The idea of building an exceptionally strong team isn’t just for Silicon Valley giants but a powerful framework for companies of all sizes to achieve remarkable results. It’s not about hiring more people; it’s about hiring the right people—superstars who elevate everyone around them.
Netflix co-founder Reed Hastings famously coined the “talent density” defined as “a smaller amount of talent overall, but the amount of talent per employee is greater.” In essence, you build a lean team comprised solely of high-performing individuals who can accomplish the work of many. This strategy has been credited with Netflix’s immense success and, as HR industry analyst Josh Bersin notes, it’s an increasingly vital approach in a world where AI is reshaping the job market. For small businesses, it’s a powerful way to outperform larger competitors.
So, how can you, a startup or growing company, adopt this strategy without Netflix’s deep pockets or brand recognition? Sam Chaudhary, co-founder of ClassDojo (a children’s education company with a team of 220 that maintains an incredibly selective hiring rate of 0.09%), has some answers. As Chaudhary puts it, “Just by writing the right piece of code, one great software engineer can literally create billions of dollars of company value—while enormous teams of less-talented people will never get there.”
Here are Chaudhary’s three rules for hiring with a talent density mindset, strategies that have helped ClassDojo reach 45 million kids:
1. Evaluate by Effectiveness: Seek Force Multipliers
Talent density goes beyond simply recruiting brilliant individuals. Each new hire must be a “force multiplier”—someone who actively unblocks and empowers others, enabling the entire team to perform better. Chaudhary describes these individuals as “very rare” and often requiring a lengthy courtship, but emphasizes that compromising on this quality is not an option.
To assess for this unique capability, Chaudhary might ask a candidate about a deeply held belief, then challenge them to articulate the potential downsides of their own opinion. This reveals whether they possess the critical self-awareness and flexibility needed to collaborate effectively rather than being dogmatic.
2. Hire Only for “You Bet”: Make Unmissable Choices
At ClassDojo, a select group of highly trained employees take on hiring manager responsibilities, bearing 100% accountability for filling positions. After thorough candidate review and team feedback, they ask themselves crucial questions: “If this person went to a competitor, would it be devastating?” or “If I were interviewing at a company and met this person, would I join just to work with them?”
The ultimate decision hinges on a simple evaluation: Is this person a “hell yes”—an incredible, can’t-miss opportunity? If the answer isn’t a resounding “yes,” then it’s a “no.” As Chaudhary asserts, “If everyone’s just okay with this person being here, to me that’s a no.”
3. Talent Attracts Talent: Cultivate a Virtuous Cycle
High performers don’t just deliver individually; they attract and cultivate other high performers. Will Felps, an associate professor at UNSW Sydney, explains that “we tend to imitate the most impressive among us.” Conversely, his research shows that negative influences from “jerks and slackers” can diminish a team’s performance by 30% to 40%.
This underscores another critical benefit of talent density: a team of exceptional individuals collectively elevates everyone’s capabilities. While the daily pressures to compromise on hiring standards are real, Chaudhary believes that “if we stay laser-focused and just keep increasing the average level of effectiveness with every hire, there isn’t a problem we won’t figure out.”
By focusing on these three principles, your business can build a powerful, efficient, and highly effective team that not only achieves its goals but also continuously raises the bar for itself.
What strategies have you found most effective in building a high-performing team? Share your insights in the comments below!