Right Airmen, Right Job, Right Time: Fixing the Air Force鈥檚 Talent Marketplace
Abstract
The Air Force and other large organizations are vying to attract and retain employees in a competitive labor market, often leveraging innovative technologies to align talent with opportunities for competitive advantage. However, the Air Force鈥檚 internal talent marketplace鈥檚 present capabilities do not meet industry benchmarks, primarily due to its dependence on antiquated practices and processes that are insufficient in addressing the needs of today鈥檚 Airmen and evolving mission requirements. Through a comprehensive analysis of research and interviews, this report evaluates the key problems and challenges hindering the Air Force鈥檚 ability to create an internal talent marketplace that resembles a 鈥渢rue market鈥 and provides recommendations to optimize its Talent Marketplace.
Acknowledgments
Disclaimer: The views expressed in this academic research paper are those of the author(s) and do not reflect the official policy or position of the U.S. government or the Department of Defense. In accordance with Air Force Instruction 51-303, Intellectual Property鈥擯atents, Patent Related Matters, Trademarks, and Copyrights, 1 September 1998, this research paper is not copyrighted but is the property of the United States government.
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Introduction
鈥淭his is our time of consequence. What we do, the decisions we make, the actions we take, the Airmen we lead, and the way we do it will define that next seminal event.鈥鈥擥eneral David Allvin, Chief of Staff of the Air Force
We acknowledge that Airmen are the Air Force鈥檚 greatest asset, yet we have not fully implemented talent management strategies that prioritize their aspirations to ensure the right Airmen are in the right jobs at the right time鈥攂oth to fulfill mission requirements and individual goals. In an era where our military鈥檚 strategic advantage hinges on human capital, effectively managing talent within the Air Force is critical to maintaining operational readiness and a competitive edge. The Department of Defense (DoD) has emphasized a strategic imperative to cultivate the workforce our nation needs: 鈥淭o recruit and retain the most talented Americans, we must change our institutional culture and reform how we do business.鈥1
Internal talent marketplaces (ITMs) have emerged as a game-changing approach for organizations to align business needs with employee preferences. A 2022 article published by Harvard Business Review identified that for organizations to compete in the new talent market, companies must 鈥減lay both offense by creating a better employee value proposition to attract new talent and defense making it more attractive to stay.鈥2 The Air Force needs to focus on strategies that challenge the status quo and improve its appeal as an employer of choice.
The DoD鈥檚 recruitment challenges were evident in Fiscal Year 2023 when the Air Force missed its recruitment targets for the first time in 24 years.3 In addition to this challenge, there is a trending reduction in the size of the Air Force, a declining propensity to serve among Americans, and an ongoing war for talent. These factors underscore the importance for the Air Force to not only attract talent but also to effectively utilize and develop the existing force, ensuring the Air Force鈥檚 operational readiness and ability to adapt to future organizational needs with agility.
The Air Force is not alone in these challenges. Large organizations in all sectors grapple with aligning their talent management strategies to attract, develop, and retain talent in today鈥檚 environment. To combat these trends, companies are investing in ITMs that have the potential to drive transformational change. ITMs have emerged as an invaluable business tool to optimize talent utilization, rapidly respond to changing organizational needs, and empower and retain employees. Gartner projects that 30 percent of large enterprises will adopt a talent marketplace by 2025.4
In line with this trend, the Air Force has introduced its Talent Marketplace as an innovative solution 鈥渄esigned to provide increased transparency and interaction that should lead to greater awareness and satisfaction with the assignment process.鈥5 Nevertheless, the Talent Marketplace鈥檚 present capabilities do not meet industry benchmarks, primarily due to its dependence on antiquated practices and processes that are insufficient in addressing the needs of today鈥檚 Airmen and evolving mission requirements.
To optimize and engage its all-volunteer force for great power competition, the Air Force must transition from traditional, industrial-age talent management strategies toward those required by the information age. To accelerate this transition, the Air Force should prioritize and advance Talent Marketplace鈥檚 development to leverage its human capital鈥檚 unique skills and experiences as a strategic resource. This paper will examine how the Air Force can modernize its Talent Marketplace to operate as a true matching market by strategically applying market design principles and integrating technology. This entails embracing iterative design processes that keep pace with market demands and cater to Airmen鈥檚 professional growth and ambitions.
Building upon research and assessments of existing ITMs, this paper will progress through a structured analysis. Chapter two will provide a brief background of the Air Force Officer Assignment System to lay the groundwork for understanding the evolution of the Air Force鈥檚 current methodologies. Chapter three examines the current challenges of the Talent Marketplace. Chapter four describes key elements of an optimized ITM. Chapter five presents actionable recommendations for the Air Force to enhance the Talent Marketplace.
