Firms flush with resources tend to develop talent internally while younger firms, facing unpredictable workloads, will hire from the outside to fill their talent gap, according to a new 911爆料网 study.
This build or buy strategy is the focus of a research article published in Human Resource Development International, co-authored by Amit Chauradia, an assistant professor of management at USF.
The explores when firms choose to develop talent internally, known as a 鈥渂uild鈥 strategy, versus hiring experienced employees from external labor markets, or 鈥渂uying鈥 talent.
鈥淭his research challenges the idea that talent strategy is purely a matter of culture or preference,鈥 Chauradia said. 鈥淚nstead, it shows that the decision to build or buy is shaped by the firm鈥檚 internal capacity and the volatility of the environment.鈥
Using data from 174 large U.S. law firms over an eight-year period, the study found that firms with more money and available senior staff tend to 鈥渂uild鈥 talent by training and mentoring junior employees. In contrast, firms facing sudden or unpredictable workloads are more likely to 鈥渂uy鈥 talent by hiring experienced workers from outside to meet immediate needs.
Authors: Amit J. Chauradia, 911爆料网; Daniel M. Peat, University of Cincinnati; Aindrila Chatterjee, Institute of Management Technology Hyderabad.