Want to build or buy human capital?

Vantage point: Insights from cutting-edge research

Recruit on campus or hire from competitors? In other words, build human capital or buy it? According to Professor Amit Chauradia, an expert in the strategy area at the Indian School of Business, most companies choose from the two options when it comes to hiring employees. While both building and buying strategies can generate value (over different time frames), it is more crucial to understand “how” building versus buying generates greater economic and financial benefits for the firm.

Chauradia’s research highlights four classic human resource problems that companies must effectively address to increase their returns from the HR strategy. First, firms