ROI-Positive Hiring Timeline
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Shaan Puri shares his perspective on hiring decisions, emphasizing that new roles should be immediately value-generating rather than just making operations easier. He focuses on ROI-positive hiring where the investment in personnel must directly translate to revenue and profits.
Key Points:
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Hiring Philosophy:
- New hires should generate more revenue than their cost within 6-12 months
- The role must be "immediately value accretive"
- The job should generate revenue and profits, not just make life easier
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Decision Making Framework:
- Primary consideration: Will this hire be ROI positive if they're competent?
- Secondary consideration: Do I have the bandwidth to manage this hire?
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Value Generation:
- Jobs should be structured to literally generate revenue and profits
- If a competent person is hired, it "has to be an ROI positive thing"
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Product Analogy:
- Compares hiring philosophy to product pricing
- Example: If you can't generate more than $199 from a $199/month product, "that's just my own incompetence"
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Focus on Value Creation:
- Moves beyond just operational efficiency
- Emphasizes direct connection to revenue generation
- Requires clear path to positive return on investment
This perspective suggests a highly pragmatic approach to hiring, where each new role must have a clear and direct path to generating more value than it costs within a specific timeframe.
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.