Careers

A tech CEO explains why he 'throws résumés out the door' — but places huge value on the cover letter

Jason Fried Basecamp founder CEO
Don't rely on you résumé if you're applying for a job at Basecamp, said Jason Fried. Flickr/Jason McELweenie
Read in app

On an episode of the "Work and Life" podcast, Basecamp CEO Jason Fried explained why his company never looked at job candidates' credentials.

"We basically throw résumés out the door," Fried told the host Stew Friedman, who is the founding director of Wharton's Work/Life Integration Project.

It doesn't matter if you went to Harvard or to your local community college — Fried thinks that's more or less irrelevant to your ability to thrive at the web-development company.

In fact, when I spoke with Fried in 2016, he told me that Basecamp had hired several people who didn't graduate from or didn't attend any college and that they're "wicked smart."

A résumé "doesn't say anything really about what someone's capable of," Fried told Friedman. "We're always about getting to the realest possible thing, so we can cut through all the fog and find out if this person can do what they say."

One way to do that is to have the candidate complete a sample project. Fried gave Friedman an example: Let's say Basecamp is hiring a designer. It'll give a candidate for that job one week to complete a project — and pay the candidate $1,500 for the work.

Read more: A former Starbucks HR exec shares the single job-interview question that predicts success better than a résumé

Then Basecamp will ask the candidate to walk it through the person's thought process in a written summary of the project. This step is crucial.

"We only hire good writers," Fried told Friedman.

Because Basecamp's employees work all over the world, they communicate mostly via writing. Basecamp also publishes books and blog posts on topics like company culture.

"If you can't make your points clear and concisely — if you can't go into detail in a way that doesn't spark more questions than you're answering, then you're just not going to work out well here," Fried said.

That's why a solid cover letter is key. "Can someone sell us on themselves in a very brief letter that's so well-written and so well-thought out that we're like, 'This person knows how to communicate'?" Fried said.

If there are ever two equally qualified candidates, but one's a more skilled writer, Fried said, "we will always hire the better writer."

Read next

Shana was a correspondent for Insider, where she covered career development and workplace culture.In 2022, she published "Don't Call It Quits" to help professionals who feel stuck in their careers find greater happiness at work.Shana spearheads the HR Insider series, for which she's interviewed talent chiefs at Microsoft and Goldman Sachs, shared tips from an ex-Googler on knowing when to change jobs, and demystified the hiring process at Salesforce. She regularly publishes news analysis; past topics have included burnout among US workers, gender and racial dynamics within HR, and the hybrid workplace.She has moderated programs at Chief and the Harvard Business School Club of New York and has appeared on Cheddar and Bold TV.Before beginning her career in journalism, Shana studied English and psychology at Brandeis University and received her master's degree in English literature from Columbia University.