As a founder, don’t focus on EBITDA growth without considering this.

I was in a meeting the other day with the CFO and COO of a company.

We were building out the forecast for this year and talking through anticipated headcount changes.

The consensus landed on we can’t afford to hire the 50 employees as planned this year.

The primary solution was to cut expenses, but I picked up something interesting while we were talking.

The COO mentioned we can take up to 3–6 months to get someone onboarded.

In dollar terms, if we pay someone $100,000/year, we are potentially paying them $25,000 to “get up to speed” assuming a 3 month onboarding cycle.

That’s $1.25M spent on onboarding for the entire assumed headcount.

What if we were able to evaluate the onboarding process and cut it by 1/3?

Do we potentially have a solution that promotes efficiency, enhanced job satisfaction, and cash savings??

I guess we’ll have to evaluate our processes and see.

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