The 3 C's of Hiring: Character, Competence, and Commitment

The Power of Effective Hiring

Hiring the right people can be a game-changer for your business. It has the potential to triple your revenue and double your profits. As someone who has built and sold three businesses by the age of 28, leading to a $100 million net worth, I've learned the hard way how crucial it is to have the right team in place.

In this article, we'll explore my three-part hiring framework that has been instrumental in building successful businesses. This framework aims to help you avoid the painful experience of having to fire people or constantly replace team members - a situation no business owner wants to face.

The Three C's of Hiring

The framework consists of three essential components: Character, Competence, and Commitment. Let's dive deep into each of these pillars and understand how they contribute to building a strong, effective team.

1. Character: The Foundation of Your Team

Character is the cornerstone of any great hire. It encompasses the mental and moral qualities of a person and how well they align with your business values.

The Importance of Shared Values

Having team members who share your company's values is crucial. You might find someone with great character, but if their values don't align with your business, they might not be the right fit. The goal is to find individuals whose personal values resonate with your company culture.

Behaviors as a Proxy for Values

One common mistake in hiring is taking people's words at face value. While candidates might claim to align with your values during an interview, their behaviors are the true indicators of their values. As the saying goes, actions speak louder than words.

The Danger of Prioritizing Skills Over Character

It's tempting to hire someone based solely on their impressive skills or experience, even if there are red flags regarding their character. However, this can lead to significant problems down the line. Skills can be taught, but character is much harder to change.

Operationalizing Your Values

To effectively assess character during the hiring process:

1. Clearly define your company values
2. Develop interview questions that reveal behaviors aligned with these values
3. Look for evidence of these behaviors in candidates' past experiences

Example Questions to Assess Character

Here are some questions you can ask to gauge a candidate's character:

• "Can you tell me about a time you achieved a really challenging goal?"
• "What is your career goal?"
• "Tell me about your proudest moment in your career."
• "When's a time you were honest, even though it hurt someone's feelings, because it aligned with your integrity?"

These questions help you understand a candidate's intrinsic motivation, competitive spirit, and alignment with your company values.

Attracting High-Character Individuals

Remember, to attract people with great character, you must exemplify even better character yourself. High-quality candidates are looking for more than just a paycheck - they want purpose, growth, and opportunity. If you claim certain values, you must live up to them every day to attract and retain top talent.

2. Competence: Beyond Experience

The second pillar of effective hiring is competence. This refers to the baseline skills needed to successfully execute the role. It's important to note that competence is not synonymous with experience.

Skills vs. Experience

Many hiring managers make the mistake of focusing too heavily on a candidate's past experience rather than their actual skills. While experience can be a proxy for skills, it's not a guarantee. Someone might have years of experience in a similar role but lack the specific skills you need for your position.

Transferable Skills

Be open to candidates from different industries who may have transferable skills. For example, people from the hospitality industry often make excellent customer service representatives, executive assistants, or operations managers due to the diverse skill set they've developed.

The Danger of Being Impressed by Resumes

Don't be swayed by impressive resumes from big-name companies. Always dig deeper to understand what skills the candidate actually possesses and how they've applied them in their previous roles.

Competency Testing

To ensure candidates have the necessary skills:

1. Identify the top 5 core responsibilities of the role
2. Develop tests or scenarios to evaluate each of these key areas
3. Use situational referencing to verify past experiences

Example Competency Assessment Methods

• For a customer support role, role-play an interaction with an angry customer
• For a development role, give a coding challenge or problem-solving exercise
• For a marketing role, ask for a sample campaign strategy

Red Flags in Competency Assessment

Be wary of candidates who:

• Lack specific details when describing past experiences
• Take a long time to answer direct questions about their skills or experiences
• Cannot provide concrete examples of how they've applied their skills in previous roles

3. Commitment: Turning Potential into Results

The final piece of the hiring puzzle is commitment. Even the most skilled and character-aligned candidate won't be successful if they're not fully committed to the role and your company.

Defining Commitment

Commitment in a professional context means being dedicated to the job and willing to restrict other freedoms to excel in this one area. It's about giving discretionary effort and prioritizing the role over other potential opportunities.

Assessing Commitment Levels

Different roles may require different levels of commitment. For leadership positions, you might need someone fully committed to the job without side projects. For other roles, you might be more flexible.

Consider:

• The phase of life the candidate is in
• Their willingness to make sacrifices for the role
• Their long-term career goals and how they align with the position

The Importance of Matching Commitment Levels

Ensure that the level of commitment you're asking for matches what the candidate can realistically provide. Someone who has previously worked long hours might be looking for a different work-life balance now. Be clear about your expectations and make sure they align with the candidate's goals.

