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What is an internal talent market? | Talent Insight Group

Written by Joshua Aubrey | November 28, 2024 11:06:41 AM Z

The internal talent market is a system that facilitates the flow of talent within a business. It makes internal opportunities visible, encourages internal mobility, and ensures employees’ skills are visible to hiring managers. At its most innovative, it has the potential to transform the very nature of how we work. 

Only half of employees (54%) say it is easy to sign up for internal roles today.

Source: Mercer

The rapid pace of technological change is shifting the nature of how work, not just when and where, but also the very shape of employment. By and large, we live in a world of jobs — one in which a person’s job code or title drives how work is defined, how critical talent decisions are made and most notably, how they are paid. A true skills-based workforce expands the current trend for flat structures. It changes the very shape of work, moving employees into an internal talent market where roles flow freely across projects as and when the skillset is needed.

Mapping an organisation’s internal skillset can uncover hidden talent, identify potential areas of development, and, in doing so, increase agility and reduce attrition. This approach can prevent employees from feeling stuck or siloed in particular roles and reduce instances where valued employees move companies to grow when they have a wealth of transferable skills that could be applied in another part of the business. 

CXOs cite skilling and developing the workforce as the No.1 challenge hindering organisational growth in the next 12 months.


Source: Accenture

An internal talent market allows a flexible approach to career development that benefits employees and employers. It enables employees to gain new experience and increase motivation through a more engaging and varied workload while allowing employers to move talent to where skills are needed and on a more flexible basis than a permanent move or formal secondment allows. This is a vision of talent moving seamlessly between tasks, projects and assignments across the business, increasing agility and productivity.

When implemented across the workforce, a skills-based approach to hiring and upskilling current talent offers the opportunity to accelerate growth in highly specialised and emerging fields at a lower investment than pure talent acquisition. However, as with all significant changes, there are practical considerations to consider. From how costs land across departmental budgets to line management, maintaining a healthy team culture and integrating new hires.

Download our free guide to Skills-Based Hiring and the Internal Talent Market for more details on these challenges, advice on maintaining psychological safety in a changing environment and practical steps to implement a skills-based approach in your organisation.