In: Economics
An explanation of both staffing strategies: to build talent and to buy talent.
They have three choices when organizations choose to acquire talent: buy, build, or borrow; They can "buy" talent meaning to recruit anyone as a staff member. They can "build" talent which involves training employees to assume new responsibilities or different ones. Perhaps they can "borrow" talent suggesting they'll find a freelancer perhaps contractor to do the job. Each of these has advantages and disadvantages.
Buy Strategy- One of the most apparent benefits of recruiting people from outside is that you can bring talents and expertise inside the company that are not currently in operation. For example, startups might need a professional who has fundraising experience. Or if the organization launches a new line of products, it may make sense to bring in a marketing professional with experience in this field. Another value in the company is getting a new pair of eyes. If the company feels something is missing in the collaborative process, the answer could be to bring in a new perspective. The downside from bringing out talent is expense. There's always demand for top talent. If the firm needs unique expertise and skills, it's going to have to pay for it. So if the unemployment rate is weak, by providing fair salaries and benefits, companies need to be prepared to succeed.
Build Strategy- Organizations that concentrate on talent-building will focus on developing the skills and expertise they need. It is an extremely successful use of organizational capital. Creating talent may also be less onerous than buying it. Talent building is also great for the morale of employees which can have a positive impact on employee engagement. Employees want to know the organisation's ability to invest in its performance. They want to see acknowledgment of their hard work (and other people's hard work).
At the downside it can take a while to develop talent. Chances are, the skills and experiences that you want to learn from employees aren't quick to master. That doesn't mean the current workers won't be able to know them; it just means that it takes time to practice. It also means companies need to get a good understanding of what they need. That can be extremely hard to recognize. Many industries are moving so fast to keep up that they are struggling to find out from now on what they will need six months, much less two years from now. That impacts their ability to develop talent within themselves.