Should You Build Talent or Buy It?

One of the most frequent and important questions in talent management is “build or buy,” says consultant Ron Katz. That is, should you build talent (develop an internal candidate) or buy (go outside the organization for the candidate).

There will be a cost associated with either choice, says Katz, who made his comments at BLR’s Strategic Leadership HR Summit, held recently in Scottsdale Arizona. Katz is. Ron Katz is president of Penguin Human Resource Consulting LLC.

Build or Buy?

To help in making the build or buy decision, says Katz, ask yourself:

• Do any employees have the skills we need?
• Do we have time to develop someone to take on this role?
• Is it reasonable to expect someone to be able to learn the needed skills in the time available?
• Are we willing to accept lower productivity early on?
• Can we afford the cost of training?

Basically, it’s a triangulation of time, money, and people, Katzs says.

Year-Round Talent Management

Talent management is a year-round commitment, says Katz. The first step is to establish your foundation.

• What does the organization need people to do?
• What skills are required, now and in the future?

Then comes the structure or framework. That’s based on how the skills are used and where each job fits into the organization.

Next, do a gap analysis.

What skills are needed?
What skills do we already have?

Now you have the data required to develop:

• Your recruiting plan
• Your training and development plan

Giving Feedback

Managers hate giving feedback and doing performance appraisals, but it is essential for effective talent management, Katz says. Also:

• Feedback gets easier the more you do it.
• Feedback must be frequent; not just at the end of the year.
• Do the good people first.
• Be sure to concentrate on constructive feedback, not criticism.

Recognition

Recognition is an important element of motivation and engagement. It doesn’t have to be in the form of cash, says Katz.

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Katz’ Year-Round Management System

Katz’ table goes in order (need, skills, structure, etc.), he says, but you can start anywhere. The important thing is to start thinking in a year-round way.

Talent Management Is …

Katz reminds HR managers that talent management is:

• More than software
• Only as good as the people who use it.
• Not solely an HR responsibility.
• A collaboration between HR and management.
• Necessarily aligned with organizational goals.
• A responsibility that must be practiced year-round to be effective.

Talent management is “too important to be left to HR alone,” says Katz; however, HR can use talent management to its advantage.

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