
Dear tech companies, this is not how you hire engineers - Swizec
http://swizec.com/blog/dear-tech-companies-this-is-not-how-you-hire-engineers/swizec/6643
======
EdwardDiego
> According to a measure I’ve heard once (probably depends on many factors), a
> new full-time engineer adds some $1,000,000 to your company’s sell value.

Hmm, that's a suspiciously round number. I'm also curious as to why employees
in an industry where labour costs are the majority of your costs, would
suddenly be considered such a valuable asset by a business guy.

~~~
Swizec
I didn't want to directly quote the business guy who told me that number for
various reasons.

But I think what he was getting at is the way VC's value a company. More
engineers, more valuable for fundraising because of greater ability to
deliver, more need for money, and more assets in general. Especially important
if the company ends up doing poorly and needs to be acquihired. The more
engineers to sell, the less money the investors lose.

Another calculation you can use is that if company makes $X million in
revenue, and its value-per-employee is $Y, then an extra employee is in theory
worth $Y. Especially in early stages where revenue has potential to scale
linearly or even exponentially with every new hire.

Also, from what I remember of running a startup as a techie and talking to a
lot of people with MBA's, revenue-per-employee is one of the most important
performance indicators for companies.

------
current_call
_Why don’t you approach engineers the same way?_

If the "learn to code" movement doesn't flop, it won't be a sellers market.
Problem solved!

------
mooreds
Is this facetious? I am afraid I can't tell.

~~~
Swizec
It's meant to convey a point using humor.

------
vikstrouss
.

~~~
vixamincessidnt
.

