Hiring

When to hire?

Hiring is a big decision. It is an overhead that cannot be shaved off, and it will continually increase in cost as long as the headcount exist. It is important to consider the following before starting the hiring process:

1. Cashflow projection is healthy. With the addition of the employee, and the projected in flow of cash till the end of financial year is ok.
2. Leave as least 2 months buffer, assuming no revenue can be generated, to be able to pay the employee. I would prefer at least 4 months in reserve.
3. There are actually work coming in, when the employee comes in, is just feels natural to kick start and get to work, so that we can invoice faster.

Return on Investment

Each employee hired, are expected to generate revenue more than what they are paid for, this is how company sustain. However, we also need to take note on the human side of things. aside from just evaluating the performance based on financial stand point. Materialisticly, we aim for the following

1. Employees are to earn 2x the revenue that they are paid
2. Their performance, and increment should be a reflection of how the company grow in their presence.

To be continued...