In the Air Force鈥檚 time of consequence, the strategies leveraged to retain and harness the unique capabilities of our all-volunteer force today will decisively shape our ability to meet the defense challenges of tomorrow.
Citations
- 2022 National Defense Strategy of the United States of America (Washington, DC: U.S. Department of Defense, 2022), .
- Katy George, 鈥淐ompeting in the New Talent Market,鈥 Harvard Business Review, October 3, 2022, .
- David Vergun, 鈥淒OD Addresses Recruiting Shortfall Challenges,鈥 U.S. Department of Defense, December 13, 2023, .
- Emi Chiba, Helen Poitevin, Travis Wickesberg, Harsh Kundulli, RaniaStewart, and Hiten Sheth, Market Guide for (Internal) Talent Marketplaces (Stamford, CT: Gartner, March 29, 2023), .
- Kat Bailey, 鈥淎FPC Adopting Innovative Officer Assignment System IT Platform,鈥 Air University, April 19, 2018, .
Historical Context of the Air Force Officer Assignment System
鈥淎 relentless barrage of 鈥榳hys鈥 is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often.鈥鈥擲higeo Shingo
Before we discuss the challenges of the Talent Marketplace, we must first define talent management and understand the historical context that influenced its design. Talent management, defined by the Cambridge Dictionary as 鈥渢he process of attracting skilled employees to a company, and developing the skills of existing employees, giving them attractive pay, working conditions, etc.,鈥 has continued to be a critical function in organizations.1 As a result of the dynamic nature of the workforce, talent management strategies have evolved significantly over the years in response to shifts in organizational needs and ever-changing talent market conditions. In response to these shifts, the Air Force Officer Assignment System has undergone several changes throughout history that have shaped the way it manages officers today.
A quarter century ago, the Air Force introduced a 鈥渘ew way of officer assignments鈥 as an improved assign-and-select model to manage personnel.2 Previously, the Air Force experimented with various volunteer systems to improve retention during the post-Cold War drawdown of military forces. During this time, technology and personnel policy changes allowed officers a high degree of autonomy in determining their assignments and career paths utilizing internet-based job boards. The design and implementation of this model unintentionally reduced the Air Force鈥檚 ability to fill required positions and removed the commander鈥檚 role in mentoring officers in their career development.3 For example, officers could apply for a job online and subsequently be issued orders without any coordination or approval by their commander.
As a result of the flawed model, General Michael Ryan, the Chief of Staff at the time, appointed an Officer Assignment System (OAS) Review Group in 1998 and tasked them to perform a comprehensive review of the assignment process and provide recommendations for an updated assign-and-select model. The study鈥檚 findings resulted in four recommendations:
- Increase the involvement of commanders in the process of future assignments for the officers serving under them;
- Create a new Personnel Requirements Display to replace the Job Advertisement System 鈥渆lectronic bulletin board鈥 maintained by the Air Force Personnel Center;
- Develop a Preference Worksheet to be filled out by officers, routed through their commanders, and stored electronically at the center as part of the input for determining their future assignments; and
- Require Officer Assignment Teams at the center to work more closely with losing and gaining commanders, major commands, and career field functional leaders in matching officers to assignments.4
The recommendations were approved by the Air Force and went into effect in 1999. These changes were described as 鈥済one forward the past鈥 as the Air Force re-deployed a revised assign-and-select model for officer assignments.5 The OAS changes remained largely intact, as reflected in the Air Force鈥檚 Total Force Assignments, Air Force Instruction 36-2110. The directive encompasses the 鈥渁uthority, guidance, and procedures to select personnel and direct their temporary or permanent assignment or reassignment to satisfy national security requirements.鈥6 The ultimate goal of the OAS is to 鈥渁ssign the right officer to the right position at the right time to meet [Air Force] mission requirements.鈥7
While the directive was in place, the Air Force recognized the need for continuous improvement of talent management through modernized systems and processes to adequately identify and align its Airmen鈥檚 unique talents with agility. The Human Capital Annex to the U.S. Air Force Strategic Master Plan set out a specific objective to 鈥渁dapt human capital management and talent management practices within the Air Force to ensure an institutional human resource system capable of rapidly recognizing and adapting to the changing environment.鈥8
The identified objectives led to three significant changes to the officer assignment process. First, the Air Force reduced the officer assignment cycles from three to two in 2018, providing officers and stakeholders with more time to communicate and select assignments. Second, the Air Force implemented an advanced assignment notification for commanders. Third, since workforce management is not a static endeavor, the Air Force implemented a new system called Talent Marketplace in 2019 to facilitate the OAS process.
