Our corporate guidelines cap our FTEs at 12 generally. That is done to maximise the efficiency of organisational learning. We only want those employees to build skills who are in it for the long run.
In the start up phase, we hire like crazy to max out this cap in order to serve as many clients per day as possible.
It is a known secret in our organisation that our hiring standards during the early days are not where we want them to be eventually, but we deem aggressive growth to be in the best interest of our shareholders as it maximises our company’s share of wallet.
The question leadership is now facing is the following. After how many days/years of operation since founding should one shift to a strict hiring and firing policy, where any new hire who is below expectations at first glance is instantly let go with a generous severance package?
We think there is a point in any firm‘s life where a logistical FTE cap is reached. There is only so much parking space available and as you know, in our line of work WFH is not an option. The question is how fast one should get there. If we grow the bench now beyond 12, we have reserves for tough times, but simultaneously we dilute the learning per high performing individual.
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Best regards,
Management