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Hey friends, a couple quick updates.
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Now let’s make sure you make your next hire at the right level.
When a CEO I coach tells me, "I need to hire a head of people," I don't ask what that person will be responsible for.
I ask:
"What are the 3 to 5 decisions you expect this person to make?"
That usually catches them off guard. It’s not something they’ve thought through. But at every single level in the company, people are making decisions. Some are routine. Some have huge consequences. But we’re all deciding something.
I won’t hire anyone until I’ve answered it. Without it, the level is likely wrong. But there’s a second half the question.
So I never hire anyone until I've applied the 3 to 5 rule. Twice.
3 to 5 decisions tells you what level to hire.
3 to 5 times the pay tells you whether to hire at all.
I've told you to clearly define success for the role before you post it. These two rules are the hyper-practical version.
Rule 1: 3 to 5 Decisions Set the Level
List the 3 to 5 decisions the role owns on its own. Do this before you picture a single candidate, internal ones included. It's the hiring version of separating design from people.
Back to the head of people. Here's how the decisions sort the level:
Decisions on specific hiring or firing cases? That sounds like an HR business partner.
The policies on hiring and firing, and their enforcement? Sounds more to my ear like a VP of HR.
How to allocate capital and leadership's time across the whole talent ecosystem? Likely a head of people.
They all start from the same general need. They result in three very different hires.
Then try to push each decision down. Ask:
"What's the lowest level role I can expect this decision to be made well to without taking on unnecessary risk?"
The decisions that can't move tell you how senior the hire needs to be. You'd rather start lower and promote than overpay upfront.
The only thing worse than someone overmatched by a role is someone overpaid and underutilized.
Bored A-players will do one of two things:
Leave.
Invent things to do.
And if you can't come up with 3 decisions at all? That's an answer too. You'd be adding in response to a temporary pain, not a need for a permanent decision maker.
Rule 2: 3 to 5x Value Decides Whether to Hire at All
Don't hire anyone unless you can clearly show how they'll directly add value to the company that is 3 to 5x what you'll pay them.
Say the role costs $150K all-in. You need a clear line to $450K to $750K of value.
Why such a high bar? Because a new hire starts in the red. They will:
Not add real value for 6 months
Add a small tax via new interactions
Bring a large recruiting expense, both in dollars and distraction
Add that all up. That's the value hurdle they must clear just to break even. Then:
Hiring is an imperfect science at best. Any less than 3x, and you have to be too perfect with your hiring.
Every person adds complexity. Below 3x, you're rationalizing the extra complexity of more people relative to the value they'll add.
If the case doesn't clear 3x, don't hire. First, do the work with your existing team.
Worst case: You develop a deep understanding of the work and will manage it better. Best case: You automate it, streamline it, or maybe even ignore it.
You'll be shocked by how often you don't need a new hire.
The Worksheet
Complete it before you start your next search:
THE 3 TO 5 RULE
RULE 1: THE ROLE DECISIONS
1. Decision:
Lowest level without unnecessary risk:
2. Decision:
Lowest level without unnecessary risk:
3. Decision:
Lowest level without unnecessary risk:
RULE 2: THE ROLE VALUE
All-in cost of the role:
Direct value this role adds:
Value-Driver A:
Value-Driver B:
Value-Driver C:
Multiple (value divided by cost):
Clears 3x? Y/N
If not, what can we eliminate, simplify or automate?The Verdict
Senior roles tend to have broad responsibilities that make it easy to hide value thinking. Pushing yourself to articulate the actual decisions the person in that role will make force clarity.
And once you know the right level of hire, you can decide if that’s a role that makes your company better, or your leadership more complicated.
Lead on,
Dave & Mar
PS: Hiring for your most critical role in 2027? MGMT Accelerator starts Tuesday, February 9. You'll leave with a clear recruiting plan for your most critical role. Join 1,600+ leaders who have trained with us. Use your 2026 budget to start 2027 strongly.
Ways To Work With Us
MGMT Accelerator: A live cohort-based leadership development program.
MGMT Fundamentals: A three-week training program for new managers.
Custom Programs: Workshops built and delivered for your company.
1:1 Executive Coaching: C-suite leaders looking to scale.
Keynote speaking: Leadership lessons for your event or offsite.\
Learn about them all at: davekline.com
