Acquisition.com CEO says leaders ‘have it backwards’ when it comes to hiring: She says she hires for emotional intelligence over technical skills

Hiring leaders including Acquisition.com founder Leila Hormozi argue that employers should prioritize soft skills and character over technical ability as AI automates many entry-level administrative roles; U.S. employers added just 50,000 jobs in December, underscoring a challenging labor market. Hormozi, who cofounded Acquisition.com (a $200M+ portfolio) and reports a personal net worth above $100M by age 28, echoes research from LinkedIn and a 2025 Harvard study that foundational social and cognitive skills drive long-term performance, a view also supported by CEOs Jamie Dimon and Satya Nadella. The shift implies firms may reallocate hiring and training resources toward emotional intelligence and adaptability rather than narrowly technical recruiting.

Analysis

Market structure: AI-driven elimination of routine entry-level work disproportionately benefits enterprise software, HR-tech/upskilling vendors and platforms that certify soft skills (Microsoft/LinkedIn, ADP, Paycom) while pressuring traditional staffing and low-margin BPOs (Robert Half RHI, Manpower MAN). Pricing power shifts to scalable platforms that bundle assessment, LMS and internal mobility tools; employers who invest in reskilling can cut headcount growth but raise average pay for skilled roles by an estimated 5–15% over 2–3 years.

Risk assessment: Key tail risks include fast-moving AI regulation (EU/US privacy/employment law) and political responses (wage subsidies, UBI) that could change corporate incentives; operational risk from biased/evidence-light EQ assessments can create litigation. Immediate (days–weeks): hiring freezes and selective recruiting; short-term (3–12 months): increased capex into training and HR tech; long-term (1–5 years): structural labor reallocation and potential disinflation from productivity gains or concentrated wage inflation in high-skill pockets.

Trade implications: Favor long exposure to scalable HR/enterprise software (MSFT, ADP, PAYC) and selective edtech; short staffing/BPO names (RHI, MAN) where revenue is directly cannibalized by automation. Use 3–12 month options to express directional views (buy-call spreads on MSFT, buy-put spreads on RHI) and construct dollar‑neutral pair trades (long MSFT, short RHI) to isolate labor-reallocation alpha.

Contrarian angles: Consensus underestimates heterogeneity — not all training vendors will monetize; the market may be overpricing “soft-skill” products while underpricing companies that operationalize EQ (internal mobility platforms). Historical parallels (manufacturing automation) show regional and sectoral rebounds; unintended consequences include legal/regulatory scrutiny of subjective hiring practices and diversity backsliding, creating both risk and alpha for nimble, compliant vendors.

Key Decisions for Investors

• Establish a 2–3% portfolio long position in MSFT over 6–12 months; hedge cost by buying a 9‑month 5% OTM call spread sized to desired delta. Trim/exit if MSFT rallies >20% or if 10y yield rises >50bps within 90 days.
• Initiate a 1–2% combined long (split ADP 60%/PAYC 40%) to capture HR-tech secular spend; hold 6–18 months and reduce if reported organics fall below 5% YoY or churn increases >200bps on consecutive quarters.
• Open a 1% short exposure to staffing names (RHI 0.5%, MAN 0.5%) via 3–6 month put spreads to limit downside; target 15–30% nominal drop—cover if U.S. unemployment rises >0.5ppt or companies post two consecutive beats with positive guidance.
• Implement a dollar‑neutral pair trade: long MSFT / short RHI sized 2:1 within 30 days to isolate benefit of platform-led reskilling vs. staffing contraction; rebalance monthly and unwind if MSFT underperforms S&P by >10% over 60 days or RHI outperforms sector by >15%.