Signs of True Commitment

Look for candidates who:

• Are willing to invest in the company (e.g., through stock options)
• Have a track record of long-term employment in previous roles
• Can articulate how this role fits into their long-term career plans
• Are willing to give up other opportunities to focus on this role

Avoiding Commitment Mismatches

Be cautious of candidates who:

• Have multiple side projects or businesses they're not willing to give up
• Seem more excited about the idea of the job than the actual work involved
• Can't provide clear examples of how they've demonstrated commitment in past roles

Implementing the Three C's in Your Hiring Process

Now that we've explored each component of the framework, let's look at how to implement it in your hiring process.

1. Revamp Your Job Descriptions

• Clearly articulate your company values
• Outline the specific skills required for the role
• Be transparent about the level of commitment expected

2. Restructure Your Interview Process

• Include questions that assess character and alignment with company values
• Incorporate competency tests or role-playing scenarios
• Discuss commitment expectations openly and honestly

3. Involve Multiple Team Members

• Have candidates interact with various team members to assess cultural fit
• Use panel interviews to get diverse perspectives on a candidate's character and competence

4. Implement a Probation Period

• Use a probationary period to assess how well the candidate embodies the three C's in practice
• Provide regular feedback during this period
• Be prepared to make tough decisions if the fit isn't right

5. Continuous Assessment

• Regularly evaluate your team members based on the three C's
• Provide opportunities for growth and development in all three areas
• Use the framework in performance reviews and career development discussions

Common Pitfalls to Avoid

When implementing this hiring framework, be aware of these potential pitfalls:

1. Overemphasizing one 'C' at the expense of the others
2. Rushing the hiring process due to urgent needs
3. Failing to clearly communicate your expectations regarding character, competence, and commitment
4. Not providing ongoing support and development opportunities for your team
5. Ignoring red flags because a candidate is strong in one or two areas

The Long-Term Benefits of the Three C's Framework

Consistently applying this framework in your hiring process can lead to numerous benefits:

1. Reduced turnover rates
2. Improved team morale and cohesion
3. Increased productivity and efficiency
4. Better alignment between individual and company goals
5. Stronger company culture
6. Improved customer satisfaction due to a more competent and committed team
7. Reduced costs associated with hiring and training
8. Increased innovation and problem-solving capabilities
9. Better leadership pipeline for future growth
10. Overall improved business performance and profitability

Adapting the Framework for Different Company Sizes and Industries

While the Three C's framework is universally applicable, you may need to adapt it based on your company's size and industry:

Small Startups

• Focus on finding multi-skilled individuals who can wear many hats
• Emphasize cultural fit and alignment with the company's mission
• Look for candidates who are comfortable with ambiguity and rapid change

Mid-sized Companies

• Balance the need for specialists with the ability to collaborate across departments
• Implement more structured hiring processes while maintaining flexibility
• Focus on building a strong company culture as you grow

Large Corporations

• Develop comprehensive assessment tools for each of the Three C's
• Implement rigorous training programs to maintain consistency across departments
• Focus on how new hires can contribute to and enhance the existing company culture

Industry-Specific Considerations

• Tech Industry: Emphasize continuous learning and adaptability in the competence assessment
• Creative Industries: Look for evidence of innovation and original thinking in past work
• Financial Services: Pay extra attention to character assessment, particularly regarding integrity and ethical behavior
• Healthcare: Prioritize empathy and communication skills as part of the character assessment

Measuring the Success of Your Hiring Framework

To ensure your implementation of the Three C's framework is effective, consider tracking these metrics:

1. Employee retention rates
2. Time-to-productivity for new hires
3. Team performance indicators
4. Employee satisfaction scores
5. Customer satisfaction ratings
6. Internal promotion rates
7. Diversity and inclusion metrics
8. Revenue per employee
9. Cost per hire
10. Employer brand strength (e.g., Glassdoor ratings)

Conclusion

Implementing the Three C's of Hiring - Character, Competence, and Commitment - can transform your hiring process and, by extension, your entire business. By focusing on these key areas, you'll build a team that not only has the skills to excel but also aligns with your company's values and is dedicated to your shared success.

Remember, hiring is not just about filling a position; it's about building the foundation for your company's future. Take the time to get it right, and you'll reap the rewards of a high-performing, cohesive team that can drive your business to new heights.

Invest in your hiring process, and watch as it becomes the catalyst for tripling your revenue and doubling your profits. The right team, aligned with your vision and equipped with the necessary skills, is the most powerful asset your business can have.

Article created from: https://www.youtube.com/watch?v=e10uOKjXjoc