SKILL LABS

True Hiring Cost

Reveal the true financial burn of a new employee beyond base salary including taxes and overhead.

Base Salary ($)

Overhead %

Total Monthly Burden$6 250

Strategic Deep Theory

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THE STICKER SHOCK

Hiring is the most expensive mistake a growing company can make. Founders often look at a $100k salary and think they can afford it. In reality, that $100k employee will cost the company between $130k and $160k.

This is the 'Fully Loaded Cost'. If your business model doesn't have the margin to support a 40% overhead on every human, you are scaling a tragedy.

THE REVENUE MULTIPLIER

A healthy services business requires a 3x multiplier. If an employee costs you $10k/month (fully loaded), they must generate at least $30k/month in revenue. If they don't, you aren't a business; you're a high-stakes daycare.

TACTICAL Q&A

Q: What is the biggest hidden cost of a new hire?

A: Management debt. Every new person requires a slice of the founder's or manager's time. If you hire 5 people, you effectively lose one full-time manager just to keep them productive.

Q: Should I hire a full-time employee or a contractor?

A: If the task is core to your competitive advantage (your 'Moat'), hire. If it's a commodity task (design, accounting, cleaning), contract. Contractors have higher hourly rates but zero 'management debt' and long-term liability.

TERMS: FULLY LOADED VS BASE SALARY

→

BASE SALARY: The number on the offer letter. (The Vanity Number).

→

FULLY LOADED COST: Salary + Taxes + Benefits + Equipment + Office Space + Software + Recruiting Fees. (The Reality Number).

Contextual Glossary

Burn Rate[+]

KPI[+]

Diagnostic Report

Interpretation

"Hire is 25% more than salary."

Identified Pattern

OPTIMIZED HUMAN CAPITAL

SOLUTION MASTERY REQUIRED:

The Keeper Test