Question

Talent management and career development are investments that companies make in their employees. Companies choose to "Make" their talent in-house - by providing lots of different development opportunities - such as formal education or leadership training and development. The other choice is to "Buy" their talent on the open market - hiring well prepared individuals from outside the organization (i.e., external recruiting and selection).

• What are the factors that determine if companies choose to make their talent by developing their employees internally or buying their talent on the open labor market?
• How are current labor market and economic trends affecting this decision?
• Provide an example from an experience of your own or someone you knew about making or buying talent. Evaluate the choice that was made.

Answer 1

Factors that determined if company choose to make there talent by developing there employees internally or buying there talent from open labour market are:

COST

A main factor is cost that if cost of buying talent from open market is less than they should go for it other than developing there employees internally.

Time period

As buying talent from open market save there time other than developing there employess internally as it can take time.

economic trends and current labour markets are affected by this decisions as if firm purchases talent from market than there will be more employement in the market and also economy will grow.

EXAMPLE

a company A is running since long time. Now they find out that to survive and to earn profit in market they now has to do some changes in there firm and bring new talent to there firm. Now they arrange a meeting and discuss about it, at the end they find out that the cost of purchasing talent from open market is less than the cost of getting there current employees development. So they decided to purchase new talented and skilled workers for there firm from open market. This also reduces there expense and save time.