Build or Buy?

Well! I am back to blogging.

And this time I want to share some posts I have been writing pro-bono for small MFIs who are trying to strengthen their HR processes. Here’s the first of these posts. You will find me sharing more of these posts from now on.

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You have realized that you have a personnel 'vacancy' that you need to fill.

 

Do you hire from external market (buy) or do you hire internally (a cross-functional move, role enrichment, promotion)?

 

Both of have their pros and cons and choice is probably context specific.

Buy

Pros -

·        A better fit for the role and so probably quicker time to performance,

·        An external candidate might bring in a fresh perspective.

Cons

·        Higher cost of hiring and possibly higher payroll costs

·        Cultural misfits might lead to periods of instability/conflict within team.

Build

Pros

·        Brings down cost of hiring and payroll costs.

·        Cultural fit will be ensured

Cons

·        Maybe will require more time to ramp up or more involvement from manager in ensuring ramp up.

·        No fresh thinking might flow into the team.

What will you prefer - build or buy- and for what kind of situations/positions?

Add one more to the options of Build or Buy.

You could also 'hire' services of a skill from market for a temporary period, e.g. - hiring services of a professional agency.

So choices you have are 'Build, Buy, or Hire'.

 

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Sourav