The cost of recruiting, training and onboarding a new employee who is found to be a poor fit can be equivalent to 50% of that person’s first year salary. Hiring the wrong person can lead to a cascade of failures within an early-stage start-up, which is why Founders should focus on three key metrics to take a more data-driven approach to hiring.
- Cost per hire
- Time to hire
- Employee turnover rate
According to Anastasiia Kuzmenko at Flyer One Ventures, “The biggest difference between hiring in a healthy economy and hiring now is that there’s no room for error.”