The talent market is in a state of flux, with 20% of the global workforce considering leaving their current jobs. The primary concern for many is not the absence of career development and advancement opportunities but the lack of transparency and visibility into such opportunities within organizations.
Many employees, amid economic uncertainties, fear being left behind due to a lack of skills or training. To address these concerns, organizations are turning to internal talent marketplaces.
Here are 20 compelling statistics that underscore the growing need for a talent marketplace in India in 2023.
1) Surging Attrition Rates: As per Live Mint, the attrition rate in India surged to 20.3% in 2022 from 6% in 2020 (source). Talent marketplaces can counter this by creating transparent career paths and growth opportunities, improving talent retention.
2) Concerns over Career Advancement: According to Economic Times, 71% of Indian employees are concerned about being overlooked for career advancement, and 34% are likely to switch employers (source). Talent marketplaces offer employees a clear visualization of potential career trajectories, helping them plan their growth within the company and alleviating concerns of stagnation.
3) Upskilling for Career Growth: Economic Times reports that 88% of Indian workers see upskilling as integral to their career growth (source). A talent marketplace can facilitate this by connecting employees with relevant upskilling and reskilling opportunities.
4) The Need for Reskilling: According to Data Storage Asean, the World Economic Forum (WEF) says that to keep their jobs in the next five years, 50% of workers will need to reskill (source). Talent marketplaces can address this by linking employees with tailored learning programs to develop the skills required for future roles.
At companies that provide upskilling or reskilling, 61% of employees have taken courses to grow in their current role while 23% have taken courses to grow into a new role.
5) Gender Disparity: A McKinsey report states that only 25% of India’s labor force is female (source). Talent marketplaces can help organizations bridge this gap by making hiring practices more inclusive and promoting diversity in talent acquisition.
6) Internal mobility: Many employees (33%) don’t feel encouraged to pursue new roles internally. 21% don’t feel they can openly discuss internal opportunities with their managers. (source)
7) Search for new roles: 61% of employees would search for a new role if their company didn’t allow role changes. A significant 67% would leave their organizations if they didn’t allow internal mobility. (source)
8) Employee Retention and Mobility: 40% of employees plan to stay at their current jobs for less than a year. 41% of the employees staying at their company will ask for some sort of role change in 2022. (source)
9) GenZ and job loyalty: For Gen Z, 65% of employees plan to stay for less than a year. A significant 31% would take a pay cut to change positions. A large 61% would start searching for new jobs if their company didn’t allow them to switch roles. (source)
10) Hiring Slump: The hiring rate in India decreased by 40% over the past year. This signifies the slowdown in hiring, making it crucial to tap into existing internal resources. (source)
11) Global Uptrend in Internal Mobility: In the past year, 16 of the 19 global industries analyzed saw an increase in internal mobility, including promotions and internal role transfers. This showcases a global trend that many industries are capitalizing on their internal resources. (source)
12) Challenges with External Opportunities: Employees in India are still 1.0x more likely to leave than look for an internal move. This highlights a lack of visibility or encouragement around internal opportunities, presenting a case for better promoting them. (source)
13) Who Benefits from Internal Mobility: Data suggests that People leaders are 1.4x as likely to move internally as individual contributors. Furthermore, different generations exhibit varied inclinations towards internal mobility, with Gen X experiencing the highest internal mobility rate. (source)
14) Retention through Internal Mobility: According to LinkedIn Chief Economist, Karin Kimbrough, internal mobility increases employee retention. This means that promoting internal job openings can help businesses keep valuable employees. (source)
15) Barriers to Internal Mobility: According to LinkedIn VP of Talent Development, Linda Jingfang Cai, one of the reasons employees prioritize external job opportunities is because they are easier to find. Also, there are challenges with the internal hiring process and discrepancies in compensation. This stresses the need for a streamlined internal talent marketplace where opportunities are transparent and processes are smooth. (source)
While this is not a stats, these statements coming from people who’re working closely with the hiring industry show the need for an internal talent marketplace.
16) Employee Priorities in India: The top three areas employees prioritize when considering what they want out of work in India are:
1) Compensation (52%)
2) Advancement within the company (49%)
3) Opportunities to learn new, highly desired skills (45%)
(source)
Having an internal talent marketplace can address these priorities by providing growth and learning opportunities within the organization.
In the era of rapid digital transformation and an increasingly globalized workforce, talent marketplaces have emerged as indispensable tools for human resource management.
These statistics underline the critical role that talent marketplaces play in addressing current HR challenges in India. By providing a centralized hub for new opportunities, talent marketplaces can help organizations navigate the shifting dynamics of the workforce, fostering a more engaged, dynamic, and future-ready talent pool.
