What is a unique competitive advantage to your organization? The answer is people – and more specifically, your employees. They contribute to your business progression with skills, experience, and talents crucial for achieving your goals. Yet, you may wonder whether you should focus your growth strategy on developing employees or hiring new talent. Of course, there’s no correct or incorrect answer, but analyzing the pros and cons of each will help you better decide how to expand your team.
Hiring is when you select and ultimately hire someone to fill a role, typically entering into some type of contract. On the other hand, talent development is methodically investing in the growth of your current employees, giving them the skills to progress in the company.
When determining what talent acquisition and development combination works for your company, you’ll need to weigh the pros and cons.
Talent Development: Weighing the Pros and Cons
Employee development is a strategic tool for forward movement, productivity, and retention. Also, there are many benefits to investing in your current team.
Pros of Developing Employees
Developing talent helps you:
- Save time and money
- Smoothly transition people into different roles or promotions
- Establish loyalty
- Encourage long-term skill growth
- Cultivate a strong work culture
- Decrease employee turnover
- Allow for flexibility of your team (E.g., performing various functions across different departments)
- Support succession planning
Yet, there are several drawbacks to consider when investing in your team.
Cons of Developing Employees
Team investment may result in:
- A lack of new and different perspectives
- Less training and growth opportunities
- Stressed employees feeling pressured to take on a specific role
Hiring New Employees: Weighing the Pros and Cons
Another way to expand your team is to hire new employees. And just as with developing employees, there are several benefits and disadvantages to contemplate.
Pros of Hiring New Talent
Hiring new employees:
- Generates fresh opportunities for diverse talent
- Pushes your training team outside of their comfort zone
- Helps meet human resources goals and policies
- Balances work culture
Yet, there are some drawbacks to hiring new talent.
The Cons of Hiring New Talent
A few disadvantages to bringing in employees include:
- Overlooking opportunities to promote within
- Investing significant time and money to find, hire, and integrate new members
- Increased complexities
- Limiting roles
- Time-consuming and costly processes
To grow your business, you’ll need to find a balance between hiring and developing employees. You might consider hiring if you need fresh perspectives and diverse thought processes. However, growing your current team might be a better option if you want to cultivate a strong work culture with loyalty. At Belfield Management, we can help you create a recruitment and development strategy that will help you move forward for the long haul. Our team has over 170 years of cumulative experience, along with over 7,500 business stories. We stand behind our pledge to support you and your organization for long-term success. For more information on how we can help your business, click here!