Teaching2015-05-11·55 min

Eben Interviews Brad Smart Hiring

Eben Interviews Brad Smart Hiring

Eben Pagan interviews Brad Smart about hiring A-players and the costly impact of mishires on business growth. Smart reveals that the average mishire costs companies $1.5 million and wastes 150 hours annually, while explaining proven strategies for identifying and hiring top performers.

Brad Smart, Creator of top grading methodology, conducted research on 52 companies regarding mishire costs

Eben Interviews Brad Smart Hiring

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Key Moments

How to Conduct A-Player Interviews -- Brad Smart's proven methodology for identifying high performers through structured interviews

Hardest People Decisions Involve Early Team Members

The toughest people decisions entrepreneurs face involve those closest to them who helped start or build the company but now drag it down

35:32

Top Grade from the Top Down in Hiring

Top grade from the top down because C player managers will be threatened by A player employees, leading to high turnover and frustrated high performers

30:18

Why C Players Sabotage High Performers

C players are amazingly creative in undermining A players because high performers pose a threat by asking embarrassing questions in meetings and wanting to accomplish goals in half the time

29:35

A Players Commit Where C Players Hedge

A players give you confidence about weekend deadlines by committing to do whatever it takes, while C players say they'll 'try their best' leaving you worried

34:24

Cost of a Mishire 150 Hours and 1.5M

The average mishire wastes 150 hours annually and costs companies $1.5 million according to research from 52 companies with $100,000 average salaries

36:43

Relevant Clips26

  • How-To

    How to Conduct A-Player Interviews -- Brad Smart's proven methodology for identifying high performers through structured interviews

  • Teaching30:47

    Evaluate Key Team Members Twice a Year for Company Fit

    Evaluate key team members honestly a couple times per year to determine if the company is outgrowing them, and narrow responsibilities so they can become A players again or help them transition out

  • Teaching35:03

    Choosing vs Discovering Your Niche: A Critical Distinction

    Companies that top grade and replace C players with A players become more successful, people have more fun, and everyone works fewer hours because they're not compensating for weak performers

  • Teaching29:35

    Why C Players Sabotage High Performers

    C players are amazingly creative in undermining A players because high performers pose a threat by asking embarrassing questions in meetings and wanting to accomplish goals in half the time

  • Teaching27:28

    Chronological Interview Technique for Spotting A-Players

    Team up with another A-player in your company to conduct chronological interviews asking specific questions about past successes and future plans to identify high performers

  • Teaching

    A Players Seek Challenge While C Players Avoid It

    A players naturally gravitate toward other A players and challenging situations, while C players avoid discomfort and prefer hanging out with other low performers

  • Teaching34:24

    A Players Commit Where C Players Hedge

    A players give you confidence about weekend deadlines by committing to do whatever it takes, while C players say they'll 'try their best' leaving you worried

  • Teaching30:18

    Top Grade from the Top Down in Hiring

    Top grade from the top down because C player managers will be threatened by A player employees, leading to high turnover and frustrated high performers

  • Teaching36:43

    Cost of a Mishire 150 Hours and 1.5M

    The average mishire wastes 150 hours annually and costs companies $1.5 million according to research from 52 companies with $100,000 average salaries

  • Teaching35:32

    Hardest People Decisions Involve Early Team Members

    The toughest people decisions entrepreneurs face involve those closest to them who helped start or build the company but now drag it down

  • Teaching36:43

    Sales Rep Mishires Cost Six Times Base Salary

    Sales rep mishires cost an average of $583,000 or about 6 times base salary according to surveys of sales managers

  • Answer28:02

    A Players vs C Players Behavioral Differences

    A players hang out with other A players, take responsibility, and seek challenging situations. C players avoid discomfort, prefer other C players, and actively undermine high performers because they feel threatened by their strategic thinking and ambitious goals.

Show 14 more
  • Answer30:50

    When to Narrow or Remove Team Member Responsibilities

    Evaluate key team members honestly a couple times per year to determine if the company is outgrowing them. If someone can't function at a high performer level, narrow their responsibilities so they can succeed or help them transition out.

  • Answer27:28

    Chronological Interview Questions Paired with A Player

    Team up with another A player and conduct chronological interviews asking specific questions about past successes and future plans. Ask for specifics around achievements and use the patterns you discover to assess relevant competencies.

  • Answer30:18

    C Player Managers Drive Out A Player Talent

    C player managers will be threatened by A player employees, leading to high turnover and frustrated high performers. You must have A players in management positions first, then they'll naturally hire other A players below them.

