Dan Martell - How to Hire the Right Employees

00:00:00.080 let them make mistakes learn from those mistakes be a coach be a leader you're not helping yourself

00:00:07.280 or them you don't do that

00:00:22.160 hey there dan martell here serial entrepreneur investor and creator of sas academy in this

00:00:26.240 episode i'm going to share with you a framework for how to think about who to hire next in your

00:00:31.520 business it's what i use to make all of my hires it's how i teach my clients to make their decisions

00:00:37.440 it's based on a methodology called the next hire focuser and it's going to allow you to not feel

00:00:43.520 like man if i hire this next person it's going to cause a bunch of work or what if they don't work

00:00:48.080 out or what how is this going to help my business these questions and strategy i've never shared

00:00:54.560 before and I want to give them to you because it's part of my new book buy back your time

00:00:58.820 get unstuck reclaim your freedom and build your empire because I believe that most entrepreneurs

00:01:05.720 should not hire to add capacity to their business they should hire to buy back time out of their

00:01:11.680 calendar so using that as a first principle approach to scaling companies so that you make

00:01:17.500 more money and you have more awesome activities to work on throughout your day that light you up

00:01:23.240 These are the lessons.

00:01:25.180 Oftentimes I work with entrepreneurs

00:01:28.500 that have the financial resources to hire,

00:01:31.740 but the more they hire, they hit these ceilings, okay?

00:01:34.640 Usually it's about a million and a half in revenue,

00:01:37.100 12 employees, where they wake up,

00:01:39.800 and maybe you can resonate with this,

00:01:41.880 they wake up and they spend their whole day

00:01:44.240 keeping everybody else busy, on track,

00:01:46.560 focused on the right thing,

00:01:47.940 and they had a to-do list that they started with

00:01:49.880 that doesn't get done, and at the end of the day,

00:01:52.000 they spend most of their nights trying to get caught up,

00:01:54.720 process their inbox,

00:01:56.040 and get some few projects moving forward.

00:01:58.360 That is not the way we wanna work,

00:02:00.280 because if you do that,

00:02:01.480 you're gonna hit this growth ceiling

00:02:03.660 where you're just gonna feel this pain

00:02:05.480 every time you get there,

00:02:07.000 and you're gonna wanna reduce the complexity,

00:02:08.920 reduce the amount of people reporting to you,

00:02:11.120 because it just feels painful.

00:02:12.700 So what I wanna share with you is this methodology,

00:02:15.040 and there's three strategies that you need to understand.

00:02:19.860 I've broken them down into these three components

00:02:22.500 for you to understand.

00:02:23.860 Let's get into it.

00:02:24.900 Number one is the four questions, okay?

00:02:27.920 So this is the questions I ask my clients,

00:02:30.240 I ask myself to identify places

00:02:33.540 where I might wanna hire somebody

00:02:35.780 to buy back some of my time.

00:02:37.640 The first one is where are some low value time suckers, okay? 0.88

00:02:42.640 So low value time suckers is like things that suck my time

00:02:47.600 that I could pay somebody very little amount of money to do.

00:02:51.220 Okay, so I want you to look at your calendar,

00:02:53.360 audit your time and make a list of low value time suckers.

00:02:57.400 The next question that I ask people is,

00:03:01.240 you know, where's the bottlenecks?

00:03:02.660 If you tripled your business next month,

00:03:05.460 what parts of the business would break?

00:03:08.020 Okay, because I want you to be able to grow

00:03:10.540 without feeling pain and no entrepreneur will grow into pain.

00:03:14.360 If there's a wall and it says pain,

00:03:16.580 You will not drive into it head first.

00:03:18.560 You will put the brakes on,

00:03:19.760 you will drive with the hand brakes on,

00:03:20.960 you'll slow that impact.

00:03:23.040 And I want you to first say, where's the bottlenecks?

00:03:25.340 If I grew, how do I solve those today

00:03:28.540 so that I don't pull back, right?

00:03:31.260 Number three is the curse of the gifted, okay?

00:03:34.480 What I've discovered a long time ago

00:03:36.160 is your number one strength as a CEO

00:03:39.180 becomes your Achilles heel to scaling.

00:03:41.220 Why?

00:03:42.200 Because it's the thing

00:03:43.440 that you're gonna be most critical of, okay?

00:03:45.860 you're gonna like, if you hire somebody,

00:03:46.940 you're gonna be super critical of them.

00:03:48.540 And two, it's gonna be the last thing

00:03:49.800 you're gonna wanna give somebody else to do.

00:03:51.920 So think about this.

00:03:52.820 I do not enjoy finances.

00:03:54.660 I'm not gifted at it.

00:03:56.000 I don't care.

00:03:56.840 It was the first thing I gave somebody else to do.

00:03:59.020 I like product.

00:04:00.540 I like product creation.

