Building a great team isn't choosing between loyalty and competence; it's creating an environment where both thrive, argues LINUS OKORIE
Every CEO, at some point, faces a hiring decision that tests their core beliefs: Should you prioritize loyalty or competence when building your team? The stakes are high; when you hire the wrong person, your company could suffer inefficiency, stagnation, or even reputational damage.
A fiercely loyal employee might stick with you through thick and thin, but what if they lack the skills to move the business forward? On the flip side, a highly competent hire could drive outstanding results, but what happens if they leave at the first sign of a better opportunity?
There's no one-size-fits-all answer. The best choice depends on factors like your business model, industry demands, and leadership philosophy. But if you get this balance wrong, you risk building either a slow-moving, overly comfortable team or a high-performing yet unstable workforce.
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Consider two CEOs with contrasting hiring philosophies:
The CEO of Company A values loyalty above all else. Their company has employees who have been around for years, creating a tight-knit culture. But innovation is sluggish, and the business struggles to attract high-level talent. When new challenges arise, the team lacks the expertise to navigate them.
On the other hand, the CEO of Company B prioritizes competence. They recruit only top-tier talent, creating a fast-paced, results-driven organization. However, turnover is high--employees view the company as a stepping stone rather than a long-term home. Projects get abandoned mid-way as key team members leave for better opportunities. Both leaders have built companies that are imbalanced. One risk becoming obsolete, while the other suffers from instability. So, how do you find the middle ground?
The smartest leaders don't see this as a binary choice. They recognize that the right mix of loyalty and competence varies depending on multiple factors. Let's explore how to make hiring decisions that align with business goals while creating a sustainable, high-performing workforce.
One, How Top Executives Approach the Loyalty vs. Competence Debate
Experienced business leaders view hiring as a long-term investment, not just a short-term fix. They ask these important questions: What does the company need at this stage of growth? Will this hire complement or disrupt our culture? How do we retain top performers while fostering loyalty?
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Jeff Bezos, for example, built Amazon on a culture of high performance, famously emphasizing competence over loyalty. His philosophy? "Good intentions don't work; mechanisms do." Amazon's high standards attract top talent, but employees know that results drive their longevity. On the other hand, Warren Buffett has built Berkshire Hathaway with long-term, trusted relationships. His approach to hiring senior leaders is rooted in loyalty, betting on individuals who share his values and are committed to the company's future. Both strategies work--but in different contexts.
