Superstar Talent: Hire It or Build It?

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It’s easy to assume that bringing in outside “superstar” talent is a quick way to put your company on the fast track to success. Perhaps a salesperson comes to you with a proven track record and a lot of accounts. It’s logical to envision them making a big impact. But how often does that happen? 

Research suggests that hiring externally does not always lead to successful performance. External hires often experience a lengthy and expensive adjustment period. It can take as long as three years for them to match the performance of internally promoted employees, while they face a 61% greater likelihood of being let go and are 21% more likely to quit.1

There is also the financial impact of external hires to consider. Recruitment activities such as advertising job openings, conducting interviews, background checks and administrative tasks related to onboarding all contribute to direct costs. Training adds another layer of expense, including orientation and the time managers spend with new hires. Onboarding alone can represent a substantial hidden cost. On average, filling a position takes about 42 days and the typical cost per hire is estimated at $4,700.2

These findings are hardly new. A Harvard study conducted over 20 years ago revealed similar results, indicating that, ultimately, hiring outside superstars does not offer companies the most efficient or cost-effective way to drive stronger performance. While superstar performance is often thought of as being tied to an individual’s talent, the Harvard study found otherwise. Rather than an individual’s abilities, it was proposed that a combination of personal qualities and other factors specific to the employing company help to create a superstar.3 

According to the study, other factors that influence the creation of superstar employees include:3 

  • Access to company resources
  • Leadership and mentoring from supervisors and management
  • Internal peer networks in multiple disciplines and functions
  • Support, training and skills development

This longstanding Harvard study suggests companies should advance their own skilled employees as an alternative to recruiting externally.3 

Nurturing your own top talent 

Here are a few tips for growing your own workplace superstars: 

  • Start by hiring the right people – Hire for passion, alignment and growth potential. Seek candidates who share your enthusiasm for farmer success and have a desire to advance within the company. These individuals often exhibit higher engagement, resilience and long-term commitment.
  • Create an environment where people can become stars – Invest in development and career paths. Offering mentorship, training and growth maps – so employees can track their progress –significantly reduces exit risk, as engaged employees are 87%less likely to leave.2
  • Retain top talent as they grow – Time and money spent growing stars doesn’t pay off if they leave for another company. Public recognition of the star’s performance and contributions to the company can have a positive effect. Employees who feel consistently valued are 21% more productive and 31% less likely to leave.4

Hiring outside superstars can sometimes work out great, but it’s often an unreliable method. Developing your own people can help build confident, credible teams and can be more cost-effective in the long run, reducing recruitment expenses and turnover risks. It’s a smart investment, considering that the brightest performers are often the ones already growing inside your organization. 

 

1 Matthew Bidwell, PhD et al., “Onboarding Best Practices: Maximum Value from New Hires,” Wharton at Work, November 2025, https://executiveeducation.wharton.upenn.edu/thought-leadership/wharton-at-work/2025/11/onboarding-best-practices-for-maximum-value/. 

2 Devin Partida, “The Financial Impact of Retention: Quantifying the Full Value of Talent Stability,” Rehack Magazine, July 20, 2025, https://www.thehrdirector.com/features/turnover/financial-impact-retention-quantifying-full-value-talent-stability/. 

3 Boris Groysberg et al., “The Risky Business of Hiring Stars,” Harvard Business Review, May 2004. 

4 Wellable, “12 Best Practices for Employee Recognition Programs,” Wellable, Accessed January 5, 2026, https://www.wellable.co/blog/best-practices-for-employee-recognition-programs/#frequently-asked-questions.

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