Exploring the Build vs Buy Approach: A Case Study in Talent Development

INTRODUCTION

In today's rapidly evolving business landscape, organizations face the ongoing challenge of acquiring and developing talent to meet their strategic objectives. When it comes to talent development, organizations often grapple with the decision of whether to build talent internally or buy it externally. This case study examines the build vs buy approach in talent development, exploring the benefits, considerations, and outcomes associated with each approach.

Talent development plays a critical role in driving organizational success by ensuring that employees have the skills, knowledge, and capabilities needed to excel in their roles and contribute to the department’s objectives. However, organizations must carefully consider how they approach talent development to maximize effectiveness and efficiency. The build vs buy approach represents two distinct strategies for talent development, each with its own set of advantages and considerations.

OVERVIEW

A public sector client is experiencing rapid growth and expansion in their Department of IT.  As part of its strategic plan, the department recognizes the importance of developing a skilled and agile workforce to maintain its efficient edge. To address its talent development needs, the client considers both the build and buy approaches.

Build Approach:

Under the build approach, the client prioritizes internal talent development to cultivate skills and expertise from within the organization. The department invests in comprehensive training and development programs, mentoring initiatives, and career progression pathways to nurture talent and promote internal mobility.

Advantages:

1. Tailored Development: Internal development allows the department to tailor training programs to align with its specific needs, culture, and strategic goals.
2. Fostering Loyalty: Investing in employee development demonstrates a commitment to employees' professional growth, fostering loyalty, engagement, and retention.
3. Knowledge Retention: Internal development supports succession planning and helps the department retain institutional knowledge and expertise, as employees progress and grow within the organization.

Considerations:

1. Time and Resources: Building talent internally requires significant time, resources, and investment in training, mentoring, and development initiatives.
2. Skill Gaps: Depending solely on internal development may limit access to specialized skills or expertise not readily available within the organization.

Buy Approach:

Alternatively, the client considers the buy approach, which involves acquiring talent externally through recruitment, hiring, or outsourcing. The department seeks to complement internal development efforts by recruiting individuals with specific skills, expertise, or experience that are not available internally.

Advantages:

1. Immediate Impact: External hiring provides the department with immediate access to talent with the required skills and experience, minimizing the time and resources needed for development.
2. Specialized Expertise: Buying talent externally allows the client to tap into specialized skills, knowledge, and experience that may not be readily available internally.
3. Innovation and Diversity: External hires bring fresh perspectives, ideas, and diversity of thought to the client, driving innovation and creativity.

Considerations:

1. Integration Challenges: Integrating external hires into the organization may require time and effort to onboard, train, and acclimate them to the agency’s culture and processes.
2. Cultural Fit: Ensuring a cultural fit between external hires and the agency’s values, mission, and work environment is essential for long-term success and retention.
3. Cost: Acquiring talent externally may involve higher recruitment and onboarding costs compared to internal development.

‍

CONCLUSION

In evaluating the build vs buy approach, the department recognizes the importance of striking a balance between internal development and external hiring to meet its talent development needs effectively. By leveraging both approaches strategically, the client can build a diverse, skilled, and agile workforce capable of driving innovation, growth, and success in an ever-changing business landscape.

Based on the findings of this case study, the client is encouraged to adopt a hybrid approach to talent development that combines internal development with strategic external hiring. This approach will enable the department to maximize the benefits of both approaches while mitigating potential drawbacks, ultimately positioning the department for long-term success.

REFERENCES

• Bishop, J. (2019). Build vs. Buy: A Talent Management Case Study. Harvard Business Publishing.
• Cable, D. M., & Vermeulen, F. (2017). Talent Management: A Case Study Approach. Oxford University Press.

By adopting a strategic approach to talent development, organizations can build a workforce that is equipped to thrive in today's dynamic and efficient business environment.

‍