Talent Marketplaces: Creating Opportunities for Career Progression

When an employee quits, their former employer frequently suffers. Not only does the organization lose that individual’s unique experience and key relationships, but management also must sacrifice time and energy hunting for their replacement, as well as onboarding them. For these reasons, many studies estimate the cost of replacing an employee is between one-half and two times their salary.

That’s why staff retention is important for successful business growth and always should be a focal point for HR and their total rewards (TR) professionals. Thinking of your organization as an internal talent marketplace can provide an effective retention solution.

What Are Internal Talent Marketplaces?

When HR/TR professionals view their organizations as an internal talent marketplace, they tap into available resources to meet corporate and workforce needs. This can mean moving people laterally to ensure they are in the right spot — the best position for them to thrive as individuals.

For instance, sometimes an employee will find themselves in one department but have the skills and passion to work in another area. In this scenario, Company A noticed that one of its publicists didn’t seem happy in her role. She was a great writer, however, and they didn’t want to lose her. Despite the fact she didn’t have any formal training in writing, the company gave her the opportunity to shift into a writing role. This proved to be a success — she’s a lot happier, has stayed with our company and delivers top-notch writing every day.

For another example, Company B decided to scale down its marketing department. It was able to engage with the current marketing staff and use its internal marketplace to put these employees in new sales and communications positions. They have thrived in those roles.

Viewing your organization as an internal talent marketplace also can mean promoting from within. In these cases, success typically involves going beyond identifying potential talent to helping people mature and grow into their new positions.

How You May Benefit from This Approach

Traditionally, large organizations have been most apt to utilize internal talent marketplaces. This approach, though, can be beneficial for employers of all sizes.

The win-win aspect about establishing an internal talent marketplace is that it takes what the employee enjoys doing and aligns it with the organization’s needs. When team members are recognized for their unique strengths and talents, the business can better make use of them, while the individuals themselves often feel seen, understood and appreciated. In this way, establishing an internal talent marketplace not only helps keep talent on your team but also benefits the enterprise as a whole.

When approached correctly, this strategy also may foster career development opportunities. Internal training of this kind can help employees see their path forward as well as their progress toward their career goals.

The Critical Role of Training

Professional development is a particularly important element of employee retention today. According to a 2022 Upskilling Study, 74% of Gen Z and millennial employees say they would quit their current job if not given enough opportunities to grow their skills. In another study from corporate training company Lorman, 87% of millennials said professional development in the workplace is important to them, and 76% rated it as one of their top priorities.

By offering internal training, management can keep staff engaged and interested in their growth within the organization while fostering loyalty at the same time. Conversely, when organizations don’t take this approach and offer internal training to staff, employees can become complacent and bored. They may continue to do the job but start exploring other opportunities outside of the organization to help foster their growth.

Since 74% of respondents in the aforementioned Lorman study said they hadn’t reached their full potential at work due to a lack of development opportunities, this problem appears widespread.

How to Institute an Internal Talent Marketplace

To install an effective internal talent marketplace with proper training, consider the following tips.

First and foremost, collaborate. Make sure to solicit input from both the leaders of your organization and the staff members themselves, as well as their peers.

When people feel like a decision is being made without their voice being considered in the process, they can experience it as oppressive, even if it was made with the best of intentions and the employee’s well-being in mind. For this reason, avoid presenting the new role as a fait accompli. Instead, give the person a choice.

Allowing the team member to experiment with the new position on a provisional basis is another good way to make the transition. In this case, set a time period after which the employee should let management know how the change is going for them. Be prepared to listen and adjust accordingly when that check-in rolls around.

Second, whenever your organization is conducting training sessions internally, make sure to ask the participants for feedback afterward. They will likely have constructive ideas about how to change or improve the content that was shared. If you don’t ask for this valuable input, however, they will be unlikely to offer it.

When you do get employees’ feedback on training, chances are you will hear some negative commentary. While it’s normal to feel upset or discouraged, keep in mind that it’s unreasonable to demand perfection, and continual improvement is to be expected. Be open to additional ideas to be brought to the table. If appropriate, tailor the content to account for the feedback going forward.

Third, HR/TR pros should nourish the corporate culture from within by being a safe place for everyone. What may work for most employees may not work for a few or even just one. Only by being open-minded, understanding and adaptable can you help foster the growth of the minority in addition to the majority.

Invest in People, and They Will Invest in You

Successful employers don’t just focus on the final numbers coming in at the end of each quarter. They also make a commitment to their staff. Just like businesses need to reinvest in tangible things like buildings and computers, they also need to invest in the people who dedicate their time to the organization.

Approaching your business as a vibrant internal talent marketplace can be an effective way to invest in your employees. In return, they may become increasingly willing to go above and beyond to ensure the success of your business.

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