Talent management is a large and growing challenge at many organizations, and talent management providers are racing to roll out new offerings that can help business leaders and managers improve how they recruit, oversee, develop, and retain human capital. Many HR tech companies that formerly specialized in a single aspect of the talent management value chain are building out more comprehensive offerings, and others are growing through consolidation. Dozens of companies are competing to expand their offerings, causing significant confusion in the market.

To create clarity for solution providers, we recently surveyed more than 100 CHROs and other business leaders to understand their current pain points and unmet needs in human capital management (HCM) technology. For technology providers and the investors that back them, the results offer real insights into what businesses want. We have also identified several ways that HCM technology companies can create advantage by focusing on differentiated data, skill taxonomies, and a position that connects or orchestrates multiple parts of the talent value chain.

The next 18 to 24 months will be a critical window for providers to stake out their positions in this crowded and highly active market. Those that understand the needs of the market and design smarter solutions to meet those needs will find the odds in their favor.