Hird was speaking after Watson had equalled a Brownlow Medal record by voting in 14 games, including six best-on-grounds, to finish with 30 votes, the most by an Essendon player in the history of the award.
Richmond's Trent Cotchin and Hawthorn's Sam Mitchell were equal second with 26 votes.
"It was a disappointing end to our season, but this is a massive highlight for our club and Jobe personally," Hird said.
"I don't think there could be anything better in our season than Jobe winning the Brownlow right now.
"We obviously want to go on and be great as a team, but for our captain to do what he did tonight is incredible and we're so proud of him."
Watson, 27, scored votes in 12 of Essendon's first 13 games. He then reflected Essendon's season by going through a quiet stage as the Bombers' season fell apart.
Essendon won eight of its opening nine games. It turned at 8-3 at the halfway mark but its record over the final 11 rounds was 3-8, leaving the Bombers in 11th position.
Watson became the first player to win the Brownlow in a team that finished outside the top eight since Hawthorn rover Shane Crawford won in 1999.
After his lightning start to the count to round 14 (including the bye), he failed to score a vote in four games, from rounds 15 through 18, before scoring three votes during the four-point loss to Adelaide in round 19.
He then polled another vote in the loss to North Melbourne in round 20, enabling him to hold off late charges from Cotchin and Mitchell.
Adelaide's Scott Thompson and Collingwood's Dane Swan were on the next line of polling, with 25.
Watson was assured of the victory with two rounds remaining.
"The passion and work ethic, you just see the quality of person that Jobe is," Hird said.
"It's great to see people tweeting that it couldn't happen to a nicer guy — it's right.
"The work ethic and desire to be the best gets you somewhere.
"I've seen Jobe develop from a young boy to where he is now and it is an amazing transformation. It says a lot about his character."
Essendon coach James Hird (r) with Jobe Watson following his Brownlow Medal win. Picture: AFL Media
Hird played with Watson for five seasons before retiring after the 2007 season. He said Watson was far from athletic when he arrived at the club before the 2003 season.
Watson, the son of Essendon great Tim Watson, had been taken at No.40 in the 2002 national draft as a father-son selection.
"We'd give Jobe a two-and-a-half lap head start in a five-lap race and we'd all beat him," Hird said.
"Jobe wasn't a great athlete when he got there but the great thing is he willed himself to be a great footballer and a great athlete.
"Different people get there in different ways. The way he's got there is his own special way.
"Now he's the best player in the AFL in 2012."
Jobe said he was humbled by the award. He thanked his parents, Tim and Susie, with teaching him the values to see him through life.
He said several times that people around him would enjoy the award more than he would.
"For me, I get enjoyment from winning and that's the thing that feeds me," he said.
"For the people whose lives I influence … they don't get as much elation from the wins I suppose as I do. For an individual award, they probably receive a little bit more happiness out of that."
Watson revealed that a conversation with his father enabled him to get his career on track. Watson had struggled with injury through the 2003 and 2004 seasons before stagnating in 2005.
He said his father told him that it would be fine to give up football, but if he wanted to stay in the game he should give it his best shot.
Jobe lost eight kilograms before the 2006 season and went on to finish second in the Bombers' best and fairest award.
"It's a great thrill and we're really proud of Jobe," Tim said. "He's worked really hard to get where he has in his football career.
"It was a fairly stressful night for the whole family to be honest, sitting there watching him, but it was just a wonderful result.
"Sometimes you bite your tongue and then there comes a time when you think as a parent, 'OK, now's the time I probably need to actually say to him there's a fork in the road and you can choose which direction you want to go in."
Jobe then lapsed during the 2007 season before being dropped for the final game, which was Kevin Sheedy's final game as coach.
Sheedy revealed this year that he would have sought to trade Watson if he'd remained as coach. Watson, for his part, would have sought a trade if Sheedy had remained as coach.
Watson refashioned himself as a ball-hunting midfielder under coach Matthew Knights.
He was named captain before the 2009 season and won the club best and fairest award that season, as well as in 2010. (The 2012 award is to be counted on Wednesday, October 3.)
This year he played every game and kicked 20 goals. His averages per game included 29 disposals, five marks and seven clearances.
At the end of the season he was named in the All Australian team for the first time.
His Brownlow victory was the first by an Essendon player since Hird shared the award in 1996 with Michael Voss of the Brisbane Bears.
In 1993, Essendon defender Gavin Wanganeen won the Brownlow wearing the No.4 guernsey, the same number worn by Watson.
In 2011 Watson scored 15 votes in the Brownlow Medal count. His 30 votes this year took his career tally to 81.
Watson has played 154 games and kicked 79 goals.
Tim Watson played 307 games. He won four club best-and-fairest awards, in 1980, 1985 and 1988-89, and played in three premierships, in 1984-85 and 1993.
He was Essendon captain from 1989-91.
His highest finish in a Brownlow Medal was in 1989, when he finished third with 16 votes.
