Why hunt for a unicorn when you can build one?

Picture this: a company under pressure to boost productivity, streamline costs, and get results—fast. The CEO turns to HR and says, “We need better people. Hire top talent, and let’s trim the dead weight.”

Sounds logical. But what if this approach is deeply flawed?

The Talent Trap: Why “Just Hire Better People” Doesn’t Work

Many companies see talent strategy as a game of swaps—replace lower performers with high achievers, and voilà! Instant success. It’s an appealing idea, backed by the famous Pareto Principle: 20% of employees drive 80% of the results. Some companies have even adopted policies of systematically cutting the bottom-performing percentage of their workforce, betting that constant churn will lead to stronger overall performance.

But there’s a catch.

Recruiting real top talent is more complex than it looks. The hiring process is full of biases (overconfidence often gets mistaken for competence). True high performers aren’t always available, and even if they are, they don’t guarantee success in a new environment. Plus, constantly swapping people out creates a culture of fear, not excellence.

So, if “buying” talent isn’t a magic fix, should companies double down on developing their current workforce instead?

Develop or Replace? The Two Roads to Success

Let’s break it down:

?? The “Develop” Approach – prioritizes internal development, recognizing that few employees start as high performers. Companies committed to upskilling, coaching, and creating a learning culture can gradually shift the entire workforce’s performance curve.

?? The “Replace” Approach - focuses on bringing in external high performers and replacing lower-performing employees. It’s the corporate version of a talent trade-up. The logic? A superstar hire will instantly elevate the team.

Which one is better? That depends on the company’s goals, but the best organizations know that a balanced approach is key.

Why Smart Companies Invest in Both Hiring and Development

?? Hiring Alone Won’t Save You – The most successful teams aren’t built by endlessly cycling through new talent. They are cultivated, trained, and supported. If every company could “hire better people,” then every football team would buy the next Messi. Spoiler: It doesn’t work like that.

?? Retention Matters More Than You Think – Constant turnover disrupts culture, morale, and institutional knowledge. High performers don’t just look at salary—they want growth, purpose, and stability. If they see a company treating employees as disposable, guess what? They’ll keep their LinkedIn profiles updated.

?? The Future of Work Favors Adaptability – AI and automation are quickly reshaping jobs. Today’s top skills might be obsolete in five years. Companies that only rely on hiring the “best” talent without investing in upskilling will find themselves playing catch-up.

So, What’s the Best Strategy?

?? Hire wisely, but don’t expect miracles. Recruitment should be about finding potential, not just chasing flashy résumés.

?? Develop your people. Invest in leadership training, mentorship, and internal mobility. Employees who feel they’re growing stay—and perform better.

?? Think long-term. A learning organization wins in the long run. Whether through reskilling programs or AI-driven learning platforms, companies prioritising talent development will outpace those relying only on external hiring.

Final Thought: Stop Looking for Unicorns—Build Them Instead

The truth is, there’s no perfect formula. But you might be missing the point if you’re constantly searching for “better people” instead of building a better company.

?? What do you think? Is your company more focused on hiring or development? Drop your thoughts in the comments!