Will we need to hire more employees?
Short Answer:
Use AI to increase employee productivity 15% per year. If you’re growing 15% per year, then you’ll need no new net employees to double the business over the next five years. That’s the goal for most businesses. If growing faster, the goal is less people paid more than more people paid less. Focus on increasing the ratio of Total Gross Margin Dollars divided by Total Payroll + Benefits. This measures your labor efficiency ratio. Keep improving gross margin thru pricing and cost strategies – and read Scaling Up Compensation to get your compensation strategy right.
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