Business By Hormozi #175: The Value of Hiring for Skill Deficiency

Introduction: A Story of Two Approaches to Hiring

Once upon a time, in a small, bustling city, two friends, Sam and Emma, had very different ideas about what makes a successful hire. Sam was the founder of a growing tech startup, and Emma, his best friend, was an experienced HR manager at a large corporate company. Both were trying to find the best talent for their organizations, but their methods were vastly different.

Sam's Approach: Hiring for Attitude

Sam firmly believed that hiring for attitude was the key to success. He thought that a positive attitude was essential because it could help a person overcome challenges and learn quickly on the job. He often said, "Attitude is a bucket of skills." Sam hired people who were eager, passionate, and willing to learn, hoping that their enthusiasm would help them adapt to the job requirements over time.

Emma's Approach: Hiring for Aptitude

Emma, on the other hand, had a different perspective. She valued aptitude above all else. "Aptitude is a bucket of skill," she explained. Emma believed that hiring someone with the right aptitude—someone who was already close to meeting the job requirements—was the best approach. She focused on hiring people who had the smallest skill deficiency between their current abilities and the role’s requirements. For Emma, the person with the smallest skill gap would require the least amount of training and be the fastest to contribute to the team.

The Turning Point: A Conversation About Hiring

One day, over coffee, Sam and Emma discussed their hiring philosophies. Sam was curious about Emma's method and asked her how it worked in practice.

Emma explained, "The person who has the smallest skill deficiency is the one who takes the fewest resources to train. You don't have to start from scratch with them—they're already close to where you need them to be."

Sam listened carefully and began to see the merit in Emma's approach. While he still valued attitude, he understood that someone with the right skills would get up to speed much faster.

The Lesson: Hiring for the Smallest Skill Deficiency

The moral of the story? When it comes to hiring, the key is not to focus solely on attitude or aptitude. Instead, it’s about hiring the person who has the smallest skill deficiency between their current abilities and what is required for the job. This strategy allows you to maximize training resources and sets both the individual and the company up for success faster.

Why Hiring for Skill Deficiency is Crucial

Emma’s approach helped Sam realize that finding candidates with the smallest skill gap would lead to better outcomes in the long run. By hiring someone who only needed minimal training, he could save valuable time and resources. It also meant that the employee could contribute to the team much sooner, benefiting the company immediately.

Conclusion: Maximizing Resources for Success

In the hiring world, focusing on skill deficiency is a smart way to ensure success. By choosing candidates with the smallest skill gap, companies can reduce the time and resources spent on training. This allows teams to operate more efficiently, with new hires becoming valuable contributors more quickly.