00:04:02.420 That is the bottleneck that I had to solve

00:04:05.140 because without it, I'm always required in it.

00:04:08.120 And if you're the CEO and you're building a multi seven,

00:04:11.640 eight figure a year company,

00:04:13.440 you cannot be in the business anymore.

00:04:15.560 You have to be working on the business,

00:04:17.180 focusing on the people, the vision, and the finances

00:04:19.540 to make sure you can continue to grow.

00:04:21.540 That's what I wanna share with you.

00:04:22.880 So make sure you ask yourself that question.

00:04:25.040 And then the other one is like,

00:04:27.960 where are the blockers in your growth, right?

00:04:32.060 Do you need to get more customers?

00:04:34.440 Do you need to retain more customers?

00:04:35.800 Or do you need to make more from each customer, okay?

00:04:38.300 So out of those three,

00:04:40.240 where in your business you feel like there's friction?

00:04:42.840 If you ask yourself those four questions

00:04:44.760 to get the answers, you'll start to see

00:04:47.600 the types of hires you can make, okay?

00:04:50.580 Do you need to hire somebody that's an executive admin?

00:04:52.940 Do you need to hire somebody to take care of marketing?

00:04:54.760 Do you need to hire somebody to be a project manager?

00:04:57.160 You'll start to see the three options for hiring people.

00:05:01.700 Number two, give them a score, okay?

00:05:04.120 This is the way I do it.

00:05:05.060 I say, okay, well, I could hire this person,

00:05:07.240 this person, this person.

00:05:08.720 All right, well, based on these three criterias,

00:05:11.520 I'm gonna rate them from one to 10.

00:05:13.560 What is this, or sorry, one to three.

00:05:15.820 What is the score, okay?

00:05:17.420 So the first criteria is like one to three,

00:05:20.480 will it make me money?

00:05:21.840 Hiring a project manager may not make me money.

00:05:24.640 Hiring a salesperson will make me money, right?

00:05:27.560 See the difference?

00:05:28.520 So one to three, I would say a salesperson's a three,

00:05:31.060 a project manager might be a one, right?

00:05:33.000 An executive assistant is a one.

00:05:34.200 They're operational, they're not client facing,

00:05:36.840 they're not gonna unlock revenue.

00:05:38.800 Number two is how much time will they save?

00:05:41.020 One to three, right?

00:05:42.980 An executive assistant could be a three 0.64

00:05:45.320 because they're gonna buy back a lot of your time.

00:05:47.300 Whereas somebody else might only be a one for you, okay?

00:05:50.020 And these are for you, the CEO, not for your business.

00:05:53.080 That's the biggest mistake people make.

00:05:54.660 And number three is how affordable are they, right?

00:05:58.520 Is this person a multiple seven-figure hire?

00:06:03.260 Seven-figure hire, 50K a year,

00:06:05.220 outsource for 24,000 a year in the Philippines kind of thing.

00:06:09.200 Is it a one, two, or a three?

00:06:11.160 If you score each three options to hire

00:06:14.220 through that scoring system,

00:06:16.160 you'll start to see which one will buy back

00:06:19.000 the most of your time and be the best hire.

00:06:21.380 Number three, avoid these three mistakes, okay?

00:06:24.660 Now you have three options, you've scored them.

00:06:27.520 These are the three mistakes.

00:06:29.220 Number one is single role.

00:06:32.320 A long time ago, I realized entrepreneurs wear multiple hats.

00:06:35.560 I wear multiple hats.

00:06:36.640 I wake up and I'm CEO, I'm this, I'm that,

00:06:40.040 I wear multiple hats.

00:06:41.240 Why can't I hire somebody to do that?

00:06:43.000 It's like when we hired our house manager,

00:06:44.640 people are like, what does she do?

00:06:46.580 She does everything that I would normally do in my life,

00:06:49.660 in my house, or my wife would do in my house. 1.00

00:06:52.020 Well, where do you find somebody like that?

00:06:54.480 I mean, this is not complicated.

00:06:56.480 You hire somebody that lives 0.98

00:06:58.560 and hopefully they're responsible for living

00:07:01.040 and they take care of the exact same stuff

00:07:02.700 in their household, they just do it for you.

00:07:05.060 So they take care of the cars,

00:07:06.300 they take care of the groceries,

00:07:07.260 they take care of the cooking,

00:07:08.140 they take care of the cleaning,

00:07:09.000 They take care of the purchasing.

00:07:10.900 They take care of monitoring

00:07:12.720 when filters need to be changed and all these things.

00:07:15.080 They are the CEO of your house.

00:07:17.900 And to me, you can hire somebody

00:07:20.860 that can wear multiple hats in a single role.

00:07:24.240 So you can hire somebody in your business

00:07:25.960 that does your social media posting

00:07:28.240 and also does your accounts receivable.

00:07:29.860 That can be one person.

