In typical 37signals fashion, the wisdom in these pages is edgy yet

Pass on great people
Some companies are addicted to hiring. Some even hire when they aren't
hiring. They'll hear about someone great and invent a position or title just to
lure them in. And there they'll sit--parked in a position that doesn't matter,
doing work that isn't important.
Pass on hiring people you don't need, even if you think that person's a
great catch. You'll be doing your company more harm than good if you
bring in talented people who have nothing important to do.
Problems start when you have more people than you need. You start
inventing work to keep everyone busy. Artificial work leads to artificial
projects. And those artificial projects lead to real costs and complexity.
Don't worry about "the one that got away." It's much worse to have
people on staff who aren't doing anything meaningful. There's plenty of
talent out there. When you do have a real need, you'll find someone who fits
well.
Great has nothing to do with it. If you don't need someone, you don't
need someone.

---

---

Strangers at a cocktail party
If you go to a cocktail party where everyone is a stranger, the conversation
is dull and stiff. You make small talk about the weather, sports, TV shows,
etc. You shy away from serious conversations and controversial opinions.
A small, intimate dinner party among old friends is a different story,
though. There are genuinely interesting conversations and heated debates.
At the end of the night, you feel you actually got something out of it.
Hire a ton of people rapidly and a "strangers at a cocktail party" problem
is exactly what you end up with. There are always new faces around, so
everyone is unfailingly polite. Everyone tries to avoid any conflict or
drama. No one says, "This idea sucks." People appease instead of challenge.
And that appeasement is what gets companies into trouble. You need to
be able to tell people when they're full of crap. If that doesn't happen, you
start churning out something that doesn't offend anyone but also doesn't
make anyone fall in love.
You need an environment where everyone feels safe enough to be honest
when things get tough. You need to know how far you can push someone.
You need to know what people really mean when they say something.
So hire slowly. It's the only way to avoid winding up at a cocktail party
of strangers.