Like the previous assign-and-select model, the Talent Marketplace aims to improve various aspects of the assignment process, including increasing transparency in available opportunities, enhancing communication between officers and commanders, and gaining billet owners. Additionally, it gives officers a heightened degree of agency in their future assignments and career trajectories.9 As designed, this intricate process involves a nuanced balance that considers the needs of the Air Force, individual officers鈥 professional development, personal preferences, and commander recommendations. Achieving this balance is often called the art and science of assignment matching. This process works well when the officers鈥 respective Assignment Teams and commander are actively engaged in discussing their career aspirations and long-term goals. This comprehensive understanding enables personalized mentorship and customized assignment suggestions. Conversely, the process falls short when there is a lack of communication and transparency regarding the reasons and methods for assigning members to specific roles, especially if it is a role that was not on the officer鈥檚 preference list.
Talent Marketplace distinguishes itself from previous methods by utilizing a market-design approach inspired by the National Residency Matching Program that incorporates the two-sided matching preferences of officers and billet owners. The Air Force first tested the concept with the science community, followed by the fighter pilot assignments in 2017, then scaled it as the primary mechanism for all officer assignments below the rank of Colonel except for the Judge Advocate General鈥檚 Corps, or JAG, career field.10 The Air Force鈥檚 increasing demand to expand the Talent Marketplace beyond officer assignments and to include enlisted assignments reflects a significant shift toward modernizing the assignment-matching processes.
In spite of the Talent Marketplace platform鈥檚 introduction, the fundamental process and traditional manual assignment-matching methodologies have remained unchanged. Therefore, the process heavily relies on human judgment rather than the science of matchmaking that market design can provide. The alignment of human judgment and data-informed decisions is essential not only for optimizing current operations but also for promoting retention and strategically cultivating a future-ready force. The next chapter will further explore the key problems and challenges in the Talent Marketplace.
Citations
- 鈥淭alent management,鈥 Cambridge Dictionary, .
- Bruce Callander, 鈥淭he New Way of Officer Assignments,鈥 Air & Space Forces Magazine, June 1, 1998, .
- Callander, 鈥淭he New Way of Officer Assignments,鈥 .
- Callander, 鈥淭he New Way of Officer Assignments,鈥 .
- Callander, 鈥淭he New Way of Officer Assignments,鈥 .
- 鈥淒epartment of the Air Force Instruction 36-2110,鈥 November 15, 2022, 14, .
- 鈥淒epartment of the Air Force Instruction 36-2110,鈥 November 15, 2022, 488, .
- Human Capital Annex to the USAF Strategic Master Plan (Washington, DC: Office of the Secretary of the Air Force, May 2015), .
- Bailey, 鈥淎FPC Adopting Innovative Officer Assignment System IT Platform,鈥 .
- Vu William, 鈥淭alent Marketplace: Bullet Background Paper,鈥 U.S. Air Force, February 26, 2019.
Problems and Key Issues in Talent Marketplace
鈥淚n the case of markets, bad designs can often persist not just because it takes time to discover better ones, but also because there may be lots of market participants with a stake in the status quo and many interests are involved in coordinating any market-wide change.鈥鈥擜lvin E. Roth
Despite its promise, Talent Marketplace has yet to evolve to realize its full potential. Recent studies have described the Air Force Talent Marketplace鈥檚 functionality as 鈥渟omewhat more market-oriented鈥1 and 鈥渃loser to a digital talent marketplace鈥 but noted that it 鈥渄oes not yet function as a true market.鈥2 While the platform enhances transparency and stakeholder involvement, this chapter addresses the core challenges related to operational execution and technology that must be resolved for Talent Marketplace to function optimally.
The design of Talent Marketplace was intended to balance the art and science of assignment matching. The Air Force Personnel Center Commander, General Brian Kelly, in 2018 defined art as 鈥渙fficer development where a variety of warfighter requirements, special considerations such as join-spouse or Exceptional Family Member Program (EFMP) requests, and individual desires are balanced to help maximize both officer and billet owner satisfaction with solutions sometimes outside of conventional parameters.鈥3 The science aspect is described as 鈥減roviding predictability and consistency using defined timelines and rule sets that allow Airmen and families to understand and plug into the process accordingly.鈥4
While the design successfully digitized the existing process onto a new platform to enhance transparency, it failed to address the core intent of the Human Capital Annex vision. The strategy aimed to modernize workforce management in line with present-day research, which indicates that traditional methods of managing people for industrial jobs are inadequate to anticipate and meet an organization鈥檚 needs in an information age. It is widely acknowledged that 鈥渁s technology, speed of operations, and mission flexibility increase, human capital management approaches need to evolve accordingly.鈥5
Although the initial design of the Talent Marketplace wasn鈥檛 transformative, General Kelly recognized the importance of an iterative design process, stating, 鈥淲e are also 100 percent sure we didn鈥檛 get it 100 percent right, so we continue to incorporate feedback and make modifications as we go.鈥6 The dynamic and fluid nature of markets necessitates gradual adjustments to meet the evolving needs of the organization and key stakeholders.
