The future of merchant networks and their role in talent management

There was a time when interaction was limited within closed systems where only people on the same system could interact and transact with each other. For example, people on Paytm could make or receive payments only from those on Paytm. Then, the transition from Web 2.0 to Web 3.0 and the more widespread use of open networks made it possible to interact with users of other systems. Unlike the closed network, which restricted access to outsiders, the open network allowed interoperability with its open architecture.

Recent examples of open networks in India are UPI and ONDC. UPI or Unified Payments Interface is an open network where multiple banks can offer services through a single application. It enabled seamless integration for transferring and collecting money. Similarly, ONDC – the Open Network for Digital Commerce, enables the exchange of goods and services over open digital or electronic networks so that buyers and sellers do not need to be on the same platform to carry out commercial transactions. This eliminates monopolistic business practices from marketplaces and benefits sellers as well as consumers.

Today, open networks have evolved further, Market networks. Market networks essentially represent the coming together of markets, as we know them today, and open networks. A marketplace like Amazon or Uber currently facilitates the relationship between buyer and seller, and acts as a trusted broker. This, however, can lead to monopolistic behavior. In the market network, the system itself fosters trustless collaboration, building a reputation of trust for all stakeholders and facilitating smooth collaboration and better digital innovation.

The market network in the context of talent management has positive disruptive potential that can bring transformative changes across the entire talent ecosystem. In the talent market network, companies, individuals, human resource management systems and service providers such as banks, loans, insurance, EWA (access to earned wages), etc. can have direct interoperability between them. They can share data and information, transact and collaborate with each other, to bring agility and accuracy to the global talent ecosystem.

Role of Market Networks in Talent Management

A multitude of challenges mark the current talent management landscape. There is a competitive war for talent in all sectors of the labor market. Companies are struggling to find the right person for changing roles, attracting the right talent, trusting the information candidates declare on their resumes, lengthy screening and interview processes, low ratios of accepting offers to arrivals and retaining existing talent with employee enablement and engagement, etc. The entire talent management process requires an out-of-the-box solution and redefined thinking, structured differently and involving continuous improvements.

The right solution to collectively solve these problems is the talent market network. It transforms the entire talent management lifecycle, from finding the right talent to designing top-notch offers, knowing industry-wide salary information, offer deployments digital technologies, smooth employee onboarding, accurate and reliable background checks and providing a great employee experience by enabling them to benefit from personalized offers from various sectors such as banking, leasing, finance, training and development, insurance, hospitality, etc.

Let’s take a closer look at how the Talent Marketplace Network makes things easier for HR professionals:

  • It provides key insights for salary benchmarking, which helps HR managers make more informed decisions about hiring, regular payroll, and salary increases. Instead of performing salary benchmarking exercises on an annual basis, HR teams can now access real-time salary information aggregated by participating companies across the network. HR managers can also create attractive offers for selected candidates based on this compensation information, improving offer acceptance rates.
  • It facilitates the design and deployment of offers for selected candidates. HR teams can design an offer in minutes and publish offers digitally. The candidate can accept, reject or negotiate the offer digitally. It also avoids a burning issue in the recruiting space – candidate ghosting. A network-wide registry can ensure that a candidate only accepts one offer at a time. Of course, the candidate also has the option of refusing a previous offer and accepting a new one.
  • One of the most important and difficult processes is employee onboarding. After finding the right candidate, HR needs to collect documents, upload and verify them as well. Background checks, such as checking references from previous employers, add to the time and effort required to onboard a new employee. The Talent Marketplace Network offers the digital collection of a candidate’s credentials in minutes and verification of all collected information against trusted data sources, instantly. The network allows an identity, once verified, to be used consistently across the network, eliminating redundant and repetitive processes.
  • The Talent Marketplace Network also benefits employees with other services such as easy-to-use insurance, banking, leasing and lending. Since authentic employee data already exists on the network, verification becomes a breeze.

The collaboration without trust between companies, employees, service providers and HRIS companies, supported by the talent market network, is revolutionizing talent management. HR managers are assured of agility and precision in recruiting and managing talent. At the same time, employees are also empowered to control information. Not only that, the open talent network uses blockchain technology and Web 3.0 principles to enable intra-system connectivity in organizations to avoid working in silos. Various applications solving different business problems can communicate with each other through the open network. It also provides an infrastructure to access a whole range of talent ecosystem services, such as full-time talent, freelancers, recruiters, investigators, BGV agencies, etc. depending on the reputation they have built in the network. The possibilities of the Talent Marketplace Network are endless with many new use cases being added regularly.

What does the future hold?

The Talent Marketplace Network is constantly expanding with employers, employees, HRMS companies and service providers joining the network. Such an increasingly robust network will make talent management transparent to businesses, as the data on the network continues to grow. Individuals will also have equal power in the network by providing their personal information to relevant parties with verified profiles. The future is much more exciting with more innovative solutions that will address critical aspects of talent management. More solutions means empowerment of all ecosystem stakeholders – employers, employees, HRMS platforms and all service providers.



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Disclaimer

The opinions expressed above are those of the author.



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