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Matt Luensmann from MJL Recruiting & Consulting gives Startup advice on Cost Effective Hiring

Cost-Effective Hiring Strategies for Startups Mary and Matt discussed the importance of cost-effective hiring for startups. Matt emphasized that having a trusted talent partner can help guide startups through the hiring process, which can be challenging for those unfamiliar with it. They also discussed that the first hire for a startup typically depends on the business model, but is often someone who can help with back-office tasks such as scheduling, social media marketing, and web maintenance. They stressed the importance of recognizing that a business owner can't do everything and the value of outsourcing or hiring on a project or fractional basis to save capital for when a full-time employee is needed.

Employee Hiring Costs and Opportunity Costs Discussed Matt explained the various costs associated with hiring an employee, such as salary, benefits, onboarding and training costs. He emphasized that these costs could amount to $30,000-$40,000 for a single employee. Matt also highlighted the opportunity cost of having a role open for an extended period, which could cost around $200,000 for a non-revenue generating role at a 200-person company. He warned Mary, who is considering recruiting herself, about the potential negative impacts on the company's operations if she doesn't use a recruiter, such as shifting everyone's roles and potentially missing out on the founder's main duties.

Recruitment Costs and Recruiter Benefits Matt and Mary discussed the financial implications of a role being vacant in a company, with Matt noting that the cost of recruitment can easily add up to $50,000. They agreed that involving a recruiter could be beneficial, with Mary highlighting the recruiter's ability to handle back-office tasks like benefits and contracts. Matt shared his experience with a potential client struggling to attract the right candidate, emphasizing the importance of a clear job description and salary expectations. Mary concluded the episode by thanking Matt for his insights and encouraging viewers to connect with him for further help.