However, due to competing digital transformation efforts, the Air Force has not prioritized the evaluation and development of the Talent Marketplace鈥擳his is an oversight. The lack of prioritization of Talent Marketplace has led to limited progress over the past three years, with the platform鈥檚 advancement taking a backseat to other enterprise initiatives on MyVector, an enterprise solution that aims to support career development and mentoring in the Air Force.
The diversion of resources has resulted in an accumulating backlog of over 300 items, unresolved since the fiscal year 2022.7 The backlog items include bug fixes, changes to existing features, and new requirements that have yet to be built. For example, there is a coordination option in Talent Marketplace that needs to be fixed. Currently, it only allows for approval or disapproval of assignment actions, which results in unnecessary rework because it does not allow the user to return or redirect the action. Other items in the backlog involve added capabilities for Officer Assignment Teams (OATs) to pull reports and metrics that gather data from assignment cycle matches. Additionally, there are requests for data automation that adds Personnel Processing Codes and other key information to assignment transactions to reduce errors and delayed reporting.
The backlog continues to grow as Talent Marketplace has become a Total Force platform, resulting in more users and additional requirements to build the desired system capabilities. The absence of prioritization has impacted the overall implementation, wherein iterative design methodologies and feedback loops are not given priority, particularly because of the substantial existing backlog and limited resources. The former Chief of Talent Marketplace attributes the platform becoming a victim of its success due to senior leaders prematurely declaring it as a solution for officer assignments and scaling it too quickly. 鈥淲e were directed to expand the platform for Total Force assignments when Talent Marketplace was still only a partial solution. Talent Marketplace growth was a priority. However, we did not have the staffing or resources to focus on improving the OAS and scal[ing it] at the same time.鈥8
This misalignment between business growth and strategic resource allocation has left the platform at a basic level of functionality, falling short of fully meeting user needs or evolving. For example, the matching algorithm used in the Talent Marketplace is not working as intended. In one example, when comparing the final assignment matches to the computed ones, the algorithm only achieved approximately a 22 percent match rate, aligning only 22 out of 104 matches.9 The algorithm does not account for the unique qualifications of officers or important variables such as positions that must be filled, priority matches for short-tour returnees, or considerations for join-spouse officers.
This has led the OATs to distrust the results, prompting them to manually verify matches using the old process.10 The decision to employ the deferred acceptance algorithm has been criticized for the absence of evidence-based justification and was noted as a 鈥渢oo-hasty parallel鈥 of the National Resident Matching Program application.11 The faulty algorithm application was acknowledged early on and is listed as one of the many open backlog items.
Another factor leading to the underperformance of the algorithm is a lack of an informed and informative market. Billet owners are not incentivized or compelled to provide detailed job descriptions that clarify the responsibilities, qualifications, and competencies required for each role. Comparatively, there are ineffective mechanisms for officers to convey specific skills, knowledge, and organizational fit for available opportunities other than a member鈥檚 comments provided to the OATs. These limitations may result in missed opportunities for billet owners to identify suitable candidates and for officers to align their aspirations with opportunities.
The strong correlation between assignments and retention further exacerbates this misalignment. The 2021 Air Force Exit Survey revealed compelling evidence supporting this link, identifying several Talent Marketplace assignment-related factors influencing members鈥 decisions to leave the Air Force. Among the top factors influencing exit decisions are job stress, overall job satisfaction, opportunities outside the military, choice of job assignment, and location.12
In assessing the shortcomings of the Talent Marketplace, it鈥檚 important to consider current national workplace trends. According to Gallup鈥檚 2023 State of the Global Workplace report, 47 percent of employees are actively looking for new jobs with the intention of leaving their current employer, while an additional 52 percent of employees fall under the category of 鈥渜uiet quitting.鈥13 This group represents a disengaged workforce that remains with their employer but only does the bare minimum, resulting in low productivity and negative impacts on the organization鈥檚 bottom line. They are seen as an organization鈥檚 鈥済reatest opportunity for growth and change鈥 if proactive measures are taken to address the challenges related to engagement, incentives, and employee well-being.14
However, the lack of transparency and engagement within the assignment-matching process complicates addressing these challenges. The fundamental principles of the Air Force Officer Assignment System (AFOAS) inherently devalue expressed preferences, as they explicitly prioritize mission needs and an officer鈥檚 professional development over the desires of officers and commanders, which can result in an officer receiving an assignment that was not on their ranked assignment preference list.15 The findings of the 2020 Talent Marketplace Survey draw attention to this disconnect, where survey participants expressed a need for increased transparency regarding how billet owners鈥 and officers鈥 preferences are weighted in the matching process.
