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True cost of a hire

What a new person really costs — and the revenue to cover them.

#Hiring & Teams#Finance & Accounting#Unit Economics#Operations & Lean

How it works

  1. Fully loaded cost = salary × (1 + extra costs %).
  2. Revenue to cover them = cost ÷ gross margin.
  3. Hire for a clear bottleneck — 'first who, then what' (Jim Collins).
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Your result

Real cost / year

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Per month

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Revenue needed / year

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Months your cash covers

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Learn the idea behind it

First who, then what (hiring)

Get the right people on the team before deciding exactly where to go.

Managerial leverage

A manager's job is to multiply the team's output, not to do all the work themselves.

References

  1. [1]
  2. [2]

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