As founders we can be overly optimistic when setting aggressive goals. Here I walk through a simple headcount planning tool that helps to answer:
- How long does it take to complete the hiring process?
- What is a reasonable number of direct reports?
- How will attrition impact my headcount plan?
Building a team involves a lot of complex moving pieces and a data-driven planning process will help to highlight ways to meet business goals. It’s especially helpful to figure out when to hire managers and how to account for employee attrition.
You will have to make the following assumptions to complete this planning process:
- Span of control for each manager (total number of direct reports)
- Planned team size needed to meet business goals
- Average hires per month and annual attrition
- Key performance indicator for hires (sales quota used in example)
Make your own copy of our free headcount planning template to experiment with different scenarios. Don’t forget to check further reading recommendations at the bottom!