Respondents also called for a comprehensive explanation regarding the rationale behind the final assignment decisions made by the OATs.16 The rules and processes that govern the market, including how final matches are made, must be transparent in an internal talent marketplace (ITM). The AFOAS Personnel Delivery Guide offers some guidance, but the ultimate assignment decisions rest with the OATs. If stakeholders do not further understand procedures beyond the current definition of art and science, this decentralized system may lead to different interpretations and execution of the AFOAS.
The challenges of the Talent Marketplace are complex but possible to fix with a clear vision and follow-through. The following chapter will discuss elements of an ideal ITM and identify how organizations are evolving their human capital management strategies.
Citations
- Strengthening U.S. Air Force Human Capital Management: A Flight Plan for 2020鈥2030 (Washington, DC: National Academies of Sciences, Engineering, and Medicine, 2021), 43, .
- Avery Calkins, Monique Graham, Claude Messan Setodji, David Schulker, and Matthew Walsh, Machine Learning-Enabled Recommendations for the Air Force Officer Assignment System: Volume 5 (Santa Monica, CA: RAND Corporation, 2024), .
- Bailey, 鈥淎FPC Adopting Innovative Officer Assignment System IT Platform,鈥 .
- Bailey, 鈥淎FPC Adopting Innovative Officer Assignment System IT Platform,鈥 .
- Strengthening U.S. Air Force Human Capital Management, 156, .
- Bailey, 鈥淎FPC Adopting Innovative Officer Assignment System IT Platform,鈥 .
- Talent Marketplace team in discussion with the author, March 3, 2023.
- Sean Freitag (former chief of Talent Marketplace) in discussion with the author, May 31, 2024.
- Sean Freitag (former chief of Talent Marketplace) in discussion with the author, May 31, 2024.
- Strengthening U.S. Air Force Human Capital Management, 131, .
- Strengthening U.S. Air Force Human Capital Management, 131, .
- 鈥2021 Exit Survey Results All Officer,鈥 Department of the Air Force, March 2022.
- State of the Global Workplace 2023 Report: The Voice of the World鈥檚 Employees (Washington, DC: Gallup, 2022).
- State of the Global Workplace 2023 Report, 4.
- 鈥淎ir Force Officer Assignment System (AFOAS) Personnel Services Delivery (PSD) Guide,鈥 Department of the Air Force, August 15, 2023, 3.
- Air Force Personnel Center, 鈥淭alent Marketplace Billet Owner & VML Officer Qualitative Survey Results,鈥 March 25, 2020.
Elements of an Optimized Internal Talent Marketplace
鈥淭here鈥檚 a way to do it better. Find it.鈥鈥擳homas Edison
This chapter explores the critical elements necessary for optimizing an internal talent marketplace (ITM), highlighting the importance of being (1) mission-responsive; (2) innovative yet disciplined; (3) accurately informed and informative; (4) understood and trusted; and (5) collaborative and agile.1 By examining these key attributes, as well as the role of advanced technology and iterative design, we will identify how organizations leverage ITMs to create a responsive and engaged workforce.
Mission Responsive
Mission responsiveness describes an organization鈥檚 ability to effectively respond to emerging missions and address strategic capability gaps. A 2021 study published by the National Academies of Sciences, Engineering, and Medicine further elaborates that the 鈥淎ir Force requires [a human capital management] system that is mission-connected and strategic (e.g., assessing and developing Airman competencies to meet changes to the mission; providing incentives to retain individuals that have mission-critical competencies such as pilots or cyber).鈥2 As mentioned previously, the Air Force is not alone in the challenges associated with competing in the new talent market or the need for a mission-responsive ITM.
