SAP SuccessFactors HCM Suite to enhance workforce management, upskilling and organizational evolution. Customers can benefit from SAP’s steadfast commitment and investment in AI and gain new generative AI capabilities that help improve the employee experience across the talent lifecycle.
- April 2024: Phenom released massive wave of HR tech innovation during its Product Innovation keynote at IAMPHENOM in Philadelphia. The innovations deliver unique capabilities for talent acquisition and talent management to efficiently build talent relationships and personalize experiences to fill open roles faster and foster employee development across multiple channels at scale.
Talent Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Employee Engagement
5.1.2 Rise of Remote and Hybrid Work Models
5.2 Market Restraints
5.2.1 Increasing Concerns about Data Privacy and Security
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Solution
6.1.1.1 Recruiting Management
6.1.1.2 Compensation Management
6.1.1.3 Employee Lifecycle Management
6.1.1.4 Learning & Training Management
6.1.1.5 Performance Management
6.1.1.6 Other Solutions
6.1.2 Services
6.2 By Deployment
6.2.1 Cloud
6.2.2 On-Premises
6.3 By Enterprise Size
6.3.1 SMEs
6.3.2 Large Enterprises
6.4 By End-user
6.4.1 BFSI
6.4.2 IT and Telecom
6.4.3 Retail and E-commerce
6.4.4 Government
6.4.5 Education
6.4.6 Other End-users
6.5 By Geography***
6.5.1 North America
6.5.2 Europe
6.5.3 Asia
6.5.4 Australia and New Zealand
6.5.5 Latin America
6.5.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 iMocha
7.1.2 The Talent Strategy Group
7.1.3 Jarred Consulting
7.1.4 Talentrise
7.1.5 Accenture plc
7.1.6 Cornestone
7.1.7 DelTek, Inc.
7.1.8 ADP, Inc.
7.1.9 Bamboo HR LLC
7.1.10 Learning Technologies Group Plc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Talent Management Industry Segmentation
Talent management is a process used by companies to optimize how they recruit, train and retain employees. Through human resources processes, such as strategic workforce planning, companies can anticipate their needs and goals and attempt to hire a workforce that reflects those needs.
The talent management market is segmented by type (solution, services), by deployment (cloud, on-premises), by enterprise size (SMEs, large enterprises), by end-user (BFSI, IT and telecom, retail and e-commerce, government, education, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | ||||||||
| ||||||||
| Services |
| By Deployment | |
| Cloud | |
| On-Premises |
| By Enterprise Size | |
| SMEs | |
| Large Enterprises |
| By End-user | |
| BFSI | |
| IT and Telecom | |
| Retail and E-commerce | |
| Government | |
| Education | |
| Other End-users |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Talent Management Market Research FAQs
How big is the Talent Management Market?
The Talent Management Market size is expected to reach USD 11.13 billion in 2024 and grow at a CAGR of 15.48% to reach USD 22.86 billion by 2029.
What is the current Talent Management Market size?
In 2024, the Talent Management Market size is expected to reach USD 11.13 billion.
Who are the key players in Talent Management Market?
iMocha, The Talent Strategy Group, Jarred Consulting, Talentrise and Accenture plc are the major companies operating in the Talent Management Market.
Which is the fastest growing region in Talent Management Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Talent Management Market?
In 2024, the North America accounts for the largest market share in Talent Management Market.
What years does this Talent Management Market cover, and what was the market size in 2023?
In 2023, the Talent Management Market size was estimated at USD 9.41 billion. The report covers the Talent Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Talent Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Talent Management Industry Report
Statistics for the 2024 Talent Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Talent Management analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
