Developing your capability base- build or buy?

Build or buy? This is something every organisation should be thinking about- not just HR, but definitely HR.  If you’re not thinking about this, or this is news to you- OMG.  Actually you probably are, but not so explicitly, so what we are going to do here is draw out what you’ve sort of being doing, and sort of been thinking of, into the light for reflection, consideration and adjustment.  You’re welcome.

What is building?

What is building people?  we can’t actually do this (yet).  It’s internal development.  It’s appointing internally, its growing and developing your own talent within the organisation to meet labour demands. Every promotion is the realisation of a building project.

 This is a subset of development, and theorists would argue with me that to just look at learning and development from the perspective of filling vacancies is missing the bigger point of why we develop people, and they are quite right.  But if we start with the premise that we will have future labour needs (whether due to turnover or growth), and where are we going to get those people, then we can fairly turn our mine to building them now.  

What is buying?

Buying is essentially going to market; filling your vacancy with a new employee.  This is the most common way to replenish your employee numbers, and it makes sense; someone has left the building, so someone needs to come in.  There are pros and cons to this, but pay close attention; there will be overlaps, but the points below aren’t just the opposites of the pros and cons of building.

Which is better?

To use an analogy, what’s better- buying a cake at a store, or baking your own?   There are Good reasons to bake your own (it might taste better, it might be cheaper, it might feel more personal), or buy one (better quality, faster, looks better).

I go into the pros and cons of each elsewhere, but to keep it simple, do both.  How often, where and when, will depend on the situation and the role.  But as HR, you can lean in, or lean out,  of the two options.  You can’t make people, so your options aren’t limitless, but you can focus your efforts. 

Don’t fall for two common misconceptions:

·      The grass is greener on the other side (i.e. people elsewhere are better than those here), so we should externally recruit.

·      Our people are the best (i.e. we are great, we are the best, no one else is as good as a [insert your company name] employee.

Both of these are extreme pessimism and optimism; the glass is completely full/completely empty.  The answer is:  be neither.