The Rise of Internal Talent Marketplaces: The New Way to Manage Talent

In today’s fast-paced, talent-centric market, organizations must regularly evaluate and enhance their HR policies and best practices to stay competitive. Talent management processes are being redefined thanks to the rapid development of technologies in HRtech. This is enabling organizations to make data-driven decisions that enhance workforce productivity, engagement, and overall organizational performance. 

The “Internal Talent Marketplace” is an emerging and promising trend in talent acquisition and management that enables organizations to simplify internal talent mobility, create innovative career development possibilities for their employees, and consequently increase their talent retention rate. In fact, a recent survey conducted by Gartner found that among the HRTech leaders, 51% prioritize skills management, 41% prioritize learning experience platforms, and 32% prioritize internal talent marketplaces as having the most promising technological innovations in 2023.

What an internal talent marketplace means for your organization

Internal Talent Marketplace is a platform that enables organizations to undertake a number of human resource operations, including but not limited to job searching, candidate sourcing, candidate evaluation, talent profiling, and internal performance rating, among others. These platforms also provide a centralized framework for tracking and managing employee performance data, which may be used to facilitate employee development and succession planning.

Employees can use this platform to search for internal job openings, submit applications, express interest in new projects, and receive recommendations that correspond with their unique mix of experiences, career objectives, and skills within the organization.

Internal talent marketplaces can be a powerful tool for optimizing workforce usage, enhancing talent acquisition and retention, enhancing employee engagement and productivity, boosting organizational agility, and fostering a culture of knowledge sharing. These platforms can help businesses solve talent gaps with ease and minimize the costs associated with talent acquisition.

How can you integrate an internal talent marketplace into your business strategy?

An off-the-shelf approach to building an internal talent marketplace just won’t work. Every business has its own needs, goals, strategies, and culture which calls for a customized, tailor-made approach to incorporating it into their business strategy. However, it is crucial to ensure that it is a process of continuous advancements and learnings with an eye on the smaller wins.

A successful marketplace implementation includes remaining agile, mapping the workforce journey, engaging the management, and developing a culture that fosters talent and career mobility. An “Iterative Design Approach” by Deloitte that starts with a minimum viable product and builds incrementally towards maturity and adoption across four P’s:

To realize the platform’s full potential, its architecture must be incorporated into an integrated technological ecosystem that spans talent acquisition and management, learning and development, and other HR-related operations within the organization. Marketplace platforms enable real-time workforce statistics, including metrics of employee engagement and turnover. With succession planning, these insights may empower businesses to promote diversity, equity, and inclusiveness.

How can leaders make the most of an internal talent marketplace?

The effectiveness of a talent marketplace for internal recruitment is strongly dependent on the guidance provided by senior management and leadership. Any organization’s human resources department is an asset in itself. Talent management depends on how well leaders understand the skills of their employees, not just their job titles. Upskilling programs bolster talent management and steer the growth of a business in the right direction. Evaluating which department has a greater need for certain talent or positions than others is the first step in making the most of internal talent marketplaces. 

Leaders may create a culture of talent mobility and growth that benefits both the organization and its employees by promoting the platform, establishing clear expectations, investing in training, measuring success, and making decisions based on data. If the COVID-19 pandemic, the Great Resignation, and the economic upheaval have taught us anything about the internal talent market, it is how employers can create opportunities for the career advancement of their workforce while meeting the needs of the business and fostering healthy upward organizational growth.

Building the right talent marketplace takes more than just technology

The rise of internal talent marketplaces is one of the key indicators that the global HR industry is transforming. An internal talent marketplace helps organizations to develop nimble and adaptable workforces, which is a must for businesses. Companies must develop talent marketplaces that serve not only their workforce requirements but also the interests of their employees. With the appropriate strategy, technology, and mindset, an internal talent marketplace has the ability to help you transform and gain a competitive edge.
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