While organizations may adopt various approaches in implementing an ITM to address these challenges, Deloitte has identified three common strategies focused on 鈥渢alent deployment,鈥 鈥渢alent mobility and management,鈥 and the 鈥渇uture-of-work model.鈥3 Understanding an organization鈥檚 pain points through the identification of user personas, goals, objectives, and incentives is key to defining the strategy for an ITM and ensuring successful implementation. Despite organizations beginning with one distinct strategy, the organizations interviewed remain agile in their approach and evolve their strategy as the market matures.4
Innovative Yet Disciplined
An innovative yet disciplined ITM maintains a forward-looking approach by encouraging innovative solutions and continuous improvement. As strategies transform, researchers recommend utilizing an iterative design process to assess and align the ITM across the following four P鈥檚:
- Purpose: Define your strategy based on different possible use cases and measurable outcomes;
- Plan: Determine the iterative steps required to activate the internal talent marketplace;
- Program: Define the policies and processes that enable talent and career mobility; and
- Platform: Work toward an integrated technology ecosystem.5
Schneider Electric鈥檚 ITM journey illustrates such an approach. Their decision to implement an ITM was motivated by an internal exit survey, which revealed that 50 percent of departing employees noted the lack of internal growth opportunities as the primary factor for their resignation.6 With a clearly defined purpose, Schneider Electric developed a three-part strategy to improve retention, empower employees in their career-path choices, and increase learning and development opportunities.7 Leveraging artificial intelligence, their Open Talent Market solution matches employees to opportunities based on their skills, experience, and interests. This approach has given employees more autonomy in their careers and has resulted in Schneider Electric saving $15 million in enhanced productivity as well as reduced recruiting expenses by unlocking hidden capacity and skills within the company.8 While its ITM solution began with retention in mind, it has since transformed its ability to embrace a future-of-work model through flexible assignments and encouraging a culture of continuous employee development.
Informed and Informative
The usefulness of an ITM depends on the system providing enough information on available opportunities. Additionally, it should contain detailed information about individuals applying for these opportunities to ensure the alignment of matches based on skills, interests, and career aspirations.
As seen in Schnieder Electric鈥檚 Open Talent Market solution, matching employees with opportunities requires the system to be both accurately informed and informative through market design. Market design 鈥渂rings science to matchmaking鈥 by integrating game theory and market behavior insights to create systems that facilitate efficient and equitable transactions.9 Alvin Roth, a leading expert in the field of market design and the inspiration behind the Air Force鈥檚 Talent Marketplace, emphasizes that markets must be thick, uncongested, and safe to function properly.10 Thickness implies having an equally large pool of job opportunities and candidates. While thickness is desirable, it can lead to congestion, or 鈥渢he economic equivalent of a traffic jam, a curse of success,鈥 if participants don鈥檛 have adequate time or information to make informed decisions.11
Collaborative and Agile
The collaboration and agility of an organization are gauged by its adaptability to evolving business needs and workforce dynamics through an interconnected ecosystem approach. The emergence of new technology and automation continues to shape organizational structures and increase the need for employee skill-tracking and upskilling as existing jobs are transformed and new jobs are created.
As an example, Booz Allen implemented a skill-based job architecture and recommendation algorithms to mitigate congestion. Despite the structured approach, initial adoption by employees and managers was slow, highlighting the need for better engagement to gather employee profile data for tailored recommendations.12 To drive desired behaviors, they integrated their existing skill badging program with their ITM to serve as a holistic talent management solution called Career Hub. This integration created a structured and systematic way for employees to engage with the system, requiring regular updates of skills and preferences. Booz Allen鈥檚 talent system investments resulted in improved talent marketplace adoption, a heightened focus on employees acquiring essential skills essential for the company鈥檚 strategic growth, and a notable 4 percent improvement in their retention rate.13
Understood and Trusted
The overall effectiveness of an ITM and its matching mechanisms depend on the clarity, transparency, and understanding of the marketplace rules by all key stakeholders and system users.
For instance, Google chose to adopt a deferred acceptance algorithm in the development of its Chameleon platform to ensure market matches adhere to defined rules while maintaining scalability and prioritizing choice and fairness.14 To establish confidence among individual contributors and managers, Google focused on providing them with an understanding of the system鈥檚 operations and dispelling any opacity surrounding the black box algorithm that generated matching outputs.15 By addressing these concerns, they successfully aligned the preferences of managers and workers with business goals while ensuring the process was seen as fair by its users.
Holistic Approach
As an ITM becomes more informed and informative, it provides valuable workforce-related data that can be used to inform strategic human capital management (HCM) decisions. Researchers note combining human resource metrics with talent analytics 鈥渇orms a powerful approach to optimizing the utilization and experience of the chief resource of most organizations鈥攖he people.鈥16
Through talent analytics, Google identified low-performing employees whose skills were mismatched to opportunities and poorly managed. This awareness enabled Google to address these issues through personalized incentives, thereby retaining employees and supporting their success.17 These insights can also enhance organizational responsiveness by fostering collaborative efforts within the HCM system. A collaborative system integrates traditionally siloed functions such as talent acquisition, talent management, learning and development, and performance management into an interconnected solution, creating value across the organization.18
Creating an optimized ITM requires a balanced, agile approach that ensures the system is mission-responsive, innovative, informed, trusted, and collaborative. The following chapter will provide recommended actions for the Air Force to develop a well-designed Talent Marketplace that facilitates efficient talent matching while supporting continuous improvement and organizational resilience in a dynamic labor market.
