> A bad hire might cost you 3 months salary 30,000
I think this sounds "correct" at first glance but really neglects the fact that there is onboarding and other team dynamics at play. Maybe if you are a giant org and can deal with churn it's okay, but if you're a "small" company, new hires are a drain on everyone's time and emotional resources. You're going to lose that persons salary sure, but also what's the dollar equivalent for how much time others spend onboarding? Probably 2-3x that? And then if you keep hiring and firing people you are going to burn out your team of people that liked being at your job but now hate that you have so much churn and they are tired of onboarding people that are going to quit or be fired in a few months.
I think this sounds "correct" at first glance but really neglects the fact that there is onboarding and other team dynamics at play. Maybe if you are a giant org and can deal with churn it's okay, but if you're a "small" company, new hires are a drain on everyone's time and emotional resources. You're going to lose that persons salary sure, but also what's the dollar equivalent for how much time others spend onboarding? Probably 2-3x that? And then if you keep hiring and firing people you are going to burn out your team of people that liked being at your job but now hate that you have so much churn and they are tired of onboarding people that are going to quit or be fired in a few months.