00:07:31.400 So when you're looking at the three roles,

00:07:32.900 understand that one of the mistakes people make

00:07:34.720 is they think I've got to hire

00:07:36.580 an all or nothing type position

00:07:38.220 when I'd rather hire a person that's talented,

00:07:40.900 train them on two or three different kind of things

00:07:43.060 that need to get done.

00:07:43.960 So I can have one person on the team

00:07:46.180 that's dedicated doing three different roles.

00:07:48.140 And over time, I can kind of take a hat off

00:07:50.300 and give it to somebody else.

00:07:51.440 The second thing is in their onboarding, okay?

00:07:54.700 If you have not defined the first two weeks

00:07:58.420 of that new hire's onboarding,

00:08:01.240 then do not make the offer.

00:08:03.160 Until you've had the time to sit down and list,

00:08:06.160 here's the training videos,

00:08:07.580 and you can use external videos,

00:08:09.160 internal content or whatever.

00:08:10.800 Until you've documented what their first two weeks

00:08:14.620 should look like, you shouldn't hire them

00:08:16.760 because you don't wanna be responsible

00:08:19.080 for having to train them, you want other people.

00:08:21.060 So you might have like Monday,

00:08:22.780 I want you to do these three things.

00:08:24.120 Tuesday, I want you to do these three things.

00:08:25.680 And on there might be talk to this person

00:08:28.340 and ask them these questions

00:08:29.580 so you can understand how our business works.

00:08:31.340 Listen to these sales calls, watch these videos,

00:08:35.040 go through all the documents inside

00:08:38.120 of our document repository.

00:08:40.500 So you understand what's there

00:08:41.820 and what we've talked about in the past.

00:08:44.000 You know, whatever it is,

00:08:44.960 but the first two weeks should be documented

00:08:47.380 so that when they hit the ground, they run, right?

00:08:50.480 Because you wanna get them ramped up as fast as possible.

00:08:53.420 The third mistake that people make is they don't let go.

00:08:57.880 They literally hire somebody to do a role

00:09:00.840 and then they don't let them dive deep into the deep end.

00:09:04.240 You know, for example, recently one of my executives

00:09:06.860 hired an assistant and when I double clicked

00:09:09.340 on the way they were working with them,

00:09:10.620 they had yet to give them full access to the inbox.

00:09:13.340 They were using their assistant to like CC them

00:09:15.740 on an email to like schedule a call.

00:09:17.980 And I was like, whoa, whoa, whoa, no, no, no, no, no.

00:09:20.280 Give them access to your inbox.

00:09:21.840 Well, I don't know if I feel comfortable.

00:09:23.360 Look, at the end of the day, you hired somebody,

00:09:25.680 you looked for values, you looked for trust,

00:09:27.400 you looked for experience.

00:09:28.340 If you're holding them back from being able to demonstrate

00:09:32.000 to you that they're capable, that's on you.

00:09:35.120 You've got to push them into the deep end and say to them,

00:09:39.020 I trust you, I've hired you to do this role.

00:09:41.960 If there's anything that you don't know how to do,

00:09:43.680 make a list of it.

00:09:44.600 When we talk, we will review them, I will train you.

00:09:47.280 But I want you to understand you own 100% of this outcome.

00:09:51.400 Let it go, give it to them, let them make mistakes,

00:09:56.320 learn from those mistakes, be a coach, be a leader.

00:10:00.380 You're not helping yourself or them if you don't do that.

00:10:04.520 Those are the three big lessons learned I've had

00:10:07.400 when it comes to who you hire next, okay?

00:10:10.000 First off, the four questions.

00:10:11.520 You gotta ask yourself these questions,

00:10:12.960 identify where in your calendar

00:10:15.040 is there opportunities for you to buy back your time?

00:10:16.840 Number two is you gotta score them with money.

00:10:19.560 Are they gonna make me money?

00:10:20.740 Are they gonna save me time and are they affordable?

00:10:22.360 And then third, you gotta avoid the three pitfalls

00:10:25.340 that most people do when they hire folks

00:10:27.180 to buy back your time.

00:10:28.480 These and many more strategies I cover in my new book

00:10:31.800 called Buy Back Your Time.

00:10:33.460 And if you'd love to support it,

00:10:34.780 I'd encourage you to click the link

00:10:36.660 to buy a copy of the pre-order today.

00:10:39.600 I would appreciate it so much.

00:10:41.160 It's called Buy Back Your Time.

00:10:42.980 Get unstuck, reclaim your freedom and build your empire.

00:10:45.660 So click the link to get your copy today.

00:10:47.920 And as per usual, I wanna challenge you

00:10:49.920 to live a bigger life, a buy back lifestyle

00:10:53.720 and build a bigger business.

00:10:55.480 I'll see you next Monday.

00:10:58.480 You

Dan Martell - November 14, 2022

How to Hire the Right Employees

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