The hire starts Monday. Cash breaks even in month eleven.

Most hiring decisions are priced as salary against annual revenue. The real number is the shape of the ramp, and who pays for it while it happens.

By Steve 5 min read
Abstract bridge artwork for The hire starts Monday. Cash breaks even in month eleven.

Most hiring decisions get approved on a single comparison: this person costs £55,000, they should generate three or four times that, so the maths works. It is the right instinct and the wrong arithmetic. It compares an annual cost to an annual output, and in doing so quietly assumes the output starts on day one. It doesn’t. What actually happens is that the cost starts in week one at full rate and the output arrives gradually over months, and the gap between those two lines is the real price of…

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