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From The Carrot Revolution, Chester Elton's Blog

Three Qualities of a Good Hire: Advice from Warren Buffet

January 26, 2010

In looking for people to hire, you should look for three qualities: integrity, intelligence, and energy.  And if they don’t have the first, the other two will kill you.—Warren Buffet

When one of the most brilliant managers and investors of all time speaks, we should listen. Aren’t was always on the lookout for great talent? I know there are times, in interviews, when I’ve been swept away by a candidate’s background, the last project they worked on and sometimes even their family reputation. Mr. Buffet reminds us that we can never forget, first and foremost, we have to have integrity in all our business dealings. He is right. Without it, nothing else matters.

If you have been a manager for any length of time, you’ve probably hired someone with qualities that impressed you enough to seal the deal. It happened to me. I found a man who had great smarts. He was known for his intellect, his high IQ and his connections within the organization. He seemed to have great energy. He was two and oh for what Warren Buffet cited as required in a good hire. It seemed to be a good fit on paper, so we gave it a shot.

What I failed to determine was that he lacked, at his core, consistent and reliable integrity. It became apparent there were trust issues and it was very difficult to move forward on any project for fear that it could be undermined throughout the organization by our own teammate. When there is a lack of integrity, lack of trust follows and nothing will stop your team dead in its tracks faster than lack of TRUST.

The next mistake I made was trying to “work it out”. I tried to negotiate with him and the team, to come to an accommodation and I wasted a lot of time and effort in trying to make it work. It was a HUGE waste of time.

So here is the tip of the day: When you find a person on your team that lacks integrity and you’ve lost trust, remove them as fast as you can! It is the ONLY solution. Trust can be rebuilt but it takes time; in most cases, too much time. The best solution is to cut your losses and move on. I am not implying to be callus and cruel. Be thoughtful and make sure you have all the details. But when you come to the conclusion that your new hire cannot be trusted, move as quickly as HR will let you and make the change. You will be amazed at how fast the team will respond in a positive way and how your esprit de corps will improve.

Mr. Buffet was right: there are three qualities to look for in a hire but without integrity, the other two don’t matter. Trust me!