  • Answer36:43

    True Cost of a Bad Sales Hire

    According to Brad Smart's research, the average mishire costs $1.5 million (15 times base salary) for positions with $100,000 average salaries, and wastes 150 hours annually in management time.

  • Quotable28:38

    A Players Challenge Themselves C Players Avoid Discomfort

    A players hang out with A players, and C players hang out with C players. A players take responsibility, like to be around people that challenge them, like to be around challenging situations. C players like to avoid anything that's going to make them uncomfortable or challenge them in any way.

  • Quotable29:51

    C Players Exclude A Players From Their Circle

    The C players not only like to hang out with C players go out and have a beer after work They don like those A players around They a pain in the neck

  • Quotable33:16

    Weak Hires Give You Gray Hair and Cost a Fortune

    if you start putting pencil to paper on the costs, the financial costs and the times of having weak people reporting to you, it gives you gray hair.

  • Quotable33:31

    High Performers Make Teams More Fun and Productive

    Whereas if you have a team of high performers, you're going to have a lot more fun because you can be a lot more productive.

  • Quotable30:31

    Topgrade from the Top Down — First Principle

    the first principle of top grading, you know, Evan, is top grade from the top down.

  • Question28:45

    Three Modalities Reach 80 Percent Comprehension

    What is the difference between A players and C players?

  • Question

    Team Evaluation Frequency and Cadence

    How often should you evaluate your team members?

  • Question30:03

    Identifying A Players During the Interview Process

    How do you identify A players in interviews?

  • Question32:00

    Cost of a Bad Hire

    How much does a bad hire cost a company?

  • Question30:29

    Why Hire from the Top Down

    Why should you hire from the top down?

Entities Touched

Canonical Teachings

The toughest people decisions entrepreneurs face involve those closest to them who helped start or build the company but now drag it downTop grade from the top down because C player managers will be threatened by A player employees, leading to high turnover and frustrated high performersC players are amazingly creative in undermining A players because high performers pose a threat by asking embarrassing questions in meetings and wanting to accomplish goals in half the timeA players give you confidence about weekend deadlines by committing to do whatever it takes, while C players say they'll 'try their best' leaving you worriedThe average mishire wastes 150 hours annually and costs companies $1.5 million according to research from 52 companies with $100,000 average salariesCompanies that top grade and replace C players with A players become more successful, people have more fun, and everyone works fewer hours because they're not compensating for weak performersA players naturally gravitate toward other A players and challenging situations, while C players avoid discomfort and prefer hanging out with other low performersSales rep mishires cost an average of $583,000 or about 6 times base salary according to surveys of sales managersEvaluate key team members honestly a couple times per year to determine if the company is outgrowing them, and narrow responsibilities so they can become A players again or help them transition outTeam up with another A-player in your company to conduct chronological interviews asking specific questions about past successes and future plans to identify high performers

Brad Smart, Creator of top grading methodology, conducted research on 52 companies regarding mishire costs

The Hidden Cost of Bad Hires

Brad Smart reveals the shocking financial impact of mishires through extensive research. His study of 52 companies shows the average bad hire costs $1.5 million and wastes 150 hours annually. These aren't just numbers - they represent real productivity losses that compound over time.

A Players vs C Players: Fundamental Differences

Smart explains why A players and C players naturally segregate and conflict with each other. High performers seek challenge and accountability, while low performers actively undermine A players who threaten them with strategic thinking and ambitious goals. This dynamic creates organizational toxicity that must be addressed from the top down.

The Top Grading Interview Method

Smart's proven approach involves two A players conducting chronological interviews that reveal patterns of competency. By asking specific questions about past achievements and future plans, this method provides confidence in identifying high performers before they're hired.

Building A-Player Teams from the Top Down

The fundamental principle of top grading requires starting with leadership positions and cascading down. C player managers will sabotage A player employees, creating turnover and frustration. Smart emphasizes the importance of regular team evaluations and making tough decisions about team members who no longer fit growing companies.

Procedural frameworks taught here

Counterpoint 2

Claim:You can train and develop any employee to become a high performer with enough time and effort

Reframe: A players and C players have fundamentally different approaches to work and challenges - A players seek out difficulty and accountability while C players avoid discomfort and undermine high performers

Claim:Bad hires are just a minor setback that you can work around or improve with coaching

Reframe: The average mishire costs $1.5 million and wastes 150 hours annually, making hiring decisions among the most financially critical choices entrepreneurs make

Topics

Business Frameworks

top gradingchronological interview

Common Mistakes

hiring C playerstolerating C playershiring from bottom upkeeping people in wrong rolesbad hireskeeping founders too longbad sales hires