What is a Talent Marketplace and How Can It Improve Employee Retention?
The talent marketplace is one of the best ways to empower employees to grow and evolve, ultimately keeping them around for the long haul.
So what exactly is a talent marketplace, and how does it improve employee retention and engagement? Let’s dive deeper.
What is a talent marketplace?
The talent marketplace definition — also referred to as an intelligent talent marketplace, talent mobility platform, or an open talent market — is an internal, artificially intelligent HR platform that’s built to connect employees with learning and development opportunities, as well as career pathing, mentoring, and internal mobility.
Simply put, talent marketplaces elevate your greatest source of talent: your employees.
Talent marketplaces use AI-matching to connect employees to:
Career pathing tools
Learning and development (L&D) opportunities
Gigs or short-term projects
The right mentors
Employee resource groups (ERGs) or networking groups
With access to the right employee data, AI within a talent marketplace can gain an understanding of how your employees move between jobs — and even predict if they plan to leave.
Intelligence like this not only guides employees along the right career path, but also provides valuable insights for executive teams and managers.
Related reading: Boost Employee Retention and Engagement with a Talent Marketplace
How can a talent marketplace improve employee engagement?
According to Jesus Latorre-Socas, Lead Product Manager at Phenom, “retention evolution is critical… it starts with creating a place for your internal talent to learn, grow, and evolve with you. It’s not just about finding jobs. It’s about finding opportunities.”
This is where talent marketplaces come in — designed to boost employee engagement, which in turn increases retention.
Organizations with highly engaged employees experience 59% less turnover and better business outcomes — during both good and bad economic times — regardless of the industry.
Research also shows that "employees at companies with high internal mobility stay almost two times longer than those who don't, and employees who found new roles internally are three and a half times more likely to be engaged than those who haven't."
But how does a talent marketplace actually improve employee engagement?
Through career pathing opportunities, employees are encouraged to set — and meet — goals for themselves, illuminating career paths they may have not considered before. This also allows managers to gain a better understanding of how their employees move between jobs, using this information to help them toward their next role.
Access to learning and development opportunities allows employees to continually evolve. Phenom Talent Marketplace, for example, is engineered to allow integration with organizations’ existing LMS and LXP programs to deliver a robust and tailored learning experience for all employees. This helps create a clearer path of learning and development, inspiring the workforce to develop new skills — instead of overwhelming them.
Engaging in short-term gigs adds diversity to employees’ skill sets. Through this gig model, organizations can quickly adjust staffing volume to meet the needs of consumers and the market as well, and employees can see what else their own organization has to offer them.
The right mentors can proactively engage employees, connecting emerging talent with individuals that will help guide them to new opportunities. Mentorship programs can deepen the connection an employee has with their organization. It can be easy to leave a job, but it’s much harder to leave a relationship.
Employee Resource Groups increase feelings of belonging — both among peers and within the organization — by offering an inclusive environment. Upon joining an ERG, employees are exposed to colleagues and resources that can connect them to future opportunities. Employees can also connect and engage with potential mentors within ERGs.
Using these talent marketplace tools — powered through AI — you can create an employee experience that your talent simply won’t want to leave.
Related resource: A Winning Combination to Drive Employee Retention and Reduce Costs
The future of talent marketplaces
In today’s market, companies must offer opportunities for upskilling and reskilling so that employees not only feel like they belong at their organization but that they can grow and evolve there as well.
With an AI-powered talent marketplace, organizations can offer their employees an experience that is personalized, automated, and empowering, which ultimately:
Boosts employee retention
Increases employee engagement
Enhances workforce intelligence
Decreases cost to hire
A recent report from Garter® even predicts that “by 2025, 20% of large enterprises will have deployed an internal talent marketplace to optimize the utilization and agility of talent.”
By adopting a talent marketplace, you can future-proof your workforce by remaining in line with competitors and enticing to candidates and employees.
Adopt your own talent marketplace — download our Buyer’s Guide.
Maggie is a writer at Phenom, bringing you information on all things talent experience. In addition to writing, she enjoys traveling, painting, cooking, and spending time with her family and friends.
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