Hire or Develop? (Day 578)

I was listening to Jim Collins' BE 2.0, and one of the topics is choosing between developing a person internally or hiring external people to fill the role. Jim Collins is famous for stating that the most important thing for any company is getting the right people on board.

What happens when a company realizes that there are roles that need to be filled? Should the company hire externally or develop from internal talents?

It's about 50-50, according to Collins' research. And the result is similar to either choice. I have a more concrete view from my personal experiences when dealing with this dilemma.

First of all, growing team members internally adds loyalty and motivation. It attracts talent, too, knowing that the company offers growth opportunities and encourages that. According to Collins, hire great people, even before knowing the exact business model or strategy. If we have enough talent in-house, we should always consider developing internally.

But if there aren't enough talents in the company or are already working on important roles, hiring externally becomes the only option.

Interestingly, I think even when we decide to grow internally, we should continue to hire. If we find a great candidate with expertise in what the company needs, they can join and work with the internal candidate. Having persons with the right experience will shorten the learning curve and make things happen fast.

Keep in mind that hiring could be unpredictable, especially when pressed with time. It is hard to find the right candidate that fits the culture with the right skills and incentives aligned, let alone finding one within a timeframe.

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