That's just a plain scaling issue, isn't it though? Eventually, the supply of A-level people dries up, no matter the compensation offered. If growth is to continue, B-level people must be hired.
Yes A-level people are rare and expensive. The mistake I see too often is companies not focusing on keeping their core revenue-generating team A-level. Put the B-level people in support roles. When you dilute the core revenue team with B- and C-level people, the As tend to leave and then you're in big trouble.
The quote is from Steve Jobs and is absolutely true. As soon as the first bozo infects your team, they will start hiring other bozos, and after a while your org has regressed to the mean. Therefore you should hold a ridiculously high bar for hiring. A temporarily empty seat is preferable to a non-A player.
For a small company, for one still trying to find its business model, growth is absolutely necessary. The alternative is lost investment, and everyone out of work.
