Key takeaways:
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 .
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About the University of South Florida
The University of South Florida is a top-ranked research university serving approximately 50,000 students from across the globe at campuses in Tampa, St. Petersburg, Sarasota-Manatee and USF Health. In 2025, U.S. News & World Report recognized USF with its highest overall ranking in university history, as a top 50 public university for the seventh consecutive year and as one of the top 15 best values among all public universities in the nation. U.S. News also ranks the USF Health Morsani College of Medicine as the No. 1 medical school in Florida and in the highest tier nationwide. USF is a member of the Association of American Universities (AAU), a group that includes only the top 3% of universities in the U.S. With an all-time high of $750 million in research funding in 2025 and as a top 20 public university for producing U.S. patents, USF uses innovation to transform lives and shape a better future. The university generates an annual economic impact of nearly $10 billion for the state of Florida. USF’s Division I athletics teams compete in the American Conference. Learn more at www.usf.edu .
Human Resource Development International
Data/statistical analysis
People
Talent Hiring Strategies: When Do Firms Build versus Buy Their Human Capital?
28-Jan-2026