Citations
- Strengthening U.S. Air Force Human Capital Management, 43, .
- Strengthening U.S. Air Force Human Capital Management, 44, .
- Ina Gantcheva, Robin Jones, Diana Kearns-Manolatos, Jeff Schwartz, Linnet Lee, and Manu Rawat, Activating the Internal Talent Marketplace: Accelerate Workforce Resilience, Agility and Capability, and Impact the Future of Work (New York: Deloitte Insights, September 17, 2020), .
- Ina Gantcheva et al., Activating the Internal Talent Marketplace, .
- Ina Gantcheva et al., Activating the Internal Talent Marketplace, .
- 鈥淗ow Schneider Electric Increased Employee Retention,鈥 Gloat, May 23, 2022, .
- 鈥淗ow Schneider Electric Increased Employee Retention,鈥 .
- 鈥淗ow Schneider Electric Increased Employee Retention,鈥 .
- Alvin E. Roth, Who Gets What鈥攁nd Why: The New Economics of Matchmaking and Market Design (New York: Harper Collins, 2016), 6.
- Alvin E. Roth, 鈥淭he Art of Designing Markets,鈥 Harvard Business Review, August 1, 2014, .
- Roth, Who Gets What, 9.
- Jeff Williamson and Donncha Carroll, 鈥淗ow to Start Smart with a Talent Marketplace,鈥 MIT Sloan Management Review, November 20, 2023, .
- Williamson and Carroll, 鈥淗ow to Start Smart with a Talent Marketplace,鈥 .
- Bo Cowgill and Rembrand Koning, Matching Markets for Googlers (Cambridge, MA: Harvard Business School, August 27, 2018), .
- Cowgill and Koning, Matching Markets for Googlers, .
- David G. Collings, The Oxford Handbook of Talent Management (Oxford, United Kingdom: Oxford University Press, 2019), 391.
- Thomas Davenport, Jeanne Harris, and Jeremy Shapiro, 鈥淐ompeting on Talent Analytics,鈥 Harvard Business Review, September 7, 2017, .
- Ina Gantcheva et al., Activating the Internal Talent Marketplace, .
Recommendations
鈥淲e cannot solve our problems with the same thinking we used when we created them.鈥鈥擜lbert Einstein
As we evaluate the Air Force鈥檚 challenges in the Air Force Officer Assignment System (AFOAS) Talent Marketplace, a 鈥済one forward to the past鈥 approach is no longer effective in managing talent in today鈥檚 informational age. The Air Force must modernize and follow through on development efforts that align with industry best practices to create an agile and adaptive human capital management (HCM) system that leverages our personnel as a strategic asset.
The Air Force must create a better Airmen value proposition to retain talent and has taken a first step by following industry trends and implementing an internal talent marketplace (ITM). However, as illustrated previously, there are several key problems and challenges in realizing the full potential of the Talent Marketplace.
The Talent Marketplace has been scaled as a Total Force solution but is not aligned with a clear strategy or adequate resources. The lack of a clear strategy has also resulted in a misalignment in policy and functionality of matching mechanisms within the system. This direct misalignment is further exasperated by the lack of information to properly align talent with opportunities.
While ITMs aim to increase transparency and collaboration, the Talent Marketplace lacks feedback loops and monitoring to ensure the efficiency of the system鈥檚 performance. The culmination of these challenges has resulted in a growing backlog and a missed opportunity to leverage the benefits other organizations have achieved through the deployment of an optimized ITM solution. To improve the Air Force鈥檚 Talent Marketplace, the following three recommendations are proposed:
- Define the Talent Marketplace strategy;
- Increase transparency and communication; and
- Enhance data connectivity and optimize matching algorithms.
Define the Talent Marketplace Strategy
The Air Force should initiate a talent deployment strategy to align Airmen鈥檚 skills, attributes, and interests with available assignment opportunities. This strategy aligns with the broader AFOAS goal of assigning the right officer to the right job at the right time. It is important to note that this strategy will serve as a starting point to set the foundation for future iterations of the Talent Marketplace. The following key activities should be conducted to inform the strategy implementation.
- Appoint a senior leader within the A1 to champion the development and follow-through of Talent Marketplace updates.
- Establish change management programs to communicate Talent Marketplace changes.
- Identify key performance indicators (KPIs) and metrics to measure Talent Marketplace success.
