There are two main problems: (1) Who will you learn from? Successively hiring only people equal to or less than the current skill level within the company inev

There are two main problems: (1) Who will you learn from? Successively hiring only people equal to or less than the current skill level within the company inevitably leads to a gradual lessening of talent within the company. (2) How will you stop the talented staff leaving? By hiring untalented people you shift more work onto the most talented. Since they also probably don't want to work in a place that is known for hiring people without talent they're going to be very likely to leave. This will exacerbate the brain drain within your company.