The global job market is facing a growing challenge: a widening gap between the skills employers need and the skills workers possess. According to McKinsey, 87% of companies worldwide acknowledge they either already face a skills gap or expect to encounter one soon.
In Europe alone, 75% of employers struggled to find workers with the right soft skills in 2023—up sharply from just 42% in 2018. This skills mismatch is a major driver of unemployment and missed opportunities for both individuals and organizations.
Talent matching offers a solution by aligning the specific demands of employers to job seekers’ matches based on skills, creating a bridge between talent supply and demand. This blog post discusses how talent matching helps organizations achieve better revenue and employee satisfaction.
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What is talent matching?
Talent matching is the process of finding the right people based on their skills and experiences compared to the competencies required for the specific role. It can involve using AI-powered tools and methodologies to compare what a person can do with what a job requires.
There are two types of talent matching: internal and external.
Internal talent matching involves identifying and hiring existing employees into new projects or roles within the same organization. External talent matching involves finding new candidates outside your organization with the skill set you want to fill for a role.
How does talent matching work?
Talent matching typically involves several steps and tools to effectively connect candidates (or employees) with suitable roles.

Here’s a simple breakdown of how it works:
1. Identifying requirements:
Organizations start by defining the skills, experience, and qualifications needed for a specific job or project. This involves creating a clear job description outlining responsibilities and expectations.
Don’t have time to create a job description? Check out Testlify’s free AI job description generator.
2. Gathering data:
Resumes and applications are collected for external hiring. For internal talent matching, employee profiles, which include skills, work history, and performance data, are used. Some companies use tests or assessments to evaluate skills and competencies.
Not sure where to begin? Explore Testlify’s AI-powered assessment platform with 1700+ tests in 9+ languages to simplify your hiring process!
3. Using technology:
Many organizations use talent management systems or Applicant Tracking Systems (ATS) that incorporate algorithms and AI to analyze data. These systems match candidates’ skills with job requirements, highlighting those who fit best.
4. Review and selection:
HR or talent acquisition team review the matches provided by the system. They consider factors such as cultural fit, potential for growth, and team member dynamics. Interviews may be conducted to further assess candidates and ensure they are the right fit.
5. Feedback and iteration:
After a hire is made, organizations often seek feedback on the matching process. This helps improve future talent matching efforts by refining criteria and algorithms.
6. Ongoing development:
For internal talent matching, companies may continuously monitor employee performance and satisfaction to identify future opportunities for growth and movement within the organization. A 2022 McKinsey report found that 40% of workers globally plan to quit within six months, with limited career growth opportunities being a major reason.
Simply put, matching talents works by systematically gathering data about job requirements and candidates, using technology to analyze and match them, and refining the process through feedback and continuous development. This ensures that the right people are placed in the right roles for optimal success.
Benefits of talent matching
- Better fit for jobs: It helps find the right people for the right jobs, which means employees are more likely to succeed and be happy in their roles.
- Time-saving: Organizations can fill positions faster because talent matching quickly identifies suitable candidates without lengthy searches.
- Employee growth: Employees can find new opportunities within the company that match their skills, helping them grow and advance in their careers.
- Cost-effective: Hiring internally or finding the right fit reduces costs associated with recruiting new employees, like advertising and training.
- Higher engagement: When employees are well-matched to their roles, they tend to be more engaged and motivated, which benefits the company.
- Improved retention: It helps keep employees longer because they are in roles that suit their strengths and interests, reducing turnover.
Challenges of Talent Matching
- Data quality: Sometimes, the information about candidates or job roles isn’t accurate or complete, making it hard to find the best matches.
- Bias in algorithms: If the technology or algorithms used for matching have biases, they might unfairly favor some candidates, leading to unfair hiring practices.
- Changing job needs: Job requirements can change quickly, making it tough to keep the talent-matching process up-to-date with the latest skills and needs.
- Candidate competition: Many qualified candidates may be vying for the same positions, making it challenging to find the best fit.
- Employee resistance: Sometimes employees may not be open to moving to new roles, even if they are a good match, due to comfort in their current position.
- Technology limitations: Some matching platforms may not have advanced features or may not work well for specific industries, limiting their effectiveness.

What are talent-matching platforms?
A talent matching platform is a software tool designed to connect job seekers with the right job opportunities or help organizations find the best candidates for their roles.
Using algorithms, data analytics, and artificial intelligence (AI), these platforms analyze skills, experiences, and preferences to match candidates and job requirements perfectly.
Key features of talent matching platforms:
Skill assessment: These platforms evaluate skills to help employers identify ideal candidates or employees for specific roles or projects.
Advanced algorithms: They use intelligent algorithms to align job seekers with roles that match their skills and preferences, improving hiring success.
Bias reduction: By relying on data-driven insights, these platforms reduce biases in the hiring process, ensuring fair and objective candidate evaluations.
Related: Unconscious bias in the hiring process & how to overcome it
Efficiency: Matching platforms streamline the hiring process, making it faster and more accurate by minimizing subjective decision-making.
Talent pipelines: These platforms maintain a ready pool of candidates, ensuring organizations can quickly access qualified talent when positions open up.
Such platforms make recruitment more efficient and effective, ensuring the right candidates are matched with the right roles and benefiting job seekers and employers.
4 top talent matching platforms

Testlify- While not a standalone talent matching platform, Testlify is a powerful AI-powered skills assessment tool that enhances talent matching by providing objective, bias-free skill evaluations and actionable insights to ensure the right talent fits the right roles.
LinkedIn Talent Insights- A platform offering advanced analytics to help organizations identify, assess, and engage with talent pools globally, ensuring alignment with workforce needs.
Joveo- An AI-driven platform that optimizes recruitment campaigns by connecting employers with the most relevant candidates through intelligent job ad placements and targeting.
Hiretual- A sourcing platform that uses AI to match job requirements with potential candidates by analyzing skills, experiences, and market trends.
What is the future of talent matching?
The uncertain market brings new hiring challenges, prompting organizations to rely more on technology to streamline talent management. Talent intelligence platforms are at the forefront, transforming how companies hire and optimize their workforce.
Matching talent powered by AI is an effective method for identifying suitable external candidates for open roles. This approach uses data-driven strategies to enhance hiring by expanding candidate pools.
It leverages online behavioral data, location information, browsing patterns, and sophisticated search algorithms to identify relevant profiles with associated titles and nearby locations.
Additionally, retargeting candidates from previous talent pools and aligning them with current roles accelerates recruitment. As an AI-powered skills assessment platform, Testlify simplifies talent matching by objectively assessing candidates’ competencies and aligning them with the specific requirements of the role.
How can Testlify help with talent matching?
Testlify, as an AI-powered skills assessment platform, is designed to tackle talent-matching challenges for both external and internal hiring. It offers customizable assessments to evaluate candidates’ skills, experiences, and competencies, ensuring a perfect fit for the role.
External matching helps HR teams screen candidates objectively using science-backed assessments, reducing bias and ensuring data-driven decisions. Its anti-cheating technology ensures integrity, while detailed candidate reports provide actionable insights into individual strengths.
Testlify identifies employees’ hidden or underutilized skills for internal matching, making it easier to match them with upcoming roles or new projects. Its advanced analytics and real-time reporting give organizations a clear view of their talent pool, allowing HR teams to proactively plan for future needs.
Additionally, Testlify integrates seamlessly with Applicant Tracking Systems (ATS) for a smoother hiring workflow. By simplifying skill evaluations and providing robust insights, Testlify ensures the right talent is matched to the right opportunities efficiently and effectively.

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