Key takeaways:
- Talent strategy follows pressure: Stable, well-resourced firms tend to grow talent internally, while firms facing volatile workloads are more likely to hire from the outside.
- Mentorship enables growth: Having enough senior leaders to train junior staff is a key factor in whether companies can successfully "build" talent.
- Hiring shapes competitiveness: Decisions to build or buy talent directly influence a firm's long-term adaptability and success.
TAMPA, Fla. (Feb. 5, 2026) – 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 a new USF study.
This build or buy strategy is the focus of research newly published in Human Resource Development International , co-authored by Amit Chauradia , an assistant professor of instruction in the School of Management at the University of South Florida's Muma College of Business.
The article, co-authored with researchers from the University of Cincinnati and the Institute of Management Technology Hyderabad , explores when firms choose to develop talent internally — known as a "build" strategy — versus hiring experienced employees from external labor markets, or "buying" talent.
"This research challenges the idea that talent strategy is purely a matter of culture or preference," Chauradia said. "Instead, it shows that the decision to build or buy is shaped by the firm's internal capacity and the volatility of the environment."
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 "build" talent by training and mentoring junior employees. In contrast, firms facing sudden or unpredictable workloads are more likely to "buy" talent by hiring experienced workers from outside to meet immediate needs.
The study's insights provide practical implications for human resources leaders, emphasizing that talent strategy should align with both long-term goals and immediate operational pressures.
"For executives and HR leaders, this study highlights that talent decisions are strategic levers, not simple administrative choices," Chauradia said. "A firm's decision to build or buy talent directly shapes its future competitiveness."
The study, "Talent Hiring Strategies: When Do Firms Build versus Buy Their Human Capital?," also underscores how mentoring capacity within an organization can support sustainable internal development.
Firms with more senior-level leadership available to coach and support junior employees are better equipped to pursue a build strategy, the authors found.
A version of this story appears on the USF website .
