A Better Way to Manage Internal Talent Markets | Harvard Business Review

Talent Management
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Internal mobility, the movement of employees across roles and opportunities within the same organization, is a critical component of talent management. In many organizations, internal mobility is enabled through an internal talent marketplace (ITM), often a technology-powered platform that uses AI to match employees and their skills and career preferences to internal roles and opportunities. In my work on skills, AI, and ITM, including my book chapter in SIOP’s Strategic Workforce Planning: Best Practices and Emerging Directions, I’ve outlined the benefits and challenges practitioners need to consider and plan for when implementing an ITM. A new HBR article builds on this topic by asking a central question: how do organizations best balance employee preferences for roles and development with business needs? The article is based on a study published in Management Science, which examined outcomes when employees selected opportunities based on their preferences versus when leaders assigned roles based on business priorities. While the article surfaces several findings, one worth highlighting is that employee decisions in ITMs were shaped primarily by the quality of information and context available to them. When employees lacked feedback on their strengths, signals about role requirements, and visibility into organizational priorities, they were less likely to pursue or be matched to roles where their skills could deliver near-term business value. To address this, the authors point to a hybrid approach in which employees can express interest in opportunities while the organization provides a clearer context on why a role may or may not be a good match. Other ideas are discussed.