5 Hiring Mistakes that Kill Growth

Summary

• Hiring for experience is important, but it must not overshadow the need for a culture and values fit.
• It's critical to be involved in the hiring process, especially if you're the most potent source of the company's culture and values.
• Delegating hiring when your team is inexperienced can lead to a deterioration of the company's culture.
• Witnessing a rapid downfall in company culture reiterated the importance of making thoughtful hires who are in tune with the company's values.
• When scaling, it is tempting to delegate hiring, but ensure the delegation goes to someone who truly understands the company's core values.
• Before delegating hiring tasks, consider whether your team is ready to maintain the integrity of the hiring process.
• The halo effect can cloud judgment, causing you to overlook discrepancies between a candidate's resume prestige and their true fit within the company.
• Confirmation bias can lead to early decisions about a candidate that aren't necessarily fully informed.
• Culture fit is critical and should be considered above experience when hiring for a company.
• Hiring must evolve as the company grows, and what worked at one level may not work at a larger scale.
• Keep in mind biases such as expectation anchors, confirmation bias, halo effect, similarity bias, and affinity bias to avoid poor hiring decisions.
• Diversity in thinking is crucial for a high-functioning team, not just diversity of background.
• A certain level of discomfort in hiring might indicate that you're choosing someone who brings diversity in thought to the team.
• Trusting your gut might lead you to hire replicas of yourself; instead, analyze if discomfort is due to the candidate's unfamiliarity or intimidation, not their lack of fit.
• If your team is chaotic and not working together effectively, it could be an indication that your hiring process needs revision to overcome these biases.

Video

How To Take Action

I would suggest starting by focusing on the fit of the person with the company's culture and values. It's important to remember that while experience is significant, it should not eclipse compatibility with the company's mission and team. Here's what to do to ensure you're making hires that align with your company:

1. Be Involved in Hiring: If you shape the culture, stay involved in the hiring process to ensure new hires align with it. As the company grows, delegate carefully and only to those who truly grasp the core values.

2. Avoid Confirmation Bias: Don't make early decisions about a candidate. Keep an open mind throughout the whole interview. Ask questions and be curious instead of jumping to conclusions.

3. Check Expectation Anchors: Roles evolve as the company grows. Avoid looking for someone who is just like the previous person or like yourself; focus on the needs of the role now.

4. Look Past the Halo Effect: Don't get dazzled by a fancy resume or past company prestige. They must fit the culture and understand the mission above all.

5. Embrace Diversity of Thought: While similarity might feel comfortable, having a wide range of perspectives is crucial for success. Being a little uncomfortable with a hire may be a sign that they are bringing necessary diversity to your team.

6. Trust But Verify with Discomfort: If you feel uncomfortable, discern if it's because the candidate is unfamiliar or intimidating, not necessarily a bad fit—this is crucial for avoiding similarity and affinity biases.

For small adjustments, check that your current team aligns with these principles. If there's chaos and lack of harmony, it might be time to review your hiring process to correct these biases. Implementing this understanding in your next hires will help avoid repeating past mistakes and will set a stronger foundation for your team. Remember, hiring is not just about filling a role; it's about building a team that will grow with your company.

Quotes

"you have to change this into the kind of company that you would be excited to show up to every day"

– Leila Hormozi

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"if you have a shitty culture if things aren't going well if there's not a sense of accountability if you feel like people on your team are not the kind of people you want on your team it starts with the hiring process"

– Leila Hormozi

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"we often want to hire people with more experience but you can't let that overshadow like they have to be a culture fit they have to have the values they have to be on board with the mission otherwise none of that's going to work"

– Leila Hormozi

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"if you judge somebody you will never influence them and they certainly won't work well on your team"

– Leila Hormozi

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"if you bring someone on and you're hiring someone and you actually feel slightly uncomfortable not because they're bad for the role but because they're unfamiliar to you or maybe intimidating or maybe because you feel like you can't predict them that is a good thing"

– Leila Hormozi