- Review 4Ps (Purpose, Plan, Program, and Platform) to assess the actions required to activate the talent deployment strategy. Review and update policies and processes that govern the Talent Marketplace to enable talent movements and incentivize desired behaviors within the market.
- Establish a strategy review cadence to continuously assess the Talent Marketplace based on the established KPIs and measurable outcomes across the 4Ps.
- Use human-centered design methods to map the user journey and identify user personas to align capabilities within the system.
Increase Transparency and Communication
The Talent Marketplace must be transparent and enable communication to properly execute a talent deployment strategy that aligns Airmen鈥檚 skills, attributes, and interests with available assignment opportunities. The following key activities should be conducted to increase transparency and communication.
- Establish rules of engagement for the Talent Marketplace and outline the process for making assignment decisions to promote transparency and fairness.
- Co-locate all published Talent Marketplace policies, procedures, and process documentation on the Talent Marketplace landing page. Provide specific details such as how many preferences members should list. Create an explainer video that clarifies how the matching algorithm works.
- Publish Air Force Personnel Center (AFPC) public post-assignment cycle reports that offer macro data on Talent Marketplace matching outcomes.
- Publish an internal AFPC post-assignment cycle report that identifies constraints in matching officers to desired assignments and annotates final matching outcomes that deviate from expressed preferences.
- Implement feedback mechanisms to solicit input from the users about their experiences within the Talent Marketplace during and after assignment matches. This feedback will serve as a feedback loop to inform future developments and adjustments.
- Develop a communications tracking feature on Talent Marketplace to monitor and analyze engagement between billet owners and officers throughout the assignment cycle. This functionality enables the collection of data about communication dynamics and engagement levels.
- Incentivize and enforce billet owners to provide detailed position descriptions before being allowed to post their jobs in the market.
Enhance Data Connectivity and Optimize Matching Algorithms
Enhanced data connectivity and optimized matching algorithms will enable the Talent Marketplace to drive organizational outcomes and Airmen satisfaction. The following key activities should be conducted to improve data integration and refine the matching process.
- Connect MyVector profile, resume, and endorsement data with Talent Marketplace. This integration allows officers to share additional interests, skills, and competencies not captured in standard personnel data with billet owners.
- Implement machine learning recommendations to enhance and personalize the officer and billet owner鈥檚 search within Talent Marketplace. The users should still be able to view all available officers and positions during the assignment cycle.
- Use insights from AFPC reports and user feedback to refine and improve the recommendation engines to increase the accuracy and effectiveness of matches.
- Use data captured from AFPC reports to identify deferred acceptance algorithm deficiencies to improve the usefulness of its application.
- Standardize competencies and skills captured in job descriptions and officer profile data to maximize matching algorithms.
Implementing these recommendations will transform the Talent Marketplace into an ITM that is mission-responsive, innovative yet disciplined, accurately informed and informative, understood and trusted, collaborative, and agile. Creating a connected and data-driven platform will open additional opportunities for Talent Marketplace to integrate with other HCM systems, such as learning and development courses and mentoring connections. Such integration represents a comprehensive systems approach, enhancing the overall functionality of Talent Marketplace and improving talent management within the Air Force.
Conclusion
鈥淵ou are what you do, not what you say you鈥檒l do.鈥鈥擟arl Jung
To effectively optimize and engage its all-volunteer force for great power competition, the Air Force must shift from traditional, industrial-age talent management strategies toward those required by the information age. As stated in the Air Force Strategic Plan, this transition involves more than just technology: 鈥淕ame-changers do not result solely from technology, but rather from the specific ways in which a technology is applied in an operational capability鈥攁nd how such capabilities are employed.鈥1
In evaluating the Talent Marketplace, it becomes evident that despite the potential of its application as an internal talent marketplace, it has yet to reach industry benchmarks of an optimized solution. The Talent Marketplace can be a game-changer if the Air Force prioritizes and advances its development with a clearly defined strategy to enhance transparency, communication, and data connectivity to optimize matching algorithms for a personalized experience. Once the Talent Marketplace is optimized, it will provide valuable workforce-related data that can inform strategic talent management decisions, positioning the Air Force to develop new ways to identify and align Airmen鈥檚 unique talents with agility.
In an era where our military鈥檚 strategic advantage hinges on human capital, effectively managing and retaining talent within the Air Force is critical to maintaining operational readiness and a competitive edge. The time is now to follow through and fix the Talent Marketplace to ensure the right Airmen are in the right jobs at the right time, leveraging its human capital as a strategic resource.
Citations
- USAF Strategic Master Plan (Washington, DC: Department of the Air Force, May 2015), 59, .