USF Study: Firms Choose Build Or Buy for Talent

Stable, well-resourced firms tend to grow talent internally, while firms facing volatile workloads are more likely to hire from the outside.

Published on Feb. 6, 2026

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A new study from the University of South Florida found that firms with more resources and available senior staff tend to "build" talent by training and mentoring junior employees, while firms facing sudden or unpredictable workloads are more likely to "buy" talent by hiring experienced workers from outside to meet immediate needs.

Why it matters

The study provides practical insights for human resources leaders, emphasizing that talent strategy should align with both long-term goals and immediate operational pressures. It highlights how a firm's decision to build or buy talent directly shapes its future competitiveness.

The details

The study, co-authored by Amit Chauradia of the USF Muma College of Business, explored when firms choose to develop talent internally versus hiring experienced employees from external labor markets. Using data from 174 large U.S. law firms over an eight-year period, the researchers found that firms with more money and available senior staff tend to train and mentor junior employees, while firms facing sudden or unpredictable workloads are more likely to hire experienced workers from outside.

  • The study was newly published in February 2026.

The players

Amit Chauradia

An assistant professor of instruction in the School of Management at the University of South Florida's Muma College of Business and a co-author of the study.

University of South Florida

The institution where the study was conducted.

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What they’re saying

“This research challenges the idea that talent strategy is purely a matter of culture or preference. Instead, it shows that the decision to build or buy is shaped by the firm's internal capacity and the volatility of the environment.”

— Amit Chauradia, Assistant Professor of Instruction, USF Muma College of Business (Mirage News)

“For executives and HR leaders, this study highlights that talent decisions are strategic levers, not simple administrative choices. A firm's decision to build or buy talent directly shapes its future competitiveness.”

— Amit Chauradia, Assistant Professor of Instruction, USF Muma College of Business (Mirage News)

What’s next

The study's insights provide practical implications for human resources leaders, emphasizing that talent strategy should align with both long-term goals and immediate operational pressures.

The takeaway

This study underscores the strategic importance of talent decisions for firms, showing that the choice to build or buy talent is shaped by a company's internal resources and the volatility of its business environment. It highlights how getting this decision right can directly impact a firm's long-term competitiveness.