Capital allocation isn't just about multi-million dollar acquisitions. Hiring a single employee is also a major investment; a $100k salary represents a discounted million-dollar commitment over time. Applying the same rigor to hiring decisions as you would to CapEx ensures you're investing your human capital wisely.

Instead of demanding immediate portfolio construction, Capital Group gives new investment analysts a three-to-six-month non-producing onboarding period. This time is dedicated to deep industry research and internal knowledge absorption, fostering a long-term, thoughtful approach from day one.

Chaddha's process prioritizes deep relationship-building over transactional speed. He requires at least 10 hours of interaction, including dinners, to gauge a founder's character, respect, and long-term partnership potential, filtering out those just seeking quick money.

Instead of an extremely difficult hiring process, Netflix casts a wide net and uses the first year to assess fit, resulting in a high (~20%) attrition rate. The company is transparent about this, offering the chance to work on hard problems with great people in exchange for less job security.

To maintain an exceptionally high talent bar while scaling, Coinbase's top two executives personally review a detailed packet for every prospective employee. They retain the right to veto any hire, demonstrating an extreme commitment to talent quality over speed.

Duolingo lives by the mantra, "it's better to have a hole than an a-hole." The company spent 1.5 years searching for a CFO and rejected a candidate who was perfect on paper after discovering he was rude to a driver and a junior employee. This demonstrates a deep, costly commitment to protecting company culture.

For roles where skills are difficult to assess in standard interviews, Clay implements a 2-3 week paid "work trial." This allows the company to evaluate a candidate's actual performance and fit on real tasks before extending a full-time offer, de-risking the hiring process for complex positions.

Instead of a traditional interview, Parker Conrad sends candidates his investor materials beforehand. The first meeting is dedicated to their questions. He finds that the quality, depth, and skepticism of their questions is the best predictor of success, as it simulates the actual working relationship.

Your hiring process is the first expression of your company culture. Implement a rigorous, multi-step screening process (e.g., video submissions, group interviews) to test for coachability and work ethic. This not only filters candidates but also sets a high-performance frame from day one.