Online talent platforms such as LinkedIn have the ability to improve job outcomes for up to 540 million people globally, and raise global GDP by $2.7 trillion a year, according to a report from consultancy firm McKinsey.
Depending on the sector and workforce needs, companies adopting talent management platforms could also increase output by up to 9 per cent, and reduce HR and talent-related costs by as much as 7 per cent.
According to the report, A labor market that works: Connecting talent with opportunity in the digital age, the adoption of online talent systems could unlock real economic value over the next decade “by creating better, faster matching between workers and available work opportunities”.
It found that online talent platforms increase the transparency of demand for skills, so that companies can not only identify and recruit candidates but also motivate them and improve their productivity once they start work.
“They [online talent platforms] can take the form of websites, mobile apps, or proprietary corporate systems. They gather a huge volume of information regarding both individual workers and employers or work projects, then synthesize this data to match individuals with job opportunities and produce better work outcomes,” the report said.
By aligning business demands and operating models with the “enormous” amount of data these platforms gather, McKinsey suggests global GDP could increase by